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11 of the biggest medtech earnings stories from Q4 2022

(From Ishant Mishra on Unsplash) Layoffs, growth and more — the biggest medtech companies in the world experienced a range of outcomes in the fourth quarter of 2022.

Over the past two months, many of the largest medtech companies across the globe reported their financial results for the three months ended Dec. 31, 2022 (with a handful of exceptions due to different operating calendars).

Some companies offered reasons to feel good about the direction of the medtech industry. Others went in the opposite direction, enforcing workforce reductions and cost-cutting efforts. MassDevice compiled a list of layoffs across the industry, which have now affected more than 19,000 workers.

As layoff news mounted across the industry over the past month, MassDevice‘s MedTech 100 Index declined 2.6%. That was slightly worse than the S&P 500, which was down 2%.

Here are some of the biggest stories from the most recent quarter, all coming from companies within the…

Medtech jobs: The world’s largest medical device companies are hiring

Medical device companies are trying to fill thousand of medtech jobs. [Photo by ijeab – stock.adobe.com]

The world’s largest medical device companies are still hiring for medtech jobs despite layoffs in tech and other industries.

Medtech developers — and medtech jobs — are resilient, with the industry’s COVID-19 pandemic performance only bolstering its recession-proof reputation.

That’s not to say there haven’t been job cuts in medtech, led by thousands of layoffs at Philips as it struggles with a massive recall of deadly respiratory devices. But most medical device manufacturers are still hiring, and in some cases they can’t attract enough candidates to fill every vacancy in a tight labor market.

Stryker, for example, grew to approximately 51,000 employees as of the end of 2022, increasing its headcount by nearly 11 percent last year. Boston Scientific reported nearl…

Baxter caps cash severance payouts for executives

Baxter International has prohibited cash severance payments that exceed three times the total of an executive’s salary and target annual bonus opportunity without shareholder approval.

The company disclosed the new policy as it restructures the business and cuts staff while looking to rebound from a multibillion-dollar net loss for 2022.

Deerfield, Illinois-based Baxter is the world’s 10th largest medical device company, according to the Medtech Big 100 list.

That ranking was based on Baxter’s $12.78 billion in revenue for 2021; the company last week reported 2022 sales of $15.1 billion and a full-year loss of $2.4 billion. That loss was primarily due to a $3.1 billion charge related to Baxter’s purchase of Hillrom.

Baxter announced the executive severance policy yesterday while naming presidents for its vertically integrated global business units. The company last week announced layoffs as it restructures the busin…

Baxter appoints three executives for new operating model

Baxter (NYSE:BAX) announced three new executives as part of a leadership reshuffle as it moves forward with a cost-cutting restructuring plan.

Last month, Baxter announced plans to spin off its renal care and acute therapies units. That includes a restructuring plan that saw layoffs of up to 5% of the company’s global workforce last week.

In connection with its new operating model, the company yesterday announced three new presidents for its vertically integrated global business units. Baxter intends to make each appointment effective on March 1, 2023.

The company appointed Heather Knight as EVP and group president for medical products and therapies. She originally joined the company from Medtronic in 2019. Knight just last week resigned from Titan Medical’s board. The surgical robot maker has its own cost-cutting efforts in progress.

Baxter also named Reaz Rasul as EVP and group president for healthcare systems and technologies. Rasul…

Layoffs in medtech: These companies recently reduced their workforce

[Image courtesy of Nastuh Abootalebi on Unsplash] The workforce reduction trend has swept the economy recently, and unfortunately, the medtech space is not immune to layoffs.

You’ve probably read about the ongoing layoffs sweeping the tech industry, media and more.

For instance, Yahoo, Disney, Zoom and more all reported workforce reductions as companies across industries grapple with economic pressures. Think inflation, supply chain challenges and more.

Medtech has shown some resilience in the present environment. Some major medical device companies released positive earnings. However, others announced headcount reductions, citing macroeconomic headwinds. Others felt the weight of regulatory issues and restructuring efforts.

Here are a few companies across medtech that enacted layoffs over the past several months.

In 3M’s fourth-quarter earnings report, the company announced that it plans to reduce its global manufacturing workforc…

Baxter to reduce costs, cut workforce by less than 5%

Baxter (NYSE:BAX) shares took a hit today as mixed fourth-quarter results included plans for restructuring and workforce reductions.

Shares of BAX dipped 11.4% at $40.48 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 12.2%.

The company’s quarterly results included an update on its new operating model progress and cost reduction efforts. Last month, Baxter announced plans to spin off its renal care and acute therapies units. That includes a restructuring plan.

Today, it said it expects its new process to complete by early in the second quarter with updated reporting framework set for implementation during the second half of 2023.

In response to “significant macroeconomic challenges,” Baxter began to implement a cost reduction program. The program runs parallel with its operating model reshuffle and it expects to complete…

Baxter, Miromatrix partner on liver failure research

Baxter (NYSE:BAX) and Miromatrix Medical (Nasdaq:MIRO) today announced a collaborative research agreement on acute liver failure (ALF) treatments.

As part of the collaboration, Eden Prairie, Minnesota-based Miromatrix created a new liver therapy. The therapy, called MiroLiverELAP, combines a Miromatrix single-use bioengineered liver with Baxter’s PrisMax system.

Miromatrix designed the MiroLiverELAP to provide external support to the patient’s native liver. As a bridge-to-transplant or bridge-to-recover option, it potentially helps to avoid a liver transplant.

Baxter is both a collaborator and shareholder of Miromatrix.

Miromatrix submitted an investigational new drug (IND) application for the therapy to the FDA in November 2022. The company said in a news release that it “appears to be” the first IND for a bioengineered organ. It also plans to commence a Phase 1 clinical trial using MiroLiverELAP to treat patients sufferin…

Biopharma company Chiesi appoints former Medtronic exec as CEO

New Chiesi CEO Giuseppe Accogli. [Image from Baxter India website]

Chiesi announced today that it appointed former Baxter and Medtronic executive Giuseppe Accogli as its new group CEO.

Parma, Italy–based Chiesi said Accogli’s appointment becomes effective April 3, 2023. The R&D-focused pharmaceutical company develops and commercializes products for the hospital, rare disease and adjacent specialty care settings.

Accogli brings 25 years of international experience to Chiesi. The longtime executive leader’s experience includes medtech companies such as Baxter and Medtronic. In addition, his background includes work across multiple disciplines, like sales, marketing, R&D, M&A, strategy and product innovation. In past roles, he focused on the U.S. and EMEA markets.

“I am honored to lead Chiesi into its new stages of growth and I thank the board of directors for their tr…

Baxter may look to sell off BioPharma business

Baxter (NYSE:BAX) today unveiled a strategic roadmap for its future that includes potential plans for its BioPharma Solutions (BPS) business.

The company’s plans include a simplified commercial and manufacturing footprint, according to a news release. The company also intends to improve its capital structure. That includes a review of strategic alternatives for its BioPharma Solutions (BPS) business.

Baxter’s plans for the BPS business include a potential sale or other separation options.

The BPS business provides contract manufacturing services to the pharma and biotech industries. Baxter said it has continued opportunities for growth, but the BPS business holds a limited alignment with the rest of its portfolio. A potential sale or other transaction could help Baxter streamline its focus, it said.

Get the full story at our sister site, MassDevice.

Baxter to spin off renal care, acute therapies units

Baxter (NYSE:BAX) announced today that it laid out a strategic roadmap for the future that includes the spinoff of two business units.

The company plans to spin its renal care and acute therapies units into an independent, publicly traded company. It expects the company to stand alone in the next 12-18 months.

Baxter’s spinoff move falls in line with a major trend in medtech and creates competition for another recent kidney care spin. In May 2022, Medtronic and DaVita announced a plan to create a new kidney care company. GE, BD and Zimmer Biomet, among others, also recently completed spinoffs of major business units.

Other strategic plans for Baxter include a simplified commercial and manufacturing footprint, according to a news release. The company also plans to improve its capital structure. That includes a review of strategic alternatives for its BioPharma Solutions (BPS) business.

José (Joe) E. Almeida, Baxter’s chair, president an…

Baxter’s smart incontinence pad recall is Class I

The WatchCare system is a smart incontinence pad that integrates into healthcare facility bed. [Image courtesy of Baxter]The FDA issued a notice declaring the Baxter (NYSE:BAX) WatchCare incontinence management system (IMS) recall as Class I, the most serious kind.

Baxter last month issued an urgent medical device correction for the WatchCare IMS. The system appears to radiate radiofrequency (RF) that may affect other devices on caregivers and patients. The list of potentially affected devices includes infusion/insulin pumps, blood glucose sensors, fetal monitors/dopplers, telemetry devices and bladder scanners.

Other third-party medical devices may be affected, too, according to the FDA notice. RF interference could cause erroneous readings or malfunctions of the devices on both patients and staff.

Baxter reported 96 complaints of RF interference. To date, all cases but two experienced interference at a distance less than one meter. The company said it has…

Baxter records $3.1B impairment over Hillrom acquisition

Baxter (NYSE:BAX) today posted third-quarter results that were in line with estimates on Wall Street, but it lowered its outlook for the remainder of the year amid macroeconomic headwinds.

The Deerfield, Ill.–based company — maker of renal care products, drug delivery devices and more — also recorded impairment charges of $3.1 billion related to its $12.5 billion acquisition of Hillrom in Decemer 2021. The charges reflect changes in macroeconomic factors, such as rising interest rates and broad declines in equity valuations, and the impact of current supply chain challenges for the legacy Hillrom businesses, according to Baxter.

As a result of the impairment charges, Baxter lost $2.9 billion, or $5.83 per share, on sales of $3.77 billion for the three months ended Sept. 30, 2022. The results swung Baxter to a large loss on sales growth of 16.96% compared with Q3 2021.

Adjusted to exclude one-time items, earnings per share were 82¢, in-line with estimates…