After spending 2018 dealing with quality control remediation and supply chain issues, Zimmer Biomet expects to return to market growth by 2020.
Bryan Hanson knew when he accepted the job of CEO of Zimmer Biomet in December 2017 that he had a tall order to fill. The company has struggled with quality control and supply chain problems since December 2016, which created investor frustration that ultimately led to former CEO David Dvorak’s resignation. Hanson told investors when he came on board that righting the ship would take two years and so far the company appears to be on the right course.
“Our performance was better in 2018 than 2017 and we expect 2019 to be better than 2018,” Hanson said during the company’s earnings call last week. “While we’re halfway through the turnaround timeline, importantly, we have retired more than half the risk associated with that plan. Although we still have a lot of work to do, we have a team that’s ready to launch important new solutions for our customers and deliver on our near-term commitments to transition the organization to full offense and prepare for 2020 and beyond.”
Hanson said the company made significant progress across all of its short-term priorities last year, including supply recovery, quality remediation, new product launches, driving a “One ZB” mission and culture, as well as talent and structure.
“These are the priorities that will allow us to reshape Zimmer Biomet and begin to position the business for offense,” he said.
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