Conformis managed low single-digit growth in 2Q19 despite an increasing rate of coverage denials from Aetna and continuing reimbursement issues in Germany.
- Leadership expects growth to decrease in the second half of the year due to denials of coverage for maintenance from Aetna
- Three additional headwinds include the growth of the cementless market, reimbursement challenges in Germany and slower than expected ramping of hip revenue
- Total 2019 revenue is now expected to be flat vs. 2018
- Losses in international markets were mitigated by efforts to open new markets and working with German surgeons to better document their clinical decisions prior to surgery
- Sales of the iTotal PS increased 19% year over year, while combined sales of the iTotal CR, iDuo and iUni declined 10% in the same time frame
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg |
| Joint Replacement Knees | $18.8 | $18.9 | -$0.1 | -0.4% |
| Joint Replacement Hips * | $0.5 | | | |
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
| 1H19 | 1H18 | $ Chg | % Chg |
| Joint Replacement Knees | $39.0 | $38.6 | $0.4 | 1.1% |
| Joint Replacement Hips * | $1.0 | | | |
| Total | $40.0 | $38.6 | $1.4 | 3.7% |
* Limited launch 3Q18, full launch 2H19
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg |
| US | $17.2 | $16.4 | $0.8 | 5.1% |
| Ex-US | $2.1 | $2.6 | -$0.4 | -16.1% |
| Total | $19.3 | $18.9 | $0.4 | 2.3% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales |
| Sales | $19.6 | |
| Cost of Sales | -$10.0 | 50.9% |
| Sales and Marketing | -$6.9 | 35.2% |
| R & D | -$3.3 | 17.0% |
| General and Admin | -$5.3 | 27.0% |
| Other | -$0.9 | 4.4% |
| Net Earnings | -$6.8 | -34.5% |
Source: Conformis
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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