Medicrea announced that it entered into an agreement to be acquired by Medtronic at a price of €7 (USD $8.01) per share with a 2020 estimated close date.
We expect 2Q20 orthopedic performance above consensus projections, but the U.S.’s inability to check the spread of COVID-19 will slow market recovery.
Increasing adoption of enabling technology, company consolidation through M&A, and accelerating growth of outpatient centers are COVID-proof orthopedic trends that will shape the market in 2021 and beyond.
The company’s orthopedic revenues for its fiscal fourth quarter fell -35% as it endured an additional month of COVID-related impact in April compared to competitors.
The underlying fundamentals of the orthopedic industry remain unchanged due to COVID-19. However, we should prepare for significant alterations in the market landscape as well as the ways that we interact with colleagues and customers.
The company was able to offset deeper COVID-related declines on the strength of its advanced DBM portfolio and plans to pursue several alpha launches of new products in 2020.
Geographic factors and a highly elective portfolio exposed the company to a severe downturn due to COVID-19, with 1Q20 revenue down 20% and April revenues down 95%.