Can a New CEO Right the Ship Before Zimmer Sinks? (MDDI Online)
Faced with an ongoing CEO search and manufacturing problems, Zimmer Biomet's third-quarter financials missed the mark on both revenue and earnings per share. But there may be a turnaround in sight.
It's been a touch-and-go sort of year for Zimmer Biomet, and the company continues to batten down the hatches.
FDA hit the Warsaw, IN-based orthopedic device maker with an unusually long Form 483 last December based on quality control problems at its legacy Biomet facility. In January, the company went back to the drawing board and unveiled plans to invest $170 million to fix its supply chain and manufacturing and quality systems. Then, in July, David Dvorak resigned as CEO.
This week the company cut guidance for the second quarter in a row after missing the mark on both revenue and earnings per share in the third quarter. But at least one analyst seems to think there is still a turnaround on the horizon for Zimmer Biomet.
"We still view the manufacturing challenges as ultimately fixable and a question of 'when and not if'. Unfortunately, the 'when' has again been shifted out and management now expects a full resolution in 2...
