Impact of the COVID-19 coronavirus pandemic on the Company’s operations
Current Report No. 20/2020
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (“the Company”) hereby announces provides information on the potential impact of the COVID-19 pandemic on operations and financial results of the Company and the whole Capital Group.
Medicalgorithmics Group achieves approx. 90% of revenues from services performed with PocketECG technology in the USA. The rest of revenues comes from operations in Poland and other European Union countries, Canada and Australia.
Due to the restrictions being implemented in many countries, in which the Group operates, in terms of movement of persons and functioning of workplaces, offices, commercial and medical facilities, the Management Board of the Company identifies the risk of a significant reduction in revenues from services rendered at least in March and April 2020.
The expected decrease in revenues mainly concerns the US market and may be caused by likely decrease in the number of patients using ECG tests with PocketECG technology, as a consequence, it may reduce the number of applications for payment from insurers at least in March and April 2020. As at the date of this report, the Management Board of the Company does not record a significant decrease, however, a reliable assessment of the situation will be possible only after obtaining numbers of applications for payment from insurers in the following months, which the Management Board will inform about in monthly current reports, as before. At the moment, however, for revenues of the Group obtained outside the USA, the impact of the above-mentioned restrictions is not significant due to the flat-rate nature of settlements with recipients of the Company’s services outside the USA.
However, the Company’s Management Board indicates that, with a view to the unusual nature of the current situation, as well as its dynamic development, including the introduction of regulatory regulations, it is currently impossible to determine the actual impact of the situation on the future functioning of the market, including the functioning of the entire Capital Group, including The Company, and its future financial results. In case of the events caused by the COVID-19 coronavirus pandemic, which will significantly affect the functioning of the Capital Group and its future financial results, the Management Board of the Company will provide relevant information in an appropriate current report.