Enovis’ reconstructive segment grew 66% on a reported basis and 7% pro forma in the first quarter of 2024. The company’s aggressive M&A strategy and consistently above-market organic growth have it on the cusp of $1 billion in annual joint replacement sales.
The company’s evolution to a balanced portfolio with more attractive gross margins occurred rapidly. Our chart of the month shows Enovis’ Reconstructive segment sales compared to its Prevention and Recovery sales from 2019 to our estimated 2024 finish.
Joint replacement made up just 22% of total sales in 2019. It climbed to 34% by the end of 2022, and we estimate it will comprise nearly half of Enovis’ sales in 2024.
I stopped just short of $1 billion for my 2024 recon estimate. As Enovis CEO Matt Trerotola pointed out, a lot of things went right in what he called a “super clean” 2023 orthopedic market.
The first quarter of 2024 already brought headwinds via weather events and illnesses. Additionally, Enovis estimated it lost 2% to 3% growth in the first quarter due to integration-related impacts.
I expect those impacts to be mitigated over the course of the year, and Enovis will have more manageable quarterly comparisons in the second half of the year. I won’t be surprised to see the company clear $1 billion in recon sales in 2024, with room to spare.
Either way, Enovis’ rapidly ascending recon business has positioned it as one of the most exciting companies in orthopedics.
Enovis’ reconstructive segment grew 66% on a reported basis and 7% pro forma in the first quarter of 2024. The company’s aggressive M&A strategy and consistently above-market organic growth have it on the cusp of $1 billion in annual joint replacement sales.
The company’s evolution to a balanced portfolio with more attractive...
Enovis’ reconstructive segment grew 66% on a reported basis and 7% pro forma in the first quarter of 2024. The company’s aggressive M&A strategy and consistently above-market organic growth have it on the cusp of $1 billion in annual joint replacement sales.
The company’s evolution to a balanced portfolio with more attractive gross margins occurred rapidly. Our chart of the month shows Enovis’ Reconstructive segment sales compared to its Prevention and Recovery sales from 2019 to our estimated 2024 finish.
Joint replacement made up just 22% of total sales in 2019. It climbed to 34% by the end of 2022, and we estimate it will comprise nearly half of Enovis’ sales in 2024.
I stopped just short of $1 billion for my 2024 recon estimate. As Enovis CEO Matt Trerotola pointed out, a lot of things went right in what he called a “super clean” 2023 orthopedic market.
The first quarter of 2024 already brought headwinds via weather events and illnesses. Additionally, Enovis estimated it lost 2% to 3% growth in the first quarter due to integration-related impacts.
I expect those impacts to be mitigated over the course of the year, and Enovis will have more manageable quarterly comparisons in the second half of the year. I won’t be surprised to see the company clear $1 billion in recon sales in 2024, with room to spare.
Either way, Enovis’ rapidly ascending recon business has positioned it as one of the most exciting companies in orthopedics.
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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.
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