- Allegra Orthopaedics (AMT) claims its orthopaedics division has been heavily impacted by the coronavirus (COVID-19)
- Yesterday, the Federal Government cancelled all elective surgeries in both private and public hospitals
- Allegra's revenue from its orthopaedic division will be impacted as the majority of products it sells to hospitals are for use in elective surgeries
- However, the company can support urgent and essential surgery
- Additionally, Allegra has made salary reductions of senior staff and has reduced staff hours until the situation is under control
- On market close, Allegra is up 3.33 per cent and is trading at 15.5¢ apiece
Allegra Orthopaedics' (AMT) orthopaedic division has been heavily impacted by the coronavirus (COVID-19).
Yesterday, the Federal Government cancelled all elective surgeries in both private and public hospitals.
Allegra's revenue from its orthopaedic division will be significantly impacted as the majority of products it sells to hospitals are predominantly used in elective surgeries.
However, through its distribution of products from Waldemar Link
GmbH & Co, it is in a strong position to support trauma and oncology procedures that fall under the category of urgent and essential surgery.
Due to this, Allegra has been forced to respond quickly by implementing measures to reduce operational expenditure as well as keeping its staff safe.
These measures include salary reductions of senior staff, reduce the hours staff are working each week and also standing down staff until the situation is under control.
The rise of the coronavirus in Australia will have a negative impact on the company's financial performance for 2020, but at this point, Allegra is unable to estimate the extent of this impact.
CEO Jenny Swain said there is no doubt that the COVID-19 pandemic is disrupting businesses around the world and she is seeing the direct affect on Allegra's orthopaedic division.
"We are prepared to adapt and respond to this global situation in order to support our customers and staff in any way we can. It is a particularly devastating time for our industry, but nothing is more important than health," she said.
"We support the Minister for Health and our surgeons in the tough decisions they must make to protect their patients," she added.
On market close, Allegra is up 3.33 per cent and is trading at 15.5¢ apiece.