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DePuy Synthes reported 1Q21 orthopedic revenue of USD $2,113.5 million, +3.7% vs. 1Q20. Compared to 1Q19, sales for the quarter declined -4.1%.
Still, the company performed better than expected, given the record-breaking COVID surge that opened the year. Leadership attributed the growth to improved execution and new products along with market recovery. Regionally, DePuy’s sales fell very slightly in the U.S., while Asia Pacific grew nearly +19%. As a reminder, China experienced the most severe COVID impact in the first quarter last year and recovery significantly against this low sales base in 1Q21.
Both trauma and hip replacement sales performed well in the first quarter, driven by market recovery. New product rollouts also buoyed trauma sales while company leadership called out its hip navigation technologies as a driver. Knee replacement, however, struggled once again in the first quarter due to the procedure’s highly elective nature and sales mix dynamics for DePuy Synthes. The company remains confident that the launch of its VELYS system and ATTUNE cementless will improve performance. Both COVID and one-time stocking reductions in China challenged spine sales during the quarter.
For the full year 2021, Johnson & Johnson expects double-digit growth from its Medical Devices division. However, those expectations should be tempered for orthopedics as those procedures have demonstrated the most susceptibility to disruption from COVID.
“There was some irregularity just based upon what we are seeing with the virus on a global basis in January versus February and March. But overall, it’s clear to us that we’re seeing improving trends. We expect that just given year-on-year comps plus what we’re seeing underlying both in the United States and Europe in terms of procedure scheduling, confidence in returning to the hospitals and overall surgical volumes. We would expect those to improve through the second and third quarter of this year.” – 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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $776.8 | $779.4 | ($2.6) | (0.3%) |
| Knees | $317.6 | $343.8 | ($26.2) | (7.6%) |
| Hips | $356.8 | $337.2 | $19.6 | 5.8% |
| Extremities | $102.4 | $98.4 | $4.0 | 4.1% |
| Spine | $320.7 | $323.4 | ($2.7) | (0.8%) |
| Trauma | $703.5 | $627.7 | $75.7 | 12.1% |
| Sports Medicine | $144.1 | $142.7 | $1.4 | 1% |
| Orthobiologics | $88.3 | $87.9 | $0.4 | 0.5% |
| Other (CMF) | $80.2 | $76.8 | $3.4 | 4.4% |
| Total | $2,113.5 | $2,037.9 | $75.6 | 3.7% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,248.9 | $1,249.5 | ($0.6) | (0%) |
| OUS | $864.6 | $788.4 | $76.2 | 9.7% |
| EMEA | $375.2 | $364.6 | $10.6 | 2.9% |
| Asia Pacific | $318.2 | $268.1 | $50.1 | 18.7% |
| Rest of World | $171.2 | $155.7 | $15.5 | 9.9% |
| Total | $2,113.5 | $2,037.9 | $75.6 | 3.7% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,321.0 | |
| Cost of Sales | $7,063.0 | 31.6% |
| Selling and Admin | $5,432.0 | 24.3% |
| R & D | $3,178.0 | 14.2% |
| Other | $451.0 | 2% |
| Net Earnings | $6,197.0 | 27.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DePuy Synthes reported 1Q21 orthopedic revenue of USD $2,113.5 million, +3.7% vs. 1Q20. Compared to 1Q19, sales for the quarter declined -4.1%.
Still, the company performed better than expected, given the record-breaking COVID surge that opened the year. Leadership attributed the growth to improved execution and new products along with...
DePuy Synthes reported 1Q21 orthopedic revenue of USD $2,113.5 million, +3.7% vs. 1Q20. Compared to 1Q19, sales for the quarter declined -4.1%.
Still, the company performed better than expected, given the record-breaking COVID surge that opened the year. Leadership attributed the growth to improved execution and new products along with market recovery. Regionally, DePuy’s sales fell very slightly in the U.S., while Asia Pacific grew nearly +19%. As a reminder, China experienced the most severe COVID impact in the first quarter last year and recovery significantly against this low sales base in 1Q21.
Both trauma and hip replacement sales performed well in the first quarter, driven by market recovery. New product rollouts also buoyed trauma sales while company leadership called out its hip navigation technologies as a driver. Knee replacement, however, struggled once again in the first quarter due to the procedure’s highly elective nature and sales mix dynamics for DePuy Synthes. The company remains confident that the launch of its VELYS system and ATTUNE cementless will improve performance. Both COVID and one-time stocking reductions in China challenged spine sales during the quarter.
For the full year 2021, Johnson & Johnson expects double-digit growth from its Medical Devices division. However, those expectations should be tempered for orthopedics as those procedures have demonstrated the most susceptibility to disruption from COVID.
“There was some irregularity just based upon what we are seeing with the virus on a global basis in January versus February and March. But overall, it’s clear to us that we’re seeing improving trends. We expect that just given year-on-year comps plus what we’re seeing underlying both in the United States and Europe in terms of procedure scheduling, confidence in returning to the hospitals and overall surgical volumes. We would expect those to improve through the second and third quarter of this year.” – 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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $776.8 | $779.4 | ($2.6) | (0.3%) |
| Knees | $317.6 | $343.8 | ($26.2) | (7.6%) |
| Hips | $356.8 | $337.2 | $19.6 | 5.8% |
| Extremities | $102.4 | $98.4 | $4.0 | 4.1% |
| Spine | $320.7 | $323.4 | ($2.7) | (0.8%) |
| Trauma | $703.5 | $627.7 | $75.7 | 12.1% |
| Sports Medicine | $144.1 | $142.7 | $1.4 | 1% |
| Orthobiologics | $88.3 | $87.9 | $0.4 | 0.5% |
| Other (CMF) | $80.2 | $76.8 | $3.4 | 4.4% |
| Total | $2,113.5 | $2,037.9 | $75.6 | 3.7% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,248.9 | $1,249.5 | ($0.6) | (0%) |
| OUS | $864.6 | $788.4 | $76.2 | 9.7% |
| EMEA | $375.2 | $364.6 | $10.6 | 2.9% |
| Asia Pacific | $318.2 | $268.1 | $50.1 | 18.7% |
| Rest of World | $171.2 | $155.7 | $15.5 | 9.9% |
| Total | $2,113.5 | $2,037.9 | $75.6 | 3.7% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,321.0 | |
| Cost of Sales | $7,063.0 | 31.6% |
| Selling and Admin | $5,432.0 | 24.3% |
| R & D | $3,178.0 | 14.2% |
| Other | $451.0 | 2% |
| Net Earnings | $6,197.0 | 27.8% |
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.
