The medtech industry condemns the Russian invasion of Ukraine
The medical device industry is speaking out and supporting the people of Ukraine amid the war with Russia.
While a call to action is missed by Biotech Guide — who have vowed to sever ties with Russian companies over Russia’s invasion of Ukraine – Medical technologists condemn Russian President Vladimir Putin’s aggression in the country.
AdvaMed said in a statement Late last week it condemned “the actions that have led to such devastation and loss of life in Ukraine” and its member companies “have committed to mobilizing our industry to help those suffering from this invasion”.
The industry’s top lobby said it is working with the US government and nongovernmental organizations to assess Ukraine’s medical needs. The group created one List of ressources on its website to coordinate the distribution of critical items as part of humanitarian aid.
Siemens Healthineers, in an emailed statement to MedTech Dive, said that the company “strongly condemns the invasion of Ukraine, a sovereign European nation, by Russian forces, in clear violation of international law,” adding that it was “moved by the courage of the Ukrainian people.”
Fighting that broke out over the past month has impacted the normal supply chain. A MedTech Europe spokesman said in an emailed statement that the “normal logistics chain towards Ukraine has been disrupted since the beginning of the crisis, with major routes disrupted”.
“As a medical technology industry, we work together with civil defense organizations to ensure the availability of medical care as far as possible,” the group said.
MedTech Europe’s spokesman said the group is still evaluating the impact of sanctions on the supply and delivery of medical equipment and technology.
“Although medical devices themselves are largely exempt from sanctions, we expect the general disruption to trade, finance and logistics to all negatively impact the supply of medical technology,” the group said.
Individual medical device and diagnostics companies are also getting involved to help refugees and civilians affected by the Russian invasion of Ukraine.
Philips and its non-profit organization are offer help for the people of Ukraine, including a 24-bed mobile hospital equipped with patient monitors, electrocardiographs and portable diagnostic ultrasound machines.
Roche last week announced a first donation to Ukraine of essential medicines, including 150,000 packs of the antibiotic Rocephin. At the same time, Roche said it was making “every effort” to ensure a continuous supply of critical medicines and diagnostics to Russia.
In a LinkedIn post Office on FridayBoston Scientific said the company expressed “sympathy and sadness” for the lives lost and others suffering as a result of the war in Ukraine.
“Our priority is the safety and well-being of our employees and we are doing what we can to support this humanitarian crisis,” the company said. “We are responding by working to keep our colleagues safe in the area, supporting continued access to healthcare and making donations to the International Red Cross through the Boston Scientific Foundation Europe.
Johnson & Johnson too gained weight LinkedIn to comment on the crisis, explaining that the company is “coming together with the world to support Ukraine.
J&J consisting of pharmaceuticals, medical devices and for now, Consumer Health Units said it is helping employees in the area, including providing shelter and financial services. It is also donating $5 million to support the work of the International Rescue Committee, Red Cross and Red Crescent of the International Federation to provide humanitarian assistance to refugees in the border countries, among other things.
“We will continue to support those most directly affected and are committed to providing access to our essential medical products in the countries where we operate while complying with current international sanctions,” the healthcare company said in the post .
In its statement, Siemens Healthineers cited Article 25 of the Universal Declaration of Human Rights, which includes the right to medical care.
However, other medical technicians have taken a different path in response to the Russian invasion by shutting down medical supplies to that country.
Manufacturer of orthopedic medical devices Conformis called Last week it “suspended all sales activities to Russia and all Russia-based companies” for its products and that “the company will not pursue any future business development opportunities in Russia until further notice”.
Meanwhile, in an emailed statement, Stryker said the orthopedic device maker continued to “Deliver products and serve our customers.”
The company, which has a limited presence and no manufacturing facilities in Russia, said it is still assessing how international sanctions will affect customers and the supply chain.
A Stryker spokesman said the company is “closely monitoring the invasion of Ukraine and is currently not seeing any material impact on our ability to ship products to customers.”
Stifel analysts wrote in a recent report that large-cap medtechs were “minimally exposed” to the fallout from Russia’s invasion of Ukraine, including international sanctions. The analysts said that Russia accounts for about 1% or less of the group’s revenue.
“While the exact impact of the Russian sanctions remains unclear as it affects the medical device industry’s ability to sell or distribute products in Russia, the relatively modest exposure suggests the impact would be manageable,” the Stifel analysts wrote.
Large-Cap MedTech Revenue Risks in the Russia-Ukraine Conflict
|Abbott Laboratories||Russia accounts for less than 2% of Abbott’s sales. EPD is Abbott’s largest Russian division, accounting for about 75% of the company’s Russian sales.|
|Baxter International||Combined sales for Russia/Ukraine account for less than 0.5% of total old Baxter (ex-Hill-Rom) in 2021.|
|Beckon Dickinson||Insignificant, “well below” 1%.|
|Boston Scientific||Although Russia has been cited as one of the growth opportunities for Boston’s emerging markets, current revenues are immaterial.|
|Intuitive Surgery||Minimum exposure|
|Johnson&Johnson||Around 1% of sales in 2021|
|Masimo||Less than 0.5% of the company’s total sales in 2021.|
|Medtronic||Russia and Ukraine accounted for less than 1% of sales in 2021.|
|Strings||Russia accounted for ~0.2% of total Stryker sales in 2021.|
|ZimmerBiomet||Russia accounts for less than 1% of sales.|
SOURCE: Stifel, “Company Reports and Presentations”
At present, the financial impact of the war in Ukraine and Russian economic sanctions seems to have little impact on medical device manufacturers.
“We are closely monitoring the situation in Ukraine to proactively address any potential impact on both BD plants and/or our external suppliers in the region, particularly as it relates to natural gas supplies,” a Becton Dickinson spokesman said in an emailed statement Statement, noting that BD has no manufacturing facilities in Ukraine or Russia and that revenue from either country was immaterial to the company in fiscal 2021.
The company has confirmed gas reserves in excess of 30 days in a limited number of countries where the company uses Russian gas.
“As part of our ongoing risk mitigation efforts and proactive supply chain planning, we are working closely with key suppliers who have production facilities in countries dependent on Russian gas to ensure adequate contingency plans are in place in the event of supply disruptions. ‘ said the spokesman.
The company representative added that “potential sanctions affecting Russian airlines could remove significant air capacity from an already constrained global transportation market and cause delays in air cargo across the region.”
A Siemens spokesman said the medical technology company is in compliance with all relevant and applicable export control requirements and sanctions laws, and while the sanctions “are not directly aimed at the healthcare business,” the company expects “an indirect negative impact on our business.”
A spokesman for Intuitive Surgical said in an emailed statement that the company was “monitoring events in Ukraine with concern for those affected by the conflict.”
“While Intuitive’s presence in the region is small, we are working through the Intuitive Foundation to find opportunities for Intuitive employees to help us,” the company said. “Intuitive will continue to comply with applicable laws, including sanctions against Russia.”
Russia offers a solid business opportunity for medtechs, with a US government trade guide calling the market “very attractive” for US companies.
In an October post, the International Trade Administration, which is part of the US Department of Commerce, projected The medical device market in Russia is projected to be around $5 billion in 2020, about the same as in 2018 and 2019. According to the report, diagnostic imaging accounts for about 20% of the market, consumables 15%, and orthopedics and Prosthetics just over 9%. .
“The Russian medical device market is very attractive to US companies and is one of the largest in Central and Eastern Europe,” the report said. “Despite the Russian government’s efforts to build a robust medical device industry, public medical institutions prefer to buy medical devices from foreign manufacturers when they have the choice and the means.”