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Zimmer Biomet’s Dvorak Out As CEO, Successor Search Underway

Xconomy Indiana — 

Zimmer Biomet is searching for a new CEO following the departure of the executive who oversaw the merger that created the medical device giant.

David Dvorak stepped down from the Warsaw, IN, company’s top post effective Tuesday, a surprise move that came as the company gave an early peek at earnings data on the low end of the company’s earlier projections.

Zimmer Biomet (NYSE: ZBH) gave no reason for Dvorak’s departure but said he will continue to serve as an advisor “for a period of time.” In his place, Zimmer Biomet’s board of directors appointed CFO Daniel Florin to serve as interim CEO. The company is hiring an executive search firm to find CEO candidates.

Dvorak had served in a number of executive positions at Zimmer before being appointed CEO of that company in 2007. As Zimmer’s CEO, he oversaw the 2015 acquisition of Biomet, also based in Warsaw. As CEO of Zimmer Biomet, Dvorak expanded the company’s product portfolio with a spree of acquisitions.

Florin had served as CFO of Zimmer Biomet since 2015. He had previously been appointed as CFO of Biomet in 2007, a position he held until the merger with Zimmer. Before joining Biomet, Florin served in senior financial posts at Boston Scientific (NYSE: BSX) and C.R. Bard (NYSE: BCR).

Zimmer Biomet ranks among the top sellers of musculoskeletal medical devices, reporting $7.6 billion in 2016 revenue. According to the company’s preliminary report of its financial results, second quarter revenue is expected to be $1.954 billion, a 1.1 percent increase over the year ago period. Zimmer Biomet added that it expects diluted earnings per share would be on the low end of the $2.08 to $2.13 range it gave earlier. The company said it will provide additional financial details during a July 27 earnings conference call.