Oppenheimer Comments On Wright Medical Group (WMGI)

Oppenheimer commented on Wright Medical Group WMGI, following announcement of Wright's Q1 results. In a research report published today, Oppenheimer expressed its dissatisfaction with lack of information from Wright on the compliance issues after five of its senior managers resigned recently. In the report, Oppenheimer states, "WMGI's 1Q11 call didn't provide much color on the alleged compliance breaches that led five members of senior management to exit. But it did report receiving a letter from the USAO alleging it knowingly/willfully breached its DPA. Wright intends to present its defense within 21 days, but visibility is low on timeline/expected consequences. On the quarter, sales were ahead of our estimates on OUS Hips/US Biologics, but the overall message of suppressed Recon/Biologics growth remains. WMGI reiterated '11 sales guidance, though there is a cushion as it doesn't factor any FX tailwind (+3% on current rates). With DOJ/USAO uncertainty high and headwinds in several segments, we maintain our Perform." Oppenheimer currently has a Perform rating on Wright. In yesterday's trading, Wright lost 6.43% to end the day at $15.28.