Sulzer Medica Reports Loss for 2001
Key points
- ZURICH, Switzerland –– Swiss medical technology company Sulzer Medica AG said Thursday it lost $713 million in 2001 because of its proposed settlement of U.S. lawsuits involving hip and knee replacement devices made by its Texas-based subsidiary.
- The company lost 1.19 billion Swiss francs last year compared with a net profit of 190 million Swiss francs a year earlier.
- Its sales rose 5.3 percent to 1.42 billion francs ($851 million) from 1.35 billion Swiss francs in 2000.
- Sulzer Medica's losses stem from a proposed $1 billion settlement of 1,200 lawsuits filed by people who received faulty hip and knee replacements made by Sulzer Orthopedics Inc., the Swiss company's Austin, Texas-based subsidiary.
ZURICH, Switzerland –– Swiss medical technology company Sulzer Medica AG said Thursday it lost $713 million in 2001 because of its proposed settlement of U.S. lawsuits involving hip and knee replacement devices made by its Texas-based subsidiary.
The company lost 1.19 billion Swiss francs last year compared with a net profit of 190 million Swiss francs a year earlier.
Its sales rose 5.3 percent to 1.42 billion francs ($851 million) from 1.35 billion Swiss francs in 2000. Sales growth also was boosted by the acquisition of two U.S. firms which make dental and heart treatments.
Sulzer Medica's losses stem from a proposed $1 billion settlement of 1,200 lawsuits filed by people who received faulty hip and knee replacements made by Sulzer Orthopedics Inc., the Swiss company's Austin, Texas-based subsidiary.
Sulzer Medica will contribute $725 million, with the remaining money coming from the firm's former parent Sulzer AG and from Winterthur Insurance.
Last month a U.S. federal court judge ruled that the settlement was fair, but individual patients have until May 14 to decide whether they want to opt out of the deal.
About 2,786 patients fitted with artificial hips and 561 with artificial knee baseplates had to be operated on again, the company said. Sulzer Medica said that number may rise to as many as 4,000.
[The Associated Press ]
Written and revised by
Gerald Hurowitz, M.D.
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