The London-based company said that it expects to post sales of $250.5 million for the quarter, well below the Wall Street expectations of $264.6 million.
The company reported preliminary sales of $121.5 million for its cardiopulmonary division, a drop of 2.9% compared with the same period during the previous year. Its heart valve business saw a larger drop, reporting preliminary sales of $25.6, down 17.5% from Q1 2018.
LivaNova’s cardiovascular division dropped 0.5%, reporting prelim revenue of $155.4 million while the company’s neuromodulation business reported preliminary sales of $94.4 million, up 0.6% compared with its Q1 of 2018.
The company said that the neuromodulation biz “experienced unexpected weakness in the U.S. market due to a combination of factors,” including competitive dynamics and salesforce turnover.
Softening Perceval sales and a continued decline in overall heart valve sales had a negative effect on the cardiovascular business, LivaNova said.
“While our Europe and rest of world regions continued to grow above plan, I am disappointed by our execution in the quarter in light of the changing competitive environment within the U.S. in our neuromodulation and heart valves businesses. We believe we can address these challenges and remain committed to our strategy to drive sales, build global capabilities and establish a strong product portfolio. We believe these efforts will serve the needs of our customers and patients to create quality, long-term value for our shareholders,” CEO Damien McDonald said in a prepared release.
The company said that it is currently reviewing its 2019 guidance and will provide the update along with its full earnings report on May 1.
Shares in LivaNova have fallen 27.2% so far today, at $70.30 as of 2:22 p.m. EDT.
Late last month, LivaNova said that it inked a deal to settle approximately 75% of litigations it faces in the U.S. related to its 3T Heater-Cooler device, which has been implicated in a number of unexpected severe patient infections, expecting to pay up to $225 million to settle the claims.