Coloplast A/S (CPH:COLOB), a developer and provider of health care products and services, reported on Monday that the French Ministry of Health has announced a price reform within Ostomy Care, Continence Care and Wound Care.

Reportedly, following a reimbursement review the French Ministry of Health has published new final classifications and prices within Ostomy Care, Continence Care and Wound Care in France.

These new classifications and prices will be implemented as of 1 July 2019 for Ostomy Care and Continence Care and have been implemented as of 1 June 2019 for Wound Care.

According to Coloplast, for the company, this price reform represents an average reduction in prices in France for Ostomy Care and Continence Care of a negative 9% and Wound Care of a negative 2%.

For 2017/18, Coloplast reported revenues of around DKK1.7bn in Ostomy Care and Continence Care in France.

The company added that it will continue to analyse the final impact of the reform and will implement mitigating activities. The company's full year financial guidance for 2018/19 is unchanged as a result of the price reform.

Also, Coloplast will provide guidance for 2019/20 in connection with its FY 2018/19 results on 5 November 2019. Its long-term guidance financial guidance for the LEAD20 strategy period running until end 2019/20 is an annual organic growth of 7% to 9%, and an EBIT margin of more than 30% at constant exchange rates.

Coloplast manufactures products for ostomy, incontinence, mastectomy, wound healing and skin care.

(EUR1.00=DKK7.46)