Medtronic Reports FY4Q17 Revenue

by Julie A. Vetalice on May 30, 2017

ORTHOWORLD estimates Medtronic’s FY4Q17 revenue at US $759.0MM, +3.0% vs. FY4Q16. (Quarter ended 4/28/17)

ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.

	FY4Q17	FY4Q16	$ Change	% Change
Spine	$626.0	$617.0	$9.0	1.5%
Orthobiologics	$133.0	$120.0	$13.0	10.8%
Total	$759.0	$737.0	$22.0	3.0%

Sequentially, this overall growth is down slightly from FY3Q17’s increase of +3.5%, but it represents the company’s third consecutive quarter of positive growth—for spine and orthobiologics combined, and for each segment separately. Further, orthobiologics revenue has surpassed $130MM—breaking out of the range of $120MM to $129MM for the first time since the company’s FY2Q15. The FDA approval of additional spine surgery indications for INFUSE appears to be supporting growth there.

Performance highlights:

Core Spine continues to benefit from launches (e.g. Solera Voyager and Elevate expandable cage), Surgical Synergies strategy (cross-sales of hardware/biologics with navigation, robotics and imaging equipment) and “Speed to Scale” (launching product rapidly and with all sets/all training available at the same time for the entire market)
- “We used to [launch products] over nine quarters; we’re now doing it over two.”—Geoff Martha, President, Restorative Therapies Group
Will communicate more about its orthopaedic program this year
Ortho and spine penetration driving growth of Aquamantys system for bleeding control
Strong U.S. balloon kyphoplasty performance driven by pull-through from OsteoCool radiofrequency ablation product
Continues to expect InductOs rhBMP-2 EU shipping hold to resolve for return to market by mid-FY18
Following close of quarter, regional press reported that the Memphis spinal unit is trimming its headcount, though details were sparse (such as number and type of employees affected); noted ~1,300 employees in the Memphis area as of last year

Source: Medtronic plc; ORTHOWORLD estimates; The Commercial Appeal

ORTHOWORLD estimates Medtronic’s FY4Q17 revenue at US $759.0MM, +3.0% vs. FY4Q16. (Quarter ended 4/28/17)

ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.

FY4Q17
FY4Q16
$ Change
% Change

...

ORTHOWORLD estimates Medtronic’s FY4Q17 revenue at US $759.0MM, +3.0% vs. FY4Q16. (Quarter ended 4/28/17)

ORTHOWORLD estimates spine and orthobiologic segment sales and growth on an as-reported basis, as follows.

	FY4Q17	FY4Q16	$ Change	% Change
Spine	$626.0	$617.0	$9.0	1.5%
Orthobiologics	$133.0	$120.0	$13.0	10.8%
Total	$759.0	$737.0	$22.0	3.0%

Performance highlights:

Core Spine continues to benefit from launches (e.g. Solera Voyager and Elevate expandable cage), Surgical Synergies strategy (cross-sales of hardware/biologics with navigation, robotics and imaging equipment) and “Speed to Scale” (launching product rapidly and with all sets/all training available at the same time for the entire market)
- “We used to [launch products] over nine quarters; we’re now doing it over two.”—Geoff Martha, President, Restorative Therapies Group
Will communicate more about its orthopaedic program this year
Ortho and spine penetration driving growth of Aquamantys system for bleeding control
Strong U.S. balloon kyphoplasty performance driven by pull-through from OsteoCool radiofrequency ablation product
Continues to expect InductOs rhBMP-2 EU shipping hold to resolve for return to market by mid-FY18
Following close of quarter, regional press reported that the Memphis spinal unit is trimming its headcount, though details were sparse (such as number and type of employees affected); noted ~1,300 employees in the Memphis area as of last year

Source: Medtronic plc; ORTHOWORLD estimates; The Commercial Appeal