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Product / Company Performance

Alphatec Up 24% in 2Q19 on Revitalized Sales Channel -

By Mike Evers, ORTHOWORLD

 

Alphatec Spine’s ongoing transformation continued to pay dividends in 2Q19 as the company notched its third consecutive quarter of double-digit growth.

  • Increased 2019 total revenue guidance to $104MM to $109MM, up from $100MM to $104MM.
  • Revenue from new products contributed 32% this quarter, after none the year prior.
  • The SafeOp platform is currently in alpha evaluations with anticipated full commercial release in the fourth quarter.
  • Within the quarter, launched two approach-specific spine implants (IdentTi TLIF and IdenTi ALIF) as well as the SafeOp-integrated Invictus thoracolumbar fixation system.
  • Revenue per case increased 15% vs. the prior year due to more complex surgeries and an average of 1.5 products sold per case.
  • Revenue per distributor increased 45% year over year, as the company continues to overhaul its sales channel. Revenue from “strategic” suppliers comprised 88% of total revenue.

 

Performance by Segment

ORTHOWORLD estimates segment sales and growth on an as-reported basis ($MM).

  2Q19 2Q18 $ Chg % Chg
Spine $25.0 $20.0 $5.0 25.3%
Orthobiologics $2.3 $2.0 $0.3 13.5%
Total $27.3 $22.0 $5.3 24.2%
  1H19 1H18 $ Chg % Chg
Spine $47.3 $39.3 $8.0 20.3%
Orthobiologics $4.6 $4.0 $0.6 15.0%
Total $51.9 $43.3 $8.6 19.8%

 

Sales by Geographic Region

ORTHOWORLD estimates sales by geographic region as follows ($MM).

  2Q19 2Q18 $ Chg % Chg
US $26.1 $20.4 $5.7 28.1%
Ex-US $1.2 $1.6 -$0.4 -24.8%
Total $27.3 $22.0 $5.3 24.2%

 

Net Earnings Data

Net earnings ($MM):

  Amt % of Sales
Sales $27.3  
   Cost of Sales -$8.4 30.9%
   Selling and Admin -$24.6 89.9%
   R & D -$3.4 12.3%
   Other -$3.4 12.4%
Net Earnings -$12.4 -45.5%

 

Sources: Alphatec Spine; ORTHOWORLD estimates.

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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