Further to recent developments of the ongoing COVID-19 outbreak on Redsense Medical AB’s markets, the Company announces the following statement regarding the Company’s current operations. Thanks to a well established domestic organization in the US, the Company is not expecting any supply disruptions from the US travel ban, and the COVID-19 outbreak is not expected to impact Redsense’s operations directly.
The US administration has on 12 March decided to impose a 30-day travel ban, suspending travel from Europe except the UK to the US, in an effort to contain the Coronavirus from spreading.
Redsense Medical’s strong sales growth during the fall and up to now has primarily been driven by a surge in nocturnal home hemodialysis treatments in the US. The absolute majority of dialysis treatments are conducted in clinics, but in line with the US Government’s recent initiative to promote home hemodialysis, major US hemodialysis providers have intensified their operations in this segment which is also expected to keep growing over the coming years, thanks to lower cost, political initiative and improvements in technology.
Operations not affected by travel ban
The travel restrictions are not expected to impair Redsense Medical’s operations on the US market, since the Company has its own functional organization in place in the US and is not reliant on travels. Transports to the country will continue as before and is not affected by the travel ban, so the Company’s supply chain remains intact. Nor is the Company expecting the Coronavirus itself to have direct impact on operations outside the general toll on the whole of society:
“The Coronavirus outbreak is obviously a matter of grave concern for everyone on the personal level and for the world, and we support the measures instigated by the global community to reduce the scope of the disease and hope that they will prove successful. As regards Redsense and our market position, the current crisis does not impact our demand; hemodialysis is a life-supporting treatment, and patients receiving this treatment will continue to require it. The need to maintain social distancing during the outbreak is rather an argument for home treatment in itself,” says Redsense Medical’s CEO Patrik Byhmer, and continues:
“The outbreak should not affect our operations as a company, with the caveat that in the event that future developments affect the supply chain, revenue might be affected as well, e.g., if deliveries are delayed.”