After gaining better clarity on where Zimmer Biomet needs to improve, new CEO Bryan Hanson said it will be a two-year turnaround to get the company back into positive market share growth.
Zimmer Biomet CEO Bryan Hanson told investors Thursday that he believes the company can get back into positive market share growth, but it will be a two-year turnaround. Hanson said this insight is based on the input he has received from both employees and customers in his four months on the job.
Areas where the company needs improvement, Hanson said during Zimmer Biomet’s first-quarter earnings call, include gaps in demand planning, portfolio management, resource allocation processes, and a lack of manufacturing automation.
Hanson confirmed during the call that FDA concluded a re-inspection earlier this week of Zimmer Biomet’s Warsaw North campus (previously referred to by the company as the legacy Biomet facility). This is the facility that was hit in December 2016 with an unusually long Form 483 based on quality control problems. In the latest inspection, FDA issued additional observations and Hanson said the company plans to submit its formal response in the coming weeks.
“This latest inspection confirmed that quality remediation progress has been made, but we still have work to complete, and we’re obviously, not satisfied with the current state of our quality system at the Warsaw North facility,” Hanson said, according to Seeking Alpha transcripts of the call. “Unfortunately, there is no quick fix, but our team is working tirelessly to make the necessary improvements.”
Having just received the outcome of this latest inspection, Hanson declined to provide too much detail as the company works through the information and prepares its response to FDA.
Image Credit: Zimmer Biomet