LONDON-LivaNova PLC (Nasdaq: LIVN), a leading player in the medical technology field, today declared its plan to initiate a strategic wind down of its Advanced Circulatory Support (ACS) Business Unit. This move is aimed at sharpening the company’s focus on its core segments: Cardiopulmonary (CP) and Neuromodulation. For the nine months ending September 30, 2023, the ACS segment contributed about 4% to the net revenue. This restructuring is expected to be fully executed by the end of 2024.
In a strategic pivot, LivaNova will maintain and integrate its profitable ACS standalone cannulae products, including the notable ProtekDuo™, TandemHeart™, and other cannulae types, into its CP Business Unit. This transition is scheduled for Q1 2024. However, operations and support for other ACS product lines like LifeSPARC™ and Hemolung™ Systems will be phased out by year-end. The company assures continued support for LifeSPARC and Hemolung platforms through 2024.
William Kozy, Interim CEO and Board Chair, stated, “Our aim is to direct our resources and portfolio towards the most lucrative growth opportunities for our shareholders. Exiting ACS to focus on CP and Neuromodulation aligns with this vision. It allows us to drive innovation that benefits our customers, their patients, and our shareholders. The strong market standing of our ACS cannulae products will bolster our CP portfolio.”
Kozy expressed gratitude to the ACS team for their dedication and service to the customers, emphasizing a smooth transition process for both customers and employees.
The winding down and product transition will lead to an estimated pre-tax non-cash impairment charge of up to $110 million in Q4 2023. Furthermore, the company anticipates restructuring charges between $15 million to $20 million, mostly incurred and paid in 2024. Despite these costs, the wind down is expected to positively impact the company’s adjusted operating income in 2024 relative to 2023.
Further details will be shared in an 8-K form filing with the U.S. Securities and Exchange Commission and during the company’s Q4 and full-year 2023 earnings call on February 21, 2024.
About LivaNova
LivaNova PLC, headquartered in London, is a globally recognized medical technology firm, established on a legacy of nearly five decades of innovation and commitment to improving lives. With around 2,900 employees, the company operates in over 100 countries, focusing on transformative medical technologies for the brain and heart.
Safe Harbor Statement
This release includes forward-looking statements. These are based on current expectations and assumptions and are subject to risks and uncertainties. Detailed information on these risks is available in the company’s recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Contacts
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Briana Gotlin, Director, Investor Relations – [email protected]
Deanna Wilke, VP, Corporate Communications – [email protected]
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