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Conformis reported 4Q19 orthopedic revenue of USD $19.9 million, -9.8% vs. 4Q18, with full-year 2019 revenue of $77.4 million, -13.8% vs. 2018. The company faced a challenging year due to Aetna coverage denials and portfolio gaps with the lack of a cementless knee. Aetna updated its policy in December 2019 but again declined to cover Conformis custom products. While leadership said it will continue to press its case for reimbursement, Conformis is assuming there will be no policy change in 2020.
There were a few bright spots for Conformis in 2019. The Conformis Hip received FDA 510(k) clearance, positioning the company to leverage a new revenue stream in 2020. The new Identity knee system is expected to launch in 2H20. Additionally, the partnership with Stryker for patient-specific instruments continues to progress, and Conformis received its first $2 million milestone payment. Lastly, the company’s ex-U.S. sales returned to growth in 4Q after struggling to offset reimbursement challenges in Germany.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $19.3 | $21.5 | ($2.2) | (10.3%) |
| Joint Replacement Hips | $0.6 | $0.6 | $0.1 | 11% |
| Total | $19.9 | $22.0 | ($2.2) | (9.8%) |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $75.4 | $89.0 | ($13.6) | (15.3%) |
| Joint Replacement Hips | $2.0 | $0.8 | $1.2 | 159% |
| Total | $77.4 | $89.8 | ($12.4) | (13.8%) |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.4 | $19.6 | ($2.2) | (11.1%) |
| Ex-US | $2.5 | $2.5 | $0.0 | 0.5% |
| Total | $19.9 | $22.0 | ($2.2) | (9.8%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $19.9 | |
| Cost of Sales | ($10.2) | 51.5% |
| Sales and Marketing | ($7.3) | 36.6% |
| R & D | ($3.1) | 15.4% |
| General and Admin | ($5.1) | 25.7% |
| Other | $0.4 | 1.8% |
| Net Earnings | ($5.4) | (27.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 4Q19 orthopedic revenue of USD $19.9 million, -9.8% vs. 4Q18, with full-year 2019 revenue of $77.4 million, -13.8% vs. 2018. The company faced a challenging year due to Aetna coverage denials and portfolio gaps with the lack of a cementless knee. Aetna updated its policy in December 2019 but again declined to cover...
Conformis reported 4Q19 orthopedic revenue of USD $19.9 million, -9.8% vs. 4Q18, with full-year 2019 revenue of $77.4 million, -13.8% vs. 2018. The company faced a challenging year due to Aetna coverage denials and portfolio gaps with the lack of a cementless knee. Aetna updated its policy in December 2019 but again declined to cover Conformis custom products. While leadership said it will continue to press its case for reimbursement, Conformis is assuming there will be no policy change in 2020.
There were a few bright spots for Conformis in 2019. The Conformis Hip received FDA 510(k) clearance, positioning the company to leverage a new revenue stream in 2020. The new Identity knee system is expected to launch in 2H20. Additionally, the partnership with Stryker for patient-specific instruments continues to progress, and Conformis received its first $2 million milestone payment. Lastly, the company’s ex-U.S. sales returned to growth in 4Q after struggling to offset reimbursement challenges in Germany.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $19.3 | $21.5 | ($2.2) | (10.3%) |
| Joint Replacement Hips | $0.6 | $0.6 | $0.1 | 11% |
| Total | $19.9 | $22.0 | ($2.2) | (9.8%) |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $75.4 | $89.0 | ($13.6) | (15.3%) |
| Joint Replacement Hips | $2.0 | $0.8 | $1.2 | 159% |
| Total | $77.4 | $89.8 | ($12.4) | (13.8%) |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.4 | $19.6 | ($2.2) | (11.1%) |
| Ex-US | $2.5 | $2.5 | $0.0 | 0.5% |
| Total | $19.9 | $22.0 | ($2.2) | (9.8%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $19.9 | |
| Cost of Sales | ($10.2) | 51.5% |
| Sales and Marketing | ($7.3) | 36.6% |
| R & D | ($3.1) | 15.4% |
| General and Admin | ($5.1) | 25.7% |
| Other | $0.4 | 1.8% |
| Net Earnings | ($5.4) | (27.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
