SeaSpine Holdings (NSDQ:SPNE) is the latest medical device maker warning that the SARS-CoV-2 Delta variant wave is hurting its business.
Carlsbad, California–based SeaSpine filed an update for investors with the Securities and Exchange Commission on Sept. 24, citing “ongoing uncertainty regarding the duration and severity of COVID-19 and/or staffing shortages on spine surgery procedure volumes throughout the United States.”
“Throughout the third quarter of 2021, and most acutely starting in August, spine surgery procedure volumes were negatively impacted in many areas of the United States, including in Florida and Texas, where SeaSpine derives a meaningful portion of its revenue, due to cancellations and/or postponements of procedures as a result of the increased cases and transmissibility of COVID-19 and because hospitals and other surgical centers were experiencing staffing shortages,” the company said in the SEC disclosure.
SeaSpine said it now expects mid-single-digit revenue growth in the third quarter of 2021 compared to the prior-year period and revenue growth in the low-to-mid-teens compared to the third quarter of 2019.
The company was more optimistic at the beginning of August, when it increased the bottom end of its full-year revenue guidance from $200 million to $201 million.
SeaSpine on Friday said it could not confirm its previously issued fourth-quarter or full-year guidance but plans to offer more updates when it releases third-quarter financial results. That earnings call date — traditionally in late October or early November — has not yet been publicly announced.
Assuming the latest wave of the pandemic subsides and demand returns for non-emergency procedures, medical device makers are worried that healthcare worker burnout could make it difficult for hospitals to catch up.