April 30--Wright Medical Group Inc. on Wednesday reported a $30.4 million quarterly loss related partly to its recent acquisitions.
Wright, a medical device maker based in Memphis, said a patchwork of costs stemming from the sale as well as the acquisitions and tax calculations pushed down net income despite a sharp rise in sales revenue.
Wright spun off its knee and hip business in January to MicroPort Scientific Corp.
For the first quarter that ended March 31, Wright reported the loss amounted to 63 cents per share on revenue of $71 million, compared to profits in the same period a year earlier of $8.4 million, or 20 cents per share, on $56.3 million in revenue.
In a statement issued by the company, Wright chief executive Robert Palmisano said "we delivered a strong start to 2014 with the MicroPort, Solana Surgical and OrthoPro transactions. As anticipated, we did experience some minor, short-term dissynergies in the U.S."
With its headquarters moved to Memphis and its manufacturing and distribution operations expanding in Arlington, Wright is focused on the fast-growing foot and ankle implant market and plans to launch over 20 new products this year, Palmisano said.
"We believe that today we are the fastest growing, highest-margin, extremity biologics public company in the world," Palmisano told analysts during a conference call. "For the remainder of this year, we intend to build on our lead."
The company, with $356 million in cash and marketable securities at the end of the quarter, expects a new total ankle replacement technology called the Infinity Total Ankle System. to encourage replacement rather than fusion of ankles. That product is expected to launch late in the second quarter of this year.
Wright also announced that after collaborating with the U.S. Food and Drug Administration, on Tuesday it submitted an amended request for the FDA to signal whether its Augment bone graft product could be approved. Wright should learn within 180 days whether the regulator will reconsider an earlier thumbs down.
Wright released its quarterly report at the same time as the Nasdaq stock market closed trading for the day. The company's stock closed at $27.35, down 37 cents, or 1.33 percent.
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