Coloplast A/S, the Danish medical‑device maker, announced that its Kerecis wound‑care division is expected to return to growth beginning in January 2027. The outlook follows a sharp decline in outpatient sales after recent changes to U.S. Medicare reimbursement rates, according to Chief Financial Officer Anders Lonning‑Skovgaard in a Reuters interview on Tuesday.
Outpatient market collapse
Outpatient services, which historically contributed roughly 20‑30% of Kerecis’s revenue, have “basically collapsed” since the new Medicare payment structure took effect. The CFO said the reimbursement overhaul caused a steep drop in sales for the segment that treats chronic and surgical wounds in outpatient settings.
Inpatient segment remains strong
In contrast, the inpatient portion of Kerecis – accounting for about 70‑80% of the unit’s sales – has been largely insulated from the Medicare changes. Lonning‑Skovgaard noted that inpatient sales continue to grow at double‑digit rates, providing a vital source of revenue while the outpatient side recovers.
Strategic shift toward inpatient care
Coloplast is redirecting its Kerecis sales organization to prioritize inpatient care, where reimbursement reforms have had little impact. “I expect again negative growth in Q4,” the CFO said, adding that the company anticipates a turnaround to positive growth from January 1, 2027 onward.
Financial impact and goodwill write‑down
Coloplast acquired Kerecis, an Icelandic fish‑skin wound‑treatment company, for up to $1.3 billion in 2023. Since then, the Danish firm has recorded a goodwill impairment of 3 billion Danish crowns (approximately $464 million) linked to the acquisition. In the third quarter, sales across Coloplast’s Biologics business – which includes Kerecis – fell 6%, and the segment posted a negative 5% EBIT margin.
Broader review of investments
Beyond Kerecis, Coloplast is evaluating other areas of the group to determine where to allocate resources, especially as the company seeks to strengthen its position in the United States. Lonning‑Skovgaard indicated that several business units are under review because they are not delivering the growth expected.
Outlook
While the outpatient market challenges are expected to linger through the end of 2026, the company’s focus on inpatient services and its broader investment review aim to restore profitability and growth. Stakeholders will watch the January 2027 target closely as an indicator of whether the strategic shift can offset the recent setbacks.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
