Conformis Gets Some Economic Relief to Help with Negative COVID-19 Impact

There is a bit of relief for Conformis, a maker of custom orthopedic implants, which has been impacted significantly by the novel coronavirus (COVID-19). The Billerica, MA-based company said in a release it received $4.7 million under the paycheck protection program (PPP) offered by the U.S. Small Business Administration. In response to the coronavirus (COVID-19) pandemic, the Coronavirus Aid, Relief, and Economic Security Act authorizes the SBA to make available low-interest rate loans to qualified small businesses under the PPP. According to the terms of the PPP, all or a portion of the loan may be fully forgiven if the funds are used for payroll costs (and at least 75% of the forgiven amount must have been used for payroll), interest on certain other outstanding debt, rent, and utilities. Nearly a month ago, Conformis said it was going to furlough about one-third of its workforce because of sharp declines in procedures from the coronavirus pandemic. Last month, Kyle Rose an analyst with Canaccord & Genuity wrote in a research note that the vast majority of orthopedic procedures would be deterred until the foreseeable future. “Questions we’re currently asking: When do we hit a point where we can no longer make up lost procedures in 2020 by doing weekend surgeries,” Rose wrote in research notes. “What are the impacts to capital sales in 2020? How will the dynamic of the shift to the ambulatory surger...
Source: MDDI - Category: Medical Devices Tags: COVID-19 Business Source Type: news