Jul 11, 2017

Zimmer Biomet's CEO resigns unexpectedly

Jörgens / Wikimedia Commons

Zimmer Biomet CEO David Dvorak unexpectedly resigned Tuesday from the medical device company. Daniel Florin, Zimmer's chief financial officer, will serve as interim CEO.

The bottom line: A company spokeswoman would not say why Dvorak left, although he will stay on for a short while in an "advisory capacity." Dvorak was likely pressured out because Zimmer was not meeting Wall Street's financial projections. Mike Weinstein, an analyst at J.P. Morgan Securities, foresaw a management shakeup in April, saying at the time: "Zimmer is struggling, and the pitchforks are out."

Dvorak's reign: He led Zimmer, which mostly makes devices for hip and knee surgeries, for 10 years and oversaw the massive merger with Biomet. The company had $7.7 billion of revenue in 2016 and still collected big profits, but it fell short of what investors had been expecting. Zimmer also was tied to stock trading by Tom Price.

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