Healthcare Equipment and Supplies
Company Overview of Wright Medical Technology, Inc.
Wright Medical Technology, Inc. designs, manufactures, and distributes orthopedic implants and instruments. It provides implants for the foot, ankle, hand, elbow, and shoulder, as well as synthetic and tissue-based bone graft substitute materials. The company also offers upper extremity products/hardware; and biologics products, which are used to replace damaged or diseased bone, stimulate bone growth, and provide other biological solutions for surgeons and their patients. It serves customers in the United States, Europe, the Middle East, Africa, Asia, Canada, Australia, Latin America, and internationally. The company offers its products through a network of employee sales representatives an...
1023 Cherry Road
Memphis, TN 38117
Founded in 1950
Key Executives for Wright Medical Technology, Inc.
Chief Executive Officer, President and Director
Chief Financial Officer and Senior Vice President
Chief Operating Officer and Executive Vice President
President of International
President of U.S. Extremities
Compensation as of Fiscal Year 2016.
Wright Medical Technology, Inc. Key Developments
Wright Medical Technology, Inc. Announces Entry into Metal-On-Metal Hip Litigation Settlement Agreement
Nov 2 16
Wright Medical Group N.V. announced that on November 1, 2016, Wright Medical Technology, Inc. (WMT) entered into a Master Settlement Agreement (MSA) with Court-appointed attorneys representing plaintiffs in the previously disclosed metal-on-metal hip multi-district litigation known as In Re: Wright Medical Technology, Inc., CONSERVE® Hip Implant Products Liability Litigation, MDL No. 2329 (MDL) and the consolidated proceeding pending in state court in California known as In re: Wright Hip System Cases, Judicial Council Coordination Proceeding No. 4710 (JCCP). In addition, on October 28, 2016, the company entered into a Settlement Agreement with three of its insurance carriers (Three Settling Insurers). Under the terms of the MSA, the parties agreed to settle 1,292 specifically identified CONSERVE, DYNASTY or LINEAGE revision claims which meet the eligibility requirements of the MSA and are either pending in the MDL or JCCP, or are subject to tolling agreements approved in the MDL or JCCP, for a total settlement amount of $240 million, of which approximately $180 million will be funded from cash on hand and $60 million will be funded from insurance recoveries. Eligibility requirements of the MSA include that the claimant has a pending or tolled case in the MDL or JCCP, has undergone a revision surgery within eight years of the original implantation surgery, and that the claim has not been identified by WMT as having possible statute of limitation issues. Claimants who have had bilateral revision surgeries will be counted as two claims but only to the extent both claims separately satisfy all eligibility criteria. The MSA includes a 95% opt-in requirement, meaning the MSA may be terminated by WMT prior to any settlement disbursement if claimants holding greater than 5% of eligible claims in the Final Settlement Pool elect to “opt-out” of the settlement. No funding of any individual plaintiff settlement will occur until the 95% opt-in requirement has been satisfied or waived. Wright will continue to vigorously defend metal-on-metal hip claims not settled pursuant to the MSA. As of September 25, 2016, the company estimates there were approximately 600 outstanding metal-on-metal hip revision claims that would not be included in the MSA settlement, including approximately 200 claims with an implant duration of more than eight years, approximately 300 claims subject to possible statute of limitations preclusion, approximately 30 claims pending in U.S. courts other than the MDL and JCCP, approximately 50 claims pending in non-U.S. courts, and approximately 20 claims that would be eligible for inclusion in the settlement but for the participation limitations contained in the MSA. The company also estimates that there were approximately 700 outstanding metal-on-metal hip non-revision claims as of September 25, 2016. These non-revision cases are excluded from the MSA. The final MSA settlement amount (not to exceed $240 million), and the final number of claims settled under the MSA, will depend on, among other things, the number of claimants electing to participate in the settlement and the mix of products implanted in the settling claimant group. Claims which do not meet the eligibility requirements of the MSA, new claims, and claims which have opted-out of the settlement will not be settled under the MSA and the company will continue to defend these claims. WMT has agreed to escrow $150 million to secure its obligations under the MSA, and parent corporation Wright Medical Group N.V. has agreed to guaranty WMT’s obligations under the MSA.
Wright Medical Group N.V. Reports Consolidated Financial Results for the First Quarter Ended March 27, 2016; Revises Earnings Guidance for the Full-Year 2016
May 4 16
Wright Medical Group N.V. reported consolidated financial results for the first quarter ended March 27, 2016. For the quarter, the company’s net sales totaled $181.0 million against $77.934 million a year ago. Net loss from continuing operations totaled $39.3 million, or $0.38 per diluted share against $46.248 million or $0.88 per diluted share a year ago. The company's net loss from continuing operations included the after-tax effects of $11.1 million of transaction and transition costs, $11.4 million of inventory step-up amortization, a gain of $6.6 million related to mark-to-market adjustments on derivatives, $7.1 million of non-cash interest expense related to its 2017 convertible notes and 2020 convertible notes, and a $5.3 million unrealized loss related to mark-to-market adjustments on contingent value rights (CVRs) issued in connection with the BioMimetic acquisition. Adjusted net loss from continuing operations was $12.8 million. Operating loss was $29.380 million against $33.121 million a year ago. Loss from continuing operations before income taxes was $40.166 million against $46.082 million a year ago. Net loss was $47.992 million against $49.748 million a year ago. Non-GAAP EBITDA was $8.463 million and non-GAAP adjusted EBITDA was $16.246 million.
The company anticipates net sales for full-year 2016 of approximately $705 million to $715 million, an increase from the previous guidance range of $695 million to $705 million. The midpoint of this net sales guidance range assumes extremities and biologics pro forma constant currency growth of 14%, excluding the impact of revenue dis-synergies of approximately $25 million to $30 million. The company anticipates 2016 adjusted EBITDA from continuing operations, as described in the non-GAAP to GAAP reconciliation provided later in this release, of $30.0 million to $35.0 million, an increase from the previous guidance range of $20 million to $30 million. This range reects approximately $10 million to $15 million of potential cost synergies expected to be realized in 2016 from the merger with Tornier. The company anticipates adjusted cash earnings per share from continuing operations for full-year 2016 of $0.64 to $0.59 per diluted share.
Orthophoenix LLC Receives Favorable Markman Ruling in its Case against Dfine Inc., Wright Medical Technology Inc., and Stryker Corporation
Feb 3 16
Marathon Patent Group, Inc. announced that on February 2, 2015, the United States District Court for the District of Delaware issued the claim construction order in the litigation involving its wholly-owned subsidiary Orthophoenix LLC, in its case against Dfine Inc., Wright Medical Technology Inc., and Stryker Corporation. In his opinion, Chief Judge Leonard P. Stark, addressed disputed claim terms for U.S. Patent numbers 6,440,138 ("the '138 patent"), 6,863,672 ("the '672 patent") 6,663,647 ("the '647 patent") 6,248,110 ('the '110 patent"), 6,981,981 ("the '981 patent"), and 7,044,954 ("the '954 patent"). For all but one of the disputed claim terms, the court issued a favorable claim construction adopting the constructions (or minor variations thereof) proposed by Orthophoenix. The Court rejected defendants' arguments that the claims were invalid for indefiniteness, and rejected defendants' attempts to import limitations into the claims in order to avoid infringement. Russ, August & Kabat is representing Orthophoenix.
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