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COVID-19 Orthopedic Company Updates

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COVID-19 Orthopedic Industry Updates

The COVID-19 pandemic is significantly disrupting the orthopedic market. The postponement of elective procedures and the economic toll on businesses are being recognized as companies pull guidance and lay off employees.

We've begun to track company updates to keep you abreast of ways that competitors and customers are reacting to COVID-19.

 


 

Smith+Nephew
March 30, 2020

The company announced that it has withdrawn its 2020 guidance due to the uncertainty of COVID-19's impact. Smith+Nephew expects 1Q revenues to be down around -8% with 2Q revenues facing a "substantial" decline. While elective procedures have begun again in China, they remain considerably below pre-pandemic levels. The company noted that it has a strong balance sheet with access to significant liquidity. 

Roland Diggelmann, Chief Executive Officer of Smith+Nephew, said, “Looking beyond the immediate future, Smith+Nephew operates in attractive markets with excellent growth fundamentals. We are financially strong with a proven strategy and unique portfolio. Our major manufacturing and distribution facilities are all active and we are ready to meet pent-up demand when the time comes.”

 


 

OrthoPediatrics
March 30, 2020

The company has withdrawn its 2020 guidance of 22% to 24% growth and investment in set consignments in the range of $19 million to $21 million. The pandemic will significantly impact OrthoPediatric's Scoliosis and Deformity segments, but the company does not expect the same level of disruption to its pediatric Trauma business.

Leadership expects the magnitude of the post-pandemic recovery to be limited only by operating room and surgeon scheduling capacity. OrthoPediatrics announced that it will not lay off any direct employees and continues to work with suppliers to assure the company is able to meet pent-up demand during the recovery.

 


 

Conformis
March 23, 2020

Conformis withdrew 2020 guidance and announced several measures to mitigate the impact of COVID-19 on its operations. It furloughed approximately one-third of its direct workforce and substantially all of its temporary force. All third shift workers have been furloughed. The company does not believe it is significantly at risk in terms of its supply chain.

Conformis President and CEO Mark Augusti believes that the company is well-positioned once the pandemic is under control, especially if backlogged procedures are moved to ASCs. However, he believes any recovery will be a gradual process due to patient fears and healthcare provider fatigue.

 


 

Exactech
March 23, 2020

Exactech laid off 63 employees across all divisions. Remaining employees face tiered salary cuts as the company moves to cut costs. Spokeswoman Priscilla Bennet said, "With surgeries being canceled, so is our cash flow. For weeks, we’ve been doing everything we can to avoid getting to this."

 


 

ConMed
March 20, 2020

ConMed pulled its 1Q20 and full-year 2020 guidance due to COVID-19 disruptions. The company had lowered its first-quarter growth estimate on March 10 to the range of 2% to 4% when the virus was still primarily in Asia. The expansion of the pandemic has limited ConMed's ability to estimate the full impact, but the company does anticipate material disruptions for 2020.

 


 

Medicrea
March 20, 2020

Medicrea has reorganized itself to weather a period of "almost no billings" through September 2020. Case postponements have been in effect since March 12 in France and Spain, and since March 16 in Belgium. The company notes the rate of postponements in the U.S. had been accelerating daily since March 17. 

All French and Belgian employees, including all members of the executive team, have been placed on partial unemployment. The group has negotiated with its suppliers to postpone shipments until the third quarter and its landlords in Lyon and New York have deferred rent payments.