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DePuy Synthes reported 2Q21 orthopedic revenue of USD $2,226.6 million, +53.4% vs. 2Q20. As expected, the orthopedic market rebounded significantly from its 2Q20 low point. However, market segments and regions rebounded unevenly. Knee replacement and spine procedures continue lagging behind other surgeries, while the EMEA and Latin American markets are recovering more slowly. Compared to 2Q19, DePuy Synthes’ orthopedic sales grew +0.1%.
The company drove impressive sales growth for hip replacement and trauma. Hip replacement grew +8% compared to 2Q19, driven in part by navigation technology and new commercial programs in Europe and Latin America to expand coverage and access for hip fracture patients. DePuy Synthes’ trauma business grew +5.6% versus 2Q19 on the strength of newer product introductions like the Variable Angle Clavicle Plate.
The company experienced continuing COVID-19 disruptions to its knee replacement business in markets like India, Japan and Australia. Revision knee procedures have not recovered as rapidly as primary knee procedures, according to DePuy Synthes leadership. The segment declined -5.7% compared to 2Q19. However, the newly launched VELYS knee replacement robot combined with the upcoming ATTUNE cementless line could enhance DePuy Synthes’ competitiveness in the market.
Johnson & Johnson’s increased confidence in the market recovery led it to adjust guidance for 2021 operational sales growth to the range of +9.5% to +10.5%, inclusive of all businesses.
We’ve had about 750 on-hand demonstrations with our VELYS knee digital surgery offering. We’ve done about 100 cases to date. What we keep hearing from customers who have been giving us really positive feedback on a couple of things: the value of the system, smaller footprint, the image’s interoperative capabilities, and the ease of integration for surgeons and OR teams, the workflows, reducing the heavy physical and financial burdens of the currently available marketplace offering. – Ashley McEvoy, Executive Vice President, Worldwide Chairman Medical Devices
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $855.8 | $469.7 | $386.1 | 82.2% |
| Knees | $349.8 | $174.1 | $175.7 | 100.9% |
| Hips | $392.0 | $225.7 | $166.3 | 73.7% |
| Extremities | $114.0 | $69.9 | $44.1 | 63% |
| Spine | $348.1 | $229.7 | $118.4 | 51.5% |
| Trauma | $681.2 | $530.5 | $150.7 | 28.4% |
| Sports Medicine | $159.7 | $101.4 | $58.3 | 57.6% |
| Orthobiologics | $97.7 | $62.4 | $35.3 | 56.5% |
| Other (CMF) | $84.2 | $58.1 | $26.1 | 45% |
| Total | $2,226.6 | $1,451.7 | $774.9 | 53.4% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,632.6 | $1,249.1 | $383.5 | 30.7% |
| Knees | $667.4 | $517.9 | $149.5 | 28.9% |
| Hips | $748.8 | $562.9 | $185.9 | 33% |
| Extremities | $216.4 | $168.3 | $48.0 | 28.5% |
| Spine | $668.7 | $553.1 | $115.7 | 20.9% |
| Trauma | $1,384.7 | $1,158.2 | $226.4 | 19.5% |
| Sports Medicine | $303.8 | $244.1 | $59.7 | 24.5% |
| Orthobiologics | $186.0 | $150.3 | $35.7 | 23.7% |
| Other (CMF) | $164.4 | $134.8 | $29.5 | 21.9% |
| Total | $4,340.1 | $3,489.6 | $850.5 | 24.4% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,322.8 | $868.9 | $453.9 | 52.2% |
| OUS | $903.8 | $582.8 | $321.0 | 55.1% |
| EMEA | $397.7 | $256.4 | $141.2 | 55.1% |
| Asia Pacific | $332.6 | $211.6 | $121.0 | 57.2% |
| Rest of World | $173.5 | $114.8 | $58.7 | 51.1% |
| Total | $2,226.6 | $1,451.7 | $774.9 | 53.4% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,571.7 | $2,118.4 | $453.3 | 21.4% |
| OUS | $1,768.4 | $1,371.2 | $397.2 | 29% |
| EMEA | $772.9 | $621.1 | $151.8 | 24.4% |
| Asia Pacific | $650.8 | $479.6 | $171.1 | 35.7% |
| Rest of World | $344.7 | $270.5 | $74.2 | 27.4% |
| Total | $4,340.1 | $3,489.6 | $850.5 | 24.4% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,312.0 | |
| Cost of Sales | $7,587.0 | 32.5% |
| Selling and Admin | $6,073.0 | 26.1% |
| R & D | $3,394.0 | 14.6% |
| Other | ($20.0) | (0.1%) |
| Net Earnings | $6,278.0 | 26.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DePuy Synthes reported 2Q21 orthopedic revenue of USD $2,226.6 million, +53.4% vs. 2Q20. As expected, the orthopedic market rebounded significantly from its 2Q20 low point. However, market segments and regions rebounded unevenly. Knee replacement and spine procedures continue lagging behind other surgeries, while the EMEA and Latin American...
DePuy Synthes reported 2Q21 orthopedic revenue of USD $2,226.6 million, +53.4% vs. 2Q20. As expected, the orthopedic market rebounded significantly from its 2Q20 low point. However, market segments and regions rebounded unevenly. Knee replacement and spine procedures continue lagging behind other surgeries, while the EMEA and Latin American markets are recovering more slowly. Compared to 2Q19, DePuy Synthes’ orthopedic sales grew +0.1%.
The company drove impressive sales growth for hip replacement and trauma. Hip replacement grew +8% compared to 2Q19, driven in part by navigation technology and new commercial programs in Europe and Latin America to expand coverage and access for hip fracture patients. DePuy Synthes’ trauma business grew +5.6% versus 2Q19 on the strength of newer product introductions like the Variable Angle Clavicle Plate.
The company experienced continuing COVID-19 disruptions to its knee replacement business in markets like India, Japan and Australia. Revision knee procedures have not recovered as rapidly as primary knee procedures, according to DePuy Synthes leadership. The segment declined -5.7% compared to 2Q19. However, the newly launched VELYS knee replacement robot combined with the upcoming ATTUNE cementless line could enhance DePuy Synthes’ competitiveness in the market.
Johnson & Johnson’s increased confidence in the market recovery led it to adjust guidance for 2021 operational sales growth to the range of +9.5% to +10.5%, inclusive of all businesses.
We’ve had about 750 on-hand demonstrations with our VELYS knee digital surgery offering. We’ve done about 100 cases to date. What we keep hearing from customers who have been giving us really positive feedback on a couple of things: the value of the system, smaller footprint, the image’s interoperative capabilities, and the ease of integration for surgeons and OR teams, the workflows, reducing the heavy physical and financial burdens of the currently available marketplace offering. – Ashley McEvoy, Executive Vice President, Worldwide Chairman Medical Devices
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $855.8 | $469.7 | $386.1 | 82.2% |
| Knees | $349.8 | $174.1 | $175.7 | 100.9% |
| Hips | $392.0 | $225.7 | $166.3 | 73.7% |
| Extremities | $114.0 | $69.9 | $44.1 | 63% |
| Spine | $348.1 | $229.7 | $118.4 | 51.5% |
| Trauma | $681.2 | $530.5 | $150.7 | 28.4% |
| Sports Medicine | $159.7 | $101.4 | $58.3 | 57.6% |
| Orthobiologics | $97.7 | $62.4 | $35.3 | 56.5% |
| Other (CMF) | $84.2 | $58.1 | $26.1 | 45% |
| Total | $2,226.6 | $1,451.7 | $774.9 | 53.4% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,632.6 | $1,249.1 | $383.5 | 30.7% |
| Knees | $667.4 | $517.9 | $149.5 | 28.9% |
| Hips | $748.8 | $562.9 | $185.9 | 33% |
| Extremities | $216.4 | $168.3 | $48.0 | 28.5% |
| Spine | $668.7 | $553.1 | $115.7 | 20.9% |
| Trauma | $1,384.7 | $1,158.2 | $226.4 | 19.5% |
| Sports Medicine | $303.8 | $244.1 | $59.7 | 24.5% |
| Orthobiologics | $186.0 | $150.3 | $35.7 | 23.7% |
| Other (CMF) | $164.4 | $134.8 | $29.5 | 21.9% |
| Total | $4,340.1 | $3,489.6 | $850.5 | 24.4% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,322.8 | $868.9 | $453.9 | 52.2% |
| OUS | $903.8 | $582.8 | $321.0 | 55.1% |
| EMEA | $397.7 | $256.4 | $141.2 | 55.1% |
| Asia Pacific | $332.6 | $211.6 | $121.0 | 57.2% |
| Rest of World | $173.5 | $114.8 | $58.7 | 51.1% |
| Total | $2,226.6 | $1,451.7 | $774.9 | 53.4% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,571.7 | $2,118.4 | $453.3 | 21.4% |
| OUS | $1,768.4 | $1,371.2 | $397.2 | 29% |
| EMEA | $772.9 | $621.1 | $151.8 | 24.4% |
| Asia Pacific | $650.8 | $479.6 | $171.1 | 35.7% |
| Rest of World | $344.7 | $270.5 | $74.2 | 27.4% |
| Total | $4,340.1 | $3,489.6 | $850.5 | 24.4% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $23,312.0 | |
| Cost of Sales | $7,587.0 | 32.5% |
| Selling and Admin | $6,073.0 | 26.1% |
| R & D | $3,394.0 | 14.6% |
| Other | ($20.0) | (0.1%) |
| Net Earnings | $6,278.0 | 26.9% |
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.
