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Product / Company Performance

Conformis Up 2.3% in 2Q19 Amid Coverage Issues -



Conformis managed low single-digit growth in 2Q19 despite an increasing rate of coverage denials from Aetna and continuing reimbursement issues in Germany.

  • Leadership expects growth to decrease in the second half of the year due to denials of coverage for maintenance from Aetna
  • Three additional headwinds include the growth of the cementless market, reimbursement challenges in Germany and slower than expected ramping of hip revenue
  • Total 2019 revenue is now expected to be flat vs. 2018
  • Losses in international markets were mitigated by efforts to open new markets and working with German surgeons to better document their clinical decisions prior to surgery
  • Sales of the iTotal PS increased 19% year over year, while combined sales of the iTotal CR, iDuo and iUni declined 10% in the same time frame


Performance by Segment

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

  2Q19 2Q18 $ Chg % Chg
Joint Replacement Knees $18.8 $18.9 -$0.1 -0.4%
Joint Replacement Hips * $0.5      
Total $19.3 $18.9 $0.4 2.3%
  1H19 1H18 $ Chg % Chg
Joint Replacement Knees $39.0 $38.6 $0.4 1.1%
Joint Replacement Hips * $1.0      
Total $40.0 $38.6 $1.4 3.7%

* Limited launch 3Q18, full launch 2H19


Sales by Geographic Region

ORTHOWORLD estimates geographic sales and growth as follows ($MM):

  2Q19 2Q18 $ Chg % Chg
US $17.2 $16.4 $0.8 5.1%
Ex-US $2.1 $2.6 -$0.4 -16.1%
Total $19.3 $18.9 $0.4 2.3%


Net Earnings Data

Net earnings, inclusive of all revenue, are as follows.

  Amt % of Sales
Sales $19.6  
   Cost of Sales -$10.0 50.9%
   Sales and Marketing -$6.9 35.2%
   R & D -$3.3 17.0%
   General and Admin -$5.3 27.0%
   Other -$0.9 4.4%
Net Earnings -$6.8 -34.5%


Source: Conformis

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

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