New product introductions and a dedicated orthopedics sales channel have Integra LifeSciences positioned for mid-single digit growth in the second half of 2019.
- Orthopedic sales impacted by case scheduling delays in high volume accounts.
- While still negative, sales of lower extremity fixation products increased sequentially to help stabilize that business, driven largely by the Panta 2 Nail.
- Growth in joint replacement driven by ankle and shoulder products.
- Company leadership expects mid-single-digit growth in orthopedics in the second half of the year, due to the newly established dedicated sales channel.
- To achieve growth acceleration in the second half, the company has increased manufacturing capacity and resources allotted to entering new markets.
Segment sales and growth on an as-reported basis are as follows ($MM).
| 2Q19 | 2Q18 | $ Chg | % Chg |
| Joint Replacement Extremities | $9.1 | $9.0 | $0.1 | 1.3% |
| Trauma | $12.6 | $13.0 | -$0.4 | -2.8% |
| Total | $21.8 | $22.0 | -$0.3 | -1.2% |
| 1H19 | 1H18 | $ Chg | % Chg |
| Joint Replacement Extremities | $18.2 | $18.1 | $0.1 | 0.7% |
| Trauma | $26.2 | $26.6 | -$0.3 | -1.3% |
| Total | $44.4 | $44.7 | -$0.2 | -0.5% |
Sales by geographic region are as follows ($MM).
| Geographic Region | 2Q19 | 2Q18 | $ Chg | % Chg |
| US | $15.3 | $15.2 | $0.1 | 0.6% |
| Ex-US | $6.4 | $6.8 | -$0.4 | -5.2% |
| EMEA | $3.2 | $3.2 | $0.0 | -1.2% |
| Asia Pacific | $2.2 | $2.3 | -$0.1 | -3.6% |
| Rest of World | $1.1 | $1.3 | -$0.2 | -17.6% |
| Total | $21.8 | $22.0 | -$0.3 | -1.2% |
Net earnings, inclusive of all revenue, are as follows ($MM).
| 2Q19 | Amt | % of Sales |
| Sales | $383.6 | |
| Cost of Sales | -$143.7 | 37.4% |
| Selling and Admin | -$165.4 | 43.1% |
| R & D | -$17.6 | 4.6% |
| Other | -$27.2 | 7.1% |
| Net Earnings | $29.7 | 7.8% |
Sources: Integra LifeSciences; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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