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Conformis reported 3Q19 revenue of USD $17.3 million, -40.3% vs. 3Q18.
- The drastic reduction to growth in knees is primarily due to the one-time $10.5 million royalty settlement received from Smith+Nephew in 3Q18; however, product revenue for the quarter was down -6.7% due to Aetna coverage denials
- While Aetna has not yet revised its policy, company leadership expects an updated policy to be issued prior to year-end
- Within the quarter, Conformis submitted a full commercial launch dossier to FDA for the iTotal Hip (full commercial release is expected in late December 2019) and launched the iTotal Identity total knee in limited clinical release
- In October 2019, the company entered a strategic partnership with Stryker to produce patient-specific 3D-printed instruments for the Triathlon Knee; Conformis leadership believes that the partnership will bring an opportunity for incremental revenue and validates the strength of their intellectual property
- ORTHOWORLD projects Conformis’ full-year 2019 revenue of $79.6 million, -11.3% vs. 2018
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q19 | 3Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $16.9 | $28.8 | ($11.9) | (41.2%) |
| Joint Replacement Hips | $0.4 | $0.2 | $0.2 | 78.1% |
| Total | $17.3 | $29.0 | ($11.7) | (40.3%) |
| 9Mo 19 | 9Mo 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $56.2 | $67.5 | ($11.4) | (16.8%) |
| Joint Replacement Hips | $1.4 | $0.2 | $1.2 | 534.7% |
| Total | $57.5 | $67.7 | ($10.2) | (15.1%) |
Geographic Sales
| 3Q19 | 3Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $15.1 | $16.3 | ($1.1) | (6.9%) |
| Ex-US | $2.0 | $2.1 | ($0.1) | (4.5%) |
| Total | $17.1 | $18.3 | ($1.2) | (6.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $17.3 | |
| Cost of Sales | ($9.7) | 55.9% |
| Sales and Marketing | ($6.2) | 35.6% |
| R & D | ($3.2) | 18.3% |
| General and Admin | ($5.2) | 29.9% |
| Other | ($1.8) | 10.7% |
| Net Earnings | ($8.7) | (50.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 3Q19 revenue of USD $17.3 million, -40.3% vs. 3Q18.
The drastic reduction to growth in knees is primarily due to the one-time $10.5 million royalty settlement received from Smith+Nephew in 3Q18; however, product revenue for the quarter was down -6.7% due to Aetna coverage denials
While Aetna has not yet revised...
Conformis reported 3Q19 revenue of USD $17.3 million, -40.3% vs. 3Q18.
- The drastic reduction to growth in knees is primarily due to the one-time $10.5 million royalty settlement received from Smith+Nephew in 3Q18; however, product revenue for the quarter was down -6.7% due to Aetna coverage denials
- While Aetna has not yet revised its policy, company leadership expects an updated policy to be issued prior to year-end
- Within the quarter, Conformis submitted a full commercial launch dossier to FDA for the iTotal Hip (full commercial release is expected in late December 2019) and launched the iTotal Identity total knee in limited clinical release
- In October 2019, the company entered a strategic partnership with Stryker to produce patient-specific 3D-printed instruments for the Triathlon Knee; Conformis leadership believes that the partnership will bring an opportunity for incremental revenue and validates the strength of their intellectual property
- ORTHOWORLD projects Conformis’ full-year 2019 revenue of $79.6 million, -11.3% vs. 2018
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q19 | 3Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $16.9 | $28.8 | ($11.9) | (41.2%) |
| Joint Replacement Hips | $0.4 | $0.2 | $0.2 | 78.1% |
| Total | $17.3 | $29.0 | ($11.7) | (40.3%) |
| 9Mo 19 | 9Mo 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $56.2 | $67.5 | ($11.4) | (16.8%) |
| Joint Replacement Hips | $1.4 | $0.2 | $1.2 | 534.7% |
| Total | $57.5 | $67.7 | ($10.2) | (15.1%) |
Geographic Sales
| 3Q19 | 3Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $15.1 | $16.3 | ($1.1) | (6.9%) |
| Ex-US | $2.0 | $2.1 | ($0.1) | (4.5%) |
| Total | $17.1 | $18.3 | ($1.2) | (6.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $17.3 | |
| Cost of Sales | ($9.7) | 55.9% |
| Sales and Marketing | ($6.2) | 35.6% |
| R & D | ($3.2) | 18.3% |
| General and Admin | ($5.2) | 29.9% |
| Other | ($1.8) | 10.7% |
| Net Earnings | ($8.7) | (50.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. 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.
