MicroPort Scientific Expects Net Loss of USD 188–203 Million for FY2020 Amid Pandemic and Stent Price Reforms

Source: Caihuanet

[China Fortune News Agency]MicroPort Medical(00853-HK) announced that, based on the unaudited consolidated financial statements of the Board of Directors, it expects a loss of approximately USD 188 million to USD 203 million for the twelve months ended December 31, 2020; compared to a profit of approximately USD 46.3 million in the same period of 2019.

This change was primarily driven by a sharp decline in outpatient visits and surgical procedures at medical institutions due to the COVID-19 pandemic, resulting in a year-on-year decrease in the Group’s sales revenue from implantable devices during the reporting period; additionally, impacted by China’s centralized volume-based procurement policy for coronary stents, the Group made adjustments to price subsidies accrued for stent products that had been sold through distribution channels but not yet implanted, with reference to the implementation prices effective in 2021.

In addition, the costs recognized for incentive shares granted to certain employees, including one executive director, under the Group’s share award scheme; and the absence of the one-time investment income from the disposal of a partial equity interest in Shanghai MicroPort EP MedTech Co., Ltd. recorded in the same period of the previous year.