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Product / Company Performance

RTI Up +18.7% in 2Q19 on Paradigm Spine Acquisition -



RTI recorded record revenues in 2Q19 due to strong performance of legacy spine products bolstered by the acquisition of the coflex stabilization device.

  • Reiterated 2019 full year guidance of $325MM to $335MM in total revenue
  • Growth attributable to performance of legacy spine franchise, amplified by the addition of coflex
  • The integration of coflex is “approximately six months behind our initial plans,” per leadership, with onboarding and training taking longer than expected
  • The company opened a new design center in Germany that leverages the talent and capabilities acquired from Paradigm Spine
  • Legacy spine hardware had double-digit growth bolstered by continued success selling the Fortilink family of products, which reached 5,000 implants in the U.S.


Performance by Segment

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

  2Q19 2Q18 $ Chg % Chg
Spine $32.7 $22.6 $10.1 44.6%
Orthobiologics $39.0 $37.8 $1.2 3.2%
Total $71.6 $60.4 $11.3 18.7%
  1H19 1H18 $ Chg % Chg
Spine $56.8 $46.0 $10.8 23.4%
Orthobiologics $74.8 $74.2 $0.6 0.8%
Total $131.6 $120.3 $11.3 9.4%


Sales by Geographic Region

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

  2Q19 2Q18 $ Chg % Chg
US $63.7 $54.9 $8.7 15.9%
Ex-US $7.9 $5.4 $2.5 46.3%
Total $71.6 $60.4 $11.3 18.7%


Net Earnings Data

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

  Amt % of Sales
Sales $82.3  
   Cost of Sales -$37.6 45.6%
   Selling and Admin -$39.0 47.4%
   R & D -$3.9 4.7%
   Other -$1.1 1.4%
Net Earnings $0.7 0.9%


Source: RTI Surgical; ORTHOWORLD estimates.

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

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