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CONMED reported 2Q24 orthopedic sales of $139.5 million, down 0.9% from the second quarter of 2023. For the first half, the company generated $274.4 million in orthopedic sales, up 0.9% from the prior period.
Supply chain problems remain the story for CONMED’s orthopedic business. While backorder dollar levels are back to normal, the product mix has shifted to single-use disposables, creating inefficiencies for the sales team as customers go with alternatives.
The impact is felt through both sports medicine and foot and ankle. CONMED said key implantables for knee and shoulder remain in catch-up mode while foot and ankle exited the first half in much better shape.
The host of supply challenges include machine downtime, material availability and supplier variability.
“Part of the challenge is variability and surprise in our supplier base,” said CONMED CEO Curt Hartman. “As an example, we’ve had seven suppliers unexpectedly close their doors on us this year—not just us but everybody they were serving. And this is not a business where you can rapidly pick up things and start producing tomorrow night after they close tonight. It takes time, validation and qualification, and only one component to put a product on a supply constraint.”
The supply issues and unfavorable orthopedic product mix put CONMED behind its initial plan entering the third quarter, so the company lowered its 2024 total guidance to the range between $1.305 billion and $1.315 billion.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $11.0 | $10.9 | $0.1 | 1% |
| Sports Medicine | $128.5 | $129.9 | ($1.4) | (1.1%) |
| Total | $139.5 | $140.8 | ($1.3) | (0.9%) |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $23.0 | $22.7 | $0.3 | 1.1% |
| Sports Medicine | $251.5 | $249.3 | $2.2 | 0.9% |
| Total | $274.4 | $272.0 | $2.4 | 0.9% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $52.1 | $52.3 | ($0.2) | (0.3%) |
| OUS | $87.4 | $88.5 | ($1.1) | (1.2%) |
| EMEA | $35.0 | $35.2 | ($0.2) | (0.5%) |
| APAC | $31.2 | $31.0 | $0.3 | 0.8% |
| ROW | $21.2 | $22.3 | ($1.1) | (5.2%) |
| Total | $139.5 | $140.8 | ($1.3) | (0.9%) |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $106.3 | $101.3 | $5.0 | 5% |
| OUS | $168.2 | $170.7 | ($2.6) | (1.5%) |
| EMEA | $68.2 | $68.3 | ($0.1) | (0.1%) |
| APAC | $57.5 | $61.1 | ($3.6) | (6%) |
| ROW | $42.5 | $41.3 | $1.2 | 2.9% |
| Total | $274.4 | $272.0 | $2.5 | 0.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $332.1 | |
| Cost of Sales | $148.4 | 44.7% |
| Selling and Admin | $122.5 | 36.9% |
| R&D | $14.1 | 4.2% |
| Other | $17.1 | 5.2% |
| Net Earnings | $30.0 | 9% |
CONMED reported 2Q24 orthopedic sales of $139.5 million, down 0.9% from the second quarter of 2023. For the first half, the company generated $274.4 million in orthopedic sales, up 0.9% from the prior period.
Supply chain problems remain the story for CONMED's orthopedic business. While backorder dollar levels are back to normal, the...
CONMED reported 2Q24 orthopedic sales of $139.5 million, down 0.9% from the second quarter of 2023. For the first half, the company generated $274.4 million in orthopedic sales, up 0.9% from the prior period.
Supply chain problems remain the story for CONMED’s orthopedic business. While backorder dollar levels are back to normal, the product mix has shifted to single-use disposables, creating inefficiencies for the sales team as customers go with alternatives.
The impact is felt through both sports medicine and foot and ankle. CONMED said key implantables for knee and shoulder remain in catch-up mode while foot and ankle exited the first half in much better shape.
The host of supply challenges include machine downtime, material availability and supplier variability.
“Part of the challenge is variability and surprise in our supplier base,” said CONMED CEO Curt Hartman. “As an example, we’ve had seven suppliers unexpectedly close their doors on us this year—not just us but everybody they were serving. And this is not a business where you can rapidly pick up things and start producing tomorrow night after they close tonight. It takes time, validation and qualification, and only one component to put a product on a supply constraint.”
The supply issues and unfavorable orthopedic product mix put CONMED behind its initial plan entering the third quarter, so the company lowered its 2024 total guidance to the range between $1.305 billion and $1.315 billion.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $11.0 | $10.9 | $0.1 | 1% |
| Sports Medicine | $128.5 | $129.9 | ($1.4) | (1.1%) |
| Total | $139.5 | $140.8 | ($1.3) | (0.9%) |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $23.0 | $22.7 | $0.3 | 1.1% |
| Sports Medicine | $251.5 | $249.3 | $2.2 | 0.9% |
| Total | $274.4 | $272.0 | $2.4 | 0.9% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $52.1 | $52.3 | ($0.2) | (0.3%) |
| OUS | $87.4 | $88.5 | ($1.1) | (1.2%) |
| EMEA | $35.0 | $35.2 | ($0.2) | (0.5%) |
| APAC | $31.2 | $31.0 | $0.3 | 0.8% |
| ROW | $21.2 | $22.3 | ($1.1) | (5.2%) |
| Total | $139.5 | $140.8 | ($1.3) | (0.9%) |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $106.3 | $101.3 | $5.0 | 5% |
| OUS | $168.2 | $170.7 | ($2.6) | (1.5%) |
| EMEA | $68.2 | $68.3 | ($0.1) | (0.1%) |
| APAC | $57.5 | $61.1 | ($3.6) | (6%) |
| ROW | $42.5 | $41.3 | $1.2 | 2.9% |
| Total | $274.4 | $272.0 | $2.5 | 0.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $332.1 | |
| Cost of Sales | $148.4 | 44.7% |
| Selling and Admin | $122.5 | 36.9% |
| R&D | $14.1 | 4.2% |
| Other | $17.1 | 5.2% |
| Net Earnings | $30.0 | 9% |
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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.
