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Product / Company Performance

Medtronic FY1Q20 Spine Sales Driven by Mazor -

By Mike Evers, ORTHOWORLD

 

  • Growth rate is expected to accelerate in the second half of the fiscal year as some headwinds annualize and new products are launched
  • Integration of Titan Spine is “going very well,” with plans to apply Titan’s surface technology to Medtronic’s broad-based spine portfolio
  • Core spine sales grew 2% for the quarter

 

Mazor Update

  • The company has declined to provide Mazor unit placement data going forward
  • Mazor users have close to a 70% attachment rate to Medtronic implants
  • The company has built a new 100-person “SWAT team” within the salesforce to train surgeons, surgical teams and sales reps on Mazor

 

Performance by Segment

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

  FY 1Q20 FY 1Q19 $ Chg % Chg
Spine $693.4 $662.4 $31.1 4.7%
Orthobiologics $126.3 $122.0 $4.3 3.6%
Total $819.8 $784.4 $35.4 4.5%

 

Sales by Geographic Region

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

  FY 1Q20 FY 1Q19 $ Chg % Chg
US $537.0 $497.0 $40.0 8.0%
Ex-US $282.8 $287.4 -$4.6 -1.6%
Total $819.8 $784.4 $35.4 4.5%

 

Net Earnings Data

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

  Amt % of Sales
Sales $7,493.0  
   Cost of Goods -$2,366.0 31.6%
   R & D -$587.0 7.8%
   Selling and Admin -$2,543.0 33.9%
   Other -$1,120.0 14.9%
Net Earnings $877.0 11.7%

 

Sources: Medtronic; ORTHOWORLD estimates

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

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