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Alphatec Spine, NuVasive, SeaSpine, SI-BONE and Wright Medical all finished the year largely following performance trends that they established over the first nine months of 2018. Alphatec saw growth over sequential quarters, but continues to work through the transformation of its distributor network. NuVasive stayed on track despite case volume disruptions in 4Q, while SeaSpine and SI-BONE both performed well in U.S. sales. Wright Medical exceeded its 2018 guidance and even saw a positive 4Q18 impact from Cartiva ahead of its full launch on January 1, 2019. All revenue figures presented in USD $MM.
Alphatec Spine
Alphatec Spine reported preliminary 4Q18 revenue in the range of $25.2MM to $25.7MM, -4.2% to -2.3% vs. 4Q17, and full year 2018 revenue in the range of $91.5MM to $92MM, -10.1% to -9.6% vs. 2017.
Although the company performed well sequentially vs. 3Q18 (+9% to +10%) and vs. 4Q17 (+10% to +12%) for U.S. revenue, it was hampered by a negative $9MM impact from ongoing terminations of legacy and non-strategic distributors as well as a negative $7MM impact from decreased sales under the company’s supply agreement with Globus Medical.
Alphatec provided 2019 guidance in the range of $98MM to $103MM, reflecting:
- U.S. revenue growth in the range of 13% to 17% vs. 2018
- Revenue from planned mid-2019 commercial launches of alpha products and an advanced neuromonitoring platform
- Negative $9MM impact from ongoing termination of legacy and non-strategic distributors vs. 2018
- Negative $4MM impact from further decreasing sales under the company’s supply agreement with Globus Medical
Terry Rich, former President and COO, resigned from Alphatec but will continue to consult with the company through June 30, 2019 to ensure a smooth transition. Jeffrey Rydin, a member of the company’s Board of Directors, will assume interim leadership of the sales organization.
Source: Alphatec Spine
NuVasive
NuVasive announced preliminary 4Q18 revenue of $288MM, +6% vs 4Q17, and full year 2018 revenue of $1,102MM, +7.2% vs. 2017. Excluding the acquisition of SafePassage, organic 2018 growth was approximately 5%.
Leadership cited new product introductions and strong performance in key global geographies as growth drivers. The company is encouraged by mid-single digit growth in the U.S. spine market, while noting impact from “temporal” 4Q18 surgeon case volume disruptions and delays in capital equipment orders.
NuVasive will announce full revenue results in late February 2019.
Source: NuVasive
SeaSpine
SeaSpine announced preliminary 4Q18 revenue in the range of $37.6MM to $38MM, +10.6% to +11.8% vs. 4Q17, and full year 2018 revenue of $143MM to $143.4MM, +8.5% to +9% vs. 2017.
The company noted growth across its portfolio, with both the spine and orthobiologics segments growing in the high single-digits. For the quarter, international revenue is expected to grow more than 35% to approximately $3.8MM to $3.9MM, driven largely by a recently-added distributor in Australia.
SeaSpine expects full-year 2019 revenue in the range of $152MM to $156MM.
Source: SeaSpine
SI-BONE
SI-BONE announced preliminary 4Q18 revenue in the range of $15.4MM to $15.6MM, +12-13% vs. 4Q17, and full year 2018 revenue in the range of $55.2MM to $55.4MM, +15% vs. 2017.
Leadership called out improving reimbursement coverage and sales execution as growth drivers. For 4Q18, international sales are expected to be $1.1MM and the company stated that it is increasing investment in European markets to accelerate international sales.
SI-BONE will announce full revenue results in March 2019.
Source: SI-BONE
Wright Medical
Wright Medical announced preliminary 4Q18 revenue of $238.1MM, +9.4% vs. 4Q17, and full year revenue of $836.2, +12.2% vs. 2017. Full year results exceeded the company’s 2018 guidance range, despite four fewer selling days in 4Q that disproportionately impacted their U.S. business.
Leadership attributed revenue performance to continued shoulder growth, driven by the ongoing launch of the PERFORM Reversed glenoid and contributions from the SIMPLICITI shoulder system. Cartiva revenue for 4Q18 was $9.5MM, exceeding company expectations ahead of the January 1, 2019 full launch and salesforce integration.
Wright Medical announced new three-year financial targets for 2019 through 2021:
- Deliver double-digit constant currency net sales growth each year
- Maintain adjusted gross margin in the high 70% range each year
- Expand adjusted EBITDA margin to the mid-20% range exiting 2021
The company also announced the creation of two new Executive Vice President positions to advance its global commercial focus. Kevin Cordell was promoted from President of U.S. business to Executive Vice President, Chief Global Commercial Officer. Lance Berry was promoted from Senior Vice President and CFO to Executive Vice President, Chief Financial and Operations Officer.
Wright Medical will announce its full financial results on February 26, 2019.
Sources: Wright Medical Preliminary Revenue Results, Wright Medical Organizational Announcement
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Alphatec Spine, NuVasive, SeaSpine, SI-BONE and Wright Medical all finished the year largely following performance trends that they established over the first nine months of 2018. Alphatec saw growth over sequential quarters, but continues to work through the transformation of its distributor network. NuVasive stayed on track despite case volume...
Alphatec Spine, NuVasive, SeaSpine, SI-BONE and Wright Medical all finished the year largely following performance trends that they established over the first nine months of 2018. Alphatec saw growth over sequential quarters, but continues to work through the transformation of its distributor network. NuVasive stayed on track despite case volume disruptions in 4Q, while SeaSpine and SI-BONE both performed well in U.S. sales. Wright Medical exceeded its 2018 guidance and even saw a positive 4Q18 impact from Cartiva ahead of its full launch on January 1, 2019. All revenue figures presented in USD $MM.
Alphatec Spine
Alphatec Spine reported preliminary 4Q18 revenue in the range of $25.2MM to $25.7MM, -4.2% to -2.3% vs. 4Q17, and full year 2018 revenue in the range of $91.5MM to $92MM, -10.1% to -9.6% vs. 2017.
Although the company performed well sequentially vs. 3Q18 (+9% to +10%) and vs. 4Q17 (+10% to +12%) for U.S. revenue, it was hampered by a negative $9MM impact from ongoing terminations of legacy and non-strategic distributors as well as a negative $7MM impact from decreased sales under the company’s supply agreement with Globus Medical.
Alphatec provided 2019 guidance in the range of $98MM to $103MM, reflecting:
- U.S. revenue growth in the range of 13% to 17% vs. 2018
- Revenue from planned mid-2019 commercial launches of alpha products and an advanced neuromonitoring platform
- Negative $9MM impact from ongoing termination of legacy and non-strategic distributors vs. 2018
- Negative $4MM impact from further decreasing sales under the company’s supply agreement with Globus Medical
Terry Rich, former President and COO, resigned from Alphatec but will continue to consult with the company through June 30, 2019 to ensure a smooth transition. Jeffrey Rydin, a member of the company’s Board of Directors, will assume interim leadership of the sales organization.
Source: Alphatec Spine
NuVasive
NuVasive announced preliminary 4Q18 revenue of $288MM, +6% vs 4Q17, and full year 2018 revenue of $1,102MM, +7.2% vs. 2017. Excluding the acquisition of SafePassage, organic 2018 growth was approximately 5%.
Leadership cited new product introductions and strong performance in key global geographies as growth drivers. The company is encouraged by mid-single digit growth in the U.S. spine market, while noting impact from “temporal” 4Q18 surgeon case volume disruptions and delays in capital equipment orders.
NuVasive will announce full revenue results in late February 2019.
Source: NuVasive
SeaSpine
SeaSpine announced preliminary 4Q18 revenue in the range of $37.6MM to $38MM, +10.6% to +11.8% vs. 4Q17, and full year 2018 revenue of $143MM to $143.4MM, +8.5% to +9% vs. 2017.
The company noted growth across its portfolio, with both the spine and orthobiologics segments growing in the high single-digits. For the quarter, international revenue is expected to grow more than 35% to approximately $3.8MM to $3.9MM, driven largely by a recently-added distributor in Australia.
SeaSpine expects full-year 2019 revenue in the range of $152MM to $156MM.
Source: SeaSpine
SI-BONE
SI-BONE announced preliminary 4Q18 revenue in the range of $15.4MM to $15.6MM, +12-13% vs. 4Q17, and full year 2018 revenue in the range of $55.2MM to $55.4MM, +15% vs. 2017.
Leadership called out improving reimbursement coverage and sales execution as growth drivers. For 4Q18, international sales are expected to be $1.1MM and the company stated that it is increasing investment in European markets to accelerate international sales.
SI-BONE will announce full revenue results in March 2019.
Source: SI-BONE
Wright Medical
Wright Medical announced preliminary 4Q18 revenue of $238.1MM, +9.4% vs. 4Q17, and full year revenue of $836.2, +12.2% vs. 2017. Full year results exceeded the company’s 2018 guidance range, despite four fewer selling days in 4Q that disproportionately impacted their U.S. business.
Leadership attributed revenue performance to continued shoulder growth, driven by the ongoing launch of the PERFORM Reversed glenoid and contributions from the SIMPLICITI shoulder system. Cartiva revenue for 4Q18 was $9.5MM, exceeding company expectations ahead of the January 1, 2019 full launch and salesforce integration.
Wright Medical announced new three-year financial targets for 2019 through 2021:
- Deliver double-digit constant currency net sales growth each year
- Maintain adjusted gross margin in the high 70% range each year
- Expand adjusted EBITDA margin to the mid-20% range exiting 2021
The company also announced the creation of two new Executive Vice President positions to advance its global commercial focus. Kevin Cordell was promoted from President of U.S. business to Executive Vice President, Chief Global Commercial Officer. Lance Berry was promoted from Senior Vice President and CFO to Executive Vice President, Chief Financial and Operations Officer.
Wright Medical will announce its full financial results on February 26, 2019.
Sources: Wright Medical Preliminary Revenue Results, Wright Medical Organizational Announcement
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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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.
