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Surgalign reported 4Q20 orthopedic revenue of USD $26.2 million, -17.1% vs. 4Q19, with full-year 2020 revenue of $101.7 million, -13.3% vs. 2019. In the first full quarter as Surgalign after the sale of RTI’s OEM business, the company faced challenging market dynamics due to the pandemic-related procedure volume decline.
However, the most interesting news from Surgalign is its strategic shift from an implant company to a digital service company built upon the foundations of the technology acquired with HoloSurgical. While the transformation is in the early stages, the company plans to re-evaluate its portfolio to identify products or segments that aren’t supportive of a digital strategy going forward. Ultimately, Surgalign sees itself moving away from the traditional model of “selling screws, implants and access as a package for procedural pull through.”
The company sees 2021 as a turning point, with its “Holo platform” gaining FDA approval and performing first cases late in the year. The system will be indicated for lumbar spine initially, but Surgalign views spine as a stepping stone to applications throughout the surgical landscape. For the full year 2021, Surgalign expects revenue growth in the range of $106.8 million (+5%) to $111.9 million (+10%).
“Our commitment to digital surgery aligns with the perspective of many industry thought leaders that medical device companies will see significant change in the near future, as the currency of the industry moves from implant to digital services. These services include machine learning to leverage outcomes and additive manufacturing to create patient-specific implants, all informed by AI, resources leveraging predictive analytics and a move towards personalized medicine. We believe companies that embrace this new paradigm will thrive in the transformation.”
– Terry Rich, Surgalign CEO
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $20.2 | $24.6 | ($4.5) | (18.1%) |
| Orthobiologics | $6.0 | $6.9 | ($0.9) | (13.3%) |
| Total | $26.2 | $31.6 | ($5.4) | (17.1%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $78.4 | $90.9 | ($12.5) | (13.7%) |
| Orthobiologics | $23.3 | $26.5 | ($3.2) | (12.1%) |
| Total | $101.7 | $117.4 | ($15.7) | (13.3%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $22.7 | $27.2 | ($4.5) | (16.6%) |
| OUS | $3.5 | $4.4 | ($0.9) | (20%) |
| Total | $26.2 | $31.6 | ($5.4) | (17.1%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $85.6 | $97.7 | ($12.1) | (12.4%) |
| OUS | $16.1 | $19.7 | ($3.6) | (18.2%) |
| Total | $101.7 | $117.4 | ($15.7) | (13.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $101.7 | |
| Cost of Sales | $44.0 | 43.2% |
| General and Admin | $124.4 | 122.3% |
| R & D | $11.9 | 11.7% |
| Other | ($44.8) | (44.1%) |
| Net Earnings | ($33.8) | (33.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Surgalign reported 4Q20 orthopedic revenue of USD $26.2 million, -17.1% vs. 4Q19, with full-year 2020 revenue of $101.7 million, -13.3% vs. 2019. In the first full quarter as Surgalign after the sale of RTI’s OEM business, the company faced challenging market dynamics due to the pandemic-related procedure volume decline.
However, the...
Surgalign reported 4Q20 orthopedic revenue of USD $26.2 million, -17.1% vs. 4Q19, with full-year 2020 revenue of $101.7 million, -13.3% vs. 2019. In the first full quarter as Surgalign after the sale of RTI’s OEM business, the company faced challenging market dynamics due to the pandemic-related procedure volume decline.
However, the most interesting news from Surgalign is its strategic shift from an implant company to a digital service company built upon the foundations of the technology acquired with HoloSurgical. While the transformation is in the early stages, the company plans to re-evaluate its portfolio to identify products or segments that aren’t supportive of a digital strategy going forward. Ultimately, Surgalign sees itself moving away from the traditional model of “selling screws, implants and access as a package for procedural pull through.”
The company sees 2021 as a turning point, with its “Holo platform” gaining FDA approval and performing first cases late in the year. The system will be indicated for lumbar spine initially, but Surgalign views spine as a stepping stone to applications throughout the surgical landscape. For the full year 2021, Surgalign expects revenue growth in the range of $106.8 million (+5%) to $111.9 million (+10%).
“Our commitment to digital surgery aligns with the perspective of many industry thought leaders that medical device companies will see significant change in the near future, as the currency of the industry moves from implant to digital services. These services include machine learning to leverage outcomes and additive manufacturing to create patient-specific implants, all informed by AI, resources leveraging predictive analytics and a move towards personalized medicine. We believe companies that embrace this new paradigm will thrive in the transformation.”
– Terry Rich, Surgalign CEO
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $20.2 | $24.6 | ($4.5) | (18.1%) |
| Orthobiologics | $6.0 | $6.9 | ($0.9) | (13.3%) |
| Total | $26.2 | $31.6 | ($5.4) | (17.1%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $78.4 | $90.9 | ($12.5) | (13.7%) |
| Orthobiologics | $23.3 | $26.5 | ($3.2) | (12.1%) |
| Total | $101.7 | $117.4 | ($15.7) | (13.3%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $22.7 | $27.2 | ($4.5) | (16.6%) |
| OUS | $3.5 | $4.4 | ($0.9) | (20%) |
| Total | $26.2 | $31.6 | ($5.4) | (17.1%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $85.6 | $97.7 | ($12.1) | (12.4%) |
| OUS | $16.1 | $19.7 | ($3.6) | (18.2%) |
| Total | $101.7 | $117.4 | ($15.7) | (13.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $101.7 | |
| Cost of Sales | $44.0 | 43.2% |
| General and Admin | $124.4 | 122.3% |
| R & D | $11.9 | 11.7% |
| Other | ($44.8) | (44.1%) |
| Net Earnings | ($33.8) | (33.2%) |
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.
