ALPHARETTA, Ga., June 21, 2018 /PRNewswire/ -- Halyard
Health, Inc. (NYSE: HYH) ("Halyard", or "the Company", or
"Avanos") today hosted its inaugural analyst and investor meeting
in New York, where it presented
the company's new strategic framework and its plan for delivering
the next chapter of growth alongside an update around the company's
rebranding and renaming into "Avanos". Avanos' leadership team
provided additional detail on its strategy to accelerate growth and
performance across the organization; updates on its two core
franchises, Pain Management and Chronic Care; and, an overview of
its approach to investing in innovation through R&D and
M&A.
"At Avanos, we're helping our customers address some of the most
significant healthcare challenges we face today. As our global
marketplace continues to evolve, our company will be well-placed to
deliver superior, breakthrough solutions to improve patients'
quality of life and get them back to the things that matter," said
Joe Woody, chief executive officer
of Avanos. "Today, we presented our new strategic framework for
accelerating innovation and growth to achieve category leadership
through a focus on investments, performance and people. This
strategy, combined with our large addressable market opportunities
and enhanced capabilities as a focused medical devices company,
will enable us to deliver profitable, sustainable growth and value
creation."
Strategic Framework and Growth Plan
Avanos' new strategic framework is designed to continue to
accelerate the company's growth and leverage its strong momentum
following the successful transformation into a pure-play medical
devices business. The strategic priorities for our business reflect
the evolving demands of our customers and the dynamics of the
broader healthcare and medical device industry. By remaining ahead
of these trends, Avanos will continue to deliver top-quartile total
shareholder returns.
The next phase of Avanos' growth will be delivered through a
focus on achieving full potential organic growth, primarily through
increased innovation across the portfolio, enhanced commercial
execution and stronger performance across the international
business. Through disciplined, strategic M&A, the company will
drive complementary growth, focused on seizing opportunities in
attractive adjacencies. Finally, Avanos will generate further value
by right-sizing the cost structure and identifying additional
efficiencies across the organization.
Financial Targets Exiting 2021
The company today also outlined its capital allocation
framework, designed to maximize sustainable, long-term value
creation. The company disclosed the following long-term financial
targets to be achieved on or before the end of 2021:
- Organic top-line growth: from mid-single digits to high
single digits
- Gross margin: from low-60s to mid-60s
- R&D spend (as % of sales): from less than 6% to
6-7%
- SG&A (as % of sales): from low 40s to mid-30s
- EBITDA margins: from mid-teens to mid-20s
Webcast Replay Information
Halyard Health will host a webcast of the meeting to provide
access to all interested stakeholders. The simultaneous webcast can
be accessed via the Investors section of the Halyard Health
website, https://halyardhealth.investorroom.com/. Slides from the
meeting will be available to those viewing the webcast. Within 24
hours of the webcast, a replay including presentation slides will
be accessible in the Investors section of the website.
About Halyard Health
Halyard Health (NYSE: HYH) is a medical technology company
focused on delivering clinically superior breakthrough medical
device solutions to improve patients' quality of
life. Headquartered in Alpharetta,
Georgia, Halyard is committed to addressing some of today's
most important healthcare needs, such as reducing the use of
opioids while helping patients move from surgery to recovery.
Halyard develops, manufactures and markets its recognized brands in
more than 90 countries. For more information, visit
www.halyardhealth.com.
As previously announced, Halyard Health is changing its name to
Avanos Medical, Inc., effective June 30,
2018. Its current ticker symbol on the New York Stock
Exchange (HYH) is also changing at that time to AVNS. The first day
of trading under the new ticker symbol will be July 2, 2018.
Forward-Looking Statements
This press release contains information that includes or is
based on "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on the current plans and expectations of
management and are subject to various risks and uncertainties that
could cause our actual results to differ materially from those
expressed or implied in such statements. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, and can generally be identified by the use of words
such as "may", "believe", "will", "expect", "project", " estimate",
"anticipate", "plan", or "continue" and similar expressions,
among others. Factors that may cause actual results to differ
materially from the anticipated results expressed in such forward
looking statements include, but are not limited to: weakening of
economic conditions that could adversely affect the level of demand
for our products; pricing pressures generally, including
cost-containment measures that could adversely affect the price of
or demand for our products; changes in foreign exchange markets;
legislative and regulatory actions; unanticipated issues arising in
connection with clinical studies and otherwise that affect U.S.
Food and Drug Administration approval of new products; changes in
reimbursement levels from third-party payors; a significant
increase in product liability claims; the impact of investigative
and legal proceedings and compliance risks; the impact of the
federal legislation to reform the United
States healthcare system; changes in financial markets; and
changes in the competitive environment. Additional information
concerning these and other factors that may impact future results
is contained in our filings with the U.S. Securities and Exchange
Commission, including our most recent Form 10-K and Quarterly
Reports on Form 10-Q.
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SOURCE Halyard Health, Inc.