- Growth rate is expected to accelerate in the second half of the fiscal year as some headwinds annualize and new products are launched
- Integration of Titan Spine is “going very well,” with plans to apply Titan’s surface technology to Medtronic’s broad-based spine portfolio
- Core spine sales grew 2% for the quarter
Mazor Update
- The company has declined to provide Mazor unit placement data going forward
- Mazor users have close to a 70% attachment rate to Medtronic implants
- The company has built a new 100-person “SWAT team” within the salesforce to train surgeons, surgical teams and sales reps on Mazor
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| FY 1Q20 | FY 1Q19 | $ Chg | % Chg |
| Spine | $693.4 | $662.4 | $31.1 | 4.7% |
| Orthobiologics | $126.3 | $122.0 | $4.3 | 3.6% |
| Total | $819.8 | $784.4 | $35.4 | 4.5% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| FY 1Q20 | FY 1Q19 | $ Chg | % Chg |
| US | $537.0 | $497.0 | $40.0 | 8.0% |
| Ex-US | $282.8 | $287.4 | -$4.6 | -1.6% |
| Total | $819.8 | $784.4 | $35.4 | 4.5% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows:
| Amt | % of Sales |
| Sales | $7,493.0 | |
| Cost of Goods | -$2,366.0 | 31.6% |
| R & D | -$587.0 | 7.8% |
| Selling and Admin | -$2,543.0 | 33.9% |
| Other | -$1,120.0 | 14.9% |
| Net Earnings | $877.0 | 11.7% |
Sources: Medtronic; ORTHOWORLD estimates
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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