Monday, August 29, 2011

Zimmer CEO Boasts of Gains, US Patients Complain of Pains

About 350 components used as part of Zimmer NexGen knee replacements were quietly recalled last year because some were found to have nonconforming and inconsistent geometry. This, however, has not affected their bottom line, as a recent financial report on Zimmer saw them beating analyst’s predictions. CEO David Dvorak recently stated that, “Our results reflect improved sales execution in support of new product introductions across our diverse geographic channels, as well as the positive impact of operational improvement initiatives and continued disciplined capital deployment." Some see this as a move by the company to generate revenue from area’s where their reputation has not been hurt by the recalls issued against them.

In 2010, Zimmer quietly issued recalls for Zimmer NexGen knee replacement components that may have been used in thousands of individuals throughout the United States. Following reports of at least 114 Zimmer NexGen knee replacement problems, the manufacturer issued a recall for Zimmer NexGen MIS Tibial Components, NextGen TM Tibial Trays, NexGen MIS Modular Tibial Plates and Keels. The Zimmer NexGen MIS knee recall affected more than 68,000 knee components that were distributed throughout the United
States. Although the complaints of plaintiffs involve a number of different implants, most of the problems have been linked to the Zimmer NexGen high-flex knee plants, Zimmer NexGen MIS tibial components and Zimmer NexGen LPS gender solutions, some of which were recalled last year.

Zimmer said its replacement knee sales declined in the recent quarter while replacement hip sales were flat. The $12-billion replacement hip and knee market, where Zimmer competes with Johnson & Johnson and Stryker Corp., has been hurt as patients put off surgery. While replacing joints can address painful, arthritic problems, the surgery can be deferred by patients worried about out-of-pocket costs or long stretches off work for recovery. The company is now banking on The LPS-Flex Mobile system as its largest revenue generator. Since the system’s launch, more than 130,000 LPS-Flex Mobile knees have been implanted worldwide. Since its entry into the market ten years ago, the LPS-Flex has been met with much less criticism than the NexGen Knee System.

No comments:

Post a Comment