LivaNova to Wind Down Advanced Circulatory Support Business Unit
08 Enero 2024 - 7:30AM
Business Wire
Move Reinforces Focus on Core Cardiopulmonary
and Neuromodulation Businesses
ACS Standalone Cannulae Products and
Accessories to Transition Into Cardiopulmonary Business Unit
LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology
company, today announced that it will commence immediately with an
orderly wind down of the Advanced Circulatory Support (ACS)
Business Unit to increase the Company’s strategic focus on its core
Cardiopulmonary (CP) and Neuromodulation Business Units. ACS
generated approximately 4% of net revenue for the nine months ended
September 30, 2023. The wind down is anticipated to be complete by
the end of 2024.
The Company will retain all ACS standalone cannulae products and
related accessories, including ProtekDuo™, transseptal
(TandemHeart™), arterial and venous cannulae, along with
corresponding insertion kits, which will all be transitioned into
the CP Business Unit product portfolio during the first quarter of
2024. Operations and service for other ACS product lines, including
LifeSPARC™ and Hemolung™ Systems, will be discontinued by the end
of the year. The Company expects to support scheduled service for
the LifeSPARC and Hemolung platforms through the end of 2024.
“LivaNova is committed to managing our portfolio and resources
toward the highest growth and return opportunities for
shareholders,” said William Kozy, Interim Chief Executive Officer
and Chair of the Board. “We have worked steadily to generate
enhanced value from the ACS business. After careful consideration,
we determined that exiting ACS and focusing resources on our CP and
Neuromodulation businesses creates greater innovation opportunities
for our customers, their patients and shareholders. The ACS
cannulae are profitable and enjoy a strong and differentiated
market position, reinforcing our confidence that the transition of
cannulae products and support will further strengthen the CP
portfolio.”
Kozy added, “We value the ACS team’s efforts and commitment to
helping improve the condition of patients and are grateful to have
served customers who used the LifeSPARC platform to support their
patients over the years. We will aim to make this transition as
seamless as possible for our customers and employees.”
In connection with the wind down of the ACS business and
transition of certain products into CP, the Company expects to
record a pre-tax non-cash impairment charge of up to approximately
$110 million during the fourth quarter of 2023. The Company also
expects to incur restructuring charges in the range of
approximately $15 million to $20 million. The majority of
restructuring charges and related future cash payments are
anticipated to be recognized and paid out during 2024. The Company
expects the wind down to result in a positive contribution to
adjusted operating income in 2024 as compared to 2023.
Additional details will be provided in a filing on Form 8-K
today with the U.S. Securities and Exchange Commission and during
the Company’s fourth-quarter and full-year 2023 earnings conference
call scheduled for February 21, 2024.
About LivaNova
LivaNova PLC is a global medical technology company built on
nearly five decades of experience and a relentless commitment to
provide hope for patients and their families through medical
technologies, delivering life-changing improvements for both the
Head and Heart. Headquartered in London, LivaNova employs
approximately 2,900 employees and has a presence in more than 100
countries for the benefit of patients, healthcare professionals and
healthcare systems worldwide. For more information, please visit
www.livanova.com.
Safe Harbor Statement
This news release contains “forward-looking statements”
concerning the Company’s goals, beliefs, expectations, strategies,
objectives, plans, underlying assumptions and other statements that
are not necessarily based on historical facts. These statements
include, but are not limited to, statements regarding the Company’s
Business Units. Actual events may differ materially from those
indicated in our forward-looking statements as a result of various
factors, including those factors set forth in Item 1A of the
Company’s most recent Annual Report on Form 10-K, as supplemented
by any risk factors contained in Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. LivaNova undertakes no obligation to
update the information contained in this press release to reflect
subsequently occurring events or circumstances.
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LivaNova Investor Relations and Media Contacts +1
281-895-2382 Briana Gotlin Director, Investor Relations
InvestorRelations@livanova.com
Deanna Wilke VP, Corporate Communications
Corporate.Communications@livanova.com
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