SeaSpine Posts 3Q16 Revenue
SeaSpine announced 3Q16 revenue of US $31.8MM, -2.7% vs. 3Q15. Growth is as reported.
Geographic and product segment sales and growth, as reported, follow:
U.S. $28.5MM, -5.8%; ex-U.S. $3.3MM, +28.2%
- Spine $15.6MM, -3.7%
- Orthobiologics $16.2MM, -1.7%
- U.S. sales declined on lowered demand for spinal fusion hardware and continued mid-single-digit price pressure, outpacing revenue from new and recently-launched products as well as recently-acquired distributors
- Price pressure is notable in the U.S. orthobiologic market, especially with group purchasing organizations and integrated delivery networks (IDNs)
- Reduced workforce by 8% as one tactic in efforts to reduce cash spend in 2017 by $9MM vs. 2016
- Launched 7 new and upgraded products in 2016, on pace for total of 8
- Shoreline ACS garnered “particular interest” at NASS; also launched Mariner posterior lumbar fixation system, a next-gen pedicle screw, that uses fewer trays; full commercial launches slated for 1H17
- Received 510(k) clearance for sterile packaging of nanometalene interbody products
- Acquired NLT Spine, bringing MIS products including vertical, lordotic and lateral footprint expanding interbody technologies; expecting to launch first NLT device in 1H17
Sources: SeaSpine Corporation; ORTHOWORLD Inc.