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Medtronic reported FY 2Q20 revenue of USD $828.7 million, +7.2% vs. FY 2Q19.
- Medtronic reported 6.7% organic growth for their Spine business (excluding $15 million from their Titan Spine acquisition, but including enabling technology reported in their Brain business)
- The company’s Surgical Synergy strategy, combining enabling technology, hardware and biologics into a single procedure, continues to be a growth driver
- Core spine products grew 3% organically, driven by penetration from new products like the T2 Stratosphere, Infinity OCT and Prestige LP systems
- Infuse bone graft experienced double-digit growth, aided by a one-time distributor startup order
- ORTHOWORLD projects Medtronic full calendar year 2019 orthopedic revenue of $3.4 billion, +6.5% vs. 2018
“The results in the spine business, which are the best we’ve seen in a long time, are the direct result of the Surgical Synergy strategy that has meaningfully improved the intrinsic value of our spine franchises. It’s the capital equipment, the Mazor O-Arm navigation, significant placements, sales and pull-through of the spine implants. This has created a great competitive differentiation and nice business model for us.” – Geoffrey Martha, EVP and President of Restorative Therapies Group
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows.
| FY 2Q20 | FY 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $694.5 | $643.7 | $50.8 | 7.9% |
| Orthobiologics | $134.2 | $129.5 | $4.8 | 3.7% |
| Total | $828.7 | $773.2 | $55.5 | 7.2% |
| FY 1H20 | FY 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,387.9 | $1,306.1 | $81.8 | 6.3% |
| Orthobiologics | $260.6 | $251.5 | $9.1 | 3.6% |
| Total | $1,648.5 | $1,557.6 | $90.9 | 5.8% |
ORTHOWORLD estimates orthopedic sales by geographic region as follows.
| FY 2Q20 | FY 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $556.7 | $511.3 | $45.4 | 8.9% |
| Ex-US | $272.1 | $262.0 | $10.1 | 3.9% |
| Total | $828.7 | $773.2 | $55.5 | 7.2% |
Net earnings are as follows.
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,706.0 | |
| Cost of Goods | ($2,394.0) | 31.1% |
| R & D | ($603.0) | 7.8% |
| Selling and Admin | ($2,620.0) | 34% |
| Other | ($718.0) | 9.3% |
| Net Earnings | $1,371.0 | 17.8% |
Unless otherwise noted, all revenue figures are reported in USD $ millions.
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported FY 2Q20 revenue of USD $828.7 million, +7.2% vs. FY 2Q19.
Medtronic reported 6.7% organic growth for their Spine business (excluding $15 million from their Titan Spine acquisition, but including enabling technology reported in their Brain business)
The company’s Surgical Synergy strategy, combining enabling...
Medtronic reported FY 2Q20 revenue of USD $828.7 million, +7.2% vs. FY 2Q19.
- Medtronic reported 6.7% organic growth for their Spine business (excluding $15 million from their Titan Spine acquisition, but including enabling technology reported in their Brain business)
- The company’s Surgical Synergy strategy, combining enabling technology, hardware and biologics into a single procedure, continues to be a growth driver
- Core spine products grew 3% organically, driven by penetration from new products like the T2 Stratosphere, Infinity OCT and Prestige LP systems
- Infuse bone graft experienced double-digit growth, aided by a one-time distributor startup order
- ORTHOWORLD projects Medtronic full calendar year 2019 orthopedic revenue of $3.4 billion, +6.5% vs. 2018
“The results in the spine business, which are the best we’ve seen in a long time, are the direct result of the Surgical Synergy strategy that has meaningfully improved the intrinsic value of our spine franchises. It’s the capital equipment, the Mazor O-Arm navigation, significant placements, sales and pull-through of the spine implants. This has created a great competitive differentiation and nice business model for us.” – Geoffrey Martha, EVP and President of Restorative Therapies Group
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows.
| FY 2Q20 | FY 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $694.5 | $643.7 | $50.8 | 7.9% |
| Orthobiologics | $134.2 | $129.5 | $4.8 | 3.7% |
| Total | $828.7 | $773.2 | $55.5 | 7.2% |
| FY 1H20 | FY 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,387.9 | $1,306.1 | $81.8 | 6.3% |
| Orthobiologics | $260.6 | $251.5 | $9.1 | 3.6% |
| Total | $1,648.5 | $1,557.6 | $90.9 | 5.8% |
ORTHOWORLD estimates orthopedic sales by geographic region as follows.
| FY 2Q20 | FY 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $556.7 | $511.3 | $45.4 | 8.9% |
| Ex-US | $272.1 | $262.0 | $10.1 | 3.9% |
| Total | $828.7 | $773.2 | $55.5 | 7.2% |
Net earnings are as follows.
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,706.0 | |
| Cost of Goods | ($2,394.0) | 31.1% |
| R & D | ($603.0) | 7.8% |
| Selling and Admin | ($2,620.0) | 34% |
| Other | ($718.0) | 9.3% |
| Net Earnings | $1,371.0 | 17.8% |
Unless otherwise noted, all revenue figures are reported in USD $ millions.
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.
