KALAMAZOO — Medical device maker Stryker Corp. expects the growing push to defer elective surgeries as health care organizations deal with a rush of COVID-19 patients to have “a significant negative impact” on its operations and financial performance.
In a filing yesterday with federal securities regulators, Kalamazoo-based Stryker (NYSE: SYK) said it was withdrawing the first quarter and 2020 fiscal year guidance that it issued on Jan 28.
“As the COVID-19 pandemic expands, unprecedented measures to slow the spread of the virus have been taken by local governments and health care authorities globally, including the deferral of elective medical procedures and social contact restrictions, which have had, and we expect will continue to have, a significant negative impact on Stryker’s operations and financial results,” the company said in the filing.
In Michigan, for example, Gov. Gretchen Whitmer on March 20 ordered hospitals, outpatient surgery centers, state-operated facilities and dental offices to postpone all “non-essential” procedures for as long as the state of emergency was in effect, as MiBiz previously reported.
For 2019, Stryker generated net sales of $14.9 billion, a year-over-year increase of 9.4 percent.
In guidance issued in January, Stryker said it expected sales to grow 6.5-7.5 percent for 2020.
“Due to the uncertain scope and duration of the pandemic, and uncertain timing of global recovery and economic normalization, Stryker is unable to estimate the overall impacts on its operations and financial results, which could be material,” the company said in the filing.
Stryker executives expect to discuss the effects of the coronavirus on its financial operations in its next earnings release scheduled for April 30.