WARSAW, Ind. (Inside INdiana Business) — The Kosciusko Economic Development Corp. is launching a program designed to grow the number of medical technology startups in the area. The organization says the Medical Technology Accelerator Studio aims to complement and advance the existing product development and manufacturing capabilities in Warsaw, which is billed as the Orthopedic Capital of the World.
“This accelerator studio is part of our effort to build on that legacy and make sure we are encouraging [and] cultivating a pipeline of new startup activity, in this case, specifically, around medtech opportunities to support our orthopedic sector,” said KEDCO Chief Executive Officer Alan Tio.
In an interview with Inside INdiana Business, Tio said they are looking for ideas from existing companies in Warsaw.
“What are the needs that they see around medtech opportunities?” said Tio. “[It could be] things like virtual reality, data analytics, wearables, anything that is medical technology-focused that complements the implants, the instruments, all of the important, life-saving innovations that are happening here already.”
The accelerator is the result of a partnership between KEDCO and Indianapolis-based venture studio NEXT Studios. It is being funded by the Don Wood Foundation in Fort Wayne and Kosciusko County.
“More than 80% of all new jobs originate from companies under five years old,” John McDonald, managing entrepreneur with NEXT Studios, said in written remarks. “Building a supportive ecosystem to facilitate entrepreneurship is key to long-term sustainability. And KEDCO is leveraging its resources to engage its community and its workforce to build amazing things to come.”
Tio says the participating entrepreneurs will be able to work with KEDCO, NEXT Studios and companies in the area to first determine what sorts of challenges need to be solved and then identifying solutions and building companies around them.
“We want our community to be known for how it supports entrepreneurs,” said Tio. “We already have a strong foundation, with thriving businesses both large and small, and by establishing this pathway for innovation in our own backyard to support Kosciusko County and area businesses, we’re planting seeds to benefit our area for decades to come.”
KEDCO plans to begin a callout for interested entrepreneurs in mid-to-late July with an initial information session scheduled for July 21st in Warsaw.
NEXT Studios will then host a series of workshops for the first cohort over the next 3-4 months, including an event to generate new ideas and an accelerator for founders to pressure-test their ideas.
“We’re going to learn from that experience, ideally see those companies’ ventures launch here, and then repeat the process, find more opportunities to build around, more problems to solve, and more innovations to cultivate here in the Warsaw area.”
Tio says the long-term goal of the accelerator studio is to create a pipeline of startup companies in the medtech space, leading into the establishment of an innovation center in the area.
“There is a commitment with the city of Warsaw, the IEDC, and the certified tech park here to establish an innovation center,” he said. “So, we’re building that pipeline of companies and understanding what capabilities we’ll need to have in an innovation center. And of course, along the way, we’re looking for how we can build our innovation community, building our community of entrepreneurs, building the access to dollars of capital that companies need to grow here…and really creating a virtuous cycle for us.”
WARSAW, Ind. (Inside INdiana Business) — Warsaw-based OrthoPediatrics Corp. (Nasdaq: KIDS) says it has entered an agreement to acquire Pega Medical, a Canadian orthopedics device manufacturer, in a mostly-cash deal valued at $33 million. Under the terms of the deal, the Kosciusko County company says it will pay an upfront cash payment of $31 million and $2 million in stock.
OrthoPediatrics says Pega focuses primarily on skeletal deformities found in pediatric populations.
“Similar to OrthoPediatrics, the Pega organization has been focused exclusively on addressing unmet needs for children whose lives have been impacted by musculoskeletal disorders and diseases,” said OrthoPediatrics Chief Executive Officer David Bailey.
As part of the deal, OrthoPediatrics is acquiring Pega’s Fassier-Duval Telescopic Intramedullary System, an implant designed to treat bony deformities in children with osteogenesis imperfecta.
“Their product offerings include novel technologies to treat some of the most unique conditions in pediatric orthopedics,” said Bailey.
OrthoPediatrics also reports it is increasing its full year 2022 revenue guidance range to $125 million to $128 million, representing growth of 27% to 31%.
WARSAW, Ind. (Inside INdiana Business) — A Warsaw-based nursing home operator is detailing plans to terminate its operating leases at eight Indiana locations, affecting nearly 700 employees. In a series of notices to the state, Miller’s Health Systems Inc. says, however, that it expects the new operator of each facility “will hire most if not all of the MHS employees currently working” at those locations.
Miller’s attributes the move to “changing business terms and conditions” with the owner of the properties, Highgate Capital Investments/Aurora Health Network.
The company says its operating leases are set to be terminated on June 30 with the owner contracting and appointing a new operator the following day.
The change will affect employees at the following Miller’s Merry Manor locations:
- 1500 Grant St, Huntington (80 employees)
- 8400 Clearvista Place, Indianapolis (65 employees)
- 787 N. Detroit, LaGrange (67 employees)
- 317 Blair Pke, Peru (60 employees)
- 612 E. 11th St., Rushville (68 employees)
- 505 W. Wolfe St., Sullivan (76 employees)
- 300 Fairgrounds Rd., Tipton (161 employees)
- 300 N Washington, Wakarusa (114 employees)
While the affected employees will technically be laid off as a result of the change, Miller’s says it will offer assistance with the new operator in the re-hiring process for the employees.
WARSAW, Ind. (Inside INdiana Business) — A crop insurance company based in Warsaw and its chief executive officer have agreed to pay $500,000 to settle allegations that they were involved in a federal crop insurance scam. The U.S. Department of Justice says Silveus Insurance Group Inc. and CEO James Cameron Silveus violated federal laws by facilitating the submission of fraudulent claims.
According to a release from the U.S. Attorney’s Office of the Western District of Michigan, Silveus was the crop insurance agent for Michigan-based crop farmer Gaylord Lincoln. The Justice Department says Silveus, on behalf of Lincoln, filed federal crop insurance claims at a higher level than Lincoln was entitled.
The federal government says Lincoln placed some of his farmlands and crops under the names of farmhands who served as “straw” farming operators who answered to him. Lincoln also allegedly ordered the employees to fraudulently obtain federal crop insurance policies to which they were not entitled.
The Justice Department says the federal government, through the Federal Crop Insurance Corp., paid subsidy premiums and indemnities on the false policies. The federal government says administrative costs were paid to Silveus and the company.
“The federal crop insurance program is designed to promote the national welfare by creating economic stability for farmers,” said United States Attorney Andrew Birge. “This system relies on producers and their insurance agents to submit truthful and complete information, and my office is committed to investigating any allegations of fraud on the federal crop insurance program.”
In addition to the fine, the DOJ says SIG also agreed to enter into a one-year monitoring period with the U.S. Department of Agriculture’s Risk Management Agency.
WARSAW, Ind. (Inside INdiana Business) — Warsaw-based OrthoPediatrics Corp. (Nasdaq: KIDS) is reporting a full-year net loss of $16.2 million in 2021, compared to a loss of $33 million the previous year. Despite the loss, the pediatric orthopedic device manufacturer says it hit record annual revenue of $98 million.
The company is also reporting fourth quarter net income of $72,000, compared to a loss of $14 million during the same quarter in 2020.
“We are extremely proud of our 2021 performance and believe we have navigated through the pandemic very well – which we view as a testament to our durable business and strong commercial execution,” Chief Executive Officer David Bailey said in a news release. “Given COVID’s effect on children since September, we enter 2022 knowing the unshakable truth that there are more children who need our products than ever before. With the broadest product portfolio in the industry and our largest active surgeon base since inception, we are in a great position to recapture deferred procedures and help children in 2022 and beyond.”
OrthoPediatrics says its devices helped a full-year record of 38,000 children in 2021.
You can view the full earnings report by clicking here.
WARSAW, Ind. (Inside INdiana Business) — Warsaw-based Zimmer Biomet Holdings Inc. (NYSE and SIX: ZBH) says it has completed its spinoff of ZimVie, the company’s former dental and spine business. It now trades on Nasdaq under the symbol “ZIMV.”
The Kosciusko County company announced plans in February 2021 to break off the division to create an independent, publicly traded company. The medical device manufacturer said as a separate company, ZimVie would achieve faster growth and deliver greater value for stakeholders.
“The spinoff of ZimVie marks a major milestone in the active portfolio management of Zimmer Biomet as we continue to strengthen our position as a global leader in the medtech space,” said Bryan Hanson, chairman, president and chief executive officer of Zimmer Biomet. “We are confident that this transaction will create shareholder value for both companies and will allow us to increase our focus and enhance revenue growth for our core businesses.”
Zimmer Biomet says the spinoff was achieved through the distribution of 80.3% of the shares of ZimVie to holders of Zimmer Biomet common stock. Zimmer Biomet stockholders receive one share of ZimVie common stock for every ten shares of Zimmer Biomet common stock held at the close of business on February 15.
Last September, the med tech company announced the leadership team of the new company.
WARSAW (Inside INdiana Business) – Cincinnati-based Brixey & Meyer Capital says its portfolio company, Safe-Way Garage Doors in Warsaw, has been acquired by CapitalWorks, a private equity firm based in Ohio. Financial terms of the deal were not disclosed.
Safe-Way manufactures and distributes residential, commercial, and industrial overhead garage doors. The company’s manufacturing facility is based in Warsaw, while its distribution centers are located in Tennessee and Missouri.
“Safe-Way has built a solid foundation to continue its exponential growth and we are confident that CapitalWorks is the right partner for Safe-Way to continue its tremendous journey,” said David Brixey, chief executive officer of Brixey & Meyer Capital.
BMC acquired Safe-Way last year. BMC says during its ownership, it partnered with the Safe-Way management team to streamline manufacturing processes and invest in its employee base to meet demand for its product over the last two years.
WARSAW, Ind. (Inside INdiana Business) — The Kosciusko Economic Development Corp.(KEDCO) says the city of Warsaw has acquired a former grocery store site in the city’s downtown that is primed for redevelopment. KEDCO says officials are looking at building a mixed-use development that could include a workforce housing component.
Financial terms of the acquisition of the former Owens’ grocery store site were not disclosed.
The effort is being supported by the KEDCO Housing Initiative, which the organization launched in response to a study that forecasted a potential need for 2,000 new residential units throughout the county by 2024.
“The housing market study showed us the market potential exists to double the production of market-rate housing in our community,” Warsaw Mayor Joe Thallemer said in a news release, “We know from leading employers like Zimmer Biomet that access to housing is a workforce recruitment and retention issue, as well.”
KEDCO says it is finalizing a development agreement with a regional development team for a mixed-use project.
“Our team is working with local partners to encourage the development of additional workforce housing in proximity to leading employers,” said KEDCO Chief Executive Officer Alan Tio, “We are excited to support the City’s vision for reuse of this site as a catalytic project that will lead to additional opportunities throughout the County.”
The organization says it will work with the development team, the city and other partners over the winter to finalize plans for the project.
WARSAW, Ind. (Inside INdiana Business) — Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) is reporting third quarter net income of $146 million, down from $243 million during the same period last year. Chief Executive Officer Bryan Hanson says despite the drop, the medical device manufacturer continues to see progress.
Zimmer Biomet is reporting net sales of $1.9 billion, which is a slight decrease over the third quarter of 2020. However, the company says the numbers represent a 1.7% increase over the same period in 2019.
“Despite the continued challenges and market pressures in the third quarter, we drove significant progress in the advancement of our business priorities and continued focus on execution to create value and deliver on our mission,” Hanson said in a news release. “Our underlying business remains strong, fueled by our transformation and the launch of new innovative products that can make a difference for our customers and for patients.”
Despite the third quarter decrease, Zimmer Biomet is still seeing a big year-to-date improvement in net income. The company is reporting $485 million in net income for the first nine months of the year, compared to a net loss of $473 million during the same period in 2020.
You can connect to the full earnings report by clicking here.
WARSAW, Ind. (Inside INdiana Business) — Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) has named several members of the leadership team for its planned spin-off company, which will now be known as ZimVie. The medical device manufacturer says the effort to create the new, publicly-traded company is on track to close next year.
ZimVie will be the spin-off of Zimmer Biomet’s spine and dental businesses. The company announced plans for the spin-off in February and named Vafa Jamali its chief executive officer just a few weeks later.
Among the new appointments for ZimVie’s leadership team is Richard Heppenstall, who will serve as executive vice president and chief financial officer. Heppenstall most recently served as CFO of California-based medical device company Breg Inc.
“Rich is joining ZimVie at an instrumental time for the company, as we continue to shape our operating model and business plans in preparation for the planned spin-off,” Jamali said in a news release. “His extensive experience across all areas of finance within the medtech space will be critically important as we advance toward the formation of a new independent company for our Spine and Dental businesses.”
The other leadership appointments for ZimVie include:
- Vincent Binetti, General Manager, Bone Healing
- Laura Driscoll, Vice President, Communications
- David Harmon, Senior Vice President, Chief Human Resources Officer
- Indraneel Kanaglekar, Senior Vice President, President, Global Dental
- Heather Kidwell, Senior Vice President, Chief Legal and Compliance Officer
- Mike Minette, Senior Vice President, Strategy and Corporate Development
- Ann Vu, Senior Vice President, Regulatory Affairs and Quality Assurance
- Rebecca Whitney, Senior Vice President, President, Global Spine
Zimmer Biomet expects the spin-off of ZimVie to close in mid-2022.