Zimmer Holdings has signed a deal with the Defense Department that could run through 2015.
The company will be awarded "a maximum $13,475,000 fixed-price with economic price adjustment, sole-source, indefinite-delivery/indefinite-quantity contract for orthopedic implantation products," according to a DoD statement on contracts. The services involved are the Army, Navy, Air Force and Marine Corps. The contract runs for one year with an option for four one-year options through March 31, 2015.
As Mass Device notes, this comes as a possible win for Zimmer, which saw its profits fall about 17 percent last year. The drop was largely due to a $204 million Q4 charge to its spinal unit's books.
Also, Zimmer CEO David Dvorak received total compensation of about $9.6 million last year, up from just over $7 million the year before, according to an SEC filing. His base salary was just over $833,000--up from $787,000 in 2009.
Zimmer shares declined 9.2 percent in 2010, according to Dow Jones. They have jumped up 12 percent this year so far.
- read the DoD news
- get more from Mass Device
- check out the Dow Jones report
- get the SEC filing