Getinge 2022 Annual Report
Getinge 2022 Annual Report
NOTE 33
Government grants
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
NOTE 34
Events after the end of the fiscal year
During the year, Getinge received SEK 69 M (50) in government
grants, of which SEK 2 M (5) was related to the outbreak of
COVID-19. The COVID-19 related grants mainly concerned new
employments, allowance for short-term work and compensation
for sick leave costs from authorities in several different countries.
Total government grants reported in the income statement
amounted to SEK 55 M (28), of which SEK 50 M (30) was reported
as other operating income and SEK 0 M (-6) as other operating
expenses and SEK 6 M (4) reported as a reduction in the costs
related to the grants. In addition to these, government grants have
been received net of SEK 13 M (11) which reduced the carrying
amount of the assets to which the grants were related.
Except what is described below, no significant events have
occurred after the end of the finacial year.
The MDL process on product liability for surgical mesh in
the US and Canada concluded with over 96% participation
On January 30, 2023, Getinge's subsidiary Atrium Medical Corpora-
tion concluded the settlement of the previously reported Multi-
district Litigation (MDL) related to product liability for surgical
mesh in the US and Canada.
Getinge previously announced that Atrium Medical Corporation
entered the settlement process on December 8, 2021. The settle-
ment process and multidistrict litigation between Atrium Medical
Corporation and the plaintiffs ended on January 30, 2023, with
over 96% of eligible plaintiffs having opted into the settlement. The
overwhelming majority of the settlement amount was paid as from
January 30, 2023.
The settlement is not an admission of liability or wrongdoing on
the part of the company. Getinge and Atrium Medical Corporation
will continue to defend themselves against any litigation not
covered by this final settlement. The surgical mesh products were
manufactured by Getinge's subsidiary Atrium Medical Corporation,
which was acquired by Getinge in 2011.
Since 2018, Getinge has made provisions of SEK 2.4 billion for
expected costs related to surgical mesh claims, based on the
information available at the time. The settlement payments were
made as from January 30, 2023 and are covered by the provisions,
and therefore do not affect the reported result for the period.
Temporary suspended certificates for Getinge's HLS and
PLS sets
Getinge announced on February 23, 2023 that the notified body for
certification services, DEKRA, has decided to temporarily suspend
the CE-certificates for Getinge's HLS and PLS sets from March 1,
2023. Getinge is in dialogue with relevant authorities and working
urgently to minimize the impact on patients. As previously commu-
nicated, Getinge has identified and announced potential breaches
in sterile packaging of the HLS and PLS sets used for extracorporeal
respiratory and/or cardiovascular support. Getinge has since then
reported progress to relevant authorities on a number of initiatives,
such as package design improvements and advanced testing of the
packaging to ensure that the products are protected by a sterile
barrier according to the applicable standards and requirements.
According to DEKRA the documentation related to the initiatives
submitted from Getinge does currently not demonstrate compli-
ance with the essential requirements according to the Medical
Device Directive and applicable standards. As a result, DEKRA will
temporarily suspend the CE-certificates for Getinge's HLS and PLS
sets from March 1, 2023. Given the information Getinge has today,
the financial impact is not expected to be material.
Acquisition of Ultra Clean Systems Inc.
After the end of the reporting period, Getinge completed acquisi-
tion of 100% of the shares in Ultra Clean Systems Inc., a leading US
manufacturer of ultrasonic cleaning technologies, used in hospitals
and surgery centers to decontaminate surgical instruments. Ultra
Clean Systems Inc. is located near Tampa, Florida, US, and gener-
ated an annual revenue of SEK 90 M in 2022. The purchase price
amounted to SEK 170 M (USD 16 M). The acquisition is not expected
to have a material impact on Getinge's operating profit and earnings
per share as of 2023.
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