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March 3, 2023
3 Min Read
Dozens of Greenfield, PA-based Johnson & Johnson factory workers will soon be looking for new jobs. The company is dropping the layoff axe at the plant in preparation for spinning off its consumer business, which will be named Kenvue. J&J began a joint venture with Merck to develop consumer health products at the site. But in 2011 J&J purchased Merck’s stake in the joint venture between the two companies.
ZimVie, Zimmer Biomet's spine and dental spin out, is struggling to find its footing as a stand-alone company. On top of reporting fourth-quarter results that missed analyst expectations, and releasing full-year 2023 guidance below analyst expectations, ZimVie announced this week that it is pulling its spine business out of China, citing recent value-based procurement (VBP) regulations there. CEO Vafa Jamali highlighted the progress the company made in its first year post-spin, but that didn't stop analysts and investors from focusing on the miss. "There still is disruption in spine that we're living through. I think the first half of the year is going to be the toughest part," Jamali said during the company's fourth-quarter earnings call. "And I think you're going to see a much, much healthier spine business in the back-end of the year for ZimVie."
Elizabeth Holmes is back in the headlines this week after a court filing revealed she has had her second baby and is seeking to delay her 11-year prison sentence while she appeals her fraud conviction. U.S. District Judge Edward Davila sentenced Holmes to 11.25 years in prison (the low end of the sentencing guide range of 11.25 years to 14 years) plus three years of supervised release. The judge set a surrender date for April 27, intentionally allowing her to give birth before being incarcerated. Holmes is fighting to delay her sentence while she appeals her fraud conviction, a process that legal experts say could take years.
And in case you missed our last Medtech in a Minute report...
Philips won’t be issuing bonuses for its top management team, citing the company's performance and the negative experience of shareholders and other stakeholders. The company is now recalling thousands of "reworked" ventilators that were part of the company's previous recall, which knocked off 70% of the company's market value.
Wall Street has not responded kindly to the pending merger between Globus Medical and NuVasive. This week, during Globus Medical's fourth quarter earnings call, analysts pressed management for additional insight on the deal, and how Globus will keep its sales reps from jumping ship ahead of the merger. The pending merger was also the hot topic of NuVasive's earnings call this week.
As mass layoffs continue across tech and medtech, contract medical device manufacturers are scooping up those left behind. Trelleborg, for example, saw an increase in applicants in January because of layoffs from other industries. Unfortunately, this is only a bandage to the larger problem of manufacturing labor shortages.
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