Is Medtech Prepared for Recovery?
While certain medical devices, supplies, and diagnostics necessary for treating COVID-19 patients have seen increased demand during the pandemic, the postponement of non-emergency procedures has impacted demand for many other products.
Orthopedic procedures have been the most obvious type of postponement, noted Brian Chapman, managing partner and leader of the medical technology industry vertical at ZS Associates. âThese are not necessarily elective,â he told MD+DI. However, âthe thought process is that maybe they would be safer in two months. You donât want to risk a life with a knee replacement, so it makes sense to wait.â
Medtech companies experiencing a drop in product demand have been responding in various ways, with some taking drastic measures to cut costs and others just âwaiting for the storm to pass,â he said. While these companies do have an obligation to ensure their âcash burn is appropriate,â he said, and âin some cases there are reasons for concern because of the cash position or exposure,â there doesnât appear to be a uniform response across affected sectors. âSome are worried about money and employees, and others are not even having a conversation,â he added. The differences may be due to leadership, structure, ...
Source: MDDI - Category: Medical Devices Authors: Daphne Allen Tags: Business Source Type: news
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