Jennifer Whitney04.07.08
Warsaw-based Zimmer Holdings Inc. is voluntarily recalling some orthopedic surgical products made at its plant in Dover, Ohio, after finding they didnt meet internal quality standards.
Zimmer temporarily suspended production and sales of affected products at the Dover plant to focus on improvements to manufacturing and quality training for employees, the company said late Thursday. The orthopedic implant maker notified the FDA, distributors and end-users including hospitals.
Were working with our customers now on the recalls, company spokesman Brad Bishop said Friday. He said the company would release more details on the effect of the recall during a first-quarter investor call planned for April 24.
The recalls wont affect Zimmers core hip and knee implant business but are expected to reduce 2008 orthopedic surgical product revenues by $70 million to $80 million, the company said.
The orthopedic surgical division makes various products to support orthopedic surgery from items used in blood transfusion to bowls and paddles for mixing bone cement. In 2007, Zimmer reported revenues from its orthopedic surgical products and other-product category of $234 million.
An analyst said Friday that Zimmer is still likely to beat its 2008 earnings-per-share projections of $4.20 to $4.25.
There are no patient safety issues, and this recall does not impact Zimmers core hip and knee franchise, Bob Hopkins of New York-based Lehman Brothers said in a research note. The recall is due entirely to issues with the packaging of certain products related to surgical wound cleansing.
SOURCE: Ft. Wayne Journal Gazette