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Product / Company Performance

DePuy Synthes Reports 2Q19 Revenue of $2,230.9MM, -1.3% vs. 2Q18 -

By Mike Evers, ORTHOWORLD

 

DePuy Synthes reports 2Q19 orthopedic revenue of USD $2,230.9MM, -1.3% vs. 2Q18.

  • Knee sales declined in the U.S. due to competitors taking advantage of gaps in the DePuy Synthes portfolio. The decline was partially offset by mid-single-digit growth ex-U.S. Leadership believes the launch of Orthotaxy combined with a cementless knee product will drive the company to at or above market growth.
  • Hip sales saw continued demand for the ACTIS, which is now the company’s number one selling stem in the U.S., and adoption of the KINCISE Surgical Impactor for hip procedures in the U.S.
  • Spine sales experienced further declines, primarily in the U.S. The company is seeking to reverse this trend through innovation, calling out the second half launch of their Symfony product for complex cervical pathologies.
  • Trauma growth was supported by market growth and newer products like the Femoral Recon Nails.
  • U.S. price pressure for the quarter was 4% in spine and 2% for hips, knees and trauma.
  • On the acquisition of Auris Health, company leadership highlighted the benefit of gaining access to robotics industry expertise via Dr. Fred Moll. Dr. Moll and his team are evaluating all DePuy Synthes digital surgery platforms, though the Orthotaxy launch remains “on track.”

 

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

  2Q19 2Q18 $ Chg % Chg
Joint Replacement $862.2 $867.5 -$5.4 -0.6%
Knees $378.8 $389.4 -$10.6 -2.7%
Hips $370.8 $367.4 $3.4 0.9%
Extremities $112.6 $110.7 $1.9 1.7%
Spine $347.7 $359.0 -$11.3 -3.1%
Trauma $642.5 $644.1 -$1.6 -0.2%
Sports Medicine $174.2 $172.4 $1.8 1.1%
Orthobiologics $99.6 $103.9 -$4.3 -4.1%
Other (CMF) $104.7 $114.1 -$9.3 -8.2%
Total  $2,230.9 $2,260.9 -$30.0 -1.3%
  1H19 1H18 $ Chg % Chg
Joint Replacement $1,708.5 $1,735.4 -$26.9 -1.6%
Knees $753.2 $782.6 -$29.4 -3.8%
Hips $741.3 $736.6 $4.7 0.6%
Extremities $214.1 $216.2 -$2.1 -1.0%
Spine $702.1 $719.5 -$17.4 -2.4%
Trauma $1,296.9 $1,308.0 -$11.1 -0.9%
Sports Medicine $343.7 $340.0 $3.7 1.1%
Orthobiologics $194.4 $205.2 -$10.8 -5.3%
Other (CMF) $188.4 $203.0 -$14.6 -7.2%
Total  $4,433.9 $4,511.0 -$77.1 -1.7%

 

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

Geographic Region 2Q19 2Q18 $ Chg % Chg
US $1,334.72 $1,313.35 $21.4 1.6%
Ex-US $896.22 $947.58 -$51.4 -5.4%
   EMEA $403.30 $426.41 -$23.1 -5.4%
   Asia Pacific $318.16 $331.65 -$13.5 -4.1%
   Rest of World $174.76 $189.52 -$14.8 -7.8%
Total  $2,230.9 $2,260.9 -$30.0 -1.3%

 

Net earnings for all Johnson & Johnson revenue are as follows.

2Q19 Amount ($MM) % of Sales
Sales $20,562.0  
   Cost of Sales -$6,940.0 33.8%
   Selling and Admin -$5,546.0 27.0%
   R & D -$2,666.0 13.0%
   Other $197.0 1.0%
Net Earnings  $5,607.0 27.3%

 

Sources: DePuy Synthes Companies of Johnson & Johnson; ORTHOWORLD estimates.

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

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