Update on Elos Medtech's assessment of COVID-19
The spread of the virus COVID-19 has evolved to become a global concern, with significant impact on the whole society since Elos Medtech published Year-end Report February 18th.
Elos Medtech assesses, based on the current situation and information, that there is a significant risk that the outbreak of COVID-19 will have a financial impact on the company during the first half of the year, as the company anticipates disruptions in demand.
The impact on the company is mainly due to changing customer needs based on the healthcare re-priorities in this emergency. As the development is unpredictable, it is not possible to predict the long-term impact pandemic may have on the company.
"We are following developments daily on all three continents where we operate, in order to make informed decisions and act in accordance with the authorities' advice and regulations. Our focus is to ensure the health and work of our staff. At the same time, we need to minimize the company's financial risks and secure the company's future”, says Jan Wahlström, President and CEO. “We will therefore implement short-term layoffs within our Nordic operations shortly. We continuously evaluate further needs for measures. Based on what we know today, we have made the assessment that we can continue to produce and supply in accordance with the expectation of changing customer needs in the future".
“Regarding our operations in China, we were able to gradually open the site at the end of February and have been able to return to full operation since the beginning of March. The benefits of Elos Medtech conducting its operations on several continents and in several segments become more clearer as a pandemic spreads across the world”, concludes Jan Wahlström.
Elos Medtech is a leading development and production partner for medical devices and components, with a focus on dental and orthopedic implants and instruments. The company operates from facilities in Sweden, Denmark, China and the U.S. The customer base comprises international medical technology companies.
Elos Medtech has more than 550 employees and a turnover of more than SEK 650 million. Elos Medtech has been listed on NASDAQ Stockholm AB since 1989. Elos Medtech’s B share is categorized as a Health Care company on the Small Cap list.
Gothenburg, March 25, 2020
Elos Medtech AB (publ)
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This information is information that Elos Medtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on March 25, 2020, at 12:00 (CET).
For additional information about the Elos Medtech Group, visit www.elosmedtech.com