Coloplast A/S expects its Kerecis wound-care unit to resume growth from January 1, 2027, following a period of contraction in the outpatient segment due to U.S. Medicare reimbursement adjustments.
The Danish medical device maker, which acquired Kerecis for up to $1.3 billion in 2023, reported a 6% decline in sales for its Biologics division—including Kerecis—in the third quarter. The segment’s EBIT margin stood at negative 5%, reflecting the impact of reduced outpatient reimbursements. CFO Anders Lonning-Skovgaard noted that the outpatient business has "basically collapsed" since the changes took effect, though the inpatient care segment, largely unaffected, continues to expand at double-digit rates.
To mitigate the downturn, Coloplast is realigning its Kerecis sales strategy toward inpatient care, where demand remains robust. The company has also lowered its growth outlook for the business this year, citing faster-than-anticipated deterioration in the outpatient market. Kerecis specializes in fish-skin-based treatments for chronic and surgical wounds.
Lonning-Skovgaard reiterated expectations for negative growth in the Biologics segment for the fourth quarter before a rebound in January 2027. The inpatient business currently accounts for 70% to 80% of Kerecis sales, while outpatient services contributed 20% to 30% prior to the reimbursement changes.
Coloplast recorded a $464.46 million goodwill impairment related to the Kerecis acquisition in its latest financial reporting.
