Alphatec Spine Reports 1Q17 Revenue

Alphatec Spine posted 1Q17 revenue of US $28.0MM, -18.2% vs. 1Q16.

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

1Q17 performance highlights:

• ~30% of U.S. commercial revenue derived from products launched in the past 3 years, and <15% of revenue generated from dedicated reps and distributors
• Completed appointments to its senior leadership team, which includes talent from major orthopaedic and spine companies
• Hired three new Area VPs with experience in building spine-specific distribution channels
• Commenced transition of sales organization from non-exclusive to dedicated, exiting stocking distribution; distribution network evolution should take ~3 years
• Reduced headcount from 195 in 3Q16 to ~140, consolidated into one location
• Near the quarter’s end, raised ~$18.9MM in a private placement
• Initiated limited U.S. launch of Arsenal Deformity Adolescent Idiopathic Scoliosis system and Battalion Lateral System with Squadron Lateral Retractor

“We are relaunching our biologics platform, which has been a significant revenue-generating business for us. We are looking to build that business back as a complement to our current suite of hardware products.”—Terry Rich, Chief Executive Officer

Sources: Alphatec Spine, Inc.; ORTHOWORLD estimates