18 Sep 2020
Posted in Coronavirus
Continued surges of COVID-19 may slow recovery progress for medical device manufacturers
At the recent Morgan Stanley Annual Global Health Conference, major players presented on their financial situation amid the COVID-19 pandemic. The recovery for major medical device market players is occurring faster than many had expected and mirrors the trend GlobalData has observed in its proprietary US hospital purchasing database.
Stryker shared that it experienced a steep 36% decline in sales in April. However, the company highlighted a sharp recovery curve, with May and June only experiencing 24% and 10% declines in sales, respectively. Johnson and Johnson echoed this by sharing that its sales have recovered to 90-95% of the company’s 2019 sales in the same month. Other major players also experienced a similar recovery curve and were optimistic that positive growth would return in Q4 2020.
Dominic Tong, Medical Device Analyst at GlobalData, comments: “Sales of Stryker’s Target embolization coils had dropped over 40% YOY in April before growing over 26% YOY in July. A sufficient supply of personal protective equipment, COVID-updated medical guidelines and new technologies such as telehealth solutions have combined to allow healthcare practitioners to address pent-up demand from postponed procedures more quickly than expected, leading to the rapid recovery many firms experienced. However, continued spikes in cases in the US, along with a resurgence of cases in some countries, may slow recovery in the coming quarter. Firms will need to remain flexible to avoid the worst of the pandemic.”