Barry Bays Takes Over
As part of the Warburg Pincus investment in Wright, Barry Bays from Medtronic’s Xomed (a company he’d helped to start) was tapped as Wright’s new CEO. Building on Tom Patton’s work, he upgraded distribution, increased funding for research and development, and improved the company’s sales force, including moving to a direct sales model in Japan.
Among the innovative new products that Wright launched during the Bays’ years was the Conserve-Plus metal-on-metal hip prosthesis intended for younger patients, in their 40s.
Bays also kept the focus on bio-orthopedic bone grafting substitutes and in 1999 introduced AlloMatrix Injectable Putty, a bone graft substitute composed of medical grade calcium sulfate, demineralized bone matrix (DBM) growth factors, and a biocompatible plasticizing agent. That was followed by AlloMatrix C Bone Putty, composed of DBM and cancellous bone chips carried by calcium sulfate. Then OsteoSet BVF (Bone Void Filler Kit) and the MIIG 115 Minimally Invasive Injectable Graft provided OsteoSet in powdered form.
Wright Medical went public in 2001, raising $84.8 million.
In 2002, Wright reported $25 million in net profits on $200 million in sales.
In 2003, Wright received FDA clearance to market a ceramic-on-ceramic bearing joint arthroplasty system, one of only two on the market at that time.
In 2008, Wright bought INBONE Technologies and their INBONE™ Total Ankle System. Later that same year, Wright bought a line of endoscopic soft tissue products for foot and ankle surgeons from A.M. Surgical.
Under Bays, and later Gary Henley (who took over as CEO when Bays became executive chairman), Wright peaked at $487 million in sales and a market capitalization of $700 million in 2009.
The Deferred Prosecution Wave Sweeps Over Wright
Between 1995 and 2000, the U.S. government, notably the U.S. Attorney based in New Jersey—Chris Christie—accused major orthopedic companies and the entire industry of engaging in a system of surgeon consulting payments that, in Christie’s terms, qualified as a form of kickback.
Every major orthopedic company was hit, including Wright. Eventually all the companies affected (Zimmer, Biomet, DePuy, Smith & Nephew, etc.) settled with the U.S. government, entered into Deferred Prosecution Agreements, paid fines and agreed to significantly strengthen internal compliance rules and staff.
For Wright, that wave resulted in a clean sweep at the executive level and, after the dust had settled in 2011, the company had a new CEO by the name of Robert J. Palmisano.
