Five details:
1. The company issued initial guidance in February taking the COVID-19 outbreak in China, but did not anticipate the rapid expansion of it to the rest of the world.
2. The company reported it’s too early to determine the full impact of COVID-19 on the company, and that while elective procedures have restarted in China, volume is still low. Many elective procedures are canceled or postponed in the U.S. and Europe.
3. Smith+Nephew plans to report first quarter results on May 6 and underlying revenue for the first quarter will be down 8 percent as compared to 2019. The company also expects second quarter revenue to drop and the company’s first half of the year trading margins are expected to drop substantially year over year as well.
4. While elective procedures are down, Smith+Nephew said the company has realized savings from travel, events, advertising, promotions and consultancy. The company also enacted a freeze on many new hires and some planned capital expenditures.
5. The company is ready to meet the demand for orthopedic procedures when elective surgeries ramp back up later this year.
More articles on orthopedics:
NuVasive recalls Magec system for scoliosis, advises surgeons to perform clinical follow-ups
Zimmer Biomet asks European hospitals to remove orthopedic spacer molds
Resurgens Orthopaedics postpones elective surgeries, remains open for urgent care
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