NuVasive Reports 1Q17 Revenue Growth of +16.2% vs. 1Q16

NuVasive reported 1Q17 revenue of US $249.9MM, +16.2% vs. 1Q16. (U.S. $214.2MM, +13.7%; ex-U.S. $35.6MM, +33.3%)

1Q17 performance highlights:

• Revenue growth supported by above-market performance in all ex-U.S. regions, Integrated Global Alignment (iGA) platform (which in turn drives growth for Archon plate, VuePoint II fixation), Biotronic acquisition; continuing to gain share with NuVasive Specialized Orthopedics (NSO’s MAGEC and PRECICE—the latter experiencing rapid growth, as reflected by ORTHOWORLD’s estimates for trauma revenue)
• Hardware growth buoyed by continued adoption of MIS spinal procedures/procedure volume increase
• Price pressure in orthobiologics at about -3%
• Revenue from 2016 acquisitions accounted for ~5% of increase in spinal hardware revenue
• Asia Pacific benefited from 1Q17 reintroduction of XLIF to Japan
• Latin America returned to meaningful growth on increased volumes in Brazil
• Continuing to build up pediatric salesforce
• In 1Q and 2Q, launched MLX and TLX expandable lumbar interbody fusion devices, alpha-launched UNYTE (the ex-fix market disruptor, expecting full launch in 2H17), RELINE spinal trauma system, alpha-launched Modulus XLIF fully porous titanium implant, built with additive manufacturing
• After quarter’s close, acquired sales agent for NSO in France and Germany—now selling direct there
• 2017 growth will primarily derive from share gains in the shift toward MIS, as well as new products/services and ex-U.S. growth; orthobiologics revenue expected to be relatively flat year over year
• Manufacturing update: in 1Q, doubled output in West Carrolton, Ohio facility from 4Q16, producing >80,000 pieces; exited 2016 at ~40% of potential production, expecting to be at ~60% by end of 2017 and 100% by end of 2018
• Corporate development pipeline includes strategic investments, acquisitions, partnerships focusing on geographic expansion, clinically-differentiated surgical tools, imaging, navigation

Source: NuVasive, Inc.; ORTHOWORLD estimates