Analyst: Hurricanes Harvey, Irma, Maria expected to have impact on med device revenue

The combination of hurricanes Harvey, Irma and Maria are expected to have at least a net 1% impact on US med device revenue for the 3rd quarter, according to a Barclay’s note to investors from analyst Matt Taylor. The disruptions from Maria could extend their impact into the 4th quarter, according to Taylor, who said that most companies have not yet quantified the impact of the most recent hurricane, Maria, on their production and manufacturing facilities. Taylor examined the Medicare populations of each market to analyze the impact on procedures and revenue, offering that medtech firms are levered to Medicare which makes the population a proxy to the percentage of revenue lost in affected areas. Hurricane Harvey’s impact on the Houston area resulted in up to 5 days without power, according to Taylor, who calculated that the Houston metro area has about 1% of the US Medicare population. Irma, which made landfall less than a month later, resulted in approximately 10 days without power, though “most of the power was restored in 2/3rds of the state that was impacted over that time,” Taylor comments. He estimated the impact as 4.7% of the medicare population, given the entirety of Florida makes up 7% of the Medicare population, and power outages affected 2/3rds of the state. Maria’s impact is estimated to affect about 1.4% of the population, which Taylor said syncs up with Medtronic’s comments on the impact of the storm, though he offered that companies are st...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News bectondickinson Cardiovascular Systems Inc. Edwards Lifesciences Hill-Rom Holdings Inc. Integra LifeSciences Corp. K2M Medtronic Nuvasive Stryker wrightmedical zimmerbiomet Source Type: news