NuVasive Reports 2Q16 Revenue
NuVasive (NUVA) reported 2Q16 revenue of US $236.2MM, +16.4% from 2Q15. (U.S. $200.5MM, +12.7%; ex-U.S. $35.6MM, +43.6%) All growth is as reported.
ORTHOWORLD estimates 2Q16 segment sales and growth on an as reported basis, as follows.
- Trauma $8.4MM (ORTHOWORLD estimate for PRECICE limb lengthening)
- Spine $194.8MM, +14.6%
- Orthobiologics $33.0MM, +0.1%
Revenue growth was fueled by momentum with the iGA (Integrated Global Alignment) system, which drives pull-through of spinal hardware sales. Specifically, leadership noted continuing progress in securing contracts with U.S. healthcare systems for bundled offerings that include the NVM5 nerve monitoring system and iGA.
Leadership reported double-digit YoY growth in its thoracolumbar revenue and strength across all procedural categories. Orthobiologics experienced a slight uptick, led by Ostecel Pro. (AttraX Putty launched in 2Q16, as well.)
NuVasive Specialized Orthopedics (the acquired business of Ellipse Technologies) contributed $15.1MM to 2Q16 revenue and reflected continued strong growth for MAGEC and PRECICE products. The transition of U.S. MAGEC distribution to NUVA's salesforce is complete.
Ex-U.S., leadership noted revitalization in its core EMEA markets, supported by strength in Germany, Italy and the U.K. with "meaningful initial contributions" arising from investments in Belgium, Spain and South Africa. Further, growth was supported by strength in Japan and a move to direct sales in Latin America. The company claims a 4.5% share of the international spine market. (In comparison, Globus Medical claims 3% of that market share, including its acquisition of Alphatec Spine's ex-U.S. operations.)
NUVA's initiative to achieve 100% in-house manufacturing remains on track, with initial production slated to commence in August at a new Ohio facility.
Just after the close of 2Q16, NUVA reached a definitive agreement with Medtronic to settle ongoing patent litigation and completed its acquisition of Biotronic NeuroNetwork. The latter transaction contributed to an adjustment in 2016 revenue guidance, lifting that from $928MM to $962MM.
Sources: NuVasive, Inc.; ORTHOWORLD Inc.