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Product / Company Performance

Orthofix Up +3.9% in 2Q19 on Biologics Outperformance -

By Mike Evers, ORTHOWORLD

 

Orthofix grew in the low single digits in 2Q19 as abnormally high price pressure on spinal hardware was offset by increased Trinity allograft volume.

  • Company reiterated previous 2019 revenue guidance
  • Jon Serbousek will succeed Bradley Mason as President and CEO on November 1, and will take the role of President of Global spine in the interim
  • “Abnormally high” price pressure in the U.S. led to a 6.7% decrease in Spine Fixation revenue, though this was offset somewhat by a +33.5% increase in motion preservation products
  • The M6-C cervical disk has been implanted by 17 surgeons and generated approximately $0.5MM in revenue to date, with a year-end goal of $3MM to $4MM in revenue
  • Outperformance in biologics was driven by increased sales volume of Trinity allografts

 

Performance by Segment

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

  2Q19 2Q18 $ Chg % Chg
Spine $23.2 $23.9 -$0.7 -2.7%
Trauma $25.8 $24.8 $1.0 4.0%
Orthobiologics $16.7 $14.7 $2.1 14.2%
Other * $50.1 $48.2 $1.9 3.9%
Total $115.9 $111.5 $4.3 3.9%
  1H19 1H18 $ Chg % Chg
Spine $46.1 $44.6 $1.5 3.5%
Trauma $49.0 $52.3 -$3.3 -6.4%
Orthobiologics $32.5 $29.0 $3.5 12.0%
Other * $97.4 $94.4 $3.0 3.2%
Total $225.0 $220.3 $4.7 2.1%

* Bone growth therapies

 

Sales by Geographic Region

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

  2Q19 2Q18 $ Chg % Chg
US $91.45 $88.75 $2.7 3.0%
Ex-US $24.4 $22.8 $1.6 7.0%
Total $115.9 $111.5 $4.3 3.9%

 

Net Earnings Data

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

  Amt % of Sales
Sales $115.9  
   Cost of Sales -$25.8 22.3%
   General and Admin -$21.9 18.9%
   Selling and Marketing -$56.9 49.1%
   R & D -$9.0 7.8%
   Other -$2.8 2.4%
Net Earnings -$0.5 -0.5%

 

Source: Orthofix

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

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