Copy to clipboard 
K2M posted 1Q17 revenue of US $61.9MM, +9.9% vs. 1Q16.
| 1Q17 | 1Q16 | $ Change | % Change | |
| Spine | $59.9 | $54.6 | $5.3 | 9.7% |
| Orthobiologics | $2.0 | $1.7 | $0.3 | 17.2% |
| Total | $61.9 | $56.3 | $5.6 | 9.9% |
Geographic results: U.S. $46.2MM, +9.5% (against a tough comp; 1Q16 U.S. growth was +20.0% vs. 1Q15); ex-U.S. $15.7MM, +11.1%
1Q17 performance highlights:
- Revenue increase primarily driven by new U.S. surgeon users (contributed $8.1MM) and newer U.S. product offerings (increased by $2.1MM), somewhat offset by lower sales in certain ex-U.S. distributor markets such as Japan, reduction in U.K. revenue, decrease in revenue from existing U.S. customer base, changes in price
- Growth-driving products include EVEREST deformity, CASCADIA 3D-printed interbody devices, minimally invasive products, biologics
- Australia revenue included ~$0.3MM in set purchases for EVEREST MI XT and CASCADIA lateral systems
- CASCADIA Lamellar 3D Titanium technologies now used in 14 countries; new 3D interbody products will commence within 2Q
- “3D manufacturing essentially allows our engineers now to think differently about the things that they can make and how they make them.” –Eric Major, President and Chief Executive Officer
- Commenced alpha launch of Balance ACS (BACS) platform of products and services to address the full episode of care and support quality outcomes, including tools for spinal balance in axial, coronal and sagittal planes (platform includes a mobile app)
- After 1Q, announced new 5-year distribution agreement in Australia/New Zealand with current partner, LifeHealthcare
- Also in 2Q, received key product registrations from Japan’s Pharmaceuticals and Medical Devices Agency, including but not limited to MESA, EVEREST, all of the company’s pedicle screws; can now implement a new distribution strategy in Japan (a market which K2M estimates at $300MM); recall that regulatory issues came to light for K2M in 1Q16 in that region
- Continuing to attract new salesforce hires
Sources: K2M, Inc.; ORTHOWORLD estimates
An ORTHOWORLD Observation:
Our estimates have K2M at #7 in market share among the top ten performers for the spine segment (excluding biologic revenue).
K2M posted 1Q17 revenue of US $61.9MM, +9.9% vs. 1Q16.
Q17
Q16
$ Change
% Change
Spine
$59.9
$54.6
$5.3
9.7%
Orthobiologics
$2.0
$1.7
$0.3 ...
K2M posted 1Q17 revenue of US $61.9MM, +9.9% vs. 1Q16.
| 1Q17 | 1Q16 | $ Change | % Change | |
| Spine | $59.9 | $54.6 | $5.3 | 9.7% |
| Orthobiologics | $2.0 | $1.7 | $0.3 | 17.2% |
| Total | $61.9 | $56.3 | $5.6 | 9.9% |
Geographic results: U.S. $46.2MM, +9.5% (against a tough comp; 1Q16 U.S. growth was +20.0% vs. 1Q15); ex-U.S. $15.7MM, +11.1%
1Q17 performance highlights:
- Revenue increase primarily driven by new U.S. surgeon users (contributed $8.1MM) and newer U.S. product offerings (increased by $2.1MM), somewhat offset by lower sales in certain ex-U.S. distributor markets such as Japan, reduction in U.K. revenue, decrease in revenue from existing U.S. customer base, changes in price
- Growth-driving products include EVEREST deformity, CASCADIA 3D-printed interbody devices, minimally invasive products, biologics
- Australia revenue included ~$0.3MM in set purchases for EVEREST MI XT and CASCADIA lateral systems
- CASCADIA Lamellar 3D Titanium technologies now used in 14 countries; new 3D interbody products will commence within 2Q
- “3D manufacturing essentially allows our engineers now to think differently about the things that they can make and how they make them.” –Eric Major, President and Chief Executive Officer
- Commenced alpha launch of Balance ACS (BACS) platform of products and services to address the full episode of care and support quality outcomes, including tools for spinal balance in axial, coronal and sagittal planes (platform includes a mobile app)
- After 1Q, announced new 5-year distribution agreement in Australia/New Zealand with current partner, LifeHealthcare
- Also in 2Q, received key product registrations from Japan’s Pharmaceuticals and Medical Devices Agency, including but not limited to MESA, EVEREST, all of the company’s pedicle screws; can now implement a new distribution strategy in Japan (a market which K2M estimates at $300MM); recall that regulatory issues came to light for K2M in 1Q16 in that region
- Continuing to attract new salesforce hires
Sources: K2M, Inc.; ORTHOWORLD estimates
An ORTHOWORLD Observation:
Our estimates have K2M at #7 in market share among the top ten performers for the spine segment (excluding biologic revenue).
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
