Invacare Archives - Medical Design Sourcing

Invacare promotes new CFO from within

Invacare announced that it appointed Kai Zhu as its senior VP and chief financial officer (CFO), effective July 1, 2023.

Zhu brings more than two decades of financial leadership experience, having served as Invacare VP of finance for EMEA since April 2022. He succeeds Kathleen Leneghan, who announced her retirement from the company. Leneghan plans to remain with Invacare until Oct. 1 and assist with the transition of duties to Zhu.

“On behalf of the board of directors, I am pleased to welcome Kai as our next chief financial officer. Kai brings deep experience and financial acumen to the global leadership team and is well suited to lead our financial organization as Invacare enters its next phase of growth and development,” said Geoffrey P. Purtill, president and CEO. “I want to express my sincere gratitude and appreciation to Kathy for her over 30 years of service to Invacare and her dedication and resilience in leading our organization through a critical phase…

Invacare completes restructuring, emerges from Chapter 11

Invacare (NYSE:IVC) announced today that it successfully emerged from Chapter 11 bankruptcy at the end of last week.

Elyria, Ohio-based Invacare began financial restructuring activities that included filing for bankruptcy in February. This saw the company enter into a “Restructuring Support Agreement” (RSA). The RSA covers substantially all of its debt holders. That includes its term loan lender, all holders of convertible senior secured notes and holders of a majority of convertible senior unsecured notes.

The RSA included a reduction of Invacare’s funded debt by approximately $240 million. It also featured a backstop for a rights offering to holders of claims, providing Invacare with $60 million in equity capital.

To effectuate these transactions, Invacare and two U.S.-based subsidiaries commenced voluntary Chapter 11 cases. They did so in the U.S. Bankruptcy Court for the Southern District of Texas. The company said its other businesses “remain strong…

FDA updates medical device shortage list due to shipping delays and semiconductors

Medical device shortages persist due to shipping delays and semiconductor availability, the FDA said last week in an update to its medical device shortage list.

The updated medtech products in short supply include radiological devices, general plastic surgery devices, cardiac diagnostic and monitoring products, general ICU/ hospital products, specimen collection supplies and ventilators.

Philips Invivo MRI breast biopsy grid plates

Philips product shipping delays caused a shortage of magnetic resonance imaging (MRI) breast biopsy grid plates used with breast biopsy/localization trays, surgical guide needles and specialty magnetic resonance coils.

Those Philips Invivo MRI breast biopsy grid plates have been on the shortage list since October 2022 after imaging facilities notified the FDA of the shortage in July. The FDA said it does not know how long the shortage will last, but said it “is still compiling and evaluating data on manufacturing and pro…

Invacare begins financial restructuring as two subsidiaries file Chapter 11

Invacare (NYSE:IVC) announced today that it initiated a number of actions in an effort to position itself for long-term success.

The Elyria, Ohio–based maker of wheelchairs, medical beds, wound care products and more entered into a “Restructuring Support Agreement” (RSA). The RSA covers substantially all of its debt holders. That includes its term loan lender, all holders of convertible senior secured notes and holders of a majority of convertible senior unsecured notes.

Invacare said this provides for a significant reduction of its debt balance and a “substantial” new money investment. It expects to enhance its liquidity and enable investment in future growth.

The transactions agreed to in the RSA include a reduction of Invacare’s funded debt by approximately $240 million. It also includes a backstop for a rights offering to holders of claims, providing Invacare with $60 million in equity capital. This allows the company to…

Invacare draws additional $5.5M in term loans

Invacare (NYSE:IVC) announced today that it consummated an additional draw of $5.5 million in term loans under a credit agreement.

The company took the additional draw under its credit agreement with funds managed by Highbridge Capital Management. It took place on Dec. 23, 2022.

Elyria, Ohio-based Invacare intends to use the proceeds for general corporate purposes, according to a news release. Invacare also said an additional $14 million in liquidity remains available under its credit agreement with Highbridge. That amount remains subject to satisfaction of certain conditions set forth under the agreement.

“As guided in the 3Q22 earnings release, Europe achieved sequential growth in revenues and profitability driven by improved supply chain circumstances giving us confidence that our transformation program is reaping benefits,” said Invacare President and CEO Geoff Purtill. “Today’s announcement provides us with greater flexibility as we exec…

The biggest medtech personnel moves in 2022

Some of the largest companies in medtech have promoted, replaced or removed leaders in recent months.

In July, Medical Design & Outsourcing compiled a list of the biggest personnel changes in the first half of 2022. Those included hirings, firings, promotions and retirements of CEOs, presidents and and other business leaders across the medtech industry.

The latter half of the year has brought even more changes. To close out 2022 and prepare for 2023, here are more of the year’s biggest medtech moves — and some updates since the news first broke.

Butterfly Network CEO steps down

Todd Fruchterman

On Dec. 6, Butterfly Network (NYSE:BFLY) announced that it reached a mutual agreement with Dr. Todd Fuchterman to step down as president and CEO. Fruchterman also left Butterfly’s board of directors.

Fruchterman oversaw Butterfly’s development of artificial intelligence-based ha…

Invacare receives notice of noncompliance on NYSE share price listing rule

Invacare (NYSE:IVC) announced today that it received notice from the New York Stock Exchange (NYSE) that it is not in compliance with certain rules.

Elyria, Ohio-based Invacare’s non-compliance involves Section 802.01C of the NYSE Listed Company Manual. The average closing price of the company’s common shares came in under $1 per share over a consecutive 30-day trading period.

According to a news release, the notice does not result in immediate delisting for the compnay.

Invacare plans to notify NYSE by Oct. 7 that it intends to cure its stock price deficiency and return to compliance. It can regain compliance any time within the six-month period following the receipt of notice. This rings true if on the last day of trading of any calendar month during that period, Invacare closes with shares reaching at least $1 apiece and an average closing price of at least $1 over the 30-day trading period ending on the last trading day of that month.

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Invacare announces executive leadership changes after CEO steps down

Invacare (NYSE:IVC) today announced multiple leadership changes as CEO Matthew E. Monaghan has stepped down from the corner office.

Elyria, Ohio-based Invacare said in a news release that the changes were made to its senior management team and board of directors to advance its business transformation initiatives, address supply chain challenges and strengthen its financial performance.

Invacare named Geoffrey P. Purtill, who served as SVP and GM of EMEA and APAC, interim president and CEO to replace Monaghan, whose departure from his role as chair, president and CEO was made effective on Aug. 28. The board of directors commenced a search to identify and appoint a permanent CEO.

“After careful consideration, the board determined that now is the right time for a change in leadership to oversee the successful execution of Invacare’s business transformation,” said Cliff Nastas, Invacare’s lead independent director. “We welcome Geoff who has disti…

Invacare slides as restructuring plans will likely lead to lower 2022 revenues

Invacare (NYSE:IVC) shares took a hit today on fourth-quarter results that came in ahead of the consensus forecast.

The Elyria, Ohio-based company posted profits of $1.9 million, or 5¢ per share, on sales of $226.2 million for the three months ended Dec. 31, 2021, for a bottom-line gain out of the red on sales growth of 1%.

Adjusted to exclude one-time items, earnings per share were 8¢, 6¢ ahead of Wall Street, where analysts were looking for sales of $226.19 million.

“Taken together, we believe actions to mitigate increased input costs, elective implementation of pricing actions, narrowing our product offering, and additional restructuring actions will drive favorable product mix, improved profitability and free cash flow in 2022 and build long-term shareholder value,” Invacare Chairperson, President and CEO Matt Monaghan said in a news release.

Invacare is taking strategic actions around organizational restructuring and supply chain …

How medtech fared in the first waves of the pandemic

[Photo by Martin Sanchez on Unsplash]Medtech industry revenue, research spending and employment declined in the first year of the COVID-19 pandemic, according to a Medical Design & Outsourcing analysis of financial data.

Total sales, R&D spending and employment for the world’s largest medical device companies declined in 2020 and early 2021, according to a Medical Design & Outsourcing analysis tallying the ongoing pandemic’s initial toll on the industry.

To compare performance before and during the pandemic, MDO used the financial data that we’ve historically gathered to rank our Big 100 companies in the last three years. The majority of these companies reported full-year results for 2020; others operate on a fiscal year and reported annual results in the first half of 2021.

Some companies are not in this year’s Big 100 but were included in the analysis because they were ranked in pre-pandemic years. The handful of companies that joined this yea…

How medtech fared in the first waves of the pandemic

[Photo by Martin Sanchez on Unsplash]

Medtech industry revenue, research spending and employment declined in the first year of the COVID-19 pandemic, according to a Medical Design & Outsourcing analysis of financial data.

Total sales, R&D spending and employment for the world’s largest medical device companies declined in 2020 and early 2021, according to a Medical Design & Outsourcing analysis tallying the ongoing pandemic’s initial toll on the industry.

To compare performance before and during the pandemic, MDO used the financial data that we’ve historically gathered to rank our Big 100 companies in the last three years. The majority of these companies reported full-year results for 2020; others operate on a fiscal year and reported annual results in the first half of 2021.

Some companies are not in this year’s Big 100 but were included in the analysis because they were ranked in pre…

Invacare rises after hours on mixed bag Q2, reaffirmed guidance

Invacare (NYSE:IVC) shares ticked up after hours on second-quarter results that were mixed compared to the consensus forecast.

The Elyria, Ohio-based company posted losses of -$10.7 million, or -31¢ per share, on sales of $225.9 million for the three months ended June 30, 2021, for a 35.6% bottom-line gain on sales growth of 15.1%.

Adjusted to exclude one-time items, losses per share were -28¢, 5¢ behind Wall Street, where analysts were looking for sales of $214.6 million.

“I want to first thank all our associates who put in extraordinary efforts to support our customers as we all recover from the impacts of the pandemic,” Invacare chairman, president & CEO Matt Monaghan said in a news release. “Through their hard work, we achieved high single-digit constant currency net sales growth, with increases in all product categories.

“Looking forward, profitability and free cash flow are expected to accelerate as we head into o…