Despite Pandemic Disruption, Getinge Moves Toward Greater Stability in 2023

Sweden-based medical device and sterilization company Getinge has managed through several years of operational and reputational challenges. With its darkest days behind it, the company is focused on improving operating efficiency and building back trust with customers. As part of this turnaround, Getinge has committed nearly SEK 2 billion to remediation and restructuring related to the 2015 consent decree imposed by the U.S. Food and Drug Administration and about SEK 1.8 billion in provisions for surgical mesh liability costs. The firm also sold its entire extended-care business in 2017. Although additional regulatory challenges remain a risk, we think Getinge should maintain a strong position in key markets (such as life science sterilization, advanced ventilators, and surgical capital equipment) and slowly improve margin with a focus on U.S. market expansion and cost restructuring.