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Medical Device Makers Suffer From Slow U.S. Demand in Q2
Slow going in the United States was a recurring theme in medical device companies' Q2 earnings reports.
August 2, 2013
2 Min Read
Several medical device companies reported earnings for the second quarter of 2013 in July, and while sales were all over the board, one trend that can be garnered from their results is that many are seeing business struggle in the United States.
Johnson & Johnson (J&J) experienced flat performance in the United States, where sales of diabetes care products plummeted 23.1%
Abbott Laboratories' U.S. sales slid more than 5%.
Philips cited the tough U.S. market for sales declines in North America.
Zimmer saw reduced demand for artificial joints in the United States.
Domestic sales of Edwards Lifesciences' Sapien transcatheter aortic valve replacement system were $2 million below Wall Street's expectations.
Covidien's U.S. device sales dropped 4%, and the company is looking at restructuring.
To blame are a number of factors. J&J CEO Alex Gorsky cited declining hospital admissions and inpatient procedures, while Philips CFO Ron H. Wirahadiraska blamed sequestration and healthcare reform. Both said they don't expect conditions in the United States to improve anytime soon.
One firm, St. Jude Medical, was able to buck the trend of tough times in the United States. Though the U.S. ICD market has been under stress of late, St. Jude's domestic ICD business managed to increase revenue by $3 million.
Other positive news from the Q2 reports came from Boston Scientific. Although the company again saw sales decline, it showed organic sales growth for the first time in years.
Here's our complete roundup of 2013 earnings:
—Jamie Hartford, managing editor, MD+DI
[email protected]
[Photo Credit: iStockPhoto.com/MCCAIG]
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