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Alphatec Spine’s ongoing transformation continued to pay dividends in 2Q19 as the company notched its third consecutive quarter of double-digit growth.
- Increased 2019 total revenue guidance to $104MM to $109MM, up from $100MM to $104MM.
- Revenue from new products contributed 32% this quarter, after none the year prior.
- The SafeOp platform is currently in alpha evaluations with anticipated full commercial release in the fourth quarter.
- Within the quarter, launched two approach-specific spine implants (IdentTi TLIF and IdenTi ALIF) as well as the SafeOp-integrated Invictus thoracolumbar fixation system.
- Revenue per case increased 15% vs. the prior year due to more complex surgeries and an average of 1.5 products sold per case.
- Revenue per distributor increased 45% year over year, as the company continues to overhaul its sales channel. Revenue from “strategic” suppliers comprised 88% of total revenue.
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis ($MM).
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $25.0 | $20.0 | $5.0 | 25.3% |
| Orthobiologics | $2.3 | $2.0 | $0.3 | 13.5% |
| Total | $27.3 | $22.0 | $5.3 | 24.2% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $47.3 | $39.3 | $8.0 | 20.3% |
| Orthobiologics | $4.6 | $4.0 | $0.6 | 15.0% |
| Total | $51.9 | $43.3 | $8.6 | 19.8% |
Sales by Geographic Region
ORTHOWORLD estimates sales by geographic region as follows ($MM).
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $26.1 | $20.4 | $5.7 | 28.1% |
| Ex-US | $1.2 | $1.6 | -$0.4 | -24.8% |
| Total | $27.3 | $22.0 | $5.3 | 24.2% |
Net Earnings Data
Net earnings ($MM):
| Amt | % of Sales | |
| Sales | $27.3 | |
| Cost of Sales | -$8.4 | 30.9% |
| Selling and Admin | -$24.6 | 89.9% |
| R & D | -$3.4 | 12.3% |
| Other | -$3.4 | 12.4% |
| Net Earnings | -$12.4 | -45.5% |
Sources: Alphatec Spine; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Alphatec Spine’s ongoing transformation continued to pay dividends in 2Q19 as the company notched its third consecutive quarter of double-digit growth.
Increased 2019 total revenue guidance to $104MM to $109MM, up from $100MM to $104MM.
Revenue from new products contributed 32% this quarter, after none the year prior.
The...
Alphatec Spine’s ongoing transformation continued to pay dividends in 2Q19 as the company notched its third consecutive quarter of double-digit growth.
- Increased 2019 total revenue guidance to $104MM to $109MM, up from $100MM to $104MM.
- Revenue from new products contributed 32% this quarter, after none the year prior.
- The SafeOp platform is currently in alpha evaluations with anticipated full commercial release in the fourth quarter.
- Within the quarter, launched two approach-specific spine implants (IdentTi TLIF and IdenTi ALIF) as well as the SafeOp-integrated Invictus thoracolumbar fixation system.
- Revenue per case increased 15% vs. the prior year due to more complex surgeries and an average of 1.5 products sold per case.
- Revenue per distributor increased 45% year over year, as the company continues to overhaul its sales channel. Revenue from “strategic” suppliers comprised 88% of total revenue.
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis ($MM).
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $25.0 | $20.0 | $5.0 | 25.3% |
| Orthobiologics | $2.3 | $2.0 | $0.3 | 13.5% |
| Total | $27.3 | $22.0 | $5.3 | 24.2% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $47.3 | $39.3 | $8.0 | 20.3% |
| Orthobiologics | $4.6 | $4.0 | $0.6 | 15.0% |
| Total | $51.9 | $43.3 | $8.6 | 19.8% |
Sales by Geographic Region
ORTHOWORLD estimates sales by geographic region as follows ($MM).
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $26.1 | $20.4 | $5.7 | 28.1% |
| Ex-US | $1.2 | $1.6 | -$0.4 | -24.8% |
| Total | $27.3 | $22.0 | $5.3 | 24.2% |
Net Earnings Data
Net earnings ($MM):
| Amt | % of Sales | |
| Sales | $27.3 | |
| Cost of Sales | -$8.4 | 30.9% |
| Selling and Admin | -$24.6 | 89.9% |
| R & D | -$3.4 | 12.3% |
| Other | -$3.4 | 12.4% |
| Net Earnings | -$12.4 | -45.5% |
Sources: Alphatec Spine; ORTHOWORLD estimates.
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.
