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Quarterly Review

Public and Private Company Revenue Review: 1Q17

By Julie A. Vetalice

We're eager to see 2Q17 results to prepare a 1H review for you. In the interim, here are the 1Q17 numbers for publicly-traded companies, with updates and estimates for a number of privately-traded companies, too.

Exhibits 1 and 2 illustrate 1Q17 performance. Of the Top 5 performers, four record revenue in the spine segment; together they posted 1Q17 spine sales of ~$1.3BB, an increase of ~$32.0BB or +2.5% vs. 1Q16. Looking specifically at Medtronic’s figures, we note that their spine hardware sales of $626.0MM for this reporting period represents a third consecutive quarter of positive growth. Further, MDT’s orthobiologics revenue surpassed $130MM—breaking out of the range of $120MM to $129MM for the first time since the company’s FY2Q15. FDA’s approval of additional spine surgery indications for INFUSE appears to be supporting growth there.

Of note after the quarter's close: on the regulatory front, K2M received key product registrations from Japan’s Pharmaceuticals and Medical Devices Agency, including MESA, EVEREST and all of the company’s pedicle screws. K2M can now implement a new direct distribution strategy in Japan, a market which the company estimates at $300MM. Exactech received Japan approvals, too, for products in each of its joint reconstruction segments of hip, knee and shoulder.

In the U.S., Globus Medical received a letter from FDA indicating an insufficient response to questions on its 510(k) submission for the ExcelsiusGPS™ robotic guidance and navigation system. Globus will expedite a revised filing and no longer expects to receive FDA clearance in 2Q16, but maintained its full-year guidance—indicating confidence in clearance within the year. ConforMIS received 510(k) clearance for its iTotal hip, after a slight delay from withdrawing its first application in early 2Q16.


Exhibit 1 - Orthopaedic Sales for Public Companies, As Reported: 1Q17 vs. 1Q16 ($MM)

 Company 1Q17  1Q16  $ Change  % Change 
 Alphatec Spine $28.0  $34.2  -$6.2  -18.2% 
 Anika  $20.2  $19.6  $0.6  3.1% 
 ConforMIS $20.5  $20.3  $0.2  1.0% 
 ConMed $103.8  $105.3  $1.5  -1.4% 
 DePuy Synthes $2,269.7  $2,261.1  $8.6  0.4% 
 DJO $288.4  $278.9  $9.5  3.4% 
 Exactech $69.5  $65.3  $4.2  6.5% 
 Globus Medical $155.8  $139.3  $16.6  11.9% 
 Implanet $2.2  $2.3  -$0.1  -3.5% 
 Integra  $31.2  $26.1  $5.1  19.5% 
 K2M $61.9  $56.3  $5.6  9.9% 
 Mazor Robotics $11.7  $6.4  $5.3  82.8% 
 Medicrea $7.5  $8.0  $0.5  -6.3% 
 Medtronic $759.0  $737.0  $22.0  3.0% 
 NuVasive $249.9  $215.1  $34.8  16.2% 
 Orthofix $102.7  $98.7  $4.1  4.1% 
 SeaSpine $31.9  $31.4  $0.5  1.6% 
 Seikagaku $75.6  $80.9  -$5.3  -6.6% 
 Smith & Nephew $826.9  $803.0  $23.9  3.0% 
 Stryker $1,612.3  $1,521.1  $91.1  6.0% 
 Vericel $5.0  $8.8  $13.8  -43.2% 
 Wright Medical $177.2  $169.3  $7.9  4.7% 
 Xtant Medical $22.1  $21.0  $1.1  5.3% 
 Zimmer Biomet $1,836.1  $1,750.8  $85.3  4.9% 

 

Exhibit 2 - Orthopaedic Sales by Market Segment for Public Companies: 1Q17 Performance vs. 1Q16 ($MM)

  Joint Recon Trauma ARST Spine Orthobiologics  
 Company Sales % Change YOY Sales % Change YOY Sales % Change YOY Sales % Change YOY Sales % Change YOY Total
 Alphatec Spine             $25.4  -18.0%  $2.5  -20.0%  $28.0 
 Anika                  $20.2  3.1%  $20.2 
 ConforMIS $20.5  1.0%                  $20.5 
 ConMed         $103.8  -1.4%          $103.8 
 DePuy Synthes $866.4  2.4%  $614.2  -0.2%  $163.4  -1.1%  $396.8  -2.1%  $100.2  -1.5%  $2,269.7 
 DJO $60.2  19.0%                  $288.4 
 Exactech $67.3  10.2%          $0.3  -84.3%  $1.9  -20.4%  $69.5 
 Globus Medical             $148.2  12.1%  $7.6  7.2%  $155.8 
 Implanet $0.8  -20.1%      $0.3  -19.2%  $1.1  18.8%      $2.2 
 Integra  $6.1  19.0%  $25.1  19.7%              $31.2 
 K2M             $59.9  9.7%  $2.0  17.2%  $61.9 
 Mazor Robotics             $11.7  82.8%      $11.7 
 Medicrea             $7.5  -6.3%      $7.5 
 Medtronic             $626.0  1.5%  $133.0  10.8%  $759.0 
 NuVasive     $7.6  136.0%      $209.4  17.0%  $32.9  0.1%  $249.9 
 Orthofix     $23.9  -3.1%      $19.3  2.3%  $15.0  6.3%  $102.7 
 SeaSpine             $14.8  0.2%  $17.1  2.8%  $31.9 
 Seikagaku                 $75.6  -6.6%  $75.6 
 Smith & Nephew $417.0  3.1%  $106.9  5.4%  $303.0  2.0%          $826.9 
 Stryker $868.5  5.6%  $327.7  8.2%  $118.0  7.7%  $173.4  2.6%  $53.0  6.7%  $1,612.3 
 Vericel                 $5.0  -43.2%  $5.0 
 Wright Medical $81.1  5.9%  $66.4  1.7%  $5.9  -4.3%      $23.8  11.6%  $177.2 
 Xtant Medical             $11.7  5.1%  $10.4  5.5%  $22.1 
 Zimmer Biomet $1,279.9  1.0%  $138.5  6.2%  $31.3  4.1%  $97.7  38.1%  $73.4  4.9%  $1,836.1 


View 1Q17 performance and highlights for these publicly-traded companies, and review these updates and estimates for private companies:


joimax Business Update

joimax announced 1Q17 sales growth of +60% vs. 1Q16. This follows their reported 2016 growth of +31% vs. 2015. (ORTHOWORLD estimates place joimax annual revenue in a range between $20MM and $24MM.) The German-based company has just celebrated 10 years in China, where it claims 2,000 surgeon customers using its minimally invasive endoscopic spinal surgery systems.

Life Spine Sales Growth from ProLifet Expandable Spacer

Life Spine has doubled sales growth quarter over quarter since its 2Q16 introduction of the ProLift Expandable Spacer. Used with the CALYPSO Retractor and CENTERLINE Cortical Bone Screws, ProLift is designed to yield minimal tissue disruption and support in situ expansion. ORTHOWORLD estimated the company’s 2016 revenue in the range of $53MM to $55MM.

Titan Spine 1Q17 Update

Titan Spine announced the milestone of >1,000 implantations of nanoLOCK-surfaced Endoskeleton titanium interbody fusion devices in the 6 months since 4Q16 full launch, and announced achievement of record quarterly sales in 1Q17, “significantly greater” than 1Q16. To date, nanoLOCK has increased by 270% since December 2016. ORTHOWORLD estimates the company’s 2016 revenue in a $49MM to $51MM range.

ulrich medical USA 2016 Revenue

ulrich medical announced 2016 top line revenue growth of 15% vs. 2015. (ORTHOWORLD estimates place company revenue in a range between $112.0MM and $115.0MM.) Since 2010, when ulrich announced its intent to diversify from spinal trauma into degenerative spine, the company has added 11 FDA-cleared implants and increased annual U.S. case numbers by 247%. Leadership notes that >50% of revenue derives from non-corpectomy procedures.


Sources: Company press releases, websites, U.S. Securities and Exchange Commission, ORTHOWORLD estimates

Julie A. Vetalice is Editorial Assistant for ORTHOWORLD. Reach her by email.