David Dvorak is stepping down, but will that be enough to fix the company’s production problems and help it win back lost customers?
Analysts were largely upbeat about David Dvorak’s resignation as Zimmer Biomet’s CEO, but only time will tell if the leadership turnover will be enough to restore investor confidence and win back lost customers.
The Warsaw, IN-Based company has struggled since it completed its $14 billion merger two years ago. Last December FDA hit the company with an unusually long Form 483 based on quality control problems at its legacy Biomet manufacturing facility. In late January the company decided to throw some money at its problems, with a commitment to invest $170 million to “harmonize and optimize” its supply chain and manufacturing and quality systems. Dvorak promised investors last quarter that he had better visibility on the matter than he previously had, and that he expected to be “putting this behind us” in the second half of the year.
Mike Matson, a medtech analyst at Needham & Co., said Dvorak’s departure is likely to be viewed as the first step in Zimmer rebuilding its credibility. Read more>>