In February, Orthofix announced plans to discontinue the M6 disc replacement line, and leaders discussed the financial costs of the move in a May 6 earnings call.
Orthofix expects a one-time restructuring cost of $8 million mostly linked to the closure of a dedicated manufacturing facility in California, CFO Julie Andrews said, as transcribed by investing.com. Most charges related to the discontinuation will be incurred in 2025, she said.
Orthofix will still continue to support customer demand for the discs as the company goes through remaining inventory and fulfill requirements related to post market surveillance activities, Ms. Andrews said. The company will also complete an investigational device exemption study in the U.S. for the M6 line, which is expected to cost $2 million yearly.
M6 artificial discs were a headwind for Orthofix’s revenue growth, Ms. Andrews said. Global sales for the devices last year were $23.4 million. Resources associated with M6 will be allocated to “more profitable growth opportunities,” the company said in February.
