Orthofix has found itself a new leader after the board ousted its previous chief and other members of its C-suite earlier this year over what they described as “offensive conduct.”
Massimo Calafiore is slated to take the helm of the spine implant and orthopedics player as president and CEO in early 2024. At the moment, Calafiore serves as CEO of the Italian orthopedics developer Lima—a company that has inked an 800 million euro deal to be acquired by Enovis, the nascent medtech that spun out from the Colfax brand last year.
In September, Orthofix disclosed that it had issued for-cause terminations to its president and CEO, Keith Valentine, as well as Chief Financial Officer John Bostjancic and Chief Legal Officer Patrick Keran, after the board of directors “determined that each of these executives engaged in repeated inappropriate and offensive conduct that violated multiple code of conduct requirements and was inconsistent with the company’s values and culture.”
“Orthofix’s core values are built around fostering, cultivating and preserving a culture that is respectful, and we do not condone harassing or inappropriate conduct or statements of any kind,” the company’s board chair, Catherine Burzik, said in the September announcement. Burzik, who was reappointed chair in June, has since served as Orthofix’s interim CEO.
In announcing Calafiore’s selection, the company noted that “he has demonstrated a commitment to operating excellence, ethical integrity and DE&I values” throughout his two-decade career in medtech.
Since Calafiore took the CEO post at Lima in September 2022, Orthofix said, he has “strengthened and reshaped the company’s strategy and culture priorities, with an emphasis on fostering, mentoring and retaining talent.” Prior to his time at Lima, Calafiore was chief commercial officer and an executive VP at NuVasive.
“Having worked in orthopedics and spine throughout my entire career, I know Orthofix well and have long admired the company and its talented team,” said Calafiore, who is also expected to join Orthofix’s board in 2024.
“I was attracted to Orthofix given the many growth opportunities created by its unique, broad-based portfolio and high-quality distributor relationships,” he added. “I am also impressed with the innovative solutions Orthofix has developed to meet the needs of surgeons and the patients it serves.”
“The board of directors unanimously determined that Massimo is the right choice to lead Orthofix given his exceptional track record of delivering value creation and his extensive knowledge of the medical device industry, specifically within orthopedics and spine,” Burzik said in a statement.
“It is an honor to serve as Interim CEO and work closely with Orthofix’s amazing employees. The organization is on solid footing, and I will be delighted to turn the company over to Massimo’s very capable hands and plan to work closely with him in the following months to ensure a seamless transition,” she added. Orthofix also announced that Burzik will not be seeking re-election to the company’s board at its 2024 annual meeting.
Orthofix reported its third-quarter earnings results earlier this month, logging revenues of $184 million—an increase of 61% compared to last year on a reported basis, but a net sales growth that ultimately amounts to 8.4% on a pro forma basis when accounting for a one-time stocking order from 2022’s third quarter related to its $700 million combination with SeaSpine.
After operating costs, it posted a quarterly net loss of $28.9 million. The company also disclosed a new four-year financing agreement, with a borrowing capacity of up to $150 million.