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Integra LifeSciences reported 4Q20 orthopedic revenue of USD $23.8 million, -3.9% vs. 4Q19 with full-year 2020 revenue of $78.3 million, -13.1% vs. 2019. This marks the final quarter for the company’s orthopedics segment, as Integra completed its divestiture to Smith+Nephew in the opening days of 2021.
Integra has faced questions about the viability of its orthopedics business since at least 2018. At the time, company leadership liked extremities as a complement to its growing regenerative medicine portfolio. The situation became untenable, ultimately, due to Integra’s relative lack of scale and the pressures of the COVID-19 pandemic. In late 2020, orthopedics accounted for just 6% of Integra’s overall revenue but 15% of its inventory value.
“Turning to portfolio optimization, as I mentioned, our two most transformative actions were the divestiture of our orthopedics business and the acquisition of ACell. The combination of the two of these creates a highly focused tissue technology segment that will be accretive to growth and profitability and will advance our leadership positions across the portfolio.” – Peter Arduini, Integra LifeSciences CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $9.0 | $10.4 | ($1.4) | (13.1%) |
| Trauma | $14.7 | $14.3 | $0.4 | 2.7% |
| Total | $23.8 | $24.7 | ($1.0) | (3.9%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $29.9 | $37.4 | ($7.5) | (20.1%) |
| Trauma | $48.5 | $52.7 | ($4.2) | (8.1%) |
| Total | $78.3 | $90.1 | ($11.8) | (13.1%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.1 | $17.7 | ($0.6) | (3.3%) |
| OUS | $6.7 | $7.0 | ($0.4) | (5.5%) |
| EMEA | $3.0 | $3.1 | ($0.1) | (4.5%) |
| Asia Pacific | $2.6 | $2.5 | $0.1 | 3% |
| Rest of World | $1.1 | $1.4 | ($0.3) | (22.7%) |
| Total | $23.8 | $24.7 | ($1.0) | (3.9%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $55.7 | $64.1 | ($8.4) | (13.1%) |
| OUS | $22.6 | $26.0 | ($3.4) | (13%) |
| EMEA | $9.8 | $11.8 | ($1.9) | (16.3%) |
| Asia Pacific | $8.9 | $9.2 | ($0.3) | (3.6%) |
| Rest of World | $3.9 | $5.1 | ($1.1) | (22.4%) |
| Total | $78.3 | $90.1 | ($11.8) | (13.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $388.6 | |
| Cost of Sales | $147.1 | 37.8% |
| Selling and Admin | $162.4 | 41.8% |
| R & D | $22.2 | 5.7% |
| Other | ($35.7) | (9.2%) |
| Net Earnings | $92.7 | 23.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Integra LifeSciences reported 4Q20 orthopedic revenue of USD $23.8 million, -3.9% vs. 4Q19 with full-year 2020 revenue of $78.3 million, -13.1% vs. 2019. This marks the final quarter for the company’s orthopedics segment, as Integra completed its divestiture to Smith+Nephew in the opening days of 2021.
Integra has faced questions about...
Integra LifeSciences reported 4Q20 orthopedic revenue of USD $23.8 million, -3.9% vs. 4Q19 with full-year 2020 revenue of $78.3 million, -13.1% vs. 2019. This marks the final quarter for the company’s orthopedics segment, as Integra completed its divestiture to Smith+Nephew in the opening days of 2021.
Integra has faced questions about the viability of its orthopedics business since at least 2018. At the time, company leadership liked extremities as a complement to its growing regenerative medicine portfolio. The situation became untenable, ultimately, due to Integra’s relative lack of scale and the pressures of the COVID-19 pandemic. In late 2020, orthopedics accounted for just 6% of Integra’s overall revenue but 15% of its inventory value.
“Turning to portfolio optimization, as I mentioned, our two most transformative actions were the divestiture of our orthopedics business and the acquisition of ACell. The combination of the two of these creates a highly focused tissue technology segment that will be accretive to growth and profitability and will advance our leadership positions across the portfolio.” – Peter Arduini, Integra LifeSciences CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $9.0 | $10.4 | ($1.4) | (13.1%) |
| Trauma | $14.7 | $14.3 | $0.4 | 2.7% |
| Total | $23.8 | $24.7 | ($1.0) | (3.9%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $29.9 | $37.4 | ($7.5) | (20.1%) |
| Trauma | $48.5 | $52.7 | ($4.2) | (8.1%) |
| Total | $78.3 | $90.1 | ($11.8) | (13.1%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.1 | $17.7 | ($0.6) | (3.3%) |
| OUS | $6.7 | $7.0 | ($0.4) | (5.5%) |
| EMEA | $3.0 | $3.1 | ($0.1) | (4.5%) |
| Asia Pacific | $2.6 | $2.5 | $0.1 | 3% |
| Rest of World | $1.1 | $1.4 | ($0.3) | (22.7%) |
| Total | $23.8 | $24.7 | ($1.0) | (3.9%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $55.7 | $64.1 | ($8.4) | (13.1%) |
| OUS | $22.6 | $26.0 | ($3.4) | (13%) |
| EMEA | $9.8 | $11.8 | ($1.9) | (16.3%) |
| Asia Pacific | $8.9 | $9.2 | ($0.3) | (3.6%) |
| Rest of World | $3.9 | $5.1 | ($1.1) | (22.4%) |
| Total | $78.3 | $90.1 | ($11.8) | (13.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $388.6 | |
| Cost of Sales | $147.1 | 37.8% |
| Selling and Admin | $162.4 | 41.8% |
| R & D | $22.2 | 5.7% |
| Other | ($35.7) | (9.2%) |
| Net Earnings | $92.7 | 23.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
