Xvivo Perfusion Q2: Short-term impact bigger than expected

Research Note

2020-07-10

16:37

Sales in Q2 came in considerably lower than expected, we underestimated the impact that the Covid-19 had primarily on ICU’s. The lack of capacity in ICU’s impacted the donor programs to a great extent. The discrepancy between our forecast and the actual outcome stemmed from lower-than-expected sales related to cold perfusion. There are signs of a return to normal levels in the US while Europe is lagging behind. We see this period where sales are extremely difficult to predict as an extraordinary event. We believe that the long-term trend is intact. The company is doing the right thing by cutting costs and continue to invest in R&D to come out stronger heading into 2021. We adjust our estimates downward after a weaker than expected quarter and lower our estimates for the coming quarters and the full year 2020 and 2021.

MH

Mats Hyttinge

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