Copy to clipboard 
DJO reported 2Q21 orthopedic revenue of $131.2 million, +54.1% vs. 2Q20. Using the company’s favored comparison metric, sales per day, DJO grew in the low single digits in the second quarter compared to the same period in 2019. The company raised its 2021 guidance for its MedTech business (inclusive of non-orthopedic products) to reported growth of +28% to +31% compared to 2020. DJO’s parent company, Colfax, plans to unveil the new name for its medtech spinoff later this year.
The company is targeting $1 billion in annual revenue for its reconstructive business segments by 2026. The late-July close of its Mathys acquisition is a key component of the growth strategy, and leadership spent a significant amount of time discussing the potential of the deal.
The addition of Mathys brings minimal overlap with DJO’s current product and geography mix, a rarity in orthopedic acquisitions. DJO’s U.S.-focused strength comes from its reverse shoulder and knee replacement implants, while Mathys’ European-only business is notable for its stemless shoulder and hip replacement products. Additionally, Mathys is one of the few manufacturers of ceramic implants, a fact DJO plans to leverage in future innovation.
DJO leadership expects cross-selling to start early on, given its AltiVate Reverse and the EMPOWR 3D knee products already have CE Mark approval. Few, if any, Mathys products will require new clinical trials to enter the U.S. market.
In another move to expand into high-growth adjacencies to its current markets, DJO made a strategic investment in Insight Medical during the quarter. According to company leadership, the technology could lead to breakthroughs in augmented reality for surgery.
“With the addition of Mathys, we now have a clear path to grow to $1 billion in the next 5 years. We are confident in our proven surgical offense and we extended our high-growth extremities core into the fast-growing foot and ankle segment. Now with the Mathys acquisition, we have doubled the addressable market to drive our clinically superior technologies globally. Additionally, we have a very healthy funnel of Recon bolt-on acquisition opportunities that could get us to the $1 billion mark even faster.” – DJO CEO Brady Shirely
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 | $72.0 | $61.0 | $11.0 | 18% |
| Knees | $18.5 | $14.6 | $3.9 | 26.6% |
| Hips | $17.2 | $14.6 | $2.6 | 17.8% |
| Extremities | $36.2 | $31.7 | $4.5 | 14.2% |
| Trauma | $14.2 | |||
| Other (Recovery Sciences) | $45.1 | $24.2 | $20.9 | 86.1% |
| Total | $131.2 | $85.2 | $46.1 | 54.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $139.1 | $128.0 | $11.1 | 8.7% |
| Knees | $34.8 | $32.1 | $2.8 | 8.6% |
| Hips | $32.4 | $29.4 | $3.0 | 10% |
| Extremities | $71.9 | $66.5 | $5.4 | 8.1% |
| Trauma | $22.9 | |||
| Other (Recovery Sciences) | $84.4 | $62.0 | $22.3 | 36% |
| Total | $246.4 | $190.0 | $56.3 | 29.6% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $98.4 | $63.5 | $35.0 | 55.1% |
| OUS | $32.8 | $21.7 | $11.1 | 51% |
| EMEA | $23.6 | $15.8 | $7.9 | 49.9% |
| Asia Pacific | $5.2 | $4.3 | $1.0 | 23.3% |
| Rest of World | $3.9 | $1.7 | $2.2 | 131.1% |
| Total | $131.2 | $85.2 | $46.1 | 54.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $184.8 | $141.6 | $43.2 | 30.5% |
| OUS | $61.6 | $48.5 | $13.1 | 27.1% |
| EMEA | $44.3 | $36.1 | $8.2 | 22.8% |
| Asia Pacific | $9.9 | $8.1 | $1.8 | 21.9% |
| Rest of World | $7.4 | $4.3 | $3.1 | 73% |
| Total | $246.4 | $190.0 | $56.3 | 29.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $985.9 | |
| Cost of Sales | $566.9 | 57.5% |
| Selling and Admin | $337.6 | 34.2% |
| Other | $52.8 | 5.4% |
| Net Earnings | $28.6 | 2.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DJO reported 2Q21 orthopedic revenue of $131.2 million, +54.1% vs. 2Q20. Using the company's favored comparison metric, sales per day, DJO grew in the low single digits in the second quarter compared to the same period in 2019. The company raised its 2021 guidance for its MedTech business (inclusive of non-orthopedic products) to reported...
DJO reported 2Q21 orthopedic revenue of $131.2 million, +54.1% vs. 2Q20. Using the company’s favored comparison metric, sales per day, DJO grew in the low single digits in the second quarter compared to the same period in 2019. The company raised its 2021 guidance for its MedTech business (inclusive of non-orthopedic products) to reported growth of +28% to +31% compared to 2020. DJO’s parent company, Colfax, plans to unveil the new name for its medtech spinoff later this year.
The company is targeting $1 billion in annual revenue for its reconstructive business segments by 2026. The late-July close of its Mathys acquisition is a key component of the growth strategy, and leadership spent a significant amount of time discussing the potential of the deal.
The addition of Mathys brings minimal overlap with DJO’s current product and geography mix, a rarity in orthopedic acquisitions. DJO’s U.S.-focused strength comes from its reverse shoulder and knee replacement implants, while Mathys’ European-only business is notable for its stemless shoulder and hip replacement products. Additionally, Mathys is one of the few manufacturers of ceramic implants, a fact DJO plans to leverage in future innovation.
DJO leadership expects cross-selling to start early on, given its AltiVate Reverse and the EMPOWR 3D knee products already have CE Mark approval. Few, if any, Mathys products will require new clinical trials to enter the U.S. market.
In another move to expand into high-growth adjacencies to its current markets, DJO made a strategic investment in Insight Medical during the quarter. According to company leadership, the technology could lead to breakthroughs in augmented reality for surgery.
“With the addition of Mathys, we now have a clear path to grow to $1 billion in the next 5 years. We are confident in our proven surgical offense and we extended our high-growth extremities core into the fast-growing foot and ankle segment. Now with the Mathys acquisition, we have doubled the addressable market to drive our clinically superior technologies globally. Additionally, we have a very healthy funnel of Recon bolt-on acquisition opportunities that could get us to the $1 billion mark even faster.” – DJO CEO Brady Shirely
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 | $72.0 | $61.0 | $11.0 | 18% |
| Knees | $18.5 | $14.6 | $3.9 | 26.6% |
| Hips | $17.2 | $14.6 | $2.6 | 17.8% |
| Extremities | $36.2 | $31.7 | $4.5 | 14.2% |
| Trauma | $14.2 | |||
| Other (Recovery Sciences) | $45.1 | $24.2 | $20.9 | 86.1% |
| Total | $131.2 | $85.2 | $46.1 | 54.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $139.1 | $128.0 | $11.1 | 8.7% |
| Knees | $34.8 | $32.1 | $2.8 | 8.6% |
| Hips | $32.4 | $29.4 | $3.0 | 10% |
| Extremities | $71.9 | $66.5 | $5.4 | 8.1% |
| Trauma | $22.9 | |||
| Other (Recovery Sciences) | $84.4 | $62.0 | $22.3 | 36% |
| Total | $246.4 | $190.0 | $56.3 | 29.6% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $98.4 | $63.5 | $35.0 | 55.1% |
| OUS | $32.8 | $21.7 | $11.1 | 51% |
| EMEA | $23.6 | $15.8 | $7.9 | 49.9% |
| Asia Pacific | $5.2 | $4.3 | $1.0 | 23.3% |
| Rest of World | $3.9 | $1.7 | $2.2 | 131.1% |
| Total | $131.2 | $85.2 | $46.1 | 54.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $184.8 | $141.6 | $43.2 | 30.5% |
| OUS | $61.6 | $48.5 | $13.1 | 27.1% |
| EMEA | $44.3 | $36.1 | $8.2 | 22.8% |
| Asia Pacific | $9.9 | $8.1 | $1.8 | 21.9% |
| Rest of World | $7.4 | $4.3 | $3.1 | 73% |
| Total | $246.4 | $190.0 | $56.3 | 29.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $985.9 | |
| Cost of Sales | $566.9 | 57.5% |
| Selling and Admin | $337.6 | 34.2% |
| Other | $52.8 | 5.4% |
| Net Earnings | $28.6 | 2.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
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.
