Colfax, DJO's parent company, named its upcoming spinoff orthopedic brand, CEO Matt Trerotola said in a Nov. 4 third quarter earnings call.
Three notes from the earnings call, as transcribed by Motley Fool.
1. Colfax's planned spinoff orthopedic company will be called Enovis, Mr. Trerotola said in the call. Colfax, which acquired orthopedic devicemaker DJO in 2019, plans to split its industrial and orthopedic device businesses. The separation is set for the first quarter of 2022.
"Enovis symbolizes the powerful combination of innovation and vision fueled by our passion for continuous improvement and reinforced by our drive to deliver superior clinical outcomes," he said.
2. Mr. Trerotola said the med tech business was on track to grow in 2022, and shoulder implant sales grew year over year since 2019.
"As we move past COVID-19 and return to normalized market growth, both of our med tech businesses are well positioned to show strong growth in 2022 and consistent market outperformance over time," he said. "In the quarter, we had some unexpected impact from COVID-19, primarily in recon. After a strong June and July, we saw a slowing of elective procedures in certain regions of the U.S. However, we did see improvement in October, giving us confidence in our expectation of gradual improvement in [the fourth quarter]."
3. Colfax, which also acquired medical technology company Mathys, plans to accelerate its growth with new product launches, Mr. Trerotola said. In the first half of 2022, Mathys expects to launch the reverse shoulder system and Empower 3D knee.