Alphatec Reports 4Q17, 2017 Revenue

Alphatec Spine (ATEC) posted 4Q17 revenue of US $26.3MM, -2.9% vs. 4Q16, and 2017 revenue of $101.8MM, -15.4% vs. 2016. These figures fall at the highest point of the range preliminarily announced in January.

ORTHOWORLD estimates segment revenue and as-reported growth as follows.

Leadership has stated that sequential growth is the best indicator of performance as the company works through various transitions. Sequentially, ATEC revenue grew +13.9% overall in 4Q17 vs. 3Q17. (ORTHOWORLD estimates follow.)

Leadership offered 2018 revenue guidance of $95.0MM. As ATEC moves from implant maker to an “architect of spine solutions,” development is underway for product line extensions and portfolio expansion, including implants made of PEEK, allograft and porous titanium.

Last week, ATEC announced its acquisition of SafeOp Surgical, provider of neuromonitoring technology, for an initial outlay of US $15MM. The company also raised $50MM via private placement, which in part funded the acquisition.

In addition to the numerous personnel changes announced with preliminary numbers and with the SafeOp acquisition, we can add that Mr. Chris Brown joins as Vice President of Sales, SafeOp Surgical (another NuVasive/Impulse Monitoring alum); Dr. Luiz Pimenta joins as Chief Medical Officer; and the SafeOp development and integration effort will be led by Mr. Jim Gharib, an electrical engineer with 20+ years of experience in neurophysiology, including time spent at NuVasive.

SafeOp’s technology provides objective information about the health and safety of nerves during retraction, and is designed to work without a technician or other neuromonitoring professional in most procedures. ATEC expects to introduce SafeOp services to the market in early 2019, starting as a complement to lateral procedures and eventually pulling through to the rest of the portfolio.

Sources: Alphatec Holdings Corporation, Form 10-K; ORTHOWORLD estimates