A number of medical device companies with facilities in Texas, Florida, Puerto Rico and California updated this week on the revenue impacts and recovery efforts from major hurricanes and wildfires which have slowed production and shut down facilities across the US.
Baxter updates on Hurricane Maria recovery
Healthcare giant Baxter (NYSE:BAX) said it expects to see a reduction in revenue during its 4th quarter as a result of Hurricane Maria hitting its Puerto Rico operations, but that it hopes to mitigate the impact through “positive performance in other areas of business.”
The Deerfield, Ill.-based company said that its 3 manufacturing sites sustained minimal structural damage and that limited production activities resumed across its facilities within 1 week of the storm. Currently, its manufacturing operations are being powered by diesel generators with satellite communications being used to restore contact between the facilities and to support plant operations.
Baxter said its Puerto Rico facilities are used to manufacture hospital products including premixed injectables and delivery devices, including sodium chloride 0.9% injection bags, also known as mini bags.
In a statement from FDA commissioner Scott Gottlieb released today, the agency said it is working with Baxter to facilitate the import of the minibags from its facilities in Ireland and Australia to make up for the lost production days at the Puerto Rico facilities.
“The FDA has also taken many steps to help Baxter restore operations in its Puerto Rico facilities and move critical products onto and off the island. The FDA and Baxter will continue to keep in close consultation as we monitor the challenging situation on the island,” Gottlieb wrote in the statement.
Baxter said it was also focused on supporting its employees and their families, and that is has confirmed the well-being of nearly all of its more than 2,000 employees in Puerto Rico. The company said that it was helping support the employees in procuring gas, food, water and toiletries, and has organized multiple daily flights to transport supplies to the employees.
The company said it has contributed approximately $3.5 million to disaster relief efforts in the area, including the Caribbean islands, Mexico and the southern US.
“The devastation of Hurricane Maria is heartbreaking and tragic. I met recently with many of our dedicated employees in Puerto Rico, and I am both inspired and humbled by their commitment to our mission, our patients, their communities and each other in the face of the unimaginable damage and loss they’ve experienced. Our mission to save and sustain lives calls on us to give back in times of crisis; Puerto Rico has our support,” Baxter CEO & chair José Almeida said in a press release.
Exactech updates on Hurricane Irma, Harvey revenue impacts
Exactech (NSDQ:EXAC) yesterday said that it has adjusted its guidance for the 3rd quarter of 2017 as a result of Hurricanes Irma and Harvey, expecting to see a revenue impact of $1.2 million in 3rd quarter sales across Florida, Texas, Georgia and the Carolinas.
The Gainesville, Fla.-based company said that while its facilities were unharmed, surgery postponements and delays still had an impact and would require it to adjust its guidance for the coming quarters.
“We were fortunate that our facilities were undamaged during the hurricanes. However, the storms caused our surgeon customers in the affected states to postpone scheduled surgeries, directly affecting our Q3 revenue stream. In addition, due to hurricane preparation procedures at our Gainesville and Sarasota locations, our manufacturing and shipping operations lost two days of operating capacity. As a result, domestic revenues were near the bottom of our expectations. We now expect to report approximately $61.4MM in worldwide revenue for the third quarter. We also are adjusting our EPS guidance for the quarter to $0.19-$0.21 per share, a reduction of approximately $0.04 per share from our previously issued guidance of $0.23-$0.25 per share due to the net income impact of these lower revenues as well as the impact of the operations interruption,” CEO & prez David Petty said in a press release.
Exactech said it plans to release its 3rd quarter 2017 financial results on October 30.
Endologix’s Santa Rosa facilities safe and clear in wake of wildfires
Endologix (NSDQ:ELGX) said on Wednesday that its Santa Rosa, Calif.-based facilities that manufacture its Ovation product line have not been affected by wildfires that hit the region earlier this week.
The Irvine, Calif.-based company said that it resumed shipments out of its Santa Rosa facilities on Tuesday “following a brief delay” with plans to resume manufacturing soon.
“Many of the company’s Santa Rosa employees have been adversely impacted by the fire, but they remain committed to the continued development, manufacturing, and support of aortic devices for physicians and their patients,” Endologix wrote in an SEC filing.
Medtronic avoids damage from Santa Rosa fires
Earlier this week, Medtronic (NYSE:MDT) said its 2 facilities in Santa Rosa were still standing but inaccessible by wildfires sweeping through the area.