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Medtronic reported FY 3Q22 orthopedic sales of $793 million, +7.1% vs. FY 3Q21. Broad-based omicron-related absenteeism peaked in mid-January, and company leadership said that trends improved in February. However, healthcare worker shortages are expected to remain a pressure throughout the year.
The company anticipates that China could institute a volume-based purchasing (VBP) tender for spine and surgical stapling products, although details and timing are uncertain. Medtronic’s total exposure in China for those products is around $85 million, just over 1% of total revenues. Based on its experience with VBP in stents, Medtronic is confident that it can offset some of the impact.
While the company’s spine business performed well, portfolio changes are imminent as the company tries to attain long-term, durable growth. Medtronic’s struggling diabetes business seems like an obvious candidate, but it is not out of the question that spine is impacted by the changes.
CEO Geoffrey Martha said, “We’re looking at the portfolio more intently. We’re looking at our businesses and evaluating them for how well they fit into the portfolio, how well they fit into our strategy, and how do we add value and grow these businesses? We don’t know if these changes will be significant or more limited.”
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| FY 3Q22 | FY 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $658.3 | $614.7 | $43.6 | 7.1% |
| Orthobiologics | $134.6 | $126.0 | $8.7 | 6.9% |
| Total | $793.0 | $740.7 | $52.3 | 7.1% |
| FY 9m22 | FY 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,941.4 | $1,826.7 | $114.7 | 6.3% |
| Orthobiologics | $387.3 | $372.2 | $15.0 | 4% |
| Total | $2,328.7 | $2,198.9 | $129.7 | 5.9% |
Orthopedic Sales by Geography
| FY 3Q22 | FY 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $564.2 | $518.0 | $46.2 | 8.9% |
| OUS | $228.8 | $222.7 | $6.2 | 2.8% |
| EMEA | $108.6 | $107.4 | $1.2 | 1.2% |
| Asia Pacific | $100.7 | $96.3 | $4.4 | 4.6% |
| Rest of World | $19.5 | $19.0 | $0.5 | 2.6% |
| Total | $793.0 | $740.7 | $52.3 | 7.1% |
| FY 9m22 | FY 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,646.7 | $1,576.1 | $70.6 | 4.5% |
| OUS | $682.0 | $622.8 | $59.2 | 9.5% |
| EMEA | $321.7 | $302.0 | $19.8 | 6.6% |
| Asia Pacific | $300.3 | $273.8 | $26.6 | 9.7% |
| Rest of World | $59.9 | $47.1 | $12.8 | 27.2% |
| Total | $2,328.7 | $2,198.9 | $129.7 | 5.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,763.0 | |
| Cost of Sales | $2,459.0 | 31.7% |
| Selling and Admin | $2,561.0 | 33% |
| R & D | $668.0 | 8.6% |
| Other | $592.0 | 7.6% |
| Net Earnings | $1,483.0 | 19.1% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported FY 3Q22 orthopedic sales of $793 million, +7.1% vs. FY 3Q21. Broad-based omicron-related absenteeism peaked in mid-January, and company leadership said that trends improved in February. However, healthcare worker shortages are expected to remain a pressure throughout the year.
The company anticipates that China could...
Medtronic reported FY 3Q22 orthopedic sales of $793 million, +7.1% vs. FY 3Q21. Broad-based omicron-related absenteeism peaked in mid-January, and company leadership said that trends improved in February. However, healthcare worker shortages are expected to remain a pressure throughout the year.
The company anticipates that China could institute a volume-based purchasing (VBP) tender for spine and surgical stapling products, although details and timing are uncertain. Medtronic’s total exposure in China for those products is around $85 million, just over 1% of total revenues. Based on its experience with VBP in stents, Medtronic is confident that it can offset some of the impact.
While the company’s spine business performed well, portfolio changes are imminent as the company tries to attain long-term, durable growth. Medtronic’s struggling diabetes business seems like an obvious candidate, but it is not out of the question that spine is impacted by the changes.
CEO Geoffrey Martha said, “We’re looking at the portfolio more intently. We’re looking at our businesses and evaluating them for how well they fit into the portfolio, how well they fit into our strategy, and how do we add value and grow these businesses? We don’t know if these changes will be significant or more limited.”
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| FY 3Q22 | FY 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $658.3 | $614.7 | $43.6 | 7.1% |
| Orthobiologics | $134.6 | $126.0 | $8.7 | 6.9% |
| Total | $793.0 | $740.7 | $52.3 | 7.1% |
| FY 9m22 | FY 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,941.4 | $1,826.7 | $114.7 | 6.3% |
| Orthobiologics | $387.3 | $372.2 | $15.0 | 4% |
| Total | $2,328.7 | $2,198.9 | $129.7 | 5.9% |
Orthopedic Sales by Geography
| FY 3Q22 | FY 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $564.2 | $518.0 | $46.2 | 8.9% |
| OUS | $228.8 | $222.7 | $6.2 | 2.8% |
| EMEA | $108.6 | $107.4 | $1.2 | 1.2% |
| Asia Pacific | $100.7 | $96.3 | $4.4 | 4.6% |
| Rest of World | $19.5 | $19.0 | $0.5 | 2.6% |
| Total | $793.0 | $740.7 | $52.3 | 7.1% |
| FY 9m22 | FY 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,646.7 | $1,576.1 | $70.6 | 4.5% |
| OUS | $682.0 | $622.8 | $59.2 | 9.5% |
| EMEA | $321.7 | $302.0 | $19.8 | 6.6% |
| Asia Pacific | $300.3 | $273.8 | $26.6 | 9.7% |
| Rest of World | $59.9 | $47.1 | $12.8 | 27.2% |
| Total | $2,328.7 | $2,198.9 | $129.7 | 5.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,763.0 | |
| Cost of Sales | $2,459.0 | 31.7% |
| Selling and Admin | $2,561.0 | 33% |
| R & D | $668.0 | 8.6% |
| Other | $592.0 | 7.6% |
| Net Earnings | $1,483.0 | 19.1% |
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.
