- Medical technology company, Assure Holdings (TSXV:IOM) is expecting its revenue to dip substantially in the coming quarters
- This is due to elective surgeries being suspended to help healthcare services cope with the COVID-19 crisis
- As a result, the company has seen a 50 per cent reduction in procedures it supplies equipment to
- To mitigate the impact of the suspensions, the company is cutting salaries and temporarily reducing staff, as well as applying for a government assisted loan
- Assure Holding Corp (IOM) is up 5.56 per cent, with shares trading at C$0.95 and a market cap of $32.9 million
Medical technology company, Assure Holdings (TSXV:IOM) is expecting its revenue to dip substantially in the near-term, due to the coronavirus pandemic.
The company supplies medical monitoring equipment to neurosurgeons and orthopaedic spine surgeons, as well as providing surrounding services.
Despite the general increase in patient numbers across the medical community, the company has seen a 50 per cent reduction in procedures its supplies. This is largely due to elective surgeries being postponed to help cope with the pandemic.
However, the company did point out that, once the COVID-19 crisis subsides, these surgeries will recommence. Therefore, the company is expecting a sharp uptick in surgeries, which will offset the current losses.
Meanwhile, to weather the current shortfall, the company has implemented a number of cost reductions. Assure has reduced corporate spending by 20 per cent through salary cuts and temporary staff reductions.
Assure pointed out that it likely to retain some revenue through emergency procedures and patients on private healthcare.
The company is also applying for an assistance loan of $4 million, made available through the US government’s Coronavirus Aid, Relief, and Economic Security Act.
John A. Farlinger, Assure’s executive Chairman and CEO, believes the challenges facing the company are only short-term.
“In these challenging times our priority is to ensure the safety of our team members and the stability of our business.
“We currently expect the downturn in elective surgeries to extend until hospitals are able to resume normal operations.
“The Company anticipates that cases postponed due to the current environment will produce a surge of procedures when the COVID-19 public health crisis dissipates,” he said.
Assure Holding Corp (IOM) is up 5.56 per cent, with shares trading for C$0.95 at 1:20pm EST.