Although the company posted healthy results for its first quarter of 2020 (end-March 31), contrast developer Guerbet forecast a drop of 30%-35% in April revenues due to the COVID-19 crisis.
For the most recent quarter, Guerbet reported revenues of 199.2 million euros ($214.7 million), up 1% compared with 197.3 million euros ($212.7 million) reported in the first quarter of 2019. After currency adjustment, revenues finished up 1.4%.
The company said that its results were driven by growth in Asia and the Americas, with revenue from Asia up 34% and from the Americas up 4.6%. In Europe, revenue fell 14.3%, partly due to the arrival of a generic competitor to the company's Dotarem MRI contrast agent.
The company said that it expected its numbers for April to be "down considerably" due to the COVID-19 outbreak, with a gradual recovery in May and June. Lockdown measures imposed by various countries are having "significant impacts" on sales in April, which are expected to be down 30%-35%.
The sudden mobilization of hospitals to fight COVID-19 has resulted in a "sudden, temporary slowdown" in consultations and routine medical exams, the company reported. However, Guerbet expects business to recover in the second quarter as lockdowns are lifted.
The company added that it has "cut its costs substantially," through measures such as delaying noncritical projects and cutting sales, marketing, and support function costs, while at the same time keeping production sites operational.
