Wall Street Tries To Guess The Impact Of Pandemic On Medtech Revenues
As the pandemic unfolds with an uncertain outcome, US securities analysts that cover publicly traded medtech companies are developing mathematical models to estimate the impact of the COVID-19 pandemic on medtech companies.
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Medtronic's revenue for the fourth quarter of fiscal 2020 was down 25% year-year-over due to the COVID-19 pandemic. The hardest-hit segment was restorative therapies, which reported a 33% year-over-year decline in the quarter due to the drop off in deferrable procedures and capital purchases. For the full fiscal year, Medtronic's revenue was down 4.2% to $28.9bn.
Under guidelines recently unveiled by President Trump, US health care facilities could gradually start phasing-in more elective surgeries, including commonly performed operations that were postponed due the COVID-19 outbreak – many of which involve extensive device use. Elective surgeries include orthopedic joint replacement procedures, colonoscopies and cataract-correcting procedures that could resume as early as May under Trump’s plan.
Abbott appears well-positioned to weather the pandemic with continued revenue growth in diabetes, heart failure devices and molecular diagnostics.