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DJO reported 1Q21 orthopedic revenue of USD $115.1 million, +9.8% vs. 1Q20. The company’s busy first quarter included an announcement of Colfax’s intent to split into two companies, the completion of a $700 million equity offering and the acquisition of MedShape to expand DJO’s foot and ankle business.
To date, Colfax invested $225 million to build its foot and ankle business. The business line starts with annual revenue of $65 million and is expected to reach $100 million within three years, according to company leadership. Beyond the recent addition of MedShape, we expect DJO to remain active with small- to medium-sized acquisitions and international expansion fueled by its strengthened balance sheet.
DJO leadership said that the U.S. elective surgery environment improved faster than expected through the quarter, but markets in Europe were slightly worse than expected. Further, the company sees full market recovery taking an extended time with rebound-driven elevated growth rates for a few years.
“We were well aware in the diligence that there was an ongoing dialogue between Stryker and the FDA about polymer cracking. We’re also well aware that Stryker had made some changes a number of years back that they believe addressed the situation through some sterilization and packaging changes. We had a plan from the start, and we’ve already moved on that plan to replace the polymer with our e-Poly technology. It’s unfortunate that the FDA got frustrated with Stryker and made the warning that they did. We’ve certainly done some handholding with customers to remind them of the great overall data for the product and to point to the limited sample size that was related in that warning.” – Colfax CEO Matthew Trerotola
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 | $67.2 | $67.0 | $0.1 | 0.2% |
| Knees | $16.3 | $17.4 | ($1.1) | (6.4%) |
| Hips | $15.2 | $14.8 | $0.4 | 2.4% |
| Extremities | $35.7 | $34.8 | $0.9 | 2.6% |
| Trauma | $8.7 | |||
| Other (Recovery Sciences) | $39.3 | $37.8 | $1.5 | 3.9% |
| Total | $115.1 | $104.9 | $10.3 | 9.8% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $86.3 | $78.1 | $8.2 | 10.5% |
| OUS | $28.8 | $26.7 | $2.0 | 7.6% |
| EMEA | $20.7 | $20.3 | $0.4 | 1.9% |
| Asia Pacific | $4.6 | $3.8 | $0.8 | 20.3% |
| Rest of World | $3.5 | $2.6 | $0.9 | 34.4% |
| Total | $115.1 | $104.9 | $10.3 | 9.8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $879.2 | |
| Cost of Sales | $508.1 | 57.8% |
| Selling and Admin | $305.7 | 34.8% |
| Other | $46.3 | 5.3% |
| Net Earnings | $19.1 | 2.2% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DJO reported 1Q21 orthopedic revenue of USD $115.1 million, +9.8% vs. 1Q20. The company’s busy first quarter included an announcement of Colfax’s intent to split into two companies, the completion of a $700 million equity offering and the acquisition of MedShape to expand DJO’s foot and ankle business.
To date, Colfax invested $225 million...
DJO reported 1Q21 orthopedic revenue of USD $115.1 million, +9.8% vs. 1Q20. The company’s busy first quarter included an announcement of Colfax’s intent to split into two companies, the completion of a $700 million equity offering and the acquisition of MedShape to expand DJO’s foot and ankle business.
To date, Colfax invested $225 million to build its foot and ankle business. The business line starts with annual revenue of $65 million and is expected to reach $100 million within three years, according to company leadership. Beyond the recent addition of MedShape, we expect DJO to remain active with small- to medium-sized acquisitions and international expansion fueled by its strengthened balance sheet.
DJO leadership said that the U.S. elective surgery environment improved faster than expected through the quarter, but markets in Europe were slightly worse than expected. Further, the company sees full market recovery taking an extended time with rebound-driven elevated growth rates for a few years.
“We were well aware in the diligence that there was an ongoing dialogue between Stryker and the FDA about polymer cracking. We’re also well aware that Stryker had made some changes a number of years back that they believe addressed the situation through some sterilization and packaging changes. We had a plan from the start, and we’ve already moved on that plan to replace the polymer with our e-Poly technology. It’s unfortunate that the FDA got frustrated with Stryker and made the warning that they did. We’ve certainly done some handholding with customers to remind them of the great overall data for the product and to point to the limited sample size that was related in that warning.” – Colfax CEO Matthew Trerotola
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 | $67.2 | $67.0 | $0.1 | 0.2% |
| Knees | $16.3 | $17.4 | ($1.1) | (6.4%) |
| Hips | $15.2 | $14.8 | $0.4 | 2.4% |
| Extremities | $35.7 | $34.8 | $0.9 | 2.6% |
| Trauma | $8.7 | |||
| Other (Recovery Sciences) | $39.3 | $37.8 | $1.5 | 3.9% |
| Total | $115.1 | $104.9 | $10.3 | 9.8% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $86.3 | $78.1 | $8.2 | 10.5% |
| OUS | $28.8 | $26.7 | $2.0 | 7.6% |
| EMEA | $20.7 | $20.3 | $0.4 | 1.9% |
| Asia Pacific | $4.6 | $3.8 | $0.8 | 20.3% |
| Rest of World | $3.5 | $2.6 | $0.9 | 34.4% |
| Total | $115.1 | $104.9 | $10.3 | 9.8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $879.2 | |
| Cost of Sales | $508.1 | 57.8% |
| Selling and Admin | $305.7 | 34.8% |
| Other | $46.3 | 5.3% |
| Net Earnings | $19.1 | 2.2% |
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.
