February 24, 2023
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.
And in case you missed our last Medtech in a Minute report...
A patent infringement lawsuit between Johnson & Johnson and Alcon has been settled, with Alcon agreeing to make a one-time payment of $199 million to J&J. The disagreement began in 2020 when J&J claimed Alcon infringed on a dozen of its patents by selling the LenSx Laser System for cataract surgery. J&J also said its copyright-protected computer programs had been ripped off, alleging piracy.
Titan Medical, which already was down to a skeleton crew as it struggles to find a potential buyer, laid off four members of its leadership team this week. The company also recently laid off 48 other employees, including the 40 that were furloughed in December. Titan's leadership team has reached out to more than 40 potential buyers, engaged in management presentations, and cooperated in confidential due diligence reviews, but none of these potential buyers expressed an interest in acquiring the business.
Baxter has joined a growing list of medtech companies that are reducing headcounts this year. The company said it will reduce its workforce by 5% as part of a measure that is expected to save the company more than $300 million in 2023.
The owner and a manager of a now-defunct medical equipment supplier in New York have been convicted of defrauding Medicare and Medicaid plans for over $3.8 million. Owner Ikechukwu Udeokoro and manager Ayodeji Fasonu are expected to be sentenced in August. They face up to 10 years in federal prison.
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