ConforMIS Posts 1Q17 Revenue

ConforMIS posted 1Q17 revenue of US $20.5MM, +1.0% vs. 1Q16.

1Q17 performance highlights:

• Product revenue growth driven by iTotal PS, offset by decline in base business; 1Q17 product sales breakdown:
  • iTotal CR, iUni and iDuo $15.3MM, -13%
  • iTotal PS $5.1MM, +113% (full launch occurred in late 1Q16)

• Growth impacted by incremental contributions that arose from rescheduled cases following voluntary recall of certain products announced in 2015
• Affirmed expected weaker performance in Germany in 1Q due to unexpected change in reimbursement of iUni and iDuo partial knees; this is expected to contribute to continued ex-U.S. declines throughout 2017
• Commenced manufacture of polyethylene inserts for iTotal CR, of which >50% are made inhouse
• On track for manufacture of iTotal PS poly later in 2017
• Now developing next-gen iUni and iTotal knees for limited launch in 2H18; continuing to pursue iTotal hip clearance
• Seeking to hire personnel specifically devoted to growing outpatient business
• Intending to bring on unspecified number of new reps in 3Q17
• Reiterated full-year guidance in $80.0MM to $84.0MM range

Sources: ConforMIS, Inc.; ORTHOWORLD Inc.

On robotics: “I understand that a robot can take the variability out of making a surgical bone cut, and I think that’s the real value of that. But at the end of the day, Stryker is still focused on trying to make a challenging surgery better; the reason why the surgery is challenging is because the surgeon is using a tool that’s 30 years old: they’re using an ill-fitting L-shaped implant. We are creating a better implant that is matched to the patient’s anatomy.”—Mark Augusti, President and Chief Executive Officer