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Conformis reported 1Q21 orthopedic revenue of USD $13.8 million, -16% vs. 1Q20. The company remains impacted by COVID’s impact on the knee replacement market, and it pointed to the abnormally high levels of deferred knee replacements over the last 12 months compared to other surgeries.
The company expects second quarter product revenue of around $14 million, a significant improvement over last year, but still -25% compared to 2Q19. The completion of Conformis’ development deal with Stryker is set to bring in additional revenue for the second quarter. The company expects an $11 million milestone payment, as well as the first royalty and licensing payments that could generate up to $25 million. By the fourth quarter, Conformis hopes to return its product sales revenue to 2019 levels.
Further out, Conformis aims to drive revenue growth through three new product developments: its “ASC knee” called Identity Imprint, a cementless knee option and additional hip products to bolster that portfolio. The company announced Identity’s FDA 510(k) clearance today, but the cementless knee and hip products are slated for 2022.
“Protecting our intellectual property is a strategic imperative for us, and we have a strong team in place to do this. Through mutual agreements and litigation, when necessary, Conformis has successfully and strategically licensed this technology to a number of respected companies. These licenses have generated over $50 million to date and we continue to zealously protect Conformis’ position as a leader in patient-specific instrumentation and implant technology.” – Conformis CEO Mark Augusti
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $13.2 | $16.0 | ($2.9) | (17.8%) |
| Joint Replacement Hips | $0.7 | $0.4 | $0.2 | 49% |
| Total | $13.8 | $16.5 | ($2.6) | (16%) |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $11.7 | $14.0 | ($2.3) | (16.3%) |
| OUS | $2.1 | $2.5 | ($0.4) | (14.5%) |
| Total | $13.8 | $16.5 | ($2.6) | (16%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $13.8 | |
| Cost of Sales | $7.7 | 55.4% |
| Selling and Marketing | $5.1 | 37% |
| General and Admin | $6.7 | 48.2% |
| R & D | $3.5 | 25.6% |
| Other | $2.4 | 17.1% |
| Net Earnings | ($11.5) | (83.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 1Q21 orthopedic revenue of USD $13.8 million, -16% vs. 1Q20. The company remains impacted by COVID’s impact on the knee replacement market, and it pointed to the abnormally high levels of deferred knee replacements over the last 12 months compared to other surgeries.
The company expects second quarter product revenue of...
Conformis reported 1Q21 orthopedic revenue of USD $13.8 million, -16% vs. 1Q20. The company remains impacted by COVID’s impact on the knee replacement market, and it pointed to the abnormally high levels of deferred knee replacements over the last 12 months compared to other surgeries.
The company expects second quarter product revenue of around $14 million, a significant improvement over last year, but still -25% compared to 2Q19. The completion of Conformis’ development deal with Stryker is set to bring in additional revenue for the second quarter. The company expects an $11 million milestone payment, as well as the first royalty and licensing payments that could generate up to $25 million. By the fourth quarter, Conformis hopes to return its product sales revenue to 2019 levels.
Further out, Conformis aims to drive revenue growth through three new product developments: its “ASC knee” called Identity Imprint, a cementless knee option and additional hip products to bolster that portfolio. The company announced Identity’s FDA 510(k) clearance today, but the cementless knee and hip products are slated for 2022.
“Protecting our intellectual property is a strategic imperative for us, and we have a strong team in place to do this. Through mutual agreements and litigation, when necessary, Conformis has successfully and strategically licensed this technology to a number of respected companies. These licenses have generated over $50 million to date and we continue to zealously protect Conformis’ position as a leader in patient-specific instrumentation and implant technology.” – Conformis CEO Mark Augusti
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $13.2 | $16.0 | ($2.9) | (17.8%) |
| Joint Replacement Hips | $0.7 | $0.4 | $0.2 | 49% |
| Total | $13.8 | $16.5 | ($2.6) | (16%) |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $11.7 | $14.0 | ($2.3) | (16.3%) |
| OUS | $2.1 | $2.5 | ($0.4) | (14.5%) |
| Total | $13.8 | $16.5 | ($2.6) | (16%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $13.8 | |
| Cost of Sales | $7.7 | 55.4% |
| Selling and Marketing | $5.1 | 37% |
| General and Admin | $6.7 | 48.2% |
| R & D | $3.5 | 25.6% |
| Other | $2.4 | 17.1% |
| Net Earnings | ($11.5) | (83.2%) |
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.
