Printer-friendly format

‘State of the art’ applies to Wright’s tooling as well as their medical products.

Fact outclasses fiction hands down. You couldn’t make up a more impressive all-American success story than Gary Henley’s true-life bio synopsis: “Oklahoma TV studio designer-operator invents microscope camera, develops cutting edge technologies, and rises to top job at global medical tech corporation.”

Along the way, Henley’s problem-solving skills have also expedited the development and implementation of some breakthrough medical techniques that are now taken for granted, including arthroscopic knee surgeries, endoscopies, and laparoscopic cholecystectomies (gall bladder removal).

Following his college and Air Force years, in 1973 Henley and a partner began by establishing a company in Oklahoma City which designed and set up broadcast studios, and also produced educational and cable TV programs. A surgeon who had just helped to develop the phacoemulsifier (used for cataract removal) came to them to produce a training film illustrating its use. He needed a television camera small enough to work on his Zeiss microscope, capturing each stage of the operation in progress, but no such camera existed.

The Tech Behind Wright Medical Technology   To most people, it’s all about the state-of-the-art surgically implanted devices Wright Medical Technology produces to improve the quality of life for those who suffer as the result of injuries or disabilities. The knee, hip, and ankle replacements that Wright designs and creates are indeed marvels of engineering that make hugely significant differences in the lives of the patients to whom they restore functional mobility. But the making of these miracles is itself a miracle; a tour of Wright’s manufacturing facility reveals automated systems that must be seen to be believed. Robotic arms with elbows, wrists, and grippers move and flex as freely as a human arm while, with infinite precision, they manipulate and polish gleaming metal components of artificial knees. Each programmed task, each mechanical “worker” must be custom-created for the purpose. As Wright CEO Gary Henley quips, “You can’t just order these robots out of a catalog,” so Wright engineers must also successfully develop the impressive tools that create with speed and precision each of their life-changing products. It’s worth the effort. Since the foundry, where formerly a manual process poured molten metal into molds, was automated, the robots have more than doubled capacity and cut costs by nearly 40 percent, Henley reports. But the creative challenge doesn’t end there. In order to educate the surgeons who must learn how the devices function and how to implant them correctly, Wright has also created a traveling educational facility: two large 40’ semi tractor trailers comprise a mobile laboratory, complete with a four-station operating room. At the time of this writing—in mid-August—the labs were stationed at Stanford University in California for a three-day period, during which an anticipated total of 75 surgeons were to be trained in implanting replacement knee, foot, and ankle devices. In order to keep pace with the demands of developing new techniques and methods for manufacturing a constantly-evolving array of new and improved products, as well as developing the product concepts themselves, a whopping 12 percent of Wright’s employees are involved in R&D and 7 percent of their sales are cycled back into R&D, Henley noted.

In those days before microchips, Henley and his partner worked nights and weekends, successfully developing a tiny camera 2” in diameter and 7-8” long, attached via cable to its remote electronics. The first of its kind, it worked like a charm. Others saw the camera in action and asked Henley to make copies of his prototype for them. Overnight, Henley’s Cecorp, Inc., became a medical manufacturer.

They were commissioned to make a small arthroscopic camera to help doctors examine knee damage more closely; in 1983, they began providing the cameras for the Dyonics division of Smith and Nephew. Four years later, Smith and Nephew acquired Cecorp, retaining Henley as division president for 10 years. During that period, he created several new cameras, light sources, and accessories, branching into endoscopy and working with surgeons to develop the laparoscopic cholecystectomies which have routinely replaced the morbidly invasive former gall bladder removal surgeries and the associated lengthy recovery process.

Henley also served a 10-year term as president of Orthofix North America before being approached in 2006 by Wright Medical Technology, a worldwide manufacturer and distributor of orthopedic implants, including hip, knee, shoulder, elbow, hand, wrist, and foot joints.

What attracted you to take on the leadership role at Wright?

I knew of this company, and being by nature an entrepreneur who likes to make things happen and to fix companies and grow companies, I was interested. I’d never been CEO of a public company and I thought that was an intriguing challenge.

How does running a public company differ from a private one?

Public companies are often held to higher standards—with reporting, oversight, stocks, accounting, auditing issues, etc. But there are advantages, too—it gives you greater financial liquidity. We communicate regularly with our shareholders, who seem as happy as they can be in this crazy environment. We have focused on cash flow generation and profitability while still making investments in people, projects and foundational issues. That’s the important message we give shareholders: we won’t pursue higher earnings by mortgaging our future. We’re in this for the long term.

We spend a lot of time listening to shareholders—one thing I learned as an entrepreneur. When I hire marketers, I want ‘marketeers’ with great big ears—who will listen to our customers and be responsive.

What changes have you made since coming to Wright?

We acquired 29 acres adjacent to us, which became available six weeks after I came on board. We’ve built a number of buildings and expanded significantly. We’ve acquired two other buildings, one of which we use for plastics manufacturing. The other is a newly renovated and fully automated distribution facility just completed in August.

We’ve seen a lot of growth: In 2006 we had 600 employees in Arlington. We’ve doubled the size of the facility, and we now have over 1100 employees here—and just under 1400 globally, including our facilities in the Europe, Japan, Australia, and Canada.

What challenge has been toughest to face?

The economic downturn has been the most significant issue that we as an industry, a nation, and as a global economy have faced. Despite that, Wright has continued to do well, strengthening our foundations and developing new initiatives where we could apply our technology infrastructure and knowledge base. After I joined Wright, we spent about six months deciding to address the foot and ankle area. Now we’re three years into it and we are certainly perceived as a market leader in that area, using a lot of the technologies we developed for hips and knees, with a dedicated U.S. sales force of more than 150 selling nothing but foot and ankle products. That initiative has helped us a great deal.

Has healthcare reform had an impact on your business? Will it?

That depends on what form it takes—and it’s still forming. One of the things we can surmise today is that there’s probably going to be a tax on devices. This is unfortunate. If collectively, as an industry, medical manufacturers stopped shipping our products tomorrow, nearly every hospital in the U.S. would be out of business within a month.

We provide products that provide solutions patients need; there are no other options for them.

Because we are manufacturers, we’ve been a bit vilified and targeted. We’re not the problem, however; we’re the solution—not only for the patient, but for the healthcare system itself.

What about Wright’s charitable activities?

We’re a strong supporter of the Arthritis Foundation and the LeBonheur Foundation. We’re also committed to our partnership with Operation Walk, a global effort that provides joint replacement for people in developing countries. We donate hip and knee implants and technical assistants to accompany volunteer surgeons; our employees raise funds which they contribute to the effort. Last year, in Peru, the team implanted 65 knees within three days. One of the returning surgeons addressed our employees and there was hardly a dry eye in the auditorium. It’s truly heartwarming.

What is the key to Wright’s global growth and increased revenue, even in tough times?

We’ve got great products, and we continue to strive to innovate. We bring solutions for people’s problems. If we can continue to do that, if we continue to focus on people, products, and performance, that’s the underlying key.

What’s new on your horizon?

We just launched our Evolution Knee in August, after nearly five years in the making.

It’s the largest single product launch this company has ever undertaken. We’ve spent thousands of hours on kinematic studies, and applied the findings from 12 years of clinical history. The Evolution Knee features a ball and socket with a medial pivot—on the inside of your knee. As a result, this knee is exceptionally stable. We honestly believe it’s the best knee in the world.

That, along with our foot and ankle products launched this year, our Prophecy preoperative navigation system, and our robust pipeline of products and ideas, gives me a lot of confidence in Wright Medical’s future.

What accomplishments are you most proud of?

I’ve been fortunate to be on the building side of businesses my entire career. The first one literally was in a garage. Most important to me has been the ability to combine and develop the technologies that help people to live a better life. That gives me a lot of satisfaction as I drive home at night.

We have a lot of people who show up here every day and work hard to help improve the quality of life for others around the world. We’re proud of what we do on a global scale—and we’re proud that we do it right here in little Arlington, Tennessee.

 

Tags:

Arlington, CEO, Gary Henley, Inc., Tennessee.`, Wright Medical Technology

Login and voice your opinion!