More Medical Device Businesses Impacted by COVID-19

The uncertainty surrounding COVID-19 is making it difficult for public companies to accurately forecast 2020 earnings. Irvine, CA-based Endologix recently joined a growing list of medical device companies that have withdrawn previously-reported financial guidance for the year. The company makes endovascular stent grafts for the treatment of abdominal aortic aneurysms (AAA). AAA is a weakening of the wall of the aorta, the largest artery in the body, resulting in a balloon-like enlargement. Once an AAA develops, it continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture. Endologix said AAA procedures began to get deferred in March as healthcare systems shifted focus to treating coronavirus patients. The company said that so far these deferrals have impacted smaller-diameter, less-severe aneurysms more acutely than larger-diameter or ruptured aneurysms that require more immediate intervention. Endologix also said it expects that the majority of the deferred cases will be re-scheduled once the healthcare systems regain capacity. "Management is closely monitoring the company’s balance sheet and evaluating options to improve liquidity to mitigate the impact of deferred AAA procedures," the company said in a statement issued Monday. Boston Scientific also withdrew its 2020 guidance and last week said it is "significantly reducing" the salaries of its CEO, board of directors, and executive committ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news