The challenges facing Zimmer include the 2007 settlement concerning allegations it (and several other manufacturers) induced surgeons to hip and knee replacement devices through kickback payments, an April surgical products recall and temporary suspension of sales for the company’s Durom Cup.
“Our orthopedic surgical products business was down 19 percent for the quarter due to the previously announced voluntary suspension of production of certain products in our in Dover, Ohio facility,” said Mr. Dvorak, according to the Seeking Alpha transcript.
“The transition over the past year has been disruptive to our relationships with consultants. For instance, we were unable to communicate when development meetings would resume, when educational courses would occur and when suspended consulting payments would be made.
“In other words, we weren’t able to provide visibility as to how and when these matters would be resolved, and quite understandably that was frustrating to our consultants. We’ve been extremely focused on taking steps that we believe will restore these important relationships,” he said.
In response to an analyst’s question concerning Zimmer’s ability to reengage with physician consultants, according to Seeking Alpha, Mr. Dvorak said, “I’d say that we are at the 50-plus percent mark, and by the time we exit this year, we are going to be at the 75-plus percent mark. And by the time we complete the first quarter of next year we should be at full speed.”
View the Seeking Alpha Zimmer earnings call transcript.
Read about Zimmer’s third quarter financial results .
