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Orthofix reported 2Q23 orthopedic sales of $187 million, +58.4% compared to the second quarter of 2022. For the first half, the company generated $362.2 million in orthopedic sales, +61.4% compared to the prior year. Notably, these as-reported results do not include legacy SeaSpine sales for 2022. On a pro forma basis, Orthofix grew +6.8% for the quarter and +8.8% for the half.
Among its integration efforts, the company implemented cross-selling to distributors of legacy spinal implant systems, decided to significantly rationalize redundant spine products and finalized the selection of critical information systems. The company prioritized managing the revenue dis-synergy risk of the business combination.
Orthofix plans to reduce overlapping spinal implant systems by about 50% over the course of two years. “Half of the go-forward systems will be from legacy Orthofix and about half from legacy SeaSpine,” said Orthofix CFO John Bostjancic. “While there’s potential for lost revenue, we’re being very careful to outline plans for that product rationalization. We’ve got sort of a runway of short-term and then longer-term transition plans.”
The company continues driving 7D navigation system placements, with an increasing number of active earnout deals versus outright capital sales. Earnouts are capital-efficient deals allowing customers to acquire a 7D system with a minimal contractual commitment for spinal implant and biologics products over three to four years. Orthofix said that it currently has eight active earnout systems generating annual revenue commitments of $4.8 million.
Based on its integration progress and more stable end markets, Orthofix raised its 2023 revenue guidance to the range of $752 million to $758 million, an increase of $2 million on both the low and high ends.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $66.6 | $26.0 | $40.6 | 156% |
| Trauma | $29.0 | $27.3 | $1.8 | 6.4% |
| Orthobiologics | $36.9 | $14.8 | $22.1 | 149.1% |
| Enabling Technology | $1.8 | $2.2 | ($0.4) | (16.7%) |
| Other (Bone Growth Therapies) | $52.7 | $47.8 | $4.9 | 10.3% |
| Total | $187.0 | $118.1 | $68.9 | 58.4% |
| 1H22 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $126.1 | $50.4 | $75.6 | 149.9% |
| Trauma | $55.0 | $51.1 | $4.0 | 7.8% |
| Orthobiologics | $77.5 | $28.9 | $48.6 | 168.1% |
| Enabling Technology | $3.3 | $4.4 | ($1.1) | (25%) |
| Other (Bone Growth Therapies) | $100.4 | $89.7 | $10.6 | 11.9% |
| Total | $362.2 | $224.5 | $137.7 | 61.4% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $154.6 | $92.8 | $61.8 | 66.6% |
| OUS | $32.4 | $25.3 | $7.2 | 28.4% |
| EMEA | $17.8 | $13.5 | $4.3 | 32% |
| APAC | $12.3 | $9.6 | $2.7 | 28.4% |
| ROW | $2.3 | $2.1 | $0.1 | 5.7% |
| Total | $187.0 | $118.1 | $68.9 | 58.4% |
| 1H22 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $300.7 | $175.2 | $125.5 | 71.6% |
| OUS | $61.5 | $49.3 | $12.3 | 24.9% |
| EMEA | $33.8 | $26.3 | $7.5 | 28.7% |
| APAC | $23.4 | $18.9 | $4.5 | 23.9% |
| ROW | $4.3 | $4.1 | $0.2 | 4.6% |
| Total | $362.2 | $224.5 | $137.7 | 61.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $187.0 | |
| Cost of Sales | $67.5 | 36.1% |
| General and Admin | $99.2 | 53.1% |
| Selling and Marketing | $34.2 | 18.3% |
| R & D | $19.4 | 10.4% |
| Other | $6.1 | 3.3% |
| Net Earnings | ($39.4) | (21.1%) |
Orthofix reported 2Q23 orthopedic sales of $187 million, +58.4% compared to the second quarter of 2022. For the first half, the company generated $362.2 million in orthopedic sales, +61.4% compared to the prior year. Notably, these as-reported results do not include legacy SeaSpine sales for 2022. On a pro forma basis, Orthofix grew +6.8% for...
Orthofix reported 2Q23 orthopedic sales of $187 million, +58.4% compared to the second quarter of 2022. For the first half, the company generated $362.2 million in orthopedic sales, +61.4% compared to the prior year. Notably, these as-reported results do not include legacy SeaSpine sales for 2022. On a pro forma basis, Orthofix grew +6.8% for the quarter and +8.8% for the half.
Among its integration efforts, the company implemented cross-selling to distributors of legacy spinal implant systems, decided to significantly rationalize redundant spine products and finalized the selection of critical information systems. The company prioritized managing the revenue dis-synergy risk of the business combination.
Orthofix plans to reduce overlapping spinal implant systems by about 50% over the course of two years. “Half of the go-forward systems will be from legacy Orthofix and about half from legacy SeaSpine,” said Orthofix CFO John Bostjancic. “While there’s potential for lost revenue, we’re being very careful to outline plans for that product rationalization. We’ve got sort of a runway of short-term and then longer-term transition plans.”
The company continues driving 7D navigation system placements, with an increasing number of active earnout deals versus outright capital sales. Earnouts are capital-efficient deals allowing customers to acquire a 7D system with a minimal contractual commitment for spinal implant and biologics products over three to four years. Orthofix said that it currently has eight active earnout systems generating annual revenue commitments of $4.8 million.
Based on its integration progress and more stable end markets, Orthofix raised its 2023 revenue guidance to the range of $752 million to $758 million, an increase of $2 million on both the low and high ends.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $66.6 | $26.0 | $40.6 | 156% |
| Trauma | $29.0 | $27.3 | $1.8 | 6.4% |
| Orthobiologics | $36.9 | $14.8 | $22.1 | 149.1% |
| Enabling Technology | $1.8 | $2.2 | ($0.4) | (16.7%) |
| Other (Bone Growth Therapies) | $52.7 | $47.8 | $4.9 | 10.3% |
| Total | $187.0 | $118.1 | $68.9 | 58.4% |
| 1H22 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $126.1 | $50.4 | $75.6 | 149.9% |
| Trauma | $55.0 | $51.1 | $4.0 | 7.8% |
| Orthobiologics | $77.5 | $28.9 | $48.6 | 168.1% |
| Enabling Technology | $3.3 | $4.4 | ($1.1) | (25%) |
| Other (Bone Growth Therapies) | $100.4 | $89.7 | $10.6 | 11.9% |
| Total | $362.2 | $224.5 | $137.7 | 61.4% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $154.6 | $92.8 | $61.8 | 66.6% |
| OUS | $32.4 | $25.3 | $7.2 | 28.4% |
| EMEA | $17.8 | $13.5 | $4.3 | 32% |
| APAC | $12.3 | $9.6 | $2.7 | 28.4% |
| ROW | $2.3 | $2.1 | $0.1 | 5.7% |
| Total | $187.0 | $118.1 | $68.9 | 58.4% |
| 1H22 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $300.7 | $175.2 | $125.5 | 71.6% |
| OUS | $61.5 | $49.3 | $12.3 | 24.9% |
| EMEA | $33.8 | $26.3 | $7.5 | 28.7% |
| APAC | $23.4 | $18.9 | $4.5 | 23.9% |
| ROW | $4.3 | $4.1 | $0.2 | 4.6% |
| Total | $362.2 | $224.5 | $137.7 | 61.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $187.0 | |
| Cost of Sales | $67.5 | 36.1% |
| General and Admin | $99.2 | 53.1% |
| Selling and Marketing | $34.2 | 18.3% |
| R & D | $19.4 | 10.4% |
| Other | $6.1 | 3.3% |
| Net Earnings | ($39.4) | (21.1%) |
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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.
