Hurricane Maria is posing a threat to medical device and pharmaceutical manufacturing plants in Puerto Rico, according to a new Bloomberg report.
The island is home to facilities for Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE), Amgen (NSDQ:AMGN), Merck, Medtronic (NYSE:MDT) , Abbott (NYSE:ABT), Stryker (NYSE:SYK) and dozens of others, according to the report.
Most of the companies created facilities in Puerto Rico due to tax incentives, Bloomberg reports.
The storm is poised to do massive damage to the island’s infrastructure, according to a CNN report, which could leave the facilities without power or communication even if it doesn’t damage them directly.
The storm has led Medtronic to close its manufacturing plant in the region, with the company’s internal emergency response team staying in close contact with employees at the facilities, according to a Star Tribune report.
“The safety and well-being of our employees is our top priority, and we continue to closely monitor the situation in Puerto Rico. This is a very fluid situation as the hurricane is currently hitting Puerto Rico. We will assess the impacts of Hurricane Maria on our employees, facilities, customers and the patients we serve but it is too early to make any determinations right now,” Medtronic spokesman Fernando Vivanco told the Star Tribune.
Analysts at Leerink Partners and J.P. Morgan Securities are taking into account the hurricane and possible related damage, but said it is too soon to assess the impact. Companies like Medtronic have also reportedly been stocking inventories ahead of storm, and have obtained generators for on-site power, according to the report.
Earlier this week, Cardiovascular Systems (NSDQ:CSII) said that due to hurricanes Harvey and Irma it is experiencing reduced procedure volumes and, as a result, is expecting to see 2018 1st-quarter revenues.
The St. Paul, Minn.-based company said that the impact on its revenue is “magnified due to the company’s small product portfolio and location and timing of the storms,” as the Houston and Florida markets generate over 15% of its revenue.