Wright Medical Group, Inc. is a global orthopaedic device company specializing in the design, manufacture and marketing of reconstructive joint devices and bio-orthopaedic materials. Reconstructive joint devices are used to replace knee, hip and other joints that have deteriorated through disease or injury. Bio-orthopaedic materials are used to replace damaged or diseased bone and to stimulate natural bone growth.
Industry:MED PRODUCTS Sector: Medical Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:07/26/12
Capital Structure Solvency and Cash Flow
Balance Sheet & Cash Flow
Free cash flow in 3Q10 stood at $9.0 million compared with $7.2 million in the sequentially prior quarter.
Wright Medical had $157 million in cash and cash equivalents and $200 million in debt at the end of the reported quarter. The company had a $100 million credit facility, which remained unutilized at the end of the reported quarter.
Guidance: Wright Medical continues to expect capital expenditure of $50 million and forecasts free cash flow of $15 million for FY10.
Last edited Wed Dec 29, 2010 04:10 AM by MadhubantiMaitra (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
DOJ settlement: Wright Medical Group (and several other small-to-mid-sized orthopedic implant manufacturers) received subpoenas from US Department of Justice (DOJ) in December 2007, requesting documents pertaining to consulting or professional service agreements that the company had with orthopedic surgeons since January 1998. This investigation followed DOJ’s September 2007 settlement agreement with the five largest companies in the joint replacement market.
Wright Medical announced, on September 30, 2010, that it entered into a deferred prosecution agreement (DPA) and a civil settlement agreement, without admitting guilt. This concluded the investigation into Wright Medical’s relationships with orthopedic surgeons and their consulting agreements.
Last edited Wed Dec 29, 2010 04:11 AM by MadhubantiMaitra (Zacks Investment Research)
Rapidly rising implant prices combined with limited annual gains in hip and knee reimbursements rates increasingly keep hospital margins under pressure and the hospitals have responded by becoming cost sensitive.
With substantial revenue coming from international markets, the company is exposed to foreign exchange risk.
Execution on sales force expansion remains a risk, as the company’s revenue and subsequent margin expansion are related to a larger sales force.
Last edited Wed Dec 29, 2010 04:12 AM by MadhubantiMaitra (Zacks Investment Research)
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Last Modification: Thursday 03 of June, 2010 09:07:13 CDT by WikiMigrationBot.
