David Dvorak stepped down as CEO of Zimmer Biomet and the company is conducting a search for his replacement. In the interim, Senior Vice President and CFO Daniel P. Florin will act as CEO.
"Serving alongside Zimmer Biomet's dedicated employees over the past 16 years and leading the company as CEO for 10 of those years has been a privilege and a highlight of my professional career," said Mr. Dvorak. Since joining the company, Zimmer Biomet has grown from 3,000 employees in 2001 to 18,000 employees and joined the Fortune 500.
Mr. Dvorak also stepped down from the company's board of directors but will remain in an advisory capacity for an undisclosed timeframe, according to Inside Indiana.
The announcement came on the same day as the company released a portion of its second quarter 2017 results; the company reported flat revenues at nearly $2 billion for the quarter, consistent with their previous estimates. However, excluding basis points of contribution from recent acquisition LDR, the revenues would have been down 1.3 percent, and certain brands didn't achieve targeted production levels as quickly as expected post-Biomet merger.
"We also experienced slower than expected sales recapture from previously affected customers in the United States," said Mr. Florin. "As we look toward the second half of 2017, we are focused on restoring full product supply and improving customer engagement, while continuing to progress on our quality enhancement efforts."
Mr. Dvorak oversaw Zimmer's merger with Biomet and continued efforts to grow the company's global brand. "Through a combination of organic growth and strategic acquisitions, Zimmer Biomet's revenue has doubled and the company has established a leading portfolio of technologies, solutions and personalized services," said Board Chairman Larry C. Glasscok. "On behalf of the board, I thank David for his many important contributions to our company and industry over the years and wish him much success in the future."
While interim CEO, Mr. Florin will work with the board, senior leadership and sales force to support customers and enhance stockholder value. He was appointed senior vice president and CFO in June 2015 after 16 years of experience in the medical device industry; he served in the same role for Biomet prior to its merger with Zimmer.
Zimmer Biomet share prices dropped 2 percent after the company announced Mr. Dvorak's departure, and in its preliminary earnings report the company said it expects per-share earnings to be at the bottom range of the previously issued guidance, according to MarketWatch.
More articles on orthopedic devices:
DePuy Synthes releases single use kits for wrist fracture surgery: 5 key points
K2M signs long term distribution agreement: 5 takeaways