Orthofix expects the reorganization to result in annual savings of approximately $6m to $7m per year beginning in 2011.
Orthofix also reported that the company and the Musculoskeletal Transplant Foundation have executed a comprehensive settlement agreement with NuVasive and Osiris Therapeutics concerning the Trinity Evolution tissue allograft.
The lawsuit was filed in April this year in the US District Court for the District of New Jersey alleging that Trinity Evolution infringes intellectual property owned by NuVasive and Osiris.
As part of the comprehensive settlement the parties entered into a license agreement covering Trinity Evolution, the primary subject of which is US Patent No 6,355,239.
In connection with the settlement agreement, Orthofix will record a charge of $2m, ($1.2m net of tax, or $0.07 per diluted share) in the fourth quarter of 2010.
