Xtant Medical plans to close one of its Ohio facilities and lay off more than 50 employees, according to Dayton Daily News.
Here are five things to know:
1. Xtant Medical announced the facility closure in early October, planning to transition its fixation operations to Belgrade, Mont., where the company is headquartered. Xtant Medical formed in 2015 when Bacterin and X-Spine merged, and the transition will create efficiencies and cost savings, according to CEO Carl O'Connell.
2. The Ohio facility employed individuals in quality assurance, regulatory, inventory management, finance, engineering and distribution positions. The layoffs are expected to occur from Dec. 8 to Feb. 28, 2018.
3. Xtant expects this transition to save more than $2 million with a one-time cost for executing the change estimated at $1.5 million.
4. The company will continue its hardware business in Montana as well as new technologies development. "With the continued efforts in 2017 towards restructuring and reducing costs, we are looking to strategically invest in both our existing business and new market opportunities, for hardware and biologics in 2018," he said.
5. In the second quarter, Xtant reported $21.4 million in revenue and EBTIDA loss of around $2.1 million. While biologics revenue increased 20.5 percent, fixation revenue was down 18.4 percent. The company will announce the third quarter financial report on Nov. 8.