Hearing implants provider Cochlear expects a significant hit to sales from the coronavirus and has scrapped its earnings guidance.
Hospitals across the world are deferring surgeries such as hearing implants in order to treat masses of patients affected by the pandemic.
Cochlear chief executive Dig Howitt said this would affect its major markets in the US and western Europe.
“We expect to experience a significant decline in sales in the immediate future,” he said on Monday.
Cochlear said it had a conservatively geared balance sheet and was confident it could meet cash requirements.
Non-essential spending and capital expenditure had been reduced and hiring was suspended, although there were no plans to lay off staff.
Cochlear said a small but growing number of surgeries had restarted in China in the past few weeks. Its suppliers had also restarted making components.
Cochlear said it was s carefully managing supply of its products in China.
It had previously earmarked the Chinese market for growth.
Mr Howitt said the long-term opportunity to grow its markets remained unchanged.
Cochlear’s shares dropped 20 per cent to $172.59 at 1038 AEDT amid a wider market downturn.