Becker's Spine Review

38 DEVICES & IMPLANTS Zimmer Biomet Reports $1.9B in Q2 Revenue: 5 Key Notes By Laura Dyrda Z immer Biomet released expected preliminary second quarter financial reports and addressed the production lag at the legacy Biomet manufacturing site in Warsaw, Ind. e results were released the same day David Dvorak stepped down from his role as CEO aer leading the com- pany for 10 years. Interim CEO Dan Floin said, "Certain brands did not achieve targeted produc- tion levels as quickly as we anticipated," af- ter Zimmer's merger with Biomet, and the company has been slower than expected at recapturing expected sales from impacted customers. "As we look toward the second half of 2017, we are focused on restoring full product sup- ply and improving customer engagement, while continuing to progress on our quality enhancement efforts," said Mr. Florin. Here are five things to know: 1. Second quarter revenue hit $1.9 billion, a 1.1 percent increase over the same peri- od last year. e projection falls within the company's previously anticipated quarterly revenues. 2. Last year, Zimmer Biomet acquired spine device and implant company LDR; exclud- ing the 240 basis points LDR contributed to second quarter revenues, the revenues de- creased 1.3 percent. 3. Zimmer Biomet's adjusted diluted earn- ings per share are expected at the bottom of previously issued guidance of $2.08 to $2.13. 4. e company estimates foreign exchange rates had a favorable impact on revenue of 120 basis points relative to the assumed sec- ond quarter guidance. 5. Zimmer Biomet's second quarter confer- ence call is scheduled for July 27 and the com- pany will provide a full update and guidance on quarterly earnings at that point. n Stryker to Receive $248.7M in Most Recent Patent Infringement Decision against Zimmer Biomet: 5 Things to Know By Laura Dyrda U .S. District Judge Robert Jonker in Grand Rapids, Mich., found in favor of Stryker Corp., in a patent infringement case against Zimmer Biomet and awarded the orthopedic device company giant $248.7 million, according to Reuters. Here are five things to know: 1. Stryker filed the lawsuit in 2010, alleging Zimmer Biomet's Pulsavac Plus de- vice for orthopedic surgery wound cleaning infringed on three Stryker patents. 2. A federal jury found Zimmer willfully infringed on Stryker's patents in 2013 and awarded the company $70 million. 3. In 2014, Judge Jonker decided Stryker deserved more and awarded the company $228 million — triple the initial decision — due to the "flagrancy and scope" of the infringement. Zimmer appealed to the U.S. Federal Circuit Court of Appeals, which upheld the infringement but reversed the willfulness and thus tripling of the damages. 4. Since the appeal, the U.S. Supreme Court decided the courts were too rigid on willful infringement and Stryker's case was sent back to Judge Jonker to de- termine Stryker's award based on the Supreme Court's new standards. 5. Judge Jonker reaffirmed his original decision and awarded Stryker $248.7 million. n DePuy Synthes Acquires Sentio to Strengthen Spine Business: 5 Notes By Laura Dyrda D ePuy Synthes, a Johnson & Johnson subsidiary, acquired Innovative Surgical Solutions, a nerve localization technology company doing business as Sentio. Here are five things to know: 1. The move falls in line with DePuy Synthes' stated strategy of investing in faster growing segments with technologies designed to bring value to patients. Sen- tio focuses on the spine surgery field. 2. Sentio's platform provides real-time feedback to surgeons on nerve location during minimally invasive spine surgery. The technology uses adhesive smart sensors applied to the skin and replaces the neuromonitoring specialist. 3. The Sentio technology was shown to detect nerve location faster and with lower stimulation levels than another competitive system in an animal model study. 4. The terms of the agreement were not disclosed. 5. DePuy Synthes has the second largest spine business in the world and in- cludes treatments for the aging spine, less invasive surgery, scoliosis, degenera- tive disc disease and innovation in care delivery. The company will make Sentio technology available to customers globally. n

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