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DePuy Synthes reported 1Q22 orthopedic sales of $2.1 billion, +3.5% vs 1Q21.
The first quarter brought a quicker than expected recovery from the omicron trough of November and December. Both the EMEA and Asia Pacific regions had broad-based recoveries. However, DePuy Synthes expects a pandemic-related disruption in China through at least May.
Surgical volumes in the U.S. gained momentum through the first quarter. According to Johnson & Johnson Executive Vice President & Worldwide Chairman Ashley McEvoy, January diagnostic procedures were flat and surgical procedures down 10% from normal levels. Exiting March, diagnostics are growing in the high single digits while surgical procedures are flat.
The company expects macroeconomic headwinds to persist through 2022. Johnson & Johnson CFO Joe Wolk said, “These external challenges include limited availability and rising prices of certain commodities, as well as increased costs for labor, energy and transportation. These impacts are pervasive across the enterprise.”
Like many of its peers, DePuy Synthes increased its focus on penetrating other sites of care during the pandmeic as patients sought options outside of hospitals. The focus on sites like ASCs paid off particuarly well for the company’s knee and hip replacement sales.
McEvoy said the capital-efficient business model required by ASCs has helped DePuy Synthes efficiently provide care to lower tier, or lesser developed, cities in China.
During the quarter, DePuy Synthes closed the acquisitions of CrossRoads Extremitiy Systems and CUPTIMIZE. The company is likely to continue prioritizing smaller deals aimed at digitizing the patient experience.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $833.9 | $775.8 | $58.1 | 7.5% |
| Knees | $339.0 | $317.6 | $21.4 | 6.7% |
| Hips | $389.0 | $355.8 | $33.2 | 9.3% |
| Extremities | $105.9 | $102.4 | $3.5 | 3.4% |
| Spine | $315.0 | $320.7 | ($5.7) | (1.8%) |
| Trauma | $718.1 | $703.5 | $14.6 | 2.1% |
| Sports Medicine | $149.3 | $144.1 | $5.2 | 3.6% |
| Orthobiologics | $88.9 | $88.3 | $0.6 | 0.7% |
| Other (CMF) | $81.8 | $80.2 | $1.7 | 2.1% |
| Total | $2,187.0 | $2,112.5 | $74.5 | 3.5% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,288.0 | $1,247.9 | $40.1 | 3.2% |
| OUS | $899.0 | $864.6 | $34.4 | 4% |
| EMEA | $395.6 | $375.2 | $20.3 | 5.4% |
| Asia Pacific | $341.6 | $318.2 | $23.4 | 7.4% |
| Rest of World | $161.8 | $171.2 | ($9.4) | (5.5%) |
| Total | $2,187.0 | $2,112.5 | $74.5 | 3.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,426.0 | |
| Cost of Sales | $7,598.0 | 32.4% |
| Selling and Admin | $5,938.0 | 25.3% |
| R & D | $3,462.0 | 14.8% |
| Other | $1,279.0 | 5.5% |
| Net Earnings | $5,149.0 | 22% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DePuy Synthes reported 1Q22 orthopedic sales of $2.1 billion, +3.5% vs 1Q21.
The first quarter brought a quicker than expected recovery from the omicron trough of November and December. Both the EMEA and Asia Pacific regions had broad-based recoveries. However, DePuy Synthes expects a pandemic-related disruption in China through at least...
DePuy Synthes reported 1Q22 orthopedic sales of $2.1 billion, +3.5% vs 1Q21.
The first quarter brought a quicker than expected recovery from the omicron trough of November and December. Both the EMEA and Asia Pacific regions had broad-based recoveries. However, DePuy Synthes expects a pandemic-related disruption in China through at least May.
Surgical volumes in the U.S. gained momentum through the first quarter. According to Johnson & Johnson Executive Vice President & Worldwide Chairman Ashley McEvoy, January diagnostic procedures were flat and surgical procedures down 10% from normal levels. Exiting March, diagnostics are growing in the high single digits while surgical procedures are flat.
The company expects macroeconomic headwinds to persist through 2022. Johnson & Johnson CFO Joe Wolk said, “These external challenges include limited availability and rising prices of certain commodities, as well as increased costs for labor, energy and transportation. These impacts are pervasive across the enterprise.”
Like many of its peers, DePuy Synthes increased its focus on penetrating other sites of care during the pandmeic as patients sought options outside of hospitals. The focus on sites like ASCs paid off particuarly well for the company’s knee and hip replacement sales.
McEvoy said the capital-efficient business model required by ASCs has helped DePuy Synthes efficiently provide care to lower tier, or lesser developed, cities in China.
During the quarter, DePuy Synthes closed the acquisitions of CrossRoads Extremitiy Systems and CUPTIMIZE. The company is likely to continue prioritizing smaller deals aimed at digitizing the patient experience.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $833.9 | $775.8 | $58.1 | 7.5% |
| Knees | $339.0 | $317.6 | $21.4 | 6.7% |
| Hips | $389.0 | $355.8 | $33.2 | 9.3% |
| Extremities | $105.9 | $102.4 | $3.5 | 3.4% |
| Spine | $315.0 | $320.7 | ($5.7) | (1.8%) |
| Trauma | $718.1 | $703.5 | $14.6 | 2.1% |
| Sports Medicine | $149.3 | $144.1 | $5.2 | 3.6% |
| Orthobiologics | $88.9 | $88.3 | $0.6 | 0.7% |
| Other (CMF) | $81.8 | $80.2 | $1.7 | 2.1% |
| Total | $2,187.0 | $2,112.5 | $74.5 | 3.5% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,288.0 | $1,247.9 | $40.1 | 3.2% |
| OUS | $899.0 | $864.6 | $34.4 | 4% |
| EMEA | $395.6 | $375.2 | $20.3 | 5.4% |
| Asia Pacific | $341.6 | $318.2 | $23.4 | 7.4% |
| Rest of World | $161.8 | $171.2 | ($9.4) | (5.5%) |
| Total | $2,187.0 | $2,112.5 | $74.5 | 3.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,426.0 | |
| Cost of Sales | $7,598.0 | 32.4% |
| Selling and Admin | $5,938.0 | 25.3% |
| R & D | $3,462.0 | 14.8% |
| Other | $1,279.0 | 5.5% |
| Net Earnings | $5,149.0 | 22% |
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.
