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NuVasive reported 2Q20 orthopedic revenue of USD $203.6 million, -30.3% vs. 2Q19. The company saw monthly volume improvements throughout the quarter but took a more conservative view of recovery prospects for 2H20 compared to its peers. NuVasive’s volumes declined to -70% in April but worked back to low double-digit declines in June. The rate of acceleration has tapered since then, indicating a significant volume lift from rescheduled cases. Some of NuVasive’s surgeon partners also reported that new patient clinical volume levels remain suppressed.
The company delayed the launch of Pulse, its integrated platform of multiple enabling technologies, to the summer of 2021 as a component-level issue precipitated software updates that, in turn, require new FDA approvals. NuVasive has been unable to hire new engineers quickly enough, due in part to COVID, and has shifted resources away from Pulse Robotics to meet the new 2021 timeline. This resource shift will further delay the robotics component to 2022.
The company hopes a bevy of new product launches will partially offset Pulse’s opportunity loss. The Reliant 3D pediatric posterior fixation system launched in 2Q. Several new alpha launches are close to launching, including the next-generation MAS access retractor as well as coherent TLIF-O and TLIF-A products.
“I think some of the June volume and acceleration was truly a lot of the backlog of patients. It’s going to be challenging to get back to the previous year’s volume in Q4, with some of the uncertainties we see, specifically, the impact of the election, unemployment and the potential loss of insurance. It’s challenging for me to see how we get fully back to the previous year’s volume by Q4. I don’t think it’s out of the question, but I think everything would have to go fairly well.” – Chris Barry, NuVasive CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $177.3 | $253.2 | ($75.9) | (30%) |
| Trauma | $9.3 | $11.9 | ($2.6) | (21.7%) |
| Orthobiologics | $17.0 | $27.0 | ($10.0) | (37%) |
| Total | $203.6 | $292.1 | ($88.5) | (30.3%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $403.7 | $492.8 | ($89.1) | (18.1%) |
| Trauma | $19.3 | $22.3 | ($2.9) | (13.1%) |
| Orthobiologics | $40.5 | $51.9 | ($11.4) | (22%) |
| Total | $463.5 | $566.9 | ($103.4) | (18.2%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $161.5 | $236.1 | ($74.7) | (31.6%) |
| OUS | $42.2 | $56.0 | ($13.8) | (24.7%) |
| EMEA | $25.3 | $36.7 | ($11.4) | (31%) |
| Asia Pacific | $13.1 | $13.4 | ($0.4) | (2.7%) |
| Rest of World | $3.8 | $5.9 | ($2.1) | (35.5%) |
| Total | $203.6 | $292.1 | ($88.5) | (30.3%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $365.5 | $458.9 | ($93.5) | (20.4%) |
| OUS | $98.0 | $107.9 | ($9.9) | (9.2%) |
| EMEA | $59.9 | $70.4 | ($10.5) | (14.9%) |
| Asia Pacific | $29.3 | $26.4 | $2.8 | 10.7% |
| Rest of World | $8.8 | $11.1 | ($2.3) | (20.3%) |
| Total | $463.5 | $566.9 | ($103.4) | (18.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $203.6 | |
| Cost of Sales | $80.5 | 39.5% |
| R & D | $126.4 | 62.1% |
| Selling and Admin | $19.4 | 9.5% |
| Other | $27.3 | 13.4% |
| Net Earnings | ($50.0) | (24.6%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
NuVasive reported 2Q20 orthopedic revenue of USD $203.6 million, -30.3% vs. 2Q19. The company saw monthly volume improvements throughout the quarter but took a more conservative view of recovery prospects for 2H20 compared to its peers. NuVasive’s volumes declined to -70% in April but worked back to low double-digit declines in June. The...
NuVasive reported 2Q20 orthopedic revenue of USD $203.6 million, -30.3% vs. 2Q19. The company saw monthly volume improvements throughout the quarter but took a more conservative view of recovery prospects for 2H20 compared to its peers. NuVasive’s volumes declined to -70% in April but worked back to low double-digit declines in June. The rate of acceleration has tapered since then, indicating a significant volume lift from rescheduled cases. Some of NuVasive’s surgeon partners also reported that new patient clinical volume levels remain suppressed.
The company delayed the launch of Pulse, its integrated platform of multiple enabling technologies, to the summer of 2021 as a component-level issue precipitated software updates that, in turn, require new FDA approvals. NuVasive has been unable to hire new engineers quickly enough, due in part to COVID, and has shifted resources away from Pulse Robotics to meet the new 2021 timeline. This resource shift will further delay the robotics component to 2022.
The company hopes a bevy of new product launches will partially offset Pulse’s opportunity loss. The Reliant 3D pediatric posterior fixation system launched in 2Q. Several new alpha launches are close to launching, including the next-generation MAS access retractor as well as coherent TLIF-O and TLIF-A products.
“I think some of the June volume and acceleration was truly a lot of the backlog of patients. It’s going to be challenging to get back to the previous year’s volume in Q4, with some of the uncertainties we see, specifically, the impact of the election, unemployment and the potential loss of insurance. It’s challenging for me to see how we get fully back to the previous year’s volume by Q4. I don’t think it’s out of the question, but I think everything would have to go fairly well.” – Chris Barry, NuVasive CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $177.3 | $253.2 | ($75.9) | (30%) |
| Trauma | $9.3 | $11.9 | ($2.6) | (21.7%) |
| Orthobiologics | $17.0 | $27.0 | ($10.0) | (37%) |
| Total | $203.6 | $292.1 | ($88.5) | (30.3%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $403.7 | $492.8 | ($89.1) | (18.1%) |
| Trauma | $19.3 | $22.3 | ($2.9) | (13.1%) |
| Orthobiologics | $40.5 | $51.9 | ($11.4) | (22%) |
| Total | $463.5 | $566.9 | ($103.4) | (18.2%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $161.5 | $236.1 | ($74.7) | (31.6%) |
| OUS | $42.2 | $56.0 | ($13.8) | (24.7%) |
| EMEA | $25.3 | $36.7 | ($11.4) | (31%) |
| Asia Pacific | $13.1 | $13.4 | ($0.4) | (2.7%) |
| Rest of World | $3.8 | $5.9 | ($2.1) | (35.5%) |
| Total | $203.6 | $292.1 | ($88.5) | (30.3%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $365.5 | $458.9 | ($93.5) | (20.4%) |
| OUS | $98.0 | $107.9 | ($9.9) | (9.2%) |
| EMEA | $59.9 | $70.4 | ($10.5) | (14.9%) |
| Asia Pacific | $29.3 | $26.4 | $2.8 | 10.7% |
| Rest of World | $8.8 | $11.1 | ($2.3) | (20.3%) |
| Total | $463.5 | $566.9 | ($103.4) | (18.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $203.6 | |
| Cost of Sales | $80.5 | 39.5% |
| R & D | $126.4 | 62.1% |
| Selling and Admin | $19.4 | 9.5% |
| Other | $27.3 | 13.4% |
| Net Earnings | ($50.0) | (24.6%) |
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.
