Company News

Getinge makes $200 mln provision related to surgical mesh claims

Oct 14 (Reuters) - Swedish medical technology group Getinge said on Sunday it would book a 1.8 billion crown ($200.9 million) provision related to surgical mesh product liability claims filed in the United States and Canada against its Atrium business.

The provision will impact the third quarter’s operating result, the company said in a statement.

Manufacturers of surgical mesh products have faced hundreds of lawsuits in the United States in recent years. Patients are claiming damages for complications and injuries allegedly sustained after receiving the implants.

Getinge said the claims were being vigorously defended and there had been no adverse verdicts against Atrium Medical, which manufactures the implants and was acquired by Getinge in 2011.

Atrium Medical is evaluating the future of the surgical mesh business, the Swedish medical technology company said.

The company may book additional provisions in the future, and actual costs may be higher or lower than the provisions made, Getinge said.

Getinge had booked a 350 million crown provision in the first quarter of the year, related mainly to a fraud probe in Brazil, and has been hit this year by higher costs and unfavourable currency moves.

$1 = 8.9609 Swedish crowns Reporting by Shubham Kalia in Bengaluru, Editing by Rosalba O’Brien