Getinge AB Class B GETI B

Getinge’s Long-Term Story Intact but Near-Term Uncertainty Persists

Sweden-based medical device and sterilization company Getinge has struggled through roughly a decade of operational and reputational challenges. The firm remains focused on improving operating efficiency, addressing product quality, and building back trust with customers and regulators. As part of this turnaround, Getinge has committed nearly SEK 2 billion to remediation and restructuring related to the 2015 consent decree imposed by the U.S. Food and Drug Administration and about SEK 1.8 billion in provisions for surgical mesh liability costs. The firm also sold its entire extended-care business in 2017. Regulatory challenges remain a risk, and in 2023 we estimate it spent approximately SEK 800 million in quality spending related to its cardiopulmonary and cardio assist businesses. Nonetheless, we think Getinge could maintain a strong position in key markets (such as life science sterilization, advanced ventilators, and surgical capital equipment) and gradually improve margin with a focus on U.S. market expansion and cost restructuring.