Copy to clipboard 
NuVasive (NUVA) reported 4Q17 revenue of US $271.7MM, +0.2% vs. 4Q16, and 2017 revenue of $1,029.5MM, +7.0% vs. 2016. As forecasted, the company surpassed the milestone of annual revenue over $1 billion.
ORTHOWORLD estimates for segment growth follow.
| 4Q17 | 4Q16 | $ Change | % Change | |
| Spine | $234.5 | $228.8 | $5.7 | 2.5% |
| Trauma | $9.7 | $10.9 | -$1.2 | -10.6% |
| Orthobiologics | $27.5 | $31.5 | -$4.0 | -12.7% |
| Total | $271.7 | $271.1 | $0.6 | 0.2% |
| 2017 | 2016 | $ Change | % Change | |
| Spine | $883.8 | $802.0 | $81.8 | 10.2% |
| Trauma | $34.9 | $31.0 | $3.9 | 12.6% |
| Orthobiologics | $110.8 | $129.0 | -$18.2 | -14.1% |
| Total | $1,029.6 | $962.1 | $67.5 | 7.0% |
As noted last month, the company achieved the top-end of its full-year guidance that was revised in 3Q17 to reflect 3Q results, lingering effects from the hurricane in Puerto Rico and continued slow growth of U.S. procedure volumes.
Year-over-year growth was driven by international sales. For 2017, NUVA reported U.S. revenue of $853.3MM, +2.8% vs. 2016 and ex-U.S. revenue of $176.3MM, +33.1% (excludes Puerto Rico). Across all ex-U.S. regions, growth posted in excess of +20%; success was reported in XLIF sales, going direct in key markets and general length of time in building a global footprint.
U.S. sales were supported by hardware and acquisitions, though gains were offset by price pressure and product sales mix. Products buoying growth included ReLine posterior fixation and newer items in the bag, like XLIF Modulus and TLX and MLX expandable cages.
Competition and market dynamics continue to affect biologics. Under new leadership, the company has re-entered several lost accounts with products spanning the entire obio portfolio, and cost structure negotiations are happening with suppliers. A turnaround is anticipated in 2H18.
An expansion of lateral procedure offerings will support growth in 2018, as XLIF Crestline, lateral ALIF and Lateral MAS Fixation are enabling single-position surgery—in other words, reducing the frequency with which a patient must be moved.
The late-2017 acquisition of Vertera Spine is supporting a 2H18 launch of porous architecture interbody devices in PEEK and titanium. The early-2018 acquisition of SafePassage positions NuVasive Clinical Services as the largest provider of outsourced intra-op neurophysiological monitoring services in the U.S., and the only spine company with dedicated neuromonitoring.
A particularly compelling launch, coming in September at NASS, is a Surgical Intelligence Platform with monitoring, planning, imaging, 2D/3D navigation and automation, that may or may not include a robotic arm. The platform is a significant step from a focus on products to one of systems-based end-to-end solutions for physician and patient.
The West Carrollton manufacturing facility was complete at the end of 2017. The financial benefits of in-house manufacturing are expected to hit in mid-2018.
For 2018, leadership is guiding to revenue in the range of $1,095.0MM to $1,105.0MM. Biologics will remain under pressure for the near-term, and U.S. spine procedure volumes are expected to remain flat.
Sources: NuVasive, Inc.; ORTHOWORLD estimates
NuVasive (NUVA) reported 4Q17 revenue of US $271.7MM, +0.2% vs. 4Q16, and 2017 revenue of $1,029.5MM, +7.0% vs. 2016. As forecasted, the company surpassed the milestone of annual revenue over $1 billion.
ORTHOWORLD estimates for segment growth follow.
Q17
Q16
$...
NuVasive (NUVA) reported 4Q17 revenue of US $271.7MM, +0.2% vs. 4Q16, and 2017 revenue of $1,029.5MM, +7.0% vs. 2016. As forecasted, the company surpassed the milestone of annual revenue over $1 billion.
ORTHOWORLD estimates for segment growth follow.
| 4Q17 | 4Q16 | $ Change | % Change | |
| Spine | $234.5 | $228.8 | $5.7 | 2.5% |
| Trauma | $9.7 | $10.9 | -$1.2 | -10.6% |
| Orthobiologics | $27.5 | $31.5 | -$4.0 | -12.7% |
| Total | $271.7 | $271.1 | $0.6 | 0.2% |
| 2017 | 2016 | $ Change | % Change | |
| Spine | $883.8 | $802.0 | $81.8 | 10.2% |
| Trauma | $34.9 | $31.0 | $3.9 | 12.6% |
| Orthobiologics | $110.8 | $129.0 | -$18.2 | -14.1% |
| Total | $1,029.6 | $962.1 | $67.5 | 7.0% |
As noted last month, the company achieved the top-end of its full-year guidance that was revised in 3Q17 to reflect 3Q results, lingering effects from the hurricane in Puerto Rico and continued slow growth of U.S. procedure volumes.
Year-over-year growth was driven by international sales. For 2017, NUVA reported U.S. revenue of $853.3MM, +2.8% vs. 2016 and ex-U.S. revenue of $176.3MM, +33.1% (excludes Puerto Rico). Across all ex-U.S. regions, growth posted in excess of +20%; success was reported in XLIF sales, going direct in key markets and general length of time in building a global footprint.
U.S. sales were supported by hardware and acquisitions, though gains were offset by price pressure and product sales mix. Products buoying growth included ReLine posterior fixation and newer items in the bag, like XLIF Modulus and TLX and MLX expandable cages.
Competition and market dynamics continue to affect biologics. Under new leadership, the company has re-entered several lost accounts with products spanning the entire obio portfolio, and cost structure negotiations are happening with suppliers. A turnaround is anticipated in 2H18.
An expansion of lateral procedure offerings will support growth in 2018, as XLIF Crestline, lateral ALIF and Lateral MAS Fixation are enabling single-position surgery—in other words, reducing the frequency with which a patient must be moved.
The late-2017 acquisition of Vertera Spine is supporting a 2H18 launch of porous architecture interbody devices in PEEK and titanium. The early-2018 acquisition of SafePassage positions NuVasive Clinical Services as the largest provider of outsourced intra-op neurophysiological monitoring services in the U.S., and the only spine company with dedicated neuromonitoring.
A particularly compelling launch, coming in September at NASS, is a Surgical Intelligence Platform with monitoring, planning, imaging, 2D/3D navigation and automation, that may or may not include a robotic arm. The platform is a significant step from a focus on products to one of systems-based end-to-end solutions for physician and patient.
The West Carrollton manufacturing facility was complete at the end of 2017. The financial benefits of in-house manufacturing are expected to hit in mid-2018.
For 2018, leadership is guiding to revenue in the range of $1,095.0MM to $1,105.0MM. Biologics will remain under pressure for the near-term, and U.S. spine procedure volumes are expected to remain flat.
Sources: NuVasive, Inc.; ORTHOWORLD estimates
You’ve reached your limit.
We’re glad you’re finding value in our content — and we’d love for you to keep going.
Subscribe now for unlimited access to orthopedic business intelligence.
JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
