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DePuy Synthes reported 3Q21 orthopedic revenue of $2,091 million, +0.5% vs. 3Q20. COVID’s Delta variant caused procedure volume deceleration in late July through August. More elective procedures, such as knees and spine, saw the most severe impact. According to company leadership, July and August brought volume declines in the mid-single digits. However, in the last four weeks, hospital patient funnels have ramped up.
Complicating the recovery picture are hospital staffing shortages that DePuy Synthes doesn’t expect to resolve in 2021 or 2022. Ashley McEvoy, Johnson & Johnson’s Executive Vice President of Medical Devices, said that hospitals are doing a “masterful” job of managing patient flow amid the labor shortage.
While the joint replacement segment, particularly knees, remains impacted by the pandemic, DePuy Synthes has gained traction with its VELYS digital ecosystem. The VELYS robotic system for knee replacement is commercialized in the U.S. and available in five countries. According to the company, surgeon adoption is ahead of projections. During the third quarter, DePuy Synthes also added new image guidance capability to its VELYS hip navigation software to support surgeons who prefer a posterior approach.
Growth in knee replacement was driven by VELYS, the ATTUNE portfolio, healthy growth of the company’s ASC channel and timing of international orders. Procedures primarily outside the U.S. drove growth in hip replacement, while procedure volume declines caused notable declines in spine.
“Globally, new cases of COVID-19 and hospitalizations related to the Delta variant have gradually declined in recent weeks, and we are encouraged by more positive procedure trends in many Western European markets where restrictions are beginning to ease. Some hotspots still remain in parts of the U.S., the U.K., Eastern Europe and Southeast Asia, and the growing impact from reduced medical staffing are constraining procedure volumes. We continue to believe these variables are more short-term in nature and the Medical Devices market remains attractive as the long-term factors leading to the need for medical and surgical intervention have not changed due to COVID-19.” – Joe Wolk, Johnson & Johnson CFO
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
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $774.7 | $754.4 | $20.2 | 2.7% |
| Knees | $315.2 | $306.5 | $8.7 | 2.8% |
| Hips | $355.8 | $344.5 | $11.3 | 3.3% |
| Extremities | $103.6 | $103.4 | $0.2 | 0.2% |
| Spine | $316.5 | $343.7 | ($27.2) | (7.9%) |
| Trauma | $686.4 | $658.6 | $27.8 | 4.2% |
| Sports Medicine | $145.2 | $150.3 | ($5.1) | (3.4%) |
| Orthobiologics | $88.8 | $93.0 | ($4.2) | (4.5%) |
| Other (CMF) | $79.4 | $81.0 | ($1.6) | (2%) |
| Total | $2,091.0 | $2,081.0 | $10.0 | 0.5% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,409.9 | $2,003.5 | $406.3 | 20.3% |
| Knees | $1,008.8 | $824.4 | $184.4 | 22.4% |
| Hips | $1,085.0 | $907.4 | $177.6 | 19.6% |
| Extremities | $316.0 | $271.7 | $44.3 | 16.3% |
| Spine | $988.0 | $896.8 | $91.2 | 10.2% |
| Trauma | $1,995.3 | $1,816.8 | $178.5 | 9.8% |
| Sports Medicine | $447.6 | $394.4 | $53.3 | 13.5% |
| Orthobiologics | $274.4 | $243.3 | $31.1 | 12.8% |
| Other (CMF) | $240.3 | $215.8 | $24.5 | 11.3% |
| Total | $6,355.5 | $5,570.6 | $784.9 | 14.1% |
Geographic Sales
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,248.8 | $1,307.5 | ($58.7) | (4.5%) |
| OUS | $842.2 | $773.5 | $68.7 | 8.9% |
| EMEA | $370.6 | $338.8 | $31.8 | 9.4% |
| Asia Pacific | $311.6 | $282.3 | $29.3 | 10.4% |
| Rest of World | $160.0 | $152.4 | $7.6 | 5% |
| Total | $2,091.0 | $2,081.0 | $10.0 | 0.5% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,821.1 | $3,425.9 | $395.2 | 11.5% |
| OUS | $2,534.4 | $2,144.7 | $389.7 | 18.2% |
| EMEA | $1,132.9 | $959.9 | $173.0 | 18% |
| Asia Pacific | $912.3 | $761.9 | $150.3 | 19.7% |
| Rest of World | $489.2 | $422.9 | $66.3 | 15.7% |
| Total | $6,355.5 | $5,570.6 | $784.9 | 14.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,338.0 | |
| Cost of Sales | $7,250.0 | 31.1% |
| Selling and Admin | $6,000.0 | 25.7% |
| R & D | $3,422.0 | 14.7% |
| Other | $2,999.0 | 12.9% |
| Net Earnings | $3,667.0 | 15.7% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DePuy Synthes reported 3Q21 orthopedic revenue of $2,091 million, +0.5% vs. 3Q20. COVID's Delta variant caused procedure volume deceleration in late July through August. More elective procedures, such as knees and spine, saw the most severe impact. According to company leadership, July and August brought volume declines in the mid-single...
DePuy Synthes reported 3Q21 orthopedic revenue of $2,091 million, +0.5% vs. 3Q20. COVID’s Delta variant caused procedure volume deceleration in late July through August. More elective procedures, such as knees and spine, saw the most severe impact. According to company leadership, July and August brought volume declines in the mid-single digits. However, in the last four weeks, hospital patient funnels have ramped up.
Complicating the recovery picture are hospital staffing shortages that DePuy Synthes doesn’t expect to resolve in 2021 or 2022. Ashley McEvoy, Johnson & Johnson’s Executive Vice President of Medical Devices, said that hospitals are doing a “masterful” job of managing patient flow amid the labor shortage.
While the joint replacement segment, particularly knees, remains impacted by the pandemic, DePuy Synthes has gained traction with its VELYS digital ecosystem. The VELYS robotic system for knee replacement is commercialized in the U.S. and available in five countries. According to the company, surgeon adoption is ahead of projections. During the third quarter, DePuy Synthes also added new image guidance capability to its VELYS hip navigation software to support surgeons who prefer a posterior approach.
Growth in knee replacement was driven by VELYS, the ATTUNE portfolio, healthy growth of the company’s ASC channel and timing of international orders. Procedures primarily outside the U.S. drove growth in hip replacement, while procedure volume declines caused notable declines in spine.
“Globally, new cases of COVID-19 and hospitalizations related to the Delta variant have gradually declined in recent weeks, and we are encouraged by more positive procedure trends in many Western European markets where restrictions are beginning to ease. Some hotspots still remain in parts of the U.S., the U.K., Eastern Europe and Southeast Asia, and the growing impact from reduced medical staffing are constraining procedure volumes. We continue to believe these variables are more short-term in nature and the Medical Devices market remains attractive as the long-term factors leading to the need for medical and surgical intervention have not changed due to COVID-19.” – Joe Wolk, Johnson & Johnson CFO
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
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $774.7 | $754.4 | $20.2 | 2.7% |
| Knees | $315.2 | $306.5 | $8.7 | 2.8% |
| Hips | $355.8 | $344.5 | $11.3 | 3.3% |
| Extremities | $103.6 | $103.4 | $0.2 | 0.2% |
| Spine | $316.5 | $343.7 | ($27.2) | (7.9%) |
| Trauma | $686.4 | $658.6 | $27.8 | 4.2% |
| Sports Medicine | $145.2 | $150.3 | ($5.1) | (3.4%) |
| Orthobiologics | $88.8 | $93.0 | ($4.2) | (4.5%) |
| Other (CMF) | $79.4 | $81.0 | ($1.6) | (2%) |
| Total | $2,091.0 | $2,081.0 | $10.0 | 0.5% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,409.9 | $2,003.5 | $406.3 | 20.3% |
| Knees | $1,008.8 | $824.4 | $184.4 | 22.4% |
| Hips | $1,085.0 | $907.4 | $177.6 | 19.6% |
| Extremities | $316.0 | $271.7 | $44.3 | 16.3% |
| Spine | $988.0 | $896.8 | $91.2 | 10.2% |
| Trauma | $1,995.3 | $1,816.8 | $178.5 | 9.8% |
| Sports Medicine | $447.6 | $394.4 | $53.3 | 13.5% |
| Orthobiologics | $274.4 | $243.3 | $31.1 | 12.8% |
| Other (CMF) | $240.3 | $215.8 | $24.5 | 11.3% |
| Total | $6,355.5 | $5,570.6 | $784.9 | 14.1% |
Geographic Sales
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,248.8 | $1,307.5 | ($58.7) | (4.5%) |
| OUS | $842.2 | $773.5 | $68.7 | 8.9% |
| EMEA | $370.6 | $338.8 | $31.8 | 9.4% |
| Asia Pacific | $311.6 | $282.3 | $29.3 | 10.4% |
| Rest of World | $160.0 | $152.4 | $7.6 | 5% |
| Total | $2,091.0 | $2,081.0 | $10.0 | 0.5% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,821.1 | $3,425.9 | $395.2 | 11.5% |
| OUS | $2,534.4 | $2,144.7 | $389.7 | 18.2% |
| EMEA | $1,132.9 | $959.9 | $173.0 | 18% |
| Asia Pacific | $912.3 | $761.9 | $150.3 | 19.7% |
| Rest of World | $489.2 | $422.9 | $66.3 | 15.7% |
| Total | $6,355.5 | $5,570.6 | $784.9 | 14.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,338.0 | |
| Cost of Sales | $7,250.0 | 31.1% |
| Selling and Admin | $6,000.0 | 25.7% |
| R & D | $3,422.0 | 14.7% |
| Other | $2,999.0 | 12.9% |
| Net Earnings | $3,667.0 | 15.7% |
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.
