07 Jul 2020
Posted in Coronavirus
COVID-19 continues to impact smaller companies as Endologix files for bankruptcy
Following Endologix’s announcement that it has filed for Chapter 11 bankruptcy protection and was purchased by its largest creditor Deerfield Partners who will take the company private;
Sheryl Tang, Medical Devices Analyst at GlobalData, a leading data and analytics company, offers her view:
“The delay in elective procedures due to COVID-19 has resulted in financial challenges for Endologix, a company that focuses on abdominal aortic aneurysm (AAA) stent graft products. GlobalData estimates that the number of AAA procedures will decline by at least 20% in 2020 as a result of the pandemic.
“The AAA stent graft market is largely dominated by W.L. Gore, Cook Medical and Medtronic, all of which have large portfolios that span across different device markets. With a larger portfolio, revenue gained from other product lines have enabled these larger companies to survive the heavy impact of COVID-19 on their AAA stent graft devices.
“By going private, Endologix will continue with the launch of its recently approved Alto abdominal stent graft system in the US and Europe this year, but will have more flexibility in focusing on innovation and strengthening the business to recover from the impacts of the pandemic.
“GlobalData expects that with the surge in procedures in 2021, Endologix, along with other manufacturers, will be able to slowly recover from the financial impact of COVID-19. The focus on restructuring and innovation may put Endologix in a more advantageous position during the recovery period, should the company release more innovative devices than its competitors to treat abdominal aortic aneurysms.”