While reporting its financial results for the fourth quarter of fiscal 2020 on Thursday, Abiomed, Inc. (ABMD), a provider of medical devices, said it will is not providing fiscal 2021 revenue or operating margin guidance at this time due to the uncertain scope and duration of the COVID-19 pandemic.
The company said it is taking proactive actions to mitigate the business impact of COVID-19 to better match expenses to revenue in the first quarter.
These actions taken include a hold on hiring, eliminating non-critical consultants, contractors, and temporary workers, reducing discretionary spending and implementing alternate work schedules for the Aachen and Danvers production teams.
In addition, Abiomed’s CEO and COO have reduced their salaries by 100 percent, while VPs and directors have reduced their salaries by 50 percent and 20 percent respectively for the first quarter. The board of directors have also reduced their cash retainers by 50 percent for the first quarter.
Non-director employees at the company’s Massachusetts and German headquarters will take a minimum of one-week furlough or unused vacation. The commercial field team will work on monthly operating plans to allow for flexibility and the potential to increase sequentially each week, Abiomed said.
On Wednesday, Abiomed announced its acquisition of Breethe, developer of a novel extracorporeal membrane oxygenation or ECMO system that will complement and expand Abiomed’s product portfolio to serve the needs of patients whose lungs can no longer provide sufficient oxygenation.
This includes patients suffering from cardiogenic shock, cardiac arrest or respiratory failure such as due to ARDS, H1N1, SARS, or COVID-19.
Additionally, ECMO has been utilized as a primary method of oxygenation and hemodynamic support for pediatric patients. Breethe has applied for 510k clearance by the U.S. Food and Drug Association or FDA.
Abiomed did not disclose terms of the acquisition.
Source: Read Full Article