HomeOrthopedicsOrthopedic NewsWhat is the extend of COVID-19’s impact on orthopedic companies?

What is the extend of COVID-19’s impact on orthopedic companies?

The orthopedics market has been on a wild ride since the beginning of the pandemic. Shutdowns and uncertainty with elective procedures, which not restricted to orthopedics, have put a number of twists and turns in the market. Corporations within the house have seen hits to income and have to modify plans to make it by this fluid market.

Rewind the clock to April of 2020. American Academy of Orthopedic Surgeons (AAOS) issued guidance that may set the tone for orthopedic procedures till today. The group gave steerage that urged each locality ought to making its personal choices based mostly on the provision of assets and personnel. In these conditions, a panel that features the pinnacle of the hospital (or the designee), chief of the ICU, chief of anesthesia, and chief of orthopedic surgical procedure ought to kind a committee to evaluate any potential surgery, AAOS The place possible, enter from the state department of health needs to be solicited.

Certainly, the world changed, and orthopedics found itself to be considerably impacted.

Conformis has maybe been the poster child for the turbulence the market has been experiencing. The Billerica, MA-based company made medtech headlines on the onset of the pandemic first asserting a reduced headcount and then announcing it had taken a PPP Loan, which has since been forgiven.


Prolonged rest may lengthen the hospital stay and raise the risk of complications following an incidental durotomy

In a shocking move, Conformis recognized for its personalized knee implants shifted its strategy noting it would sell a standard off-the-shelf knee in parallel to its higher-cost customized knee implants.

“Over the last 4 weeks, we have experienced heightened ranges of rescheduled and deferred procedures because of the rise of circumstances of COVID-19 and the Delta variant,” Conformis said in a launch dated Sept. 20, 2021. “Despite this increased headwind, we stay assured in our progress plan for 2022 and beyond.”

Because of the variability, the company has updated its revenue outlook for 3Q21. Conformis stated it now expects product revenue for the quarter to be approximately $13.7 million to $14.3 million. This compares to the $15.5 million to the $16.5 million projection introduced on August 4, 2021.

The story surrounding Stryker was a bit different. With a market capitalization of $100.36 billion in comparison with Conformisis’ market cap of $239.89 million, Stryker’s position was much more ironclad.

The company was in the middle of its $4 billion acquisition of Wright Medical – which finally closed in November of 2020.  The deal had been held up a bit due to anti-trust considerations. However, the firms were capable of settle the issue by agreeing to divest all belongings associated to finger joint implants and STAR total ankle replacements to DJO Global.

The Wright Medical acquisition expanded the Kalamazoo, MI-based company’s place in the fast-growing trauma & extremities section. Nevertheless, Stryker wasn’t immune to the difficult terrain COVID-19 supplied.

In Stryker’s most recent earnings call, Kevin Lobo, the company’s CEO spoke in-depth concerning the difficulties and the way the corporate was bouncing back after a tough 2020.

“We have seen it throughout the year of a return of elective procedures,” Lobo stated, in keeping with a The Motely Fool transcript of the call. “These are deferrable procedures that have to be carried out at some point. And sure, with the Delta variant, you are beginning to see pockets of disruption. However, the hospitals are very capable of being able to deal with this. And we observe in markets like Latin America and different markets, the state of affairs is definitely improving. So total, we all know there’s going to be some disruption. That’s baked into our guidance. However, we believe, with the momentum that we now have throughout not solely our implant enterprise but also our capital businesses, we feel fairly assured sufficient to lift the underside finish of our full-year gross sales guidance.”

MD+DI reached out to Stryker about what the company was observing through the pandemic particularly with the Delta Variant.

“We’re observing some impression from the Delta variant, in addition to the burnout of hospital employees, on elective procedures,” Stryker told MD+DI in an email. “Nevertheless, the situation is flexible as we’re additionally experiencing Delta beginning to peak in lots of geographies.”

Zimmer Biomet had the daunting activity of rebranding itself. Earlier than the pandemic, the Warsaw, IN-based company was attempting to interrupt down silos and absolutely combine Zimmer with Biomet. Bryan Hanson, the company’s CEO began laying down the groundwork – focused on the traditional gap between the “Zimmer camp” and “Biomet camp.”

The firm just lately started the process of spinning out its Spine and Dental business, now referred to as ZimVie.

Throughout an earnings name held in early August, Hanson spoke to the unpredictability of the virus.

“Number one, and that is more short-term period. However, it’s vital, the recovery from COVID is shifting in the right direction,” Hanson stated in keeping with a Looking for Alpha transcript of the decision. “Now it is definitely not as we anticipated. I do not assume it’s for anyone. However, it’s moving in the right direction, nonetheless. And secondly, I feel that is vital, not only for now, but in the long run, our team continues to execute and deliver in opposition to the issues we can manage, and each of these staff was deeply considered in our updated guidance. And this provides us confidence that continued restoration through the back half of the year is going to happen. And we see a path to finish 2020 at 4% to 5% natural progress, at 4% to 5% we have been talking about without the necessity for any materials profit from clearing the deferred patient queue.”

The situation with orthopedics and elective procedures is best described as fluid and ever-changing.

SeaSpine Holdings possibly offers probably the most correct testimony of any firm through the pandemic. The Carlsbad, CA-based mostly firm took a hit on shares after it was unable to substantiate its prior revenue guidance for the fourth quarter and full-year 2021.

“Even the third quarter of 2021, and most acutely beginning in August, spine surgery process volumes were negatively impacted in lots of areas of the US, including in Florida and Texas, where SeaSpine derives a significant portion of its income, because of cancellations and/or postponements of procedures on account of the increased circumstances and transmissibility of COVID-19 and since hospitals and different surgical facilities were experiencing staffing shortages,” the company stated in an SEC filing.


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