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Orthofix grew in the low single digits in 2Q19 as abnormally high price pressure on spinal hardware was offset by increased Trinity allograft volume.
- Company reiterated previous 2019 revenue guidance
- Jon Serbousek will succeed Bradley Mason as President and CEO on November 1, and will take the role of President of Global spine in the interim
- “Abnormally high” price pressure in the U.S. led to a 6.7% decrease in Spine Fixation revenue, though this was offset somewhat by a +33.5% increase in motion preservation products
- The M6-C cervical disk has been implanted by 17 surgeons and generated approximately $0.5MM in revenue to date, with a year-end goal of $3MM to $4MM in revenue
- Outperformance in biologics was driven by increased sales volume of Trinity allografts
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $23.2 | $23.9 | -$0.7 | -2.7% |
| Trauma | $25.8 | $24.8 | $1.0 | 4.0% |
| Orthobiologics | $16.7 | $14.7 | $2.1 | 14.2% |
| Other * | $50.1 | $48.2 | $1.9 | 3.9% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $46.1 | $44.6 | $1.5 | 3.5% |
| Trauma | $49.0 | $52.3 | -$3.3 | -6.4% |
| Orthobiologics | $32.5 | $29.0 | $3.5 | 12.0% |
| Other * | $97.4 | $94.4 | $3.0 | 3.2% |
| Total | $225.0 | $220.3 | $4.7 | 2.1% |
* Bone growth therapies
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $91.45 | $88.75 | $2.7 | 3.0% |
| Ex-US | $24.4 | $22.8 | $1.6 | 7.0% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $115.9 | |
| Cost of Sales | -$25.8 | 22.3% |
| General and Admin | -$21.9 | 18.9% |
| Selling and Marketing | -$56.9 | 49.1% |
| R & D | -$9.0 | 7.8% |
| Other | -$2.8 | 2.4% |
| Net Earnings | -$0.5 | -0.5% |
Source: Orthofix
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Orthofix grew in the low single digits in 2Q19 as abnormally high price pressure on spinal hardware was offset by increased Trinity allograft volume.
Company reiterated previous 2019 revenue guidance
Jon Serbousek will succeed Bradley Mason as President and CEO on November 1, and will take the role of President of Global...
Orthofix grew in the low single digits in 2Q19 as abnormally high price pressure on spinal hardware was offset by increased Trinity allograft volume.
- Company reiterated previous 2019 revenue guidance
- Jon Serbousek will succeed Bradley Mason as President and CEO on November 1, and will take the role of President of Global spine in the interim
- “Abnormally high” price pressure in the U.S. led to a 6.7% decrease in Spine Fixation revenue, though this was offset somewhat by a +33.5% increase in motion preservation products
- The M6-C cervical disk has been implanted by 17 surgeons and generated approximately $0.5MM in revenue to date, with a year-end goal of $3MM to $4MM in revenue
- Outperformance in biologics was driven by increased sales volume of Trinity allografts
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $23.2 | $23.9 | -$0.7 | -2.7% |
| Trauma | $25.8 | $24.8 | $1.0 | 4.0% |
| Orthobiologics | $16.7 | $14.7 | $2.1 | 14.2% |
| Other * | $50.1 | $48.2 | $1.9 | 3.9% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $46.1 | $44.6 | $1.5 | 3.5% |
| Trauma | $49.0 | $52.3 | -$3.3 | -6.4% |
| Orthobiologics | $32.5 | $29.0 | $3.5 | 12.0% |
| Other * | $97.4 | $94.4 | $3.0 | 3.2% |
| Total | $225.0 | $220.3 | $4.7 | 2.1% |
* Bone growth therapies
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $91.45 | $88.75 | $2.7 | 3.0% |
| Ex-US | $24.4 | $22.8 | $1.6 | 7.0% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $115.9 | |
| Cost of Sales | -$25.8 | 22.3% |
| General and Admin | -$21.9 | 18.9% |
| Selling and Marketing | -$56.9 | 49.1% |
| R & D | -$9.0 | 7.8% |
| Other | -$2.8 | 2.4% |
| Net Earnings | -$0.5 | -0.5% |
Source: Orthofix
Mike Evers is ORTHOWORLD’s Market Analyst. 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.
