Shares of Dynatronics (NASDAQ:DYNT) have nearly doubled in Thursday’s pre-market trading following the rehab equipment maker’s announcement yesterday that a unit renewed its purchasing agreement with Intalere. DYNT stock had fallen in four of the past five trading days.
The Bird & Cronin unit has been an Intalere preferred provider for more than 20 years. The latest extension takes that relationship through January 2024.
Intalere is a group purchasing organization, or GPO, in the healthcare industry. Representing thousands of providers of all types and sizes, it negotiates better prices from suppliers, manufacturers and distributors. Those GPO member providers make nearly $9 billion in purchases each year.
DYNA Stock Depressed As Elective Surgeries Postponed
DYNA stock hit a 52-week low of 52 cents a share in mid-November as the Covid-19 pandemic brought elective surgery procedures to a near halt across the country. A study conducted by the Harvard T.H. Chan School of Public Health, Robert Wood Johnson Foundation and National Public Radio found that between March and August 2020, one in five adults reported their household members were unable to get or delayed receiving medical care for serious problems.
“The pandemic has changed the world as we know it, causing a dramatic drop in adult cardiac surgery volume and worsening patient outcomes,” said Dr. Tom Nguyen, who directs adult cardiothoracic surgery at the University of California, San Francisco. He led a recent study that revealed a 53% decrease in all adult heart surgeries, including a 40% decline in non-elective heart surgeries and a 65% drop in elective heart surgeries during the pandemic, compared to 2019, UPI reported earlier this month.
With the ramping up of Covid-19 vaccines, that slowdown in elective procedures could be showing signs of a reversal, bringing with it an increased need for rehab products like those made by Dynatronics. Local headlines across the country reveal hospital announcements of resuming elective and non-emergent surgeries previously halted for Covid-19 safety.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.