Oct 17 (Reuters) - A shortage of intravenous (IV) saline
fluids due to Hurricane Helene is forcing hospitals to defer
non-urgent surgeries, and could hurt companies that make medical
devices for elective procedures if the supply crunch persists,
analysts said.
Baxter International's ( BAX ) North Carolina plant, which
makes 60% of the nation's supply of IV fluids and some key
dialysis solutions, was closed for production late last month
due to hurricane-related flooding.
Since then, hospitals have postponed elective surgeries even
as the U.S. government, Baxter and other suppliers have rushed
to bring in supplies from other facilities, including from
overseas. Baxter has said it aimed to return to 90% to 100%
allocation of certain IV solutions by the end of 2024.
The big question for medical device makers is how soon the
shortage can be resolved, said Barclays analyst Matt Miksic in
an interview.
If resolved soon, "whatever gets pushed out of this quarter
will likely get picked up the following quarter in terms of
delayed surgeries," said Miksic. "We wouldn't expect at this
point (a) significant.. sustaining impact on the stocks."
J&J became the first medical device company to flag a
potential hit on Tuesday, when it warned that the IV saline
shortages could impact surgical procedures across its portfolio
if they persist.
During a surgery, patients are administered a normal saline
solution or a type of IV fluid called Lactated Ringer's to
replenish lost fluids.
Germany's Fresenius and medtech company B. Braun Medical
said last week they were ramping up production of IV fluids to
mitigate the shortage.
Device makers including Boston Scientific ( BSX ), Edwards
Lifesciences ( EW ), Medtronic ( MDT ) and Stryker, and
hospital operators such as HCA Healthcare ( HCA ) and Tenet
Healthcare ( THC ) are likely to face questions about the
potential impact from the shortage when they report earnings in
the coming weeks.
Baxter is expected to report its quarterly earnings on Nov.
8.
Given that the shortage is not expected to last too long,
the impact on hospital operators and other providers should be
modest in the fourth quarter, Jefferies analyst Brian Tanquilut
said in a Wednesday research note.
Morningstar analyst Julie Utterback said the recent storms
could be a "short-term concern" for HCA, and do not typically
change the long-term outlook for such hospital operators.
(Reporting by Manas Mishra and Christy Santhosh in Bengaluru;
Editing by Shinjini Ganguli)