Medical device makers see little impact from Fiona on Puerto Rico operations

By Leroy Leo and Khushi Mandowara

(Reuters) – Medical machine firms and a few drugmakers with manufacturing operations in Puerto Rico mentioned they don’t count on significant disruption from Hurricane Fiona, which knocked out energy for over 3 million folks and prompted flooding and landslides on the island.

The U.S. Meals and Drug Administration, which labored with firms to forestall shortages of medication and medical gadgets after Hurricane Maria battered the medical manufacturing hub in 2017, mentioned it’s in dialogue with firms it regulates there relating to any impression on provides.

Most firms Reuters spoke to, together with Baxter Worldwide, mentioned they’d initially both briefly halted operations or have been working their vegetation on mills since Fiona struck on Sunday.

None mentioned they anticipated provides to the US to be considerably disrupted by the storm, partially on account of infrastructure modifications, similar to build up their generator energy, following Hurricane Maria.

The electrical energy grid on the island is owned by bankrupt state-run Puerto Rico Electrical Energy Authority (PREPA) and is now operated by LUMA Power, a personal three way partnership of Canadian vitality agency ATCO Ltd and U.S. vitality contractor Quanta Providers.

Whereas the tempo of energy restoration has been a lot quicker than following the devastation of Maria, an estimated 1 million properties and companies stay with out energy. Baxter, which makes small baggage for intravenous remedy, scientific vitamin merchandise and inhaled anesthetics in Puerto Rico, mentioned its amenities have “sustained little to no harm” from the storm.

By Thursday, Baxter had restarted operations and was working at regular, pre-hurricane ranges, spokesperson Lauren Russ mentioned.

The corporate took a $70 million income hit after Hurricane Maria in 2017, spurring it to diversify manufacturing of key merchandise.

Forward of hurricane season, the corporate now builds up provides of some merchandise and shops a lot of it on the U.S. mainland, Russ mentioned, including that Baxter had good stock ranges for many merchandise produced in Puerto Rico and the Dominican Republic for U.S. clients.

Integra Lifesciences and Abbott Laboratories additionally upgraded back-up mills and communication capabilities and shored up infrastructure at vegetation similar to enhancements to roofs and pipes, their spokespeople mentioned.

“Most MedTech firms are extra ready with better redundancy” than when Maria hit, J.P Morgan analyst Robbie Marcus in a analysis observe.

Spokespeople for different medical gear firms together with Becton Dickinson, Medtronic, Edwards Lifesciences and Stryker additionally mentioned they weren’t seeing a serious impression to operations from Hurricane Fiona on account of measures undertaken following Maria.

Drugmakers with vegetation in Puerto Rico mentioned they’ve been capable of sustain manufacturing and provides as effectively.

Johnson & Johnson mentioned operations have been restored in any respect its websites in Puerto Rico by Wednesday.

AbbVie’s amenities are intact and operational and unlikely to see any affected person impression or product shortages on account of Fiona, in keeping with an individual conversant in the corporate’s operations who requested to not be named.

Eli Lilly and Co has not skilled any disruptions to its website or provide, spokesperson Molly McCully mentioned.

(Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; extra reporting by Michael Erman; enhancing by Caroline Humer and Invoice Berkrot)