Shares of two of the largest orthopedic device companies started climbing this morning on news of a new White House recommendation that elective surgical procedures may resume.
Shares of Zimmer Biomet (NYSE:ZBH) were up 6.42% to $116.45 apiece in mid-morning trading and those of Stryker (NYSE:SYK) had risen 5.28% to $184.20.on both an inpatient and outpatient basis as the country begins to resume normal activities.
The decision, announced during yesterday afternoon’s White House coronavirus briefing, is part of the Trump administration’s larger plan to gradually reopen the country as the coronavirus pandemic plays out. The new federal guidelines also allow governors to take a phased and deliberate approach to reopening their individual states.
Several medical device companies, especially those in orthopedics, have suffered major drops in sales since the Centers for Medicare and Medicaid Services (CMS) recommended in March that healthcare providers postpone elective procedures until further notice to preserve personal protective equipment.
The CMS decision followed one by the American College of Surgeons calling for hospitals to “minimize, postpone or cancel” elective procedures until the coronavirus (COVID-19) outbreak slows down. This week, the surgeons’ organization published its own list of recommendations for gradually resuming outpatient procedures.
Image Credit: Zach Rudisin, CC BY-SA 3.0