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ORTHOWORLD estimates Medtronic’s (MDT) FY2Q18 revenue at US $739.0MM, -0.4% vs. FY2Q17 (quarter ended 10/27/17). The company posted YTD revenue of $2,226.0MM, +1.2% vs. the prior year’s period.
ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.
| 3Q17 | 3Q16 | $ Change | % Change | |
| Spine | $606.0 | $613.0 | -$7.0 | -1.1% |
| Orthobiologics | $133.0 | $129.0 | $4.0 | 3.1% |
| Total | $739.0 | $742.0 | -$3.0 | -0.4% |
| 9Mo17 | 9Mo16 | $ Change | % Change | |
| Spine | $1,840.0 | $1,828.0 | $12.0 | 0.7% |
| Orthobiologics | $386.0 | $372.0 | $14.0 | 3.8% |
| Total | $2,226.0 | $2,200.0 | $26.0 | 1.2% |
Echoing others in the segment, leadership cited a decline in the spine market to the tune of somewhere between “flat” to “slightly down.” However, high exposure to markets outside of the U.S. is helping to keep overall spine revenue from falling too far.
Spine revenue declined in light of the impact of weather and what leadership termed a “continued modest deceleration in the global spine market.” However, excluding the effects of Hurricane Maria—which one analyst estimated at $10MM—the company’s self-reported Core Spine business was supported by “Speed-to-Scale” product launches and the tailwinds gained from pairing enabling technologies (imaging, navigation, powered instruments, nerve monitoring and Mazor) with spine implants. The Prestige LP disc continues to drive cervical arthroplasty revenue, as well.
Of note, CEO Omar Ishrak mentioned that the combination of enabling technologies plus spine revenue yielded +2% growth in this quarter and a “more relevant comparison” of spine results against numerous competitors—such as Globus and NuVasive. (It would be useful if MDT would continue to report like that.)
Commenting on the value of biologics, leadership feels that it’s premature to suggest that their use should be dismissed. (For instance, long-term, NuVasive has stated an interest in lowering the need for biologics through use of advanced materials engineering for implants.) In fact, MDT is investing $90MM in clinical research over several years to support INFUSE data.
That said, MDT is launching its first porous titanium interbody cage, even though “there is a lot more research that needs to be done on the impact of surface technologies,” per Bryan Hanson, President of MDT’s Minimally Invasive Therapies Group.
Source: Medtronic plc; ORTHOWORLD Inc. estimates
ORTHOWORLD estimates Medtronic’s (MDT) FY2Q18 revenue at US $739.0MM, -0.4% vs. FY2Q17 (quarter ended 10/27/17). The company posted YTD revenue of $2,226.0MM, +1.2% vs. the prior year’s period.
ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.
Q17 ...
ORTHOWORLD estimates Medtronic’s (MDT) FY2Q18 revenue at US $739.0MM, -0.4% vs. FY2Q17 (quarter ended 10/27/17). The company posted YTD revenue of $2,226.0MM, +1.2% vs. the prior year’s period.
ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.
| 3Q17 | 3Q16 | $ Change | % Change | |
| Spine | $606.0 | $613.0 | -$7.0 | -1.1% |
| Orthobiologics | $133.0 | $129.0 | $4.0 | 3.1% |
| Total | $739.0 | $742.0 | -$3.0 | -0.4% |
| 9Mo17 | 9Mo16 | $ Change | % Change | |
| Spine | $1,840.0 | $1,828.0 | $12.0 | 0.7% |
| Orthobiologics | $386.0 | $372.0 | $14.0 | 3.8% |
| Total | $2,226.0 | $2,200.0 | $26.0 | 1.2% |
Echoing others in the segment, leadership cited a decline in the spine market to the tune of somewhere between “flat” to “slightly down.” However, high exposure to markets outside of the U.S. is helping to keep overall spine revenue from falling too far.
Spine revenue declined in light of the impact of weather and what leadership termed a “continued modest deceleration in the global spine market.” However, excluding the effects of Hurricane Maria—which one analyst estimated at $10MM—the company’s self-reported Core Spine business was supported by “Speed-to-Scale” product launches and the tailwinds gained from pairing enabling technologies (imaging, navigation, powered instruments, nerve monitoring and Mazor) with spine implants. The Prestige LP disc continues to drive cervical arthroplasty revenue, as well.
Of note, CEO Omar Ishrak mentioned that the combination of enabling technologies plus spine revenue yielded +2% growth in this quarter and a “more relevant comparison” of spine results against numerous competitors—such as Globus and NuVasive. (It would be useful if MDT would continue to report like that.)
Commenting on the value of biologics, leadership feels that it’s premature to suggest that their use should be dismissed. (For instance, long-term, NuVasive has stated an interest in lowering the need for biologics through use of advanced materials engineering for implants.) In fact, MDT is investing $90MM in clinical research over several years to support INFUSE data.
That said, MDT is launching its first porous titanium interbody cage, even though “there is a lot more research that needs to be done on the impact of surface technologies,” per Bryan Hanson, President of MDT’s Minimally Invasive Therapies Group.
Source: Medtronic plc; ORTHOWORLD Inc. estimates
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
