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Medtronic reported FY2Q21 orthopedic revenue of USD $770 million, -3.5% vs. FY2Q20. With its renewed focus on winning market share, the company estimates that its spine business held share overall and made slight gains in the U.S. compared to the prior year’s quarter.
However, Medtronic leadership said that Mazor X placements outpaced Globus Medical’s ExcelsiusGPS by a factor of 1.5. The company is also expanding the capabilities of Mazor X as it received approval for navigated interbodies and the Midas Rex power drill.
Medtronic remains optimistic U.S. healthcare facilities will largely remain open for elective surgeries amid the COVID surge, citing lessons learned in the early stages of the pandemic. The company expects its RTG group to improve sequentially next quarter with low single-digit declines.
“Our capital products tend to be tied to profitable elective procedures like spine, so that helps. The other thing is providing flexible financing. Although there is some pressure on general capital, when that capital is supporting an elective procedure that is profitable and critical to the hospital’s financial recovery, they’re continuing to have these conversations with us.” – Geoffrey Martha, Medtronic 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
| FY 2Q21 | FY 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $637.0 | $659.0 | ($22.0) | (3.3%) |
| Orthobiologics | $133.0 | $139.0 | ($6.0) | (4.3%) |
| Total | $770.0 | $798.0 | ($28.0) | (3.5%) |
| FY 1H21 | FY 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,212.0 | $1,303.1 | ($91.1) | (7%) |
| Orthobiologics | $246.3 | $267.0 | ($20.7) | (7.8%) |
| Total | $1,458.3 | $1,570.1 | ($111.8) | (7.1%) |
Geographic Sales
| FY 2Q21 | FY 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $535.2 | $529.9 | $5.3 | 1% |
| OUS | $234.9 | $268.1 | ($33.3) | (12.4%) |
| EMEA | $123.2 | $137.3 | ($14.1) | (10.2%) |
| Asia Pacific | $104.0 | $110.9 | ($7.0) | (6.3%) |
| Rest of World | $7.7 | $19.9 | ($12.2) | (61.4%) |
| Total | $770.0 | $798.0 | ($28.0) | (3.5%) |
| FY 1H21 | FY 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $999.7 | $1,041.8 | ($42.0) | (4%) |
| OUS | $458.5 | $528.3 | ($69.8) | (13.2%) |
| EMEA | $233.3 | $270.1 | ($36.7) | (13.6%) |
| Asia Pacific | $199.6 | $217.5 | ($17.9) | (8.2%) |
| Rest of World | $25.6 | $40.8 | ($15.2) | (37.3%) |
| Total | $1,458.3 | $1,570.1 | ($111.8) | (7.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,647.0 | |
| Cost of Sales | $2,705.0 | 35.4% |
| Selling and Admin | $2,600.0 | 34% |
| R & D | $639.0 | 8.4% |
| Other | $1,214.0 | 15.9% |
| Net Earnings | $489.0 | 6.4% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported FY2Q21 orthopedic revenue of USD $770 million, -3.5% vs. FY2Q20. With its renewed focus on winning market share, the company estimates that its spine business held share overall and made slight gains in the U.S. compared to the prior year’s quarter.
However, Medtronic leadership said that Mazor X placements outpaced...
Medtronic reported FY2Q21 orthopedic revenue of USD $770 million, -3.5% vs. FY2Q20. With its renewed focus on winning market share, the company estimates that its spine business held share overall and made slight gains in the U.S. compared to the prior year’s quarter.
However, Medtronic leadership said that Mazor X placements outpaced Globus Medical’s ExcelsiusGPS by a factor of 1.5. The company is also expanding the capabilities of Mazor X as it received approval for navigated interbodies and the Midas Rex power drill.
Medtronic remains optimistic U.S. healthcare facilities will largely remain open for elective surgeries amid the COVID surge, citing lessons learned in the early stages of the pandemic. The company expects its RTG group to improve sequentially next quarter with low single-digit declines.
“Our capital products tend to be tied to profitable elective procedures like spine, so that helps. The other thing is providing flexible financing. Although there is some pressure on general capital, when that capital is supporting an elective procedure that is profitable and critical to the hospital’s financial recovery, they’re continuing to have these conversations with us.” – Geoffrey Martha, Medtronic 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
| FY 2Q21 | FY 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $637.0 | $659.0 | ($22.0) | (3.3%) |
| Orthobiologics | $133.0 | $139.0 | ($6.0) | (4.3%) |
| Total | $770.0 | $798.0 | ($28.0) | (3.5%) |
| FY 1H21 | FY 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,212.0 | $1,303.1 | ($91.1) | (7%) |
| Orthobiologics | $246.3 | $267.0 | ($20.7) | (7.8%) |
| Total | $1,458.3 | $1,570.1 | ($111.8) | (7.1%) |
Geographic Sales
| FY 2Q21 | FY 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $535.2 | $529.9 | $5.3 | 1% |
| OUS | $234.9 | $268.1 | ($33.3) | (12.4%) |
| EMEA | $123.2 | $137.3 | ($14.1) | (10.2%) |
| Asia Pacific | $104.0 | $110.9 | ($7.0) | (6.3%) |
| Rest of World | $7.7 | $19.9 | ($12.2) | (61.4%) |
| Total | $770.0 | $798.0 | ($28.0) | (3.5%) |
| FY 1H21 | FY 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $999.7 | $1,041.8 | ($42.0) | (4%) |
| OUS | $458.5 | $528.3 | ($69.8) | (13.2%) |
| EMEA | $233.3 | $270.1 | ($36.7) | (13.6%) |
| Asia Pacific | $199.6 | $217.5 | ($17.9) | (8.2%) |
| Rest of World | $25.6 | $40.8 | ($15.2) | (37.3%) |
| Total | $1,458.3 | $1,570.1 | ($111.8) | (7.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,647.0 | |
| Cost of Sales | $2,705.0 | 35.4% |
| Selling and Admin | $2,600.0 | 34% |
| R & D | $639.0 | 8.4% |
| Other | $1,214.0 | 15.9% |
| Net Earnings | $489.0 | 6.4% |
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.
