financetom
Business
financetom
/
Business
/
Hurricane-related IV fluid shortage could hurt medical device makers (Oct 17)
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Hurricane-related IV fluid shortage could hurt medical device makers (Oct 17)
Oct 18, 2024 9:28 AM

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)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
TELUS International Up 1% In US Premarket As It Expands Partnership With Nasdaq-listed Appian
TELUS International Up 1% In US Premarket As It Expands Partnership With Nasdaq-listed Appian
Apr 16, 2024
08:18 AM EDT, 04/16/2024 (MT Newswires) -- TELUS International , a digital customer experience (CX) innovator, was at last look up 1% in US premarket after saying Tuesday that it has expanded its partnership with Appian to help clients accelerate business processes and application development via intelligent automation as a service (AaaS) platform that incorporates Appian's low-code application development capabilities....
Foghorn Therapeutics Names Kristian Humer CFO
Foghorn Therapeutics Names Kristian Humer CFO
Apr 16, 2024
08:16 AM EDT, 04/16/2024 (MT Newswires) -- Foghorn Therapeutics ( FHTX ) said Tuesday that Kristian Humer has been named chief financial officer, effective immediately. Humer most recently served as CFO and chief business officer at Viridian Therapeutics ( VRDN ) , the company said. ...
GSK Says US FDA Accepts Meningococcal Vaccine Candidate for Regulatory Review
GSK Says US FDA Accepts Meningococcal Vaccine Candidate for Regulatory Review
Apr 16, 2024
08:14 AM EDT, 04/16/2024 (MT Newswires) -- GSK (GSK) said in a regulatory filing Tuesday that the US Food and Drug Administration has accepted for review the company's biologics license application for its meningococcal ABCWY vaccine candidate. The pharmaceutical giant said the vaccine candidate provides broad coverage against the five most common groups of bacteria causing invasive meningococcal disease, and...
Vizsla Silver Down 2.1% in US Premarket as Agrees to Buy Claims Near Panuco Project in Mexico
Vizsla Silver Down 2.1% in US Premarket as Agrees to Buy Claims Near Panuco Project in Mexico
Apr 16, 2024
08:23 AM EDT, 04/16/2024 (MT Newswires) -- Vizsla Silver ( VZLA ) was at last look down 2.1% in US premarket on Tuesday after agreeing to acquire two large claims located south and partially adjacent to the company's Panuco project in Mexico. The just-acquired San Enrique prospect, which is almost 50% larger than Panuco, is located along the highly prospective...
Copyright 2023-2025 - www.financetom.com All Rights Reserved