Medical device companies are cutting back spending as they prepare for a potential recession amid rising inflation and as supply chain and staffing woes continue. For the past few years companies have been dealing with the COVID pandemic and its aftermath -- supply chain constraints, inflation and hospital staffing shortages. These factors have slowed the post-pandemic recovery, and now a potential recession combined with these challenges casts more uncertainty over the industry.
Declining share prices limit companies’ ability to raise capital through equity offerings. The iShares U.S. Medical Devices ETF index fell 21 percent this year, and the share prices of the first two companies on the list of the smaller firms covered by William Blair — Aspira Women’s Health and Accelerate Diagnostics — have dropped 72 percent and 88 percent in 2022.
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