STOCKHOLM (Reuters) - Swedish medical technology firm Getinge (GETIb.ST) will steer clear of acquisitions in the near term as it fixes problems at its manufacturing sites, its chief executive said.
Getinge, which makes surgical theatre equipment such as heart-surgery products and anesthesia machines, earlier this month warned of a sharp fall in first-quarter earnings and said it faced more than a year of heavy spending to boost quality controls, sending the share down 21 percent.
The company has expanded rapidly through acquisitions in past years. But, in an interview with Swedish business daily Dagens Industri on Saturday, Getinge CEO Johan Malmquist said the firm would focus on quality management and other operational improvements this year and next.
“But in the long term, we will continue to buy companies,” Malmquist said. High valuations of medical technology firms would have been a deterrent to acquisitions this year anyway, he added.
Reporting by Sven Nordenstam; Editing by Mark Heinrich