07.28.10
$488 Million
KEY EXECUTIVES:
Gary D. Henley, President and CEO
Frank S. Bono, Sr. VP and Chief Technology Officer
Timothy E. Davis, Jr., Sr. VP, Corporate Development
Cary P. Hagan, Sr. VP, Commercial Operations
John T. Treace, Sr. VP, Global Marketing and U.S. Sales
Kyle M. Joines, VP, Manufacturing
NO. OF EMPLOYEES: 1,000
HEADQUARTERS: Arlington, Tenn.
Executives at Wright Medical Technology characterize their company as a “small market-share player.” If that’s so, it’s a niche that the company fills quite nicely.
The company may not record billion-dollar bottom lines, but the Arlington, Tenn.-based firm has maintained a laser-like focus in market categories it has aggressively pursued with profitable results. When many companies were jostled from their foundations by the economic upheaval of 2009, Wright stayed the course.
“As we reflect on 2009, I am happy to say that we not only survived that period of challenge, but we actually entered 2010 with a more solid business than ever,” President and CEO Gary Henley wrote to shareholders at the end of the year. “We worked hard to strengthen our foundation and ensure our ability to remain a vibrant and competitive growth company in the global orthopedic marketplace.”
Given the numbers posted for fiscal 2009 (ended Dec. 31), the company hit its mark.
Global revenue increased 5 percent to $487.5 million. U.S. sales grew 6 percent compared with 2008, and Wright’s international business grew 2 percent, led by continued good performance by its Japanese subsidiary, officials said.
Overall sales for the firm’s extremities product line posted double-digit gains, increasing 21 percent ($107.4 million) compared with 2008. Growth for the hip and knee businesses was more modest, increasing 4 percent ($167.9 million) and 2 percent ($122.2 million), respectively. Sales of biologic products declined 4 percent ($79.1 million).
Wright reported that domestic extremity product net sales increased 25 percent, primarily as a result of the Charlotte foot and ankle system, in addition to the Darco plating systems, as well the firm’s Inbone and Rayhack products, which were acquired in April 2008 and September 2008, respectively. Increased sales for hips largely were due to the Profemur hip system and Dynasty acetabular cup system implant, which was launched during the second quarter of 2008. Sales of the Advance knee systems—primarily in international markets—totaled 5 percent growth, which partially was offset by declines in the company’s more mature knee product offerings.
Domestic net sales of biologics decreased 2 percent, due to slow sales of the Allomatrix product line. The drop, however, was offset by increased sales of the Pro-Dense injectable regenerative graft and Graftjacket tissue repair products.
One of Wright’s more noteworthy tendencies is the rate at which it adds to and revamps its product line.
A steady number of product launches characterized the company’s throughout the year.
In April, the company rolled out its Prophecy pre-operative navigation guides for knee arthroplasty—part of the growing market for patient specific implants and procedures. The system allows surgeons to use basic CT or MRI imaging technology to plan precise implant placement and alignment before they enter the operating room. Instead of using traditional instruments to align the knee during surgery, Prophecy uses computer imaging to develop patient-specific guides that follow the unique curvature of the patient’s bone anatomy. The process begins weeks before surgery. The goal not only is to improve accuracy, but to decrease patient anesthesia time and provide greater function and long-term implant success, company officials said.
The Coretrak articulating external fixator for foot surgery was the company’s new product offering in August. According to the company, the device also addresses a growing need for minimally invasive solutions that enhance the body’s natural ability to heal, which is particularly important for the growing population of diabetics who already are at a high risk for surgical complications.
Yet another addition to Wright’s line of extremity products was the Ortholoc polyaxial locked plating system for the surgical treatment of foot and ankle fractures. The device consists of three instrument and plating trays to help surgeons stabilize and fixate bone injuries of either the forefoot, calcaneus or ankle region. Polyaxial “locking” allows the surgeon to tailor the angle of screw placement into the plate for best anatomic fit and then “lock” the screw to the plate, according to the company.
In September, the U.S. Food and Drug Administration (FDA) provided 510(k) clearance of the Pro-Stim injectable osteoinductive bone graft substitute. The product is a composite grafting material that is injected through a small needle, hardens and is replaced by the patient’s new bone over time. Full rollout of Pro-Stim didn’t take place until this year. Company officials hope the Pro-Stim will “significantly expand” Wright’s share of the bone graft market.
October brought the launch of the Dynasty BioFoam acetabular cup system for hip replacement surgery. This addition to the Dynasty line of products features proprietary bone-like titanium with a roughened texture that “bites” into bone for enhanced immediate fixation when compared to traditional porous beads. The BioFoam material employs a trabecular structure intended to mimic bone and contribute to bone in-growth and biological fixation. The company first introduced BioFoam cancellous titanium fixation for its Advance knee system in 2008.
In early November, the FDA gave the OK for Wright’s Conserve Plus total hip resurfacing system, which provides a bone-conserving alternative to traditional total hip replacement. Other companies, such as Smith & Nephew, already had reached the market with resurfacing products. The FDA’s approval was for the configuration the company specified in its original premarket approval application (PMA). Wright immediately planed to file for additional indications via a PMA supplement. Conserve Plus is designed to offer pain relief and restoration of function while retaining as much healthy bone as possible and preserving future surgery options, including a primary total hip replacement. It’s an option aimed at younger, more active patients.
November also brought the rollout of the Valor ankle fusion nail for fusion of the ankle joint primarily caused by arthritis, skeletal deformity or diabetes. The nail fuses three bones in the foot and ankle: the calcaneus, the talus and the tibia. It’s also available in multiple implant sizes, lengths and configurations. Each nail implant incorporates a device that allows surgeons to control the compression between the bone surfaces, which is designed to maximize the likelihood of a solid fusion, thereby alleviating pain, according to the company.
Product introductions weren’t the only news coming out of the company in November. Wright also “introduced” its new chief financial officer (CFO). Lance A. Berry was named senior vice president and CFO, replacing John Bakewell, who left to take a position with another company. Berry joined Wright in 2002 and served as vice president and corporate controller.
KEY EXECUTIVES:
Gary D. Henley, President and CEO
Frank S. Bono, Sr. VP and Chief Technology Officer
Timothy E. Davis, Jr., Sr. VP, Corporate Development
Cary P. Hagan, Sr. VP, Commercial Operations
John T. Treace, Sr. VP, Global Marketing and U.S. Sales
Kyle M. Joines, VP, Manufacturing
NO. OF EMPLOYEES: 1,000
HEADQUARTERS: Arlington, Tenn.
Executives at Wright Medical Technology characterize their company as a “small market-share player.” If that’s so, it’s a niche that the company fills quite nicely.
The company may not record billion-dollar bottom lines, but the Arlington, Tenn.-based firm has maintained a laser-like focus in market categories it has aggressively pursued with profitable results. When many companies were jostled from their foundations by the economic upheaval of 2009, Wright stayed the course.
“As we reflect on 2009, I am happy to say that we not only survived that period of challenge, but we actually entered 2010 with a more solid business than ever,” President and CEO Gary Henley wrote to shareholders at the end of the year. “We worked hard to strengthen our foundation and ensure our ability to remain a vibrant and competitive growth company in the global orthopedic marketplace.”
Given the numbers posted for fiscal 2009 (ended Dec. 31), the company hit its mark.
Global revenue increased 5 percent to $487.5 million. U.S. sales grew 6 percent compared with 2008, and Wright’s international business grew 2 percent, led by continued good performance by its Japanese subsidiary, officials said.
Overall sales for the firm’s extremities product line posted double-digit gains, increasing 21 percent ($107.4 million) compared with 2008. Growth for the hip and knee businesses was more modest, increasing 4 percent ($167.9 million) and 2 percent ($122.2 million), respectively. Sales of biologic products declined 4 percent ($79.1 million).
Wright reported that domestic extremity product net sales increased 25 percent, primarily as a result of the Charlotte foot and ankle system, in addition to the Darco plating systems, as well the firm’s Inbone and Rayhack products, which were acquired in April 2008 and September 2008, respectively. Increased sales for hips largely were due to the Profemur hip system and Dynasty acetabular cup system implant, which was launched during the second quarter of 2008. Sales of the Advance knee systems—primarily in international markets—totaled 5 percent growth, which partially was offset by declines in the company’s more mature knee product offerings.
Domestic net sales of biologics decreased 2 percent, due to slow sales of the Allomatrix product line. The drop, however, was offset by increased sales of the Pro-Dense injectable regenerative graft and Graftjacket tissue repair products.
One of Wright’s more noteworthy tendencies is the rate at which it adds to and revamps its product line.
A steady number of product launches characterized the company’s throughout the year.
In April, the company rolled out its Prophecy pre-operative navigation guides for knee arthroplasty—part of the growing market for patient specific implants and procedures. The system allows surgeons to use basic CT or MRI imaging technology to plan precise implant placement and alignment before they enter the operating room. Instead of using traditional instruments to align the knee during surgery, Prophecy uses computer imaging to develop patient-specific guides that follow the unique curvature of the patient’s bone anatomy. The process begins weeks before surgery. The goal not only is to improve accuracy, but to decrease patient anesthesia time and provide greater function and long-term implant success, company officials said.
The Coretrak articulating external fixator for foot surgery was the company’s new product offering in August. According to the company, the device also addresses a growing need for minimally invasive solutions that enhance the body’s natural ability to heal, which is particularly important for the growing population of diabetics who already are at a high risk for surgical complications.
Yet another addition to Wright’s line of extremity products was the Ortholoc polyaxial locked plating system for the surgical treatment of foot and ankle fractures. The device consists of three instrument and plating trays to help surgeons stabilize and fixate bone injuries of either the forefoot, calcaneus or ankle region. Polyaxial “locking” allows the surgeon to tailor the angle of screw placement into the plate for best anatomic fit and then “lock” the screw to the plate, according to the company.
In September, the U.S. Food and Drug Administration (FDA) provided 510(k) clearance of the Pro-Stim injectable osteoinductive bone graft substitute. The product is a composite grafting material that is injected through a small needle, hardens and is replaced by the patient’s new bone over time. Full rollout of Pro-Stim didn’t take place until this year. Company officials hope the Pro-Stim will “significantly expand” Wright’s share of the bone graft market.
October brought the launch of the Dynasty BioFoam acetabular cup system for hip replacement surgery. This addition to the Dynasty line of products features proprietary bone-like titanium with a roughened texture that “bites” into bone for enhanced immediate fixation when compared to traditional porous beads. The BioFoam material employs a trabecular structure intended to mimic bone and contribute to bone in-growth and biological fixation. The company first introduced BioFoam cancellous titanium fixation for its Advance knee system in 2008.
In early November, the FDA gave the OK for Wright’s Conserve Plus total hip resurfacing system, which provides a bone-conserving alternative to traditional total hip replacement. Other companies, such as Smith & Nephew, already had reached the market with resurfacing products. The FDA’s approval was for the configuration the company specified in its original premarket approval application (PMA). Wright immediately planed to file for additional indications via a PMA supplement. Conserve Plus is designed to offer pain relief and restoration of function while retaining as much healthy bone as possible and preserving future surgery options, including a primary total hip replacement. It’s an option aimed at younger, more active patients.
November also brought the rollout of the Valor ankle fusion nail for fusion of the ankle joint primarily caused by arthritis, skeletal deformity or diabetes. The nail fuses three bones in the foot and ankle: the calcaneus, the talus and the tibia. It’s also available in multiple implant sizes, lengths and configurations. Each nail implant incorporates a device that allows surgeons to control the compression between the bone surfaces, which is designed to maximize the likelihood of a solid fusion, thereby alleviating pain, according to the company.
Product introductions weren’t the only news coming out of the company in November. Wright also “introduced” its new chief financial officer (CFO). Lance A. Berry was named senior vice president and CFO, replacing John Bakewell, who left to take a position with another company. Berry joined Wright in 2002 and served as vice president and corporate controller.