Medtronic Reports FY4Q17 Revenue

ORTHOWORLD estimates Medtronic’s FY4Q17 revenue at US $759.0MM, +3.0% vs. FY4Q16.  (Quarter ended 4/28/17)  

ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.

Sequentially, this overall growth is down slightly from FY3Q17’s increase of +3.5%, but it represents the company’s third consecutive quarter of positive growth—for spine and orthobiologics combined, and for each segment separately. Further, orthobiologics revenue has surpassed $130MM—breaking out of the range of $120MM to $129MM for the first time since the company’s FY2Q15. The FDA approval of additional spine surgery indications for INFUSE appears to be supporting growth there.

Performance highlights:

• Core Spine continues to benefit from launches (e.g. Solera Voyager and Elevate expandable cage), Surgical Synergies strategy (cross-sales of hardware/biologics with navigation, robotics and imaging equipment) and “Speed to Scale” (launching product rapidly and with all sets/all training available at the same time for the entire market)
  • “We used to [launch products] over nine quarters; we’re now doing it over two.”—Geoff Martha, President, Restorative Therapies Group
• Will communicate more about its orthopaedic program this year
• Ortho and spine penetration driving growth of Aquamantys system for bleeding control
• Strong U.S. balloon kyphoplasty performance driven by pull-through from OsteoCool radiofrequency ablation product
• Continues to expect InductOs rhBMP-2 EU shipping hold to resolve for return to market by mid-FY18
• Following close of quarter, regional press reported that the Memphis spinal unit is trimming its headcount, though details were sparse (such as number and type of employees affected); noted ~1,300 employees in the Memphis area as of last year

Source: Medtronic plc; ORTHOWORLD estimates; The Commercial Appeal