A shut out is a shut out, no matter how you look at it. With Bill Lee heading back to Philadelphia, one team in Texas is looking to find its ace. While others are more interested in belly fat, TSB thought that most of our bloggers would be interested in knowing that Orthofix International, aka The Fix, today announced an internal reorganization to streamline its three Global Business Units, Spine, General Orthopaedics, and Sports Medicine. So why the big shake up?
In the holiday spirit of giving, Milinazzo et al, expect to record a charge related to employee termination benefits of $4.0 million, $2.4 million net of tax, or $0.13 per diluted share. In the best interest of the share holders, this restructuring will result in an annual saving of approximately $6-7 million per year beginning in 2011.
So, Why the Big Deal?
In simple words, The Fix, got its ass kicked in court, announcing today the on behalf of itself and MTF that they executed a comprehensive settlement agreement with NuVasive and Osiris concerning Trinity Evolution tissue allograft. Basically, the court ruled that The Fix infringed upon IP owned by NuVasive and Osiris. As part of the settlement, the parties entered into a licensing agreement covering Trinity Evolution. The Fix will record a charge of $2 million in the fourth quarter of 2010. Additional terms of the settlement were kept confidential. The Fix has also lowered its guidance for the up coming year due to rumors of impending reimbursement issues regarding bone stimulators. Word on the Street has been that it hasn't been a very festive environment down in McKinney. Could it be that with the current state of the economy and pending challenges there will be many changes occurring at The Fix. Maybe, those corporate raiders of summer's past weren't that wrong when they were looking for a change in government at The Fix. So as we enter the holiday season, maybe its time that the Board once again revisit some of the decision making that is going on internally. The spine industry is a post apocalyptic world where gunslingers rule. No more 20%. So in return the plenty shall suffer for the mistakes of a few.
Final Score: Nuvasive 1 Orthofix 0, in a rout!