Covalon Technologies logo
(Source: Covalon Technologies)
  • Covalon Technologies (TSXV:COV), a medical technology stock, believes it will come out ahead following U.S. President Donald Trump’s enforcement of reciprocal tariffs on Thursday, which has sent global equity markets tumbling
  • The wound care market leader’s products are exempt from tariffs by falling under the United States-Mexico-Canada Agreement, setting it up to capitalize on gaps in demand
  • Covalon is a medical technology stock improving patient outcomes in wound care, vascular access and surgical consumables
  • Covalon Technologies stock has added 94.35 per cent year-over-year but only 20.50 per cent since 2020

Covalon Technologies (TSXV:COV), a medical technology stock, believes it will come out ahead following U.S. President Donald Trump’s enforcement of reciprocal tariffs on Thursday, which has sent global equity markets tumbling.

Covalon points to how products that meet origin requirements under the United States-Mexico-Canada Agreement (USMCA) – like its own – are not subject to reciprocal tariffs or those previously announced, granting the company a full exemption from all such measures to date announced under the Trump administration.

The company also benefits from a considerable barrier to entry as the largest advanced wound care collagen dressing manufacturer in North America, with most of its competitors manufacturing in the United Kingdom, Germany or China, which are now subject to 10 per cent, 20 per cent and 54 per cent U.S. import tariffs, respectively.

According to Thursday’s news release, the company is “well placed to capitalize on this advantage and has already begun work with strategic partners to advance efforts on this front.”

Covalon has been net income profitable over the past four quarters and has delivered consistent revenue growth over the past three years, generating C$31.17 million in fiscal 2024.

Leadership insights

“Covalon relies on a mix of manufacturing in Canada and the United States for the vast majority of its life-saving, highly innovative medical products. We’re pleased to confirm that our Canadian-manufactured products are not subject to U.S. tariffs under the current trade policy,” Brent Ashton, Covalon’s chief executive officer, said in a statement. “This allows us to maintain competitive pricing and uninterrupted access for our highly differentiated products to customers in the United States.”

About Covalon Technologies

Covalon is a medical technology stock improving patient outcomes in wound care, vascular access and surgical consumables.

Covalon Technologies stock (TSXV:COV) is up by 9.55 per cent trading at C$2.41 per share as of 11:08 am ET. The stock has added 94.35 per cent year-over-year but only 20.50 per cent since 2020.

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(Top image: Covalon Technologies)

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