Copy to clipboard 
Conformis managed low single-digit growth in 2Q19 despite an increasing rate of coverage denials from Aetna and continuing reimbursement issues in Germany.
- Leadership expects growth to decrease in the second half of the year due to denials of coverage for maintenance from Aetna
- Three additional headwinds include the growth of the cementless market, reimbursement challenges in Germany and slower than expected ramping of hip revenue
- Total 2019 revenue is now expected to be flat vs. 2018
- Losses in international markets were mitigated by efforts to open new markets and working with German surgeons to better document their clinical decisions prior to surgery
- Sales of the iTotal PS increased 19% year over year, while combined sales of the iTotal CR, iDuo and iUni declined 10% in the same time frame
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement Knees | $18.8 | $18.9 | -$0.1 | -0.4% |
| Joint Replacement Hips * | $0.5 | |||
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement Knees | $39.0 | $38.6 | $0.4 | 1.1% |
| Joint Replacement Hips * | $1.0 | |||
| Total | $40.0 | $38.6 | $1.4 | 3.7% |
* Limited launch 3Q18, full launch 2H19
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $17.2 | $16.4 | $0.8 | 5.1% |
| Ex-US | $2.1 | $2.6 | -$0.4 | -16.1% |
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $19.6 | |
| Cost of Sales | -$10.0 | 50.9% |
| Sales and Marketing | -$6.9 | 35.2% |
| R & D | -$3.3 | 17.0% |
| General and Admin | -$5.3 | 27.0% |
| Other | -$0.9 | 4.4% |
| Net Earnings | -$6.8 | -34.5% |
Source: Conformis
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Conformis managed low single-digit growth in 2Q19 despite an increasing rate of coverage denials from Aetna and continuing reimbursement issues in Germany.
Leadership expects growth to decrease in the second half of the year due to denials of coverage for maintenance from Aetna
Three additional headwinds include the growth...
Conformis managed low single-digit growth in 2Q19 despite an increasing rate of coverage denials from Aetna and continuing reimbursement issues in Germany.
- Leadership expects growth to decrease in the second half of the year due to denials of coverage for maintenance from Aetna
- Three additional headwinds include the growth of the cementless market, reimbursement challenges in Germany and slower than expected ramping of hip revenue
- Total 2019 revenue is now expected to be flat vs. 2018
- Losses in international markets were mitigated by efforts to open new markets and working with German surgeons to better document their clinical decisions prior to surgery
- Sales of the iTotal PS increased 19% year over year, while combined sales of the iTotal CR, iDuo and iUni declined 10% in the same time frame
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement Knees | $18.8 | $18.9 | -$0.1 | -0.4% |
| Joint Replacement Hips * | $0.5 | |||
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement Knees | $39.0 | $38.6 | $0.4 | 1.1% |
| Joint Replacement Hips * | $1.0 | |||
| Total | $40.0 | $38.6 | $1.4 | 3.7% |
* Limited launch 3Q18, full launch 2H19
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $17.2 | $16.4 | $0.8 | 5.1% |
| Ex-US | $2.1 | $2.6 | -$0.4 | -16.1% |
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $19.6 | |
| Cost of Sales | -$10.0 | 50.9% |
| Sales and Marketing | -$6.9 | 35.2% |
| R & D | -$3.3 | 17.0% |
| General and Admin | -$5.3 | 27.0% |
| Other | -$0.9 | 4.4% |
| Net Earnings | -$6.8 | -34.5% |
Source: Conformis
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
You’ve reached your limit.
We’re glad you’re finding value in our content — and we’d love for you to keep going.
Subscribe now for unlimited access to orthopedic business intelligence.
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.
