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Jana receives clearance to purchase additional Zimmer Biomet shares: 5 things to know Featured

Written by  Laura Dyrda | Friday, 14 July 2017 12:25
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The U.S. Federal Trade Commission granted Jana Partners clearance to purchase Zimmer Biomet shares, would allow the hedge fund to purchase additional stake in the company, according to Reuters.

 

Here are five key notes:

 

1. Zimmer Biomet's longtime CEO David Dvorak stepped down on July 11 and the company's CFO stepped in as interim CEO while the company conducts a nationwide search for Mr. Dvorak's replacement.

 

2. According to Reuters, Jana is positioning itself to "build its stake and press for changes at the company." Jana's current stake in Zimmer Biomet is not clear, and Zimmer Biomet did not comment on the news.

 

3. Since Mr. Dvorak stepped down, Zimmer Biomet's shares have lost two-thirds of their value, according to the report.

 

4. Bloomberg News reported Jana has talked with Zimmer Biomet about potential changes.

 

5. On the same day Mr. Dvorak stepped down, Zimmer Biomet released a preliminary financial report for the second quarter of 2017. Interim CEO Dan Florin said "certain brands did not achieve targeted production levels as quickly as we anticipated" after Zimmer's merger with Biomet, and the company has been slower than expected at recapturing expected sales from customers impacted by the production lag.

 

"As we look toward the second half of 2017, we are focused on restoring full product supply and improving customer engagement, while continuing to progress on our quality enhancement efforts," said Mr. Florin.

 

More articles on orthopedic devices:

Zimmer Biomet CEO David Dvorak exits after 10 years
48 orthopedic devices receive FDA 510(k) clearance in June
Medtronic, DePuy Synthes, Smith & Nephew & more: 14 device company key notes

Last modified on Monday, 21 August 2017 14:12
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