Coloplast (CPH:COLO-B) announced today that it was able to boost its annual earnings even as the COVID-19 pandemic held down sales growth — with the Danish medical device giant expecting a stronger 2021.
Also today, Coloplast announced that it has completed its acquisition of Nine Continents Medical, an early-stage company pioneering an implantable tibial nerve stimulation treatment for overactive bladder. Coloplast is paying $145 million upfront for Nine Continents Medical, with an additional contingent future milestone payment.
The Humlebæk, Denmark–based maker of ostomy care, continence care, interventional urology and wound care products reported profits of DKK 4.2 billion (nearly $230 million) on sales of DKK 18.5 billion ($2.9 billion) for the year ended Sept. 30, 2020, for a bottom-line gain of 8% and top-line growth of 3%.
Coloplast officials credited the earnings growth to strong cost control amid the coronavirus pandemic, even as the company continues investments in growth opportunities and innovation. The pandemic and resulting cancelation of elective procedures had a significant negative impact on Coloplast’s U.S. Interventional Urology business — as well as the Wound & Skin Care business, particularly in China and the U.K., according to the company.
Coloplast’s Chronic Care business in the U.S. and emerging markets meanwhile saw mostly stable underlying growth throughout the year.
For the 2020-21 fiscal year, Coloplast officials are predicting organic revenue growth of 7–8% at constant exchange rates, with reported growth in DKK at 4–5%. The company is touting its new “Strive25 – Sustainable Growth Leadership” strategy with an emphasis on innovation and growth in the U.S. and China.
Investors reacted by sending COLO-B shares down -2.9% to DKK 914.40 apiece by the close of trading in Copenhagen today. MassDevice‘s MedTech 100 Index, which includes the stocks of the world’s largest medical device companies, is up 1.9% as of afternoon trading in the U.S.
