Getinge Stock Falls as Lawsuits Mount: Getinge Sells Off Atrium’s C-Qur Hernia Mesh Line

Bye Bye C-Qur Hernia Mesh

Atrium Medical Corporation has announced that it has signed an agreement selling its entire bio-surgery business, including the C-Qur hernia mesh line to HJ Capital 1 and its subsidiary of SeCQure Surgical Corporation. The Swedish medical company Getinge previously purchased Atrium and its biosurgery business in 2011 for $680 million. However, Atrium’s biosurgery segment only had $14 million in total sales for 2017 and was subject to nearly 1,000 lawsuits regarding the C-Qur hernia mesh. It has not yet been disclosed how much Atrium’s bio-surgical department was sold for, but it was noted that HJ Capital 1 and SeCQure Surgical would not be acquiring the liability of the C-Qur lawsuits currently pending against Atrium and Getinge. It is currently unclear why any company would acquire the dangerous C-Qur hernia mesh product line. It’s hard to believe that any company could continue to sell the C-Qur hernia mesh after so many substantiated lawsuits alleging significant injuries and even death have been filed related to the C-Qur hernia mesh. Atrium has been unable to safely manufacturer the C-Qur hernia mesh for over a decade, and it’s unlikely that HJ Capital 1 or SeCQure Surgical Corporation will be able to make a safer product. We hope that the sale of Atrium’s bio-surgical department gets us one step closer to the C-Qur hernia mesh never being sold again. The FDA has failed to take effective action against the C-Qur hernia mesh; however, the economic and investigatory pressures that attorneys nationwide have been putting on Atrium and Getinge are clearly having an impact.

Getinge Stock Down 38% in 12 Months!

As Getinge announced they were selling off the C-Qur hernia mesh line, Getinge also announced it was setting aside 1.8 billion kronor ($200 million) to cover cost related to the lawsuits against Getinge for selling the dangerous C-Qur hernia mesh in the United States. The $200 million set aside represented approximately 10% of Getinge’s current equity value. Getinge’s stock dropped a whopping 16% on the announcement of the $200 million set aside. The lawyers at the Hollis Law Firm believe that hundreds to thousands of additional lawsuits are still going to be filed against Getinge in relation to surgical mesh. It is likely that Getinge will have to make additional large set asides to cover the massive liability associated with the C-Qur hernia mesh lawsuits. Of note, nearly all lawsuits pending against Getinge involve the C-Qur hernia mesh, lawsuits involving Getinge’s bare polypropylene surgical meshes have not picked up yet…

Was buying Atrium Medical and the C-Qur hernia mesh line the worse business decision a company has ever made? Stay tuned to see if Getinge will survive what’s to come…