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Product / Company Performance

Wright Medical Growth Downturn Continued in Lead Up to Stryker Deal -

Wright Medical reported 3Q19 revenue of USD $212.4MM, +9.4% vs. 3Q18.

 

  • On November 4, 2019, Wright Medical announced that it had reached a definitive agreement to be purchased by Stryker with the deal expected to close in 2H20
  • The 3Q19 was the second consecutive quarter of growth deceleration for Wright Medical
  • The company has recently faced severe disruption to its legacy Cartiva sales distributors, as well as talent retention challenges with smaller competitors increasingly penetrating Wright’s core foot and ankle business
  • ORTHOWORLD projects Wright Medical full year 2019 revenue of $899.6MM, +7.6% vs. 2018

 

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

  3Q19 3Q18 $ Chg % Chg
Joint Reconstruction Extremities $106.7 $94.0 $12.7 13.5%
Trauma $74.2 $68.1 $6.1 8.9%
Sports Medicine $4.4 $4.8 -$0.4 -8.9%
Orthobiologics $27.2 $27.2 $0.0 0.0%
Total $212.4 $194.1 $18.3 9.4%
  9Mo 19 9Mo 18 $ Chg % Chg
Joint Reconstruction Extremities $338.7 $291.7 $47.0 16.1%
Trauma $235.4 $214.3 $21.1 9.8%
Sports Medicine $14.0 $14.6 -$0.7 -4.6%
Orthobiologics $84.3 $77.4 $6.9 8.9%
Total $672.3 $598.0 $74.3 12.4%

 

ORTHOWORLD estimates sales by geographic region as follows ($MM).

  3Q19 3Q18 $ Chg % Chg
US $162.2 $145.6 $16.7 11.4%
Ex-US $50.2 $48.5 $1.7 3.4%
   EMEA $35.1 $33.7 $1.4 4.2%
   Asia Pacific $10.5 $10.2 $0.3 3.4%
   Rest of World $4.5 $4.6 -$0.1 -2.0%
Total $212.4 $194.1 $18.3 9.4%

 

Net earnings are as follows ($MM).

  Amt % of Sales
Sales $212.4  
   Cost of Sales -$44.4 20.9%
   General and Admin -$152.8 71.9%
   R & D -$18.0 8.5%
   Other -$41.0 19.3%
Net Earnings -$43.8 -20.6%

 

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

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