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Integra LifeSciences reported 4Q19 orthopedic revenue of USD $24.8 million, -1.5% vs. 4Q18, with full-year 2019 revenue of $90.1 million, -0.6% vs. 2018. Company leadership characterized 2019 as a transition year that positioned Integra for future growth. The company’s Orthopedics and Tissue Technologies segment was negatively impacted by supply issues arising from quality remediation changes at its Boston facilities. During the shutdown, Integra decided to extend the downtime to add another production line that will increase facility capacity by 50%. Additionally, between 2018 and 2019, almost all of the company’s orthopedic sales territories underwent realignment. Despite these challenges, Integra’s orthopedic business saw signs of improvement for the first time in several years on the strength of ankle and shoulder replacement sales. Management expects both supply and sales growth to accelerate beginning in 1Q20 and indicated that the company is open to tuck-in acquisitions, particularly within orthopedics.
“In 2019, we stabilized our orthopedic franchise and saw positive momentum in both our ankle and shoulder portfolios which grew double-digits. We expect global performance to improve as we benefit from the combination of new products such as the ankle revision and small post baseplate and expand our established commercial team.” – Integra LifeSciences President and CEO Peter Arduini
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $10.4 | $10.1 | $0.3 | 3.5% |
| Trauma | $14.4 | $15.1 | ($0.7) | (4.7%) |
| Total | $24.8 | $25.2 | ($0.4) | (1.5%) |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $37.4 | $37.0 | $0.4 | 1.1% |
| Trauma | $52.7 | $53.6 | ($0.9) | (1.7%) |
| Total | $90.1 | $90.6 | ($0.5) | (0.6%) |
Geographic Sales
| Geographic Region | 4Q19 | 4Q18 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $17.7 | $17.9 | ($0.1) | (0.8%) |
| Ex-US | $7.1 | $7.3 | ($0.2) | (3.1%) |
| EMEA | $3.1 | $3.4 | ($0.3) | (9.9%) |
| Asia Pacific | $2.5 | $2.5 | $0.1 | 2.6% |
| Rest of World | $1.4 | $1.4 | $0.1 | 4% |
| Total | $24.8 | $25.2 | ($0.4) | (1.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $395.1 | |
| Cost of Sales | $149.5 | 37.8% |
| Selling and Admin | $174.3 | 44.1% |
| R & D | $24.6 | 6.2% |
| Other | $31.4 | 8% |
| Net Earnings | $15.3 | 3.9% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Integra LifeSciences reported 4Q19 orthopedic revenue of USD $24.8 million, -1.5% vs. 4Q18, with full-year 2019 revenue of $90.1 million, -0.6% vs. 2018. Company leadership characterized 2019 as a transition year that positioned Integra for future growth. The company’s Orthopedics and Tissue Technologies segment was negatively impacted by...
Integra LifeSciences reported 4Q19 orthopedic revenue of USD $24.8 million, -1.5% vs. 4Q18, with full-year 2019 revenue of $90.1 million, -0.6% vs. 2018. Company leadership characterized 2019 as a transition year that positioned Integra for future growth. The company’s Orthopedics and Tissue Technologies segment was negatively impacted by supply issues arising from quality remediation changes at its Boston facilities. During the shutdown, Integra decided to extend the downtime to add another production line that will increase facility capacity by 50%. Additionally, between 2018 and 2019, almost all of the company’s orthopedic sales territories underwent realignment. Despite these challenges, Integra’s orthopedic business saw signs of improvement for the first time in several years on the strength of ankle and shoulder replacement sales. Management expects both supply and sales growth to accelerate beginning in 1Q20 and indicated that the company is open to tuck-in acquisitions, particularly within orthopedics.
“In 2019, we stabilized our orthopedic franchise and saw positive momentum in both our ankle and shoulder portfolios which grew double-digits. We expect global performance to improve as we benefit from the combination of new products such as the ankle revision and small post baseplate and expand our established commercial team.” – Integra LifeSciences President and CEO Peter Arduini
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $10.4 | $10.1 | $0.3 | 3.5% |
| Trauma | $14.4 | $15.1 | ($0.7) | (4.7%) |
| Total | $24.8 | $25.2 | ($0.4) | (1.5%) |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $37.4 | $37.0 | $0.4 | 1.1% |
| Trauma | $52.7 | $53.6 | ($0.9) | (1.7%) |
| Total | $90.1 | $90.6 | ($0.5) | (0.6%) |
Geographic Sales
| Geographic Region | 4Q19 | 4Q18 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $17.7 | $17.9 | ($0.1) | (0.8%) |
| Ex-US | $7.1 | $7.3 | ($0.2) | (3.1%) |
| EMEA | $3.1 | $3.4 | ($0.3) | (9.9%) |
| Asia Pacific | $2.5 | $2.5 | $0.1 | 2.6% |
| Rest of World | $1.4 | $1.4 | $0.1 | 4% |
| Total | $24.8 | $25.2 | ($0.4) | (1.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $395.1 | |
| Cost of Sales | $149.5 | 37.8% |
| Selling and Admin | $174.3 | 44.1% |
| R & D | $24.6 | 6.2% |
| Other | $31.4 | 8% |
| Net Earnings | $15.3 | 3.9% |
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.
