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DePuy Synthes reported 4Q20 orthopedic revenue of USD $2,191 million, -3.7% vs. 4Q19, with full-year 2020 revenue of $7,762.7 million, -12.2% vs. 2019. COVID cases and hospitalizations reached record levels in the fourth quarter, but the pandemic’s effects were fragmented across geographies and product segments. Knee replacement continues to bear the brunt of orthopedic surgery cancelations, with DePuy Synthes’ knee franchise declining almost -13% in the quarter. Strong demand for the company’s hip stems and enabling technology helped hip replacements offset some COVID headwinds while new products drove trauma to mid-single-digit growth.
In all, Johnson & Johnson believes that global healthcare systems are far more prepared and resilient against COVID during this surge compared to early 2020. Regarding hospital throughput in hard-hit areas, CEO Alex Gorsky said, “There are certainly regions and hospitals around the world, let alone in the United States, where you see a tremendous strain on the systems. But overall, we’re seeing hospital volumes decrease no more than about 10% or 15% in areas, for example, in the UK, and a couple of other places in Europe.”
While the company did not provide 2021 guidance for orthopedics, leadership expects moderate procedure disruption in Q1 and continuous improvement throughout the year. Johnson & Johnson’s guidance for 2021 assumes stabilizing employment, easing social restrictions and no major acquisitions.
“As we look at our team’s performance and consider 2021, we’re actually looking at 2019 as a benchmark to use as an indicator of what a baseline would be. We would expect to continue to see expansion throughout 2021. And beyond that to see a return to a market that was growing in the mid-single-digits previously, and we expect that to continue going forward as well.” – Alex Gorsky, Johnson & Johnson CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $820.8 | $881.5 | ($60.7) | (6.9%) |
| Knees | $345.0 | $395.0 | ($50.0) | (12.7%) |
| Hips | $372.0 | $377.0 | ($5.0) | (1.3%) |
| Extremities | $103.8 | $109.5 | ($5.7) | (5.2%) |
| Spine | $348.2 | $381.5 | ($33.4) | (8.7%) |
| Trauma | $693.1 | $658.6 | $34.6 | 5.2% |
| Sports Medicine | $151.9 | $165.0 | ($13.1) | (8%) |
| Orthobiologics | $94.0 | $102.1 | ($8.1) | (8%) |
| Other (CMF) | $83.0 | $86.3 | ($3.2) | (3.8%) |
| Total | $2,191.0 | $2,275.0 | ($84.0) | (3.7%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,825.3 | $3,342.9 | ($517.6) | (15.5%) |
| Knees | $1,170.1 | $1,480.0 | ($309.9) | (20.9%) |
| Hips | $1,279.7 | $1,438.0 | ($158.3) | (11%) |
| Extremities | $375.5 | $424.9 | ($49.4) | (11.6%) |
| Spine | $1,245.0 | $1,506.0 | ($261.1) | (17.3%) |
| Trauma | $2,510.0 | $2,611.2 | ($101.2) | (3.9%) |
| Sports Medicine | $546.3 | $642.6 | ($96.4) | (15%) |
| Orthobiologics | $337.3 | $400.1 | ($62.8) | (15.7%) |
| Other (CMF) | $298.9 | $336.1 | ($37.2) | (11.1%) |
| Total | $7,762.7 | $8,839.0 | ($1,076.3) | (12.2%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,352.0 | $1,370.0 | ($18.0) | (1.3%) |
| OUS | $839.0 | $905.0 | ($66.0) | (7.3%) |
| EMEA | $365.8 | $411.8 | ($46.0) | (11.2%) |
| Asia Pacific | $307.1 | $321.3 | ($14.2) | (4.4%) |
| Rest of World | $166.1 | $172.0 | ($5.8) | (3.4%) |
| Total | $2,191.0 | $2,275.0 | ($84.0) | (3.7%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,778.9 | $5,319.0 | ($540.1) | (10.2%) |
| OUS | $2,983.8 | $3,520.0 | ($536.2) | (15.2%) |
| EMEA | $1,325.7 | $1,614.8 | ($289.1) | (17.9%) |
| Asia Pacific | $1,069.1 | $1,247.4 | ($178.3) | (14.3%) |
| Rest of World | $589.0 | $657.8 | ($68.8) | (10.5%) |
| Total | $7,762.7 | $8,839.0 | ($1,076.3) | (12.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,475.0 | |
| Cost of Sales | $7,814.0 | 34.8% |
| Selling and Admin | $6,457.0 | 28.7% |
| R & D | $4,032.0 | 17.9% |
| Other | $2,434.0 | 10.8% |
| Net Earnings | $1,738.0 | 7.7% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DePuy Synthes reported 4Q20 orthopedic revenue of USD $2,191 million, -3.7% vs. 4Q19, with full-year 2020 revenue of $7,762.7 million, -12.2% vs. 2019. COVID cases and hospitalizations reached record levels in the fourth quarter, but the pandemic's effects were fragmented across geographies and product segments. Knee replacement continues to...
DePuy Synthes reported 4Q20 orthopedic revenue of USD $2,191 million, -3.7% vs. 4Q19, with full-year 2020 revenue of $7,762.7 million, -12.2% vs. 2019. COVID cases and hospitalizations reached record levels in the fourth quarter, but the pandemic’s effects were fragmented across geographies and product segments. Knee replacement continues to bear the brunt of orthopedic surgery cancelations, with DePuy Synthes’ knee franchise declining almost -13% in the quarter. Strong demand for the company’s hip stems and enabling technology helped hip replacements offset some COVID headwinds while new products drove trauma to mid-single-digit growth.
In all, Johnson & Johnson believes that global healthcare systems are far more prepared and resilient against COVID during this surge compared to early 2020. Regarding hospital throughput in hard-hit areas, CEO Alex Gorsky said, “There are certainly regions and hospitals around the world, let alone in the United States, where you see a tremendous strain on the systems. But overall, we’re seeing hospital volumes decrease no more than about 10% or 15% in areas, for example, in the UK, and a couple of other places in Europe.”
While the company did not provide 2021 guidance for orthopedics, leadership expects moderate procedure disruption in Q1 and continuous improvement throughout the year. Johnson & Johnson’s guidance for 2021 assumes stabilizing employment, easing social restrictions and no major acquisitions.
“As we look at our team’s performance and consider 2021, we’re actually looking at 2019 as a benchmark to use as an indicator of what a baseline would be. We would expect to continue to see expansion throughout 2021. And beyond that to see a return to a market that was growing in the mid-single-digits previously, and we expect that to continue going forward as well.” – Alex Gorsky, Johnson & Johnson CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $820.8 | $881.5 | ($60.7) | (6.9%) |
| Knees | $345.0 | $395.0 | ($50.0) | (12.7%) |
| Hips | $372.0 | $377.0 | ($5.0) | (1.3%) |
| Extremities | $103.8 | $109.5 | ($5.7) | (5.2%) |
| Spine | $348.2 | $381.5 | ($33.4) | (8.7%) |
| Trauma | $693.1 | $658.6 | $34.6 | 5.2% |
| Sports Medicine | $151.9 | $165.0 | ($13.1) | (8%) |
| Orthobiologics | $94.0 | $102.1 | ($8.1) | (8%) |
| Other (CMF) | $83.0 | $86.3 | ($3.2) | (3.8%) |
| Total | $2,191.0 | $2,275.0 | ($84.0) | (3.7%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,825.3 | $3,342.9 | ($517.6) | (15.5%) |
| Knees | $1,170.1 | $1,480.0 | ($309.9) | (20.9%) |
| Hips | $1,279.7 | $1,438.0 | ($158.3) | (11%) |
| Extremities | $375.5 | $424.9 | ($49.4) | (11.6%) |
| Spine | $1,245.0 | $1,506.0 | ($261.1) | (17.3%) |
| Trauma | $2,510.0 | $2,611.2 | ($101.2) | (3.9%) |
| Sports Medicine | $546.3 | $642.6 | ($96.4) | (15%) |
| Orthobiologics | $337.3 | $400.1 | ($62.8) | (15.7%) |
| Other (CMF) | $298.9 | $336.1 | ($37.2) | (11.1%) |
| Total | $7,762.7 | $8,839.0 | ($1,076.3) | (12.2%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,352.0 | $1,370.0 | ($18.0) | (1.3%) |
| OUS | $839.0 | $905.0 | ($66.0) | (7.3%) |
| EMEA | $365.8 | $411.8 | ($46.0) | (11.2%) |
| Asia Pacific | $307.1 | $321.3 | ($14.2) | (4.4%) |
| Rest of World | $166.1 | $172.0 | ($5.8) | (3.4%) |
| Total | $2,191.0 | $2,275.0 | ($84.0) | (3.7%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,778.9 | $5,319.0 | ($540.1) | (10.2%) |
| OUS | $2,983.8 | $3,520.0 | ($536.2) | (15.2%) |
| EMEA | $1,325.7 | $1,614.8 | ($289.1) | (17.9%) |
| Asia Pacific | $1,069.1 | $1,247.4 | ($178.3) | (14.3%) |
| Rest of World | $589.0 | $657.8 | ($68.8) | (10.5%) |
| Total | $7,762.7 | $8,839.0 | ($1,076.3) | (12.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,475.0 | |
| Cost of Sales | $7,814.0 | 34.8% |
| Selling and Admin | $6,457.0 | 28.7% |
| R & D | $4,032.0 | 17.9% |
| Other | $2,434.0 | 10.8% |
| Net Earnings | $1,738.0 | 7.7% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
