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DePuy Synthes reported 2Q24 orthopedic sales of $2,312 million, up 2.1% compared to the second quarter of 2023. For the year’s first half, the company generated $4,652.4 million in orthopedic sales, growing 3.2% compared to the prior period.
Strong knee and hip performance were driven by procedure growth, expanding adoption of the VELYS system and tender timing for knees in the EMEA region. In two-and-a-half years since its launch, VELYS has expanded to 20 markets and completed over 70,000 procedures. DePuy Synthes recently received 510(k) clearance for VELYS’ unicompartmental knee indication.
Competitive pressures and VBP impact in China for spine and sports medicine offset the company’s second-quarter growth. Despite these headwinds, China remains a key market.
“Given our leadership position in China, we see VBP as a short-term tailwind,” said Tim Schmid, Johnson & Johnson’s Worldwide Chairman of MedTech. “The volume opportunity will far offset price impact over time. The anti-corruption campaign has exacerbated VBP’s impact. In July of last year, the government initiated an anti-corruption campaign, which has impacted both procedural volumes and engagement from healthcare professionals. So it’s a short-term headwind, but long-term, really good for our industry and really good for J&J. We remain absolutely committed to China.”
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
| 2Q24 | 2Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $937.9 | $882.4 | $55.4 | 6.3% |
| Knees | $393.5 | $363.1 | $30.4 | 8.4% |
| Hips | $416.2 | $396.7 | $19.5 | 4.9% |
| Extremities | $128.1 | $122.7 | $5.5 | 4.5% |
| Spine | $258.4 | $272.0 | ($13.6) | (5%) |
| Trauma | $675.9 | $657.6 | $18.4 | 2.8% |
| Sports Medicine | $185.7 | $184.0 | $1.7 | 0.9% |
| Orthobiologics | $81.7 | $84.3 | ($2.6) | (3.1%) |
| Enabling Technology | $16.3 | $15.3 | $1.0 | 6.6% |
| Other | $156.0 | $169.6 | ($13.5) | (8%) |
| Total | $2,312.0 | $2,265.2 | $46.7 | 2.1% |
| 1H24 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,884.3 | $1,758.0 | $126.3 | 7.2% |
| Knees | $795.0 | $731.4 | $63.5 | 8.7% |
| Hips | $838.6 | $787.4 | $51.2 | 6.5% |
| Extremities | $250.7 | $239.2 | $11.5 | 4.8% |
| Spine | $508.1 | $519.2 | ($11.1) | (2.1%) |
| Trauma | $1,356.4 | $1,331.3 | $25.1 | 1.9% |
| Sports Medicine | $371.8 | $358.8 | $13.0 | 3.6% |
| Orthobiologics | $165.9 | $164.5 | $1.5 | 0.9% |
| Enabling Technology | $32.1 | $29.9 | $2.2 | 7.5% |
| Other | $333.7 | $348.0 | ($14.3) | (4.1%) |
| Total | $4,652.4 | $4,509.7 | $142.6 | 3.2% |
Orthopedic Sales by Geography
| 2Q24 | 2Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,422.8 | $1,387.9 | $34.9 | 2.5% |
| OUS | $889.2 | $877.3 | $11.9 | 1.4% |
| EMEA | $426.8 | $409.7 | $17.1 | 4.2% |
| Asia Pacific | $297.9 | $300.0 | ($2.2) | (0.7%) |
| Rest of World | $164.5 | $167.6 | ($3.1) | (1.8%) |
| Total | $2,312.0 | $2,265.2 | $46.7 | 2.1% |
| 1H24 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,871.0 | $2,751.3 | $119.8 | 4.4% |
| OUS | $1,781.4 | $1,758.5 | $22.9 | 1.3% |
| EMEA | $848.4 | $823.9 | $24.5 | 3% |
| Asia Pacific | $610.1 | $612.9 | ($2.7) | (0.4%) |
| Rest of World | $322.9 | $321.8 | $1.1 | 0.3% |
| Total | $4,652.4 | $4,509.7 | $142.6 | 3.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,447.0 | |
| Cost of Sales | $6,869.0 | 30.6% |
| Selling and Admin | $5,681.0 | 25.3% |
| R & D | $3,440.0 | 15.3% |
| Other | $1,771.0 | 7.9% |
| Net Earnings | $4,686.0 | 20.9% |
DePuy Synthes reported 2Q24 orthopedic sales of $2,312 million, up 2.1% compared to the second quarter of 2023. For the year's first half, the company generated $4,652.4 million in orthopedic sales, growing 3.2% compared to the prior period.
Strong knee and hip performance were driven by procedure growth, expanding adoption of the VELYS...
DePuy Synthes reported 2Q24 orthopedic sales of $2,312 million, up 2.1% compared to the second quarter of 2023. For the year’s first half, the company generated $4,652.4 million in orthopedic sales, growing 3.2% compared to the prior period.
Strong knee and hip performance were driven by procedure growth, expanding adoption of the VELYS system and tender timing for knees in the EMEA region. In two-and-a-half years since its launch, VELYS has expanded to 20 markets and completed over 70,000 procedures. DePuy Synthes recently received 510(k) clearance for VELYS’ unicompartmental knee indication.
Competitive pressures and VBP impact in China for spine and sports medicine offset the company’s second-quarter growth. Despite these headwinds, China remains a key market.
“Given our leadership position in China, we see VBP as a short-term tailwind,” said Tim Schmid, Johnson & Johnson’s Worldwide Chairman of MedTech. “The volume opportunity will far offset price impact over time. The anti-corruption campaign has exacerbated VBP’s impact. In July of last year, the government initiated an anti-corruption campaign, which has impacted both procedural volumes and engagement from healthcare professionals. So it’s a short-term headwind, but long-term, really good for our industry and really good for J&J. We remain absolutely committed to China.”
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
| 2Q24 | 2Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $937.9 | $882.4 | $55.4 | 6.3% |
| Knees | $393.5 | $363.1 | $30.4 | 8.4% |
| Hips | $416.2 | $396.7 | $19.5 | 4.9% |
| Extremities | $128.1 | $122.7 | $5.5 | 4.5% |
| Spine | $258.4 | $272.0 | ($13.6) | (5%) |
| Trauma | $675.9 | $657.6 | $18.4 | 2.8% |
| Sports Medicine | $185.7 | $184.0 | $1.7 | 0.9% |
| Orthobiologics | $81.7 | $84.3 | ($2.6) | (3.1%) |
| Enabling Technology | $16.3 | $15.3 | $1.0 | 6.6% |
| Other | $156.0 | $169.6 | ($13.5) | (8%) |
| Total | $2,312.0 | $2,265.2 | $46.7 | 2.1% |
| 1H24 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,884.3 | $1,758.0 | $126.3 | 7.2% |
| Knees | $795.0 | $731.4 | $63.5 | 8.7% |
| Hips | $838.6 | $787.4 | $51.2 | 6.5% |
| Extremities | $250.7 | $239.2 | $11.5 | 4.8% |
| Spine | $508.1 | $519.2 | ($11.1) | (2.1%) |
| Trauma | $1,356.4 | $1,331.3 | $25.1 | 1.9% |
| Sports Medicine | $371.8 | $358.8 | $13.0 | 3.6% |
| Orthobiologics | $165.9 | $164.5 | $1.5 | 0.9% |
| Enabling Technology | $32.1 | $29.9 | $2.2 | 7.5% |
| Other | $333.7 | $348.0 | ($14.3) | (4.1%) |
| Total | $4,652.4 | $4,509.7 | $142.6 | 3.2% |
Orthopedic Sales by Geography
| 2Q24 | 2Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,422.8 | $1,387.9 | $34.9 | 2.5% |
| OUS | $889.2 | $877.3 | $11.9 | 1.4% |
| EMEA | $426.8 | $409.7 | $17.1 | 4.2% |
| Asia Pacific | $297.9 | $300.0 | ($2.2) | (0.7%) |
| Rest of World | $164.5 | $167.6 | ($3.1) | (1.8%) |
| Total | $2,312.0 | $2,265.2 | $46.7 | 2.1% |
| 1H24 | 1H23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,871.0 | $2,751.3 | $119.8 | 4.4% |
| OUS | $1,781.4 | $1,758.5 | $22.9 | 1.3% |
| EMEA | $848.4 | $823.9 | $24.5 | 3% |
| Asia Pacific | $610.1 | $612.9 | ($2.7) | (0.4%) |
| Rest of World | $322.9 | $321.8 | $1.1 | 0.3% |
| Total | $4,652.4 | $4,509.7 | $142.6 | 3.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,447.0 | |
| Cost of Sales | $6,869.0 | 30.6% |
| Selling and Admin | $5,681.0 | 25.3% |
| R & D | $3,440.0 | 15.3% |
| Other | $1,771.0 | 7.9% |
| Net Earnings | $4,686.0 | 20.9% |
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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.
