Orthofix pivots to spine, extremities (MassDevice)
Orthofix (NSDQ:OFIX) said yesterday that it’s planning a pivot to the spine and extremities market beginning next year, folding its biostim and biologics businesses back into the spine segment five years after it split them out in the first place.
In July 2013 Lewisville, Texas-based Orthofix split the spine segment into biostim and spine fixation divisions, promoting Brad Niemann from commercial operations SVP to lead the biostim biz. Later that month the company restated its financial results covering more than two years, after discovering improperly recognized revenues.
Today the company said it would maintain fiscal reporting with four divisions until the transition is complete, expected at the beginning of 2019, and named Niemann president of the spine division, which will encompass the biostim, spine fixation, biologics units plus the Spinal Kinetics business, acquired last month for $105 million. Spinal Kinetics developed the M6 cervical disc implant. Orthofix said Davide Bianchi will continue to lead the extremities business as president.
“In 2013, Orthofix segmented its business into four strategic business units to gain better strategic and management focus and drive needed performance improvements,” president & CEO Brad Mason said in prepared remarks. “This strategy has proved very successful over the last several years and resulted in each business performing well with solid leadership, execution and growth.
“Today we are announcing these organizational changes as part of an overall strategy to position the company for growth acceleration and to realize opportunities that can only be achieved by leveraging our full portfolio of spine solutions,” Mason said. “As we expand our product offerings and integrate new technologies, such as the M6 disc, we believe the time is right to further optimize our structure to better serve our surgeon customers through a two-pillar approach of a consolidated spine group and a focused extremities business. We are fortunate to have two extremely talented executives to lead these organizations.”
“I am excited to have the opportunity to lead the spine group and look forward to working more closely with the current management teams from all the spine product areas,” Niemann added. “This structure will foster better collaboration and alignment by bringing these teams together under one umbrella to help ensure we make the most of our many opportunities in the market.”