17 Jul 2020
Posted in Coronavirus
Abbott Laboratories’ results show COVID-19 impact on certain medical device markets
Following the release of Abbott Laboratories Q2 2020 earnings results;
Ashley Young, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:
“While Abbott reported an overall decrease in medical device sales in Q2 2020, the company also stated that procedures using its devices had begun to return to normal, pre-COVID-19 levels by the end of the quarter in many regions worldwide. This upward trend in procedures is likely linked to a decreasing number of COVID-19 cases being observed in many countries globally, along with an easing of restrictions that were put in place during the pandemic. As healthcare facilities and providers learn to live with the ‘new normal’, procedures that were put on hold at the beginning of the pandemic are now being carried out, allowing medical device markets to begin to return to normalcy.
“Abbott is the global leader in the Transcatheter Mitral Valve Repair (TMVR) market with its MitraClip device. The company reported that TMVR procedures had returned to 85% of its pre-COVID-19 levels by the end of Q2. GlobalData estimated the global market value of TMVR devices to be worth approximately $700m in 2019, and expects this value to decline in 2020 due to COVID-19-related procedure delays and cancellations. However, if TMVR procedure numbers continue to return to their normal, pre-COVID-19 levels, the decline may not be as large as was originally predicted earlier in Q2. On the other hand, if COVID-19 cases spike again in the fall in many countries around the world, declines in procedures are likely to be observed again, leading to a further decline in device sales.
“Abbott Laboratories’ results provides hope that medical device markets may not decline as sharply in 2020 as was expected at the height of the pandemic. If procedure numbers continue on their upward trajectory, financial impacts may be minimized across multiple medical device markets.”