Owens & Minor Archives - Medical Design Sourcing

Owens & Minor stock rises on Q2 results

Owens & Minor (NYSE:OMI) shares rose today on second-quarter results that included a big three months for its Patient Direct business.

Shares of OMI ticked up 1% at $18.96 apiece in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.2%.

The Richmond, Virginia-based company posted losses of $28.2 million in the quarter. That equals 37¢ per share on sales of $2.6 billion for the three months ended June 30, 2023.

Owens & Minor took a big hit on its bottom line, having produced profits of $28.6 million in the same period last year. However, the company recorded sales growth of 2.5%.

Adjusted to exclude one-time items, the company reported net income of $14.2 million and earnings per share totaling 18¢.

How the quarter played out for Owens & Minor

Owens & Minor’s Patient Direct business brought in $633 million in the quarter, repr…

Owens & Minor executive pay dropped ahead of realignment

Owens & Minor executive pay dropped year-over-year, the device manufacturer told investors ahead of this week’s annual meeting.

Richmond, Virginia-based Owens & Minor (NYSE:OMI) is the 13th-largest medical device company in the world, according to Medical Design & Outsourcing‘s 2022 Medtech Big 100 list. That ranking was based on Owens & Minor’s $9.8 billion in 2021 revenue.

The company reported nearly $10.0 billion in revenue for 2022 and acquired home medical equipment developer Apria for $1.7 billion last year.

Net income soared from $30 million in 2020 to $222 million in 2021 thanks in part to COVID-19 pandemic sales of personal protective equipment, but decreased to $22 million last year. The company announced a realignment initiative in February and cut employees in March.

“We believe this program will enhance our strong quality of service to our customers, increase our margins, and allow us to…

Owens & Minor stock soars on Q1 results as realignment continues

Owens & Minor (NYSE:OMI) shares got a boost today on first-quarter results that came in ahead of the consensus forecast.

Shares of OMI rose 40.9% at $19.09 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell 0.3%.

The Richmond, Virginia-based company posted losses of $24.4 million in the quarter. That equals 32¢ per share on sales of $2.5 billion for the three months ended March 31, 2023.

Owens & Minor reported a massive bottom-line slide into the red from profits of $39.3 million this time last year. However, the company registered 4.8% sales growth.

Adjusted to exclude one-time items, earnings per share totaled 5¢. That topped Wall Street projections of losses per share of 9¢. Sales came in at more than double what the analysts expected.

Edward A. Pesicka, president & CEO of Owens & Minor, said the company generated e…

Owens & Minor lays off 61 workers in Massachusetts

Owens & Minor laid off 61 employees at its distribution center in Franklin, Massachusetts, according to a WARN report filed with the state.

The layoff took place on Feb. 17, according to the notice. It was more than a week before O&M announced a corporate realignment amid mixed fourth-quarter results.

At the time, Owens & Minor said the realignment would include sourcing and demand management, organization structure redesign, network rationalization and operational excellence, and commercial excellence and product profitability enhancement. Company officials expect the overhaul to deliver approximately $30 million of adjusted operating income in 2023, and approximately $200 million by 2025.

There was no mention of potential job cuts associated with the restructuring. Owens & Minor spokespeople could not be immediately reached today for additional information.

Owens & Minor reported 22,500 employees as of the end of 2022, up fro…

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…

Owens & Minor announces company realignment amid mixed Q4 results

Owens & Minor (NYSE:OMI) this week announced an operating realignment as it posted mixed-bag Q4 results.

The operating model realignment program will include sourcing and demand management, organization structure redesign, network rationalization and operational excellence and commercial excellence and product profitability enhancement.

“We have initiated a company-wide operating model realignment program with a dedicated team to accelerate profit improvement and reduce costs. We expect this program to help us quickly and sustainably drive the performance and growth of the company by delivering approximately $30 million of adjusted operating income in 2023, and approximately $200 million by 2025. We believe this program will enhance our strong quality of service to our customers, increase our margins, and allow us to more rapidly reduce debt and reinvest in higher-growth and more profitable opportunities,” President and CEO Edward Pesicka said in a ne…

The biggest medtech stock gainers, losers in 2022

(From Ishant Mishra on Unsplash) In another roller coaster year for medtech, these are the companies that saw their stock rise and fall the most drastically.

The MassDevice MedTech 100 Index, which includes stocks of the world’s largest medical device companies, reflects the performance of many in the medtech space.

In a tough year for a lot of businesses, the Index wasn’t immune to struggles. Overall, it dropped 27.3% from this time last year. That compares to a 19.7% drop for the S&P 500 and an 8.9% dip for the Dow Jones Industrial Average.

Some businesses, though, powered through the supply chain- and inflation-related woes to see their stock rise from this time last year. Others weren’t so lucky. Here are some of the biggest gainers and losers — selected from the MedTech 100 Index — of 2022.

Biggest gainers BD — $245.27 to $254.97 — Up 4%

While BD (NYSE:BDX) didn’t have the most significant growth, its stock remains in a …

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…

Owens & Minor beats Street consensus amid profit losses in Q3 results

Owens & Minor (NYSE:OMI) today posted third-quarter results that beat the overall consensus on Wall Street.

The Richmond, Virginia-based orthopedic device maker posted profits of $12.5 million, or 16¢ per share, on sales of $2.5 billion for the three months ended Sept. 30, for a bottom-line loss of 71.7% on sales loss of 0.2% compared with Q3 2021.

Adjusted to exclude one-time items, earnings per share were 41¢, 2¢ ahead of The Street, where analysts were looking for sales of $2.4 billion.

“In the third quarter we saw greater than expected macro-economic and industry-related forces that continue to challenge our Products & Healthcare Services segment and as the quarter progressed, we saw more of our acute care customers delay reorders utilizing their stockpiled items,” President and CEO Edward Pesicka said in a news release. “To better address these challenges and capitalize on opportunities, we are accelerating execution of key initiatives to im…

These 10 medical device companies have the most revenue per employee

[Image from Unsplash]One way to measure medical device companies’ efficiency is to calculate revenue per employee.

While compiling corporate data for MassDevice and Medical Design & Outsourcing‘s recent Medtech Big 100 report on the largest medical device companies, we took the companies reporting headcounts. Then, we divided the revenue by the number of workers.

When it comes to revenue per employee among medtech companies, three dynamic and growing companies top the list: Hologic, Medline Industries and Intuitive.

Below are the top 10 medical device companies regarding revenue per employee. (And read the full Big 100 report here.)

Company Rev/Employee Hologic* $886,976 Medline Industries $673,333 Intuitive $583,080 Henry Schein $574,121 Owens & Minor $565,625 Carl Zeiss Meditec $563,700 Masimo $563,251 Abiomed $515,104 Insulet $477,739 Accuray $477,677

* Note: Hologic doesn’t report its Q4 earning…

Owens & Minor announces executive leadership changes, lowers 2022 guidance

Andrew Long

Owens & Minor (NYSE:OMI) announced today that it appointed Andrew Long as EVP and CEO for its products & healthcare services segment.

Long’s appointment comes as part of a handful of executive changes. He replaces the departing Jeffrey Jochims in the position. Owens & Minor promoted Alexander Bruni to assume Long’s former roles of EVP and CFO. Long served in those roles since joining the company in November 2019.

“Andy has been a great leader at Owens & Minor and I am looking forward to having Andy in this role where his skillset will help drive the products & healthcare services segment to a stronger future,” said Edward Pesicka, Owens & Minor president and CEO. “Andy is well prepared for these new responsibilities and has a track record of success – building a world-class finance organization, leading and strengthening our IT capabilities and developing and deploying the Owens & Minor Busin…

Owens & Minor and Allina Health partner on supply chain resiliency

Allina Health’s United Hospital in St. Paul, Minnesota [Photo courtesy of Allina Health]

Owens & Minor (NYSE: OMI) and Minneapolis-based Allina Health are partnering on what they call a “unique integrated service model for supply chain resiliency.”

An Owens & Minor distribution center that has been in operation for more than 25 years in Moundsview, Minnesota will serve as the integrated service center powering the model, the companies said in a news release.

The facility will be central command for supply chain operations, with communications, fulfillment, inventory management and distribution built for the specific needs of Allina Health’s network of hospitals and clinics in Minnesota and western Wisconsin.

“Allina Health believes that deepening our successful relationship with Owens & Minor will elevate our ability to ensure that our providers and clinical sta…