The medical technology giants are feeling the impact of the coronavirus pandemic including giants in the orthopedic space such as Johnson & Johnson, Stryker, Medtronic and Zimmer Biomet.
The virus first began affecting these companies while it spread through China in January and February; many of these companies have manufacturing in China and Chinese factories were shut down for a time to curb the spread of the virus. As things began to get up and running in China again, the virus spread to the U.S., where new challenges arose.
On March 17, CMS urged hospitals to halt elective surgery and devote resources to treating coronavirus patients. Many hospitals independently announced a reduction, postponement or cancelation of elective surgeries, including many orthopedic and spine cases. In hospitals where these cases are ongoing, vendor presence is limited.
Moody’s altered the U.S. medical products and devices sector outlook from “positive” to “stable” on March 17 due to the elective surgery cancelations, although the firm anticipates it will recover with canceled surgeries being performed later this year or next year.
The American Academy of Orthopaedic Surgeons also canceled its annual meeting, scheduled for March 24-28. Device companies typically launch or display new products at the convention.
By Laura Dyrda | Becker’s Spine Review
Image Credit: Laura Dyrda / Becker’s Spine Review