ICU Medical, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a notable increase in revenues but a significant net loss compared to the previous fiscal period. Total revenues for Q3 2024 reached $589.1 million, up from $553.3 million in Q3 2023, while revenues for the nine months ended September 30, 2024, totaled $1.75 billion, compared to $1.67 billion for the same period in 2023. The growth was primarily driven by the Consumables and Infusion Systems segments, which saw increases of 9.5% and 7.2%, respectively, in Q3 2024.

Despite the revenue growth, the company reported a net loss of $32.98 million for Q3 2024, a stark contrast to a net income of $7.24 million in Q3 2023. For the nine-month period, the net loss was $93.86 million, compared to a loss of $12.51 million in the prior year. The increase in losses was attributed to higher operating expenses, which rose to $196.6 million in Q3 2024 from $161.1 million in Q3 2023, and included significant restructuring and integration costs related to the acquisition of Smiths Medical.

The company incurred restructuring, strategic transaction, and integration expenses of $16.8 million in Q3 2024, compared to $7.2 million in Q3 2023. The restructuring charges also increased, reflecting ongoing integration efforts. Additionally, the gain from the change in fair value of contingent earn-out liabilities related to the Smiths Medical acquisition was adjusted to zero due to changes in ownership percentage by Smiths Group plc.

ICU Medical's cash and cash equivalents increased to $312.5 million as of September 30, 2024, from $254.2 million at the end of 2023, primarily due to cash generated from operations. The company reported net cash provided by operating activities of $163.8 million for the nine months ended September 30, 2024, a significant improvement from a net cash outflow of $74.9 million in the same period of 2023.

The company continues to manage its long-term debt, which stood at $1.59 billion as of September 30, 2024, down from $1.63 billion at the end of 2023. ICU Medical remains in compliance with its financial covenants, maintaining a Senior Secured Leverage Ratio of 4.50 to 1.00 and an Interest Coverage Ratio of 3.00 to 1.00.

Strategically, ICU Medical entered into a purchase agreement with Otsuka Pharmaceutical Factory America, Inc. for a 60% equity interest in a newly formed LLC managing the IV Solutions product line, with an estimated cash consideration of approximately $200 million. This transaction is expected to close in the first half of 2025, although its financial impact remains uncertain.