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DePuy Synthes reported 4Q23 orthopedic sales of $2.26 billion, +5.6% compared to the the fourth quarter of 2022. The company generated $8.94 billion in orthopedic sales for the full year, representing growth of +4.1% compared to the prior year.
The company cited the global expansion of its VELYS digital ecosystem and expansion into ambulatory surgical centers as key growth drivers for the fourth quarter. Additionally, DePuy Synthes’ spine sales lapped the impact of price cuts due to volume-based procurement (VBP) in China. Momentum from new products and recovering markets allowed the company to eclipse its 2019 revenue total for the first time since the pandemic.
Driving efficiencies in its medtech business is a priority for the company in 2024. “The team is doing magnificent work in terms of finding efficiencies across the business,” said Johnson & Johnson CFO Joe Wolk. “I highlighted one of the earlier ones with respect to orthopedics. Frankly, we’re doing that across the entire MedTech portfolio, looking for opportunities whether it be aided by artificial intelligence or just infrastructure overall to further improve the MedTech profitability profile. Right now, we stand a little bit above the middle of the pack in terms of our peer set on margin, and we’re looking to get towards the upper end of that peer set.”
DePuy Synthes expects elevated procedures again in 2024. In China, a sports medicine VBP tender is likely for 2024, but impacts from prior tenders on spine and trauma will anniversary throughout the year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $932.7 | $871.3 | $61.4 | 7% |
| Knees | $386.6 | $354.0 | $32.6 | 9.2% |
| Hips | $397.8 | $384.7 | $13.1 | 3.4% |
| Extremities | $148.3 | $132.6 | $15.7 | 11.8% |
| Spine | $207.6 | $203.7 | $3.9 | 1.9% |
| Trauma | $653.0 | $631.9 | $21.1 | 3.3% |
| Sports Medicine | $244.7 | $223.4 | $21.3 | 9.6% |
| Orthobiologics | $92.7 | $83.8 | $8.9 | 10.7% |
| Enabling Technology | $22.2 | $15.7 | $6.5 | 41.6% |
| Other | $115.0 | $117.0 | ($2.0) | (1.7%) |
| Total | $2,267.9 | $2,146.7 | $121.2 | 5.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $3,593.7 | $3,384.7 | $209.0 | 6.2% |
| Knees | $1,456.0 | $1,359.0 | $97.0 | 7.1% |
| Hips | $1,560.2 | $1,514.5 | $45.7 | 3% |
| Extremities | $577.5 | $511.2 | $66.3 | 13% |
| Spine | $919.4 | $933.1 | ($13.6) | (1.5%) |
| Trauma | $2,640.0 | $2,551.0 | $89.1 | 3.5% |
| Sports Medicine | $942.1 | $880.9 | $61.2 | 6.9% |
| Orthobiologics | $345.9 | $341.1 | $4.8 | 1.4% |
| Enabling Technology | $74.4 | $55.0 | $19.4 | 35.4% |
| Other | $426.0 | $440.6 | ($14.6) | (3.3%) |
| Total | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,425.4 | $1,384.9 | $40.5 | 2.9% |
| OUS | $842.5 | $761.8 | $80.7 | 10.6% |
| EMEA | $383.3 | $342.8 | $40.5 | 11.8% |
| Asia Pacific | $278.0 | $266.6 | $11.4 | 4.3% |
| Rest of World | $181.1 | $152.4 | $28.8 | 18.9% |
| Total | $2,267.9 | $2,146.7 | $121.2 | 5.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $5,525.6 | $5,321.2 | $204.4 | 3.8% |
| OUS | $3,416.0 | $3,265.2 | $150.8 | 4.6% |
| EMEA | $1,582.1 | $1,447.5 | $134.6 | 9.3% |
| Asia Pacific | $1,151.7 | $1,176.2 | ($24.5) | (2.1%) |
| Rest of World | $682.2 | $641.4 | $40.8 | 6.4% |
| Total | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $21,395.0 | |
| Cost of Sales | $6,798.0 | 31.8% |
| Selling and Admin | $5,810.0 | 27.2% |
| R & D | $4,480.0 | 20.9% |
| Other | $258.0 | 1.2% |
| Net Earnings | $4,049.0 | 18.9% |
DePuy Synthes reported 4Q23 orthopedic sales of $2.26 billion, +5.6% compared to the the fourth quarter of 2022. The company generated $8.94 billion in orthopedic sales for the full year, representing growth of +4.1% compared to the prior year.
The company cited the global expansion of its VELYS digital ecosystem and expansion into...
DePuy Synthes reported 4Q23 orthopedic sales of $2.26 billion, +5.6% compared to the the fourth quarter of 2022. The company generated $8.94 billion in orthopedic sales for the full year, representing growth of +4.1% compared to the prior year.
The company cited the global expansion of its VELYS digital ecosystem and expansion into ambulatory surgical centers as key growth drivers for the fourth quarter. Additionally, DePuy Synthes’ spine sales lapped the impact of price cuts due to volume-based procurement (VBP) in China. Momentum from new products and recovering markets allowed the company to eclipse its 2019 revenue total for the first time since the pandemic.
Driving efficiencies in its medtech business is a priority for the company in 2024. “The team is doing magnificent work in terms of finding efficiencies across the business,” said Johnson & Johnson CFO Joe Wolk. “I highlighted one of the earlier ones with respect to orthopedics. Frankly, we’re doing that across the entire MedTech portfolio, looking for opportunities whether it be aided by artificial intelligence or just infrastructure overall to further improve the MedTech profitability profile. Right now, we stand a little bit above the middle of the pack in terms of our peer set on margin, and we’re looking to get towards the upper end of that peer set.”
DePuy Synthes expects elevated procedures again in 2024. In China, a sports medicine VBP tender is likely for 2024, but impacts from prior tenders on spine and trauma will anniversary throughout the year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $932.7 | $871.3 | $61.4 | 7% |
| Knees | $386.6 | $354.0 | $32.6 | 9.2% |
| Hips | $397.8 | $384.7 | $13.1 | 3.4% |
| Extremities | $148.3 | $132.6 | $15.7 | 11.8% |
| Spine | $207.6 | $203.7 | $3.9 | 1.9% |
| Trauma | $653.0 | $631.9 | $21.1 | 3.3% |
| Sports Medicine | $244.7 | $223.4 | $21.3 | 9.6% |
| Orthobiologics | $92.7 | $83.8 | $8.9 | 10.7% |
| Enabling Technology | $22.2 | $15.7 | $6.5 | 41.6% |
| Other | $115.0 | $117.0 | ($2.0) | (1.7%) |
| Total | $2,267.9 | $2,146.7 | $121.2 | 5.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $3,593.7 | $3,384.7 | $209.0 | 6.2% |
| Knees | $1,456.0 | $1,359.0 | $97.0 | 7.1% |
| Hips | $1,560.2 | $1,514.5 | $45.7 | 3% |
| Extremities | $577.5 | $511.2 | $66.3 | 13% |
| Spine | $919.4 | $933.1 | ($13.6) | (1.5%) |
| Trauma | $2,640.0 | $2,551.0 | $89.1 | 3.5% |
| Sports Medicine | $942.1 | $880.9 | $61.2 | 6.9% |
| Orthobiologics | $345.9 | $341.1 | $4.8 | 1.4% |
| Enabling Technology | $74.4 | $55.0 | $19.4 | 35.4% |
| Other | $426.0 | $440.6 | ($14.6) | (3.3%) |
| Total | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,425.4 | $1,384.9 | $40.5 | 2.9% |
| OUS | $842.5 | $761.8 | $80.7 | 10.6% |
| EMEA | $383.3 | $342.8 | $40.5 | 11.8% |
| Asia Pacific | $278.0 | $266.6 | $11.4 | 4.3% |
| Rest of World | $181.1 | $152.4 | $28.8 | 18.9% |
| Total | $2,267.9 | $2,146.7 | $121.2 | 5.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $5,525.6 | $5,321.2 | $204.4 | 3.8% |
| OUS | $3,416.0 | $3,265.2 | $150.8 | 4.6% |
| EMEA | $1,582.1 | $1,447.5 | $134.6 | 9.3% |
| Asia Pacific | $1,151.7 | $1,176.2 | ($24.5) | (2.1%) |
| Rest of World | $682.2 | $641.4 | $40.8 | 6.4% |
| Total | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $21,395.0 | |
| Cost of Sales | $6,798.0 | 31.8% |
| Selling and Admin | $5,810.0 | 27.2% |
| R & D | $4,480.0 | 20.9% |
| Other | $258.0 | 1.2% |
| Net Earnings | $4,049.0 | 18.9% |
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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.
