Ambu Revises Full Year Sales Forecast

Danish medical device maker Ambu (AMBU-B.CO) adjusted its outlook for the current financial year on Monday following a decision to discontinue the SC210 colonoscope, a single-use telescopic camera, which it has been testing in a US hospital since February.

The firm, which develops diagnostic and life-supporting equipment, said in a statement that it sees organic sales growth of about 14%-15% compared with previous estimates of 15%-16%, blaming a strong comparator in the fiscal third quarter. This follows expectations of a drop in the number of endoscopes — a flexible tube carrying a light source and camera — sold to roughly 750,000, versus an earlier forecast of more than 750,000.

Additionally, the Copenhagen-based group also anticipates its earnings before interest and tax margin as well as excluding special items of about 22% in the current financial year, compared with a previously stated forecast of 22%-24%.

It said that the lower margin is driven by slower growth and planned investments. In line with those plans, the company said it had decided to accelerate its investments in commercial infrastructure in the US, Europe, and Asia Pacific to strengthen its position in the single-use visualization market. While the incremental cost of implementing the plans will be about 225 million Danish kroner in 2019/20, the move is set to more than double the firm’s global visualization salesforce.

Since February, the company said that it had been testing SC210 in a hospital setting in the hope that the device would perform to the standards of the reusable colonoscopes.

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