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

by Julie A. Vetalice on April 27, 2017

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*	*1Q16*	*$ Change*	*% Change*
Spine	$209.4	$179.1	$30.4	17.0%
Trauma	$7.6	$3.2	$4.4	136.0%
Orthobiologics	$32.9	$32.8	$0.0	0.1%
Total	*$249.9*	*$215.1*	*$34.8*	*16.2%*

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

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%)

Q17
Q16
$ Change
% Change

Spine
$209.4
$179.1
$30.4 ...

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*	*1Q16*	*$ Change*	*% Change*
Spine	$209.4	$179.1	$30.4	17.0%
Trauma	$7.6	$3.2	$4.4	136.0%
Orthobiologics	$32.9	$32.8	$0.0	0.1%
Total	*$249.9*	*$215.1*	*$34.8*	*16.2%*

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