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Medtronic reported FY4Q22 orthopedic sales of $804.3 million, +3% compared to FY4Q21. For the full year, the company generated $3.1 billion in orthopedic sales, +5.1% compared to the prior year.
For the fiscal fourth quarter, Medtronic’s low single-digit gains in core spine were offset by a low single-digit decline in biologics. However, sales of Mazor robotics and StealthStation navigation solutions once again broke company records.
Medtronic CEO Geoffrey Martha said, “The capital environment was a bright spot. Our capital is tied to profitable procedures. We had a record number of sales of our StealthStation navigation, O-arm and Mazor. That capital equipment is our differentiating strength in the Spine business and portrays optimism for the future of that business.”
The quarter represented Medtronic’s first full year of its transformation efforts to be bolder, claim market share and simplify the company. The company spun off its renal business and indicated larger moves are in the works.
For the fiscal year 2023, Medtronic expects +5% to +6% organic growth for its Neuroscience division, which houses spine and biologics.
Early challenges in FY23 include supply chain disruption (mostly impacting the Surgical Innovations division), COVID lockdowns in China and impending volume-based purchasing for spine in China. We estimate spine VBP represents an $80 million headwind for Medtronic in FY23.
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 4Q22 | FY 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $710.8 | $685.4 | $25.4 | 3.7% |
| Orthobiologics | $93.5 | $95.4 | ($1.8) | (1.9%) |
| Total | $804.3 | $780.8 | $23.5 | 3% |
| FY 22 | FY 21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $2,652.2 | $2,512.1 | $140.1 | 5.6% |
| Orthobiologics | $480.8 | $467.6 | $13.2 | 2.8% |
| Total | $3,133.0 | $2,979.7 | $153.3 | 5.1% |
Orthopedic Sales by Geography
| FY 4Q22 | FY 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $581.3 | $554.1 | $27.2 | 4.9% |
| OUS | $223.0 | $226.6 | ($3.6) | (1.6%) |
| EMEA | $100.5 | $101.5 | ($1.0) | (0.9%) |
| Asia Pacific | $98.9 | $101.5 | ($2.6) | (2.5%) |
| Rest of World | $23.5 | $23.6 | ($0.1) | (0.4%) |
| Total | $804.3 | $780.8 | $23.5 | 3% |
| FY 22 | FY 21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,228.0 | $2,130.2 | $97.7 | 4.6% |
| OUS | $905.0 | $849.4 | $55.5 | 6.5% |
| EMEA | $422.3 | $403.5 | $18.8 | 4.7% |
| Asia Pacific | $399.3 | $375.3 | $24.0 | 6.4% |
| Rest of World | $83.4 | $70.7 | $12.7 | 17.9% |
| Total | $3,133.0 | $2,979.7 | $153.3 | 5.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $8,089.0 | |
| Cost of Sales | $2,591.0 | 32% |
| Selling and Admin | $2,569.0 | 31.8% |
| R & D | $652.0 | 8.1% |
| Other | $792.0 | 9.8% |
| Net Earnings | $1,485.0 | 18.4% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported FY4Q22 orthopedic sales of $804.3 million, +3% compared to FY4Q21. For the full year, the company generated $3.1 billion in orthopedic sales, +5.1% compared to the prior year.
For the fiscal fourth quarter, Medtronic's low single-digit gains in core spine were offset by a low single-digit decline in biologics. However,...
Medtronic reported FY4Q22 orthopedic sales of $804.3 million, +3% compared to FY4Q21. For the full year, the company generated $3.1 billion in orthopedic sales, +5.1% compared to the prior year.
For the fiscal fourth quarter, Medtronic’s low single-digit gains in core spine were offset by a low single-digit decline in biologics. However, sales of Mazor robotics and StealthStation navigation solutions once again broke company records.
Medtronic CEO Geoffrey Martha said, “The capital environment was a bright spot. Our capital is tied to profitable procedures. We had a record number of sales of our StealthStation navigation, O-arm and Mazor. That capital equipment is our differentiating strength in the Spine business and portrays optimism for the future of that business.”
The quarter represented Medtronic’s first full year of its transformation efforts to be bolder, claim market share and simplify the company. The company spun off its renal business and indicated larger moves are in the works.
For the fiscal year 2023, Medtronic expects +5% to +6% organic growth for its Neuroscience division, which houses spine and biologics.
Early challenges in FY23 include supply chain disruption (mostly impacting the Surgical Innovations division), COVID lockdowns in China and impending volume-based purchasing for spine in China. We estimate spine VBP represents an $80 million headwind for Medtronic in FY23.
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 4Q22 | FY 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $710.8 | $685.4 | $25.4 | 3.7% |
| Orthobiologics | $93.5 | $95.4 | ($1.8) | (1.9%) |
| Total | $804.3 | $780.8 | $23.5 | 3% |
| FY 22 | FY 21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $2,652.2 | $2,512.1 | $140.1 | 5.6% |
| Orthobiologics | $480.8 | $467.6 | $13.2 | 2.8% |
| Total | $3,133.0 | $2,979.7 | $153.3 | 5.1% |
Orthopedic Sales by Geography
| FY 4Q22 | FY 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $581.3 | $554.1 | $27.2 | 4.9% |
| OUS | $223.0 | $226.6 | ($3.6) | (1.6%) |
| EMEA | $100.5 | $101.5 | ($1.0) | (0.9%) |
| Asia Pacific | $98.9 | $101.5 | ($2.6) | (2.5%) |
| Rest of World | $23.5 | $23.6 | ($0.1) | (0.4%) |
| Total | $804.3 | $780.8 | $23.5 | 3% |
| FY 22 | FY 21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,228.0 | $2,130.2 | $97.7 | 4.6% |
| OUS | $905.0 | $849.4 | $55.5 | 6.5% |
| EMEA | $422.3 | $403.5 | $18.8 | 4.7% |
| Asia Pacific | $399.3 | $375.3 | $24.0 | 6.4% |
| Rest of World | $83.4 | $70.7 | $12.7 | 17.9% |
| Total | $3,133.0 | $2,979.7 | $153.3 | 5.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $8,089.0 | |
| Cost of Sales | $2,591.0 | 32% |
| Selling and Admin | $2,569.0 | 31.8% |
| R & D | $652.0 | 8.1% |
| Other | $792.0 | 9.8% |
| Net Earnings | $1,485.0 | 18.4% |
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.
