Alphatec Announces 1Q18 Revenue

Alphatec (ATEC) reported 1Q18 revenue of US $21.3MM, -23.9% vs. 1Q17.

ORTHOWORLD estimates for segments and growth follow.

Within 1Q, ATEC closed its acquisition of SafeOp with its automated neuromonitoring technology and appointed Kelli Howell as Executive Vice President, Clinical Strategies—another NuVasive alumni.

An FDA submission for clearance of SafeOp’s electromyography technology is on track for what leadership hopes is a 4Q 510(k) clearance.

Revenue growth was affected by spine market seasonality and the continued transition of distribution channels. However, this was offset by growth from dedicated sales and new surgeon adoption. The mix of U.S. commercial sales generated by dedicated agents and distributors is now 50%, up from 40% in 4Q17 and 15% in 1Q17.

In 2H18, ATEC will commence initial release of interbody implants made from porous titanium. Other procedure-focused solutions, such as SafeOp’s technology, are expected to join the portfolio in 2019.

For the full year, leadership offered guidance of $95.0MM, with U.S. commercial revenue ramping in 2H from surgeon utilization, conversion and new distribution partners, as well as initial product launches.

Sources: Alphatec; ORTHOWORLD estimates