Declining Sales Prompts Endologix to Hit the Strategic Reset Button

John Onopchenko has had his work cut out for him since being promoted to CEO of Endologix in May. The company's revenue dropped 6.1% in the fiscal year 2017 compared to the fiscal year 2016 after a manufacturing glitch interrupted sales of its top-selling device for abdominal aortic aneurysms (AAA). This and other issues led CEO John McDermott to resign earlier this year. "The leadership team and I have been working hard on reestablishing Endologix's credibility and reputation with our physicians and customers and building a culture of accountability, with the ultimate goal of delivering value to our stakeholders around the globe," Onopchenko told investors during the company's second-quarter earnings call, according to SeekingAlpha transcripts. Onopchenko said the company leaders have completed a thorough evaluation of five key value drivers that have the greatest impact on the company's long-term plans: company culture, the markets Endologix serves, the product portfolio, clinical developments, and the company's operating model. "As a result of this evaluation, we are making significant changes to our strategy," he said. "We have come to the conclusion that we are underperforming relative to our clinical evidence, and if we don't implement this strategic reset, our longer-term aspirations will remain elusive. This reset has precipitated the reduction in our financial guidance for fiscal year 2018." Endologix reported that its ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news