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Product / Company Performance

Medtronic’s Surgical Synergy Strategy Accelerates Growth in Spine -

Medtronic reported FY 2Q20 revenue of USD $828.7 million, +7.2% vs. FY 2Q19.


  • Medtronic reported 6.7% organic growth for their Spine business (excluding $15 million from their Titan Spine acquisition, but including enabling technology reported in their Brain business)
  • The company’s Surgical Synergy strategy, combining enabling technology, hardware and biologics into a single procedure, continues to be a growth driver
  • Core spine products grew 3% organically, driven by penetration from new products like the T2 Stratosphere, Infinity OCT and Prestige LP systems
  • Infuse bone graft experienced double-digit growth, aided by a one-time distributor startup order
  • ORTHOWORLD projects Medtronic full calendar year 2019 orthopedic revenue of $3.4 billion, +6.5% vs. 2018


“The results in the spine business, which are the best we’ve seen in a long time, are the direct result of the Surgical Synergy strategy that has meaningfully improved the intrinsic value of our spine franchises. It’s the capital equipment, the Mazor O-Arm navigation, significant placements, sales and pull-through of the spine implants. This has created a great competitive differentiation and nice business model for us.” – Geoffrey Martha, EVP and President of Restorative Therapies Group


ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows.

  FY 2Q20 FY 2Q19 $ Chg % Chg
Spine $694.5 $643.7 $50.8 7.9%
Orthobiologics $134.2 $129.5 $4.8 3.7%
Total $828.7 $773.2 $55.5 7.2%
  FY 1H20 FY 1H19 $ Chg % Chg
Spine $2,102.3 $1,982.8 $119.5 6.0%
Orthobiologics $409.1 $397.5 $11.7 2.9%
Total $2,511.4 $2,380.3 $131.2 5.5%


ORTHOWORLD estimates orthopaedic sales by geographic region as follows.

  FY 2Q20 FY 2Q19 $ Chg % Chg
US $556.7 $511.3 $45.4 8.9%
Ex-US $272.1 $262.0 $10.1 3.9%
Total $828.7 $773.2 $55.5 7.2%


Net earnings are as follows.

  Amt % of Sales
Sales $7,706.0  
   Cost of Goods -$2,394.0 31.1%
   R & D -$603.0 7.8%
   Selling and Admin -$2,620.0 34.0%
   Other -$718.0 9.3%
Net Earnings $1,371.0 17.8%


Unless otherwise noted, all revenue figures are reported in USD $ millions.

Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.

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