The new crown epidemic has had a serious impact on the sales of global medical device companies. Medtronic, one of the world’s largest medical equipment manufacturers, announced its results on Tuesday, showing that in the latest fiscal quarter ending on January 29 this year, the company’s profits fell sharply by nearly 34%. This was mainly due to the impact of the epidemic in late December and last year. The impact of the decline in hospital operations in January this year.
Medtronic CEO Geoff Martha, who just took office in April last year, said that the epidemic returned last fall and the surge in cases was even worse than before. Martha said: “From October last year to the end of the year, the number of new crown infection cases rose sharply. This has caused the situation in the hospital ICU in January this year and even the current situation to be worse than that of the earliest period of the new crown epidemic." He expects this kind of medical resource shortage will continue continue for a period of time.
Medtronic’s financial report shows that the company’s revenue was US$7.78 billion, a slight decrease of 1% year-on-year; Among them, cardiovascular business revenue was US$2.7 billion, a year-on-year decrease of 5.9%. Compared with the decline in revenue, the company's profit decline is more significant. In the latest fiscal quarter, Medtronic made a profit of US$1.27 billion, a sharp drop of 33.7% year-on-year.
However, after the financial report was announced, Medtronic's stock price rose against the market. In an email to employees, the company’s CEO Martha said: “The worst moment has passed. Our business is restarting and will return to the level before the epidemic.” He predicted that when the next quarter’s financial report is released, sales It may return to normal.
Medtronic also said that with the large-scale vaccination of the new crown vaccine globally, there are signs that the trend of new crown infection is being reversed, at least in the hospital operating room, the situation may return to normal.
Medtronic's main medical device products mainly cover the cardiovascular field, including heart failure, heart valve replacement, interventional heart surgery, etc. However, during the epidemic, the treatment of chronic diseases such as the cardiovascular field by hospitals and patients slowed down. Medtronic's financial report also reflects the problems faced by other medical device manufacturers in the industry that rely on these selective treatment products.
Earlier this month, Edward Life Sciences, the world's largest manufacturer of heart valves, also announced less-than-expected earnings. The company's fourth-quarter profit fell 5.66%.
Edward Life Sciences CEO Michael Mussallem said: "Structural heart disease patients have been severely affected since March last year, and it is very difficult to be hospitalized. This has a profound impact on the company's performance."
Mao Sailin also said that the medical system tried its best to adapt to the challenge of the epidemic, but since the end of last year, the epidemic has returned and it continues to affect patients with structural heart disease who need care to receive normal treatment. For the full year of 2020, Edward Life Sciences barely achieved 1% growth, with sales reaching 4.4 billion U.S. dollars; The company predicts that with the gradual return to normal surgery, the full-year sales of 2021 will be in the range of US$4.9 billion to US$5.3 billion.
With the global epidemic still showing no signs of dissipating, these medical device manufacturers have begun to pay more and more attention to Asian countries including China. Edward Life Sciences stated that although the Chinese market did not contribute much to the fourth quarter sales, the company is committed to developing a professional clinical support team in China and assisting leading hospitals in China to establish a heart valve replacement surgery (TAVR) plan.
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