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NuVasive reported 2Q17 revenue of US $260.6MM, +10.3% vs. 2Q16, and 1H17 revenue of $510.4MM, +13.1% vs. 1H16. Estimated segment sales and growth follow.
| 2Q17 | 2Q16 | $ Change | % Change | |
| Spine | $220.8 | $194.8 | $26.0 | 13.3% |
| Trauma | $8.8 | $8.4 | $0.4 | 4.8% |
| Orthobiologics | $31.0 | $33.0 | -$2.0 | -6.1% |
| Total | $260.6 | $236.2 | $24.4 | 10.3% |
| 1H17 | 1H16 | $ Change | % Change | |
| Spine | $430.2 | $373.9 | $56.3 | 15.1% |
| Trauma | $16.4 | $11.6 | $4.8 | 41.2% |
| Orthobiologics | $63.8 | $65.8 | -$2.0 | -3.0% |
| Total | $510.4 | $451.3 | $59.1 | 13.1% |
2Q17 Geographic growth: U.S. $217.1MM, +8.2%; ex-U.S. $43.4MM, +21.9%
Organizational update:
- Commenced changes to align strategy, product development and marketing; integrate global commercial sales functions and drive efficiencies by combining manufacturing, supply chain, IT and RA/QA oversight as the company heads for $1BB+ in 2017 revenue
- Matt Link appointed EVP, Strategy, Technology and Corporate Development (newly-created position)
- Skip Kiil appointed EVP Global Commercial as company seeks to double ex-U.S. market share and further growth U.S. share
- Stephen Rozow appointed VP Global Process Transformation (includes IT and RA/QA oversight, as well as his present global ops responsibilities)
- Jason Hannon, President and Chief Operating Officer, stepped down
- Also—unrelated to these updates—Quentin Blackford has resigned as Chief Financial Officer
Performance highlights:
- Growth driven by strong ex-U.S. sales, new surgeon volume increase of 20% year-over-year
- Sales impacted by inability to collect revenue from an entire procedure—for instance, selling ReLine posterior fixation, but not a cage or biologics for that procedure
- Biologics also potentially affected by sales of Medtronic’s INFUSE; product development underway to address that
- High billing backlog caused by relocation of a Biotronic department affected estimated reimbursement that could be designated as revenue, creating a loss of about $1MM
- 2H U.S. revenue should be bolstered by new products (such as ReLine on the iGA platform, MLX and TLX expandable lumbar interbody fusion cages), new surgeons and sales reps rolling off non-competes
- Launched ReLine trauma spinal fracture repair system, including the pediatric-specific ReLine Small Stature for use with MAGEC magnetically-adjustable rods
- Commenced clinical validation of 3D-printed Modulus XLIF fully porous titanium implant in preparation for full launch during 2017; additive techniques allow control over the material’s stiffness—to more closely mimic bone (ACDF, ALIF and TLIF devices are planned)
- By end of 3Q, will launch LessRay radiation-reducing/image-enhancing software, focusing on use in spine but may address additional markets over time
- Received a subpoena from OIG seeking documents from 2014 to mid-2017 regarding possible improper claims submitted to Medicare/Medicaid; not expected to materially affect the revenue stream
- All-digital 180K-sq.-ft. manufacturing headquarters now online in Ohio; produced 160K parts in 2Q (double that of 1Q)
Sources: NuVasive, Inc.; ORTHOWORLD estimates
NuVasive reported 2Q17 revenue of US $260.6MM, +10.3% vs. 2Q16, and 1H17 revenue of $510.4MM, +13.1% vs. 1H16. Estimated segment sales and growth follow.
Q17
Q16
$ Change
% Change
Spine
$220.8 ...
NuVasive reported 2Q17 revenue of US $260.6MM, +10.3% vs. 2Q16, and 1H17 revenue of $510.4MM, +13.1% vs. 1H16. Estimated segment sales and growth follow.
| 2Q17 | 2Q16 | $ Change | % Change | |
| Spine | $220.8 | $194.8 | $26.0 | 13.3% |
| Trauma | $8.8 | $8.4 | $0.4 | 4.8% |
| Orthobiologics | $31.0 | $33.0 | -$2.0 | -6.1% |
| Total | $260.6 | $236.2 | $24.4 | 10.3% |
| 1H17 | 1H16 | $ Change | % Change | |
| Spine | $430.2 | $373.9 | $56.3 | 15.1% |
| Trauma | $16.4 | $11.6 | $4.8 | 41.2% |
| Orthobiologics | $63.8 | $65.8 | -$2.0 | -3.0% |
| Total | $510.4 | $451.3 | $59.1 | 13.1% |
2Q17 Geographic growth: U.S. $217.1MM, +8.2%; ex-U.S. $43.4MM, +21.9%
Organizational update:
- Commenced changes to align strategy, product development and marketing; integrate global commercial sales functions and drive efficiencies by combining manufacturing, supply chain, IT and RA/QA oversight as the company heads for $1BB+ in 2017 revenue
- Matt Link appointed EVP, Strategy, Technology and Corporate Development (newly-created position)
- Skip Kiil appointed EVP Global Commercial as company seeks to double ex-U.S. market share and further growth U.S. share
- Stephen Rozow appointed VP Global Process Transformation (includes IT and RA/QA oversight, as well as his present global ops responsibilities)
- Jason Hannon, President and Chief Operating Officer, stepped down
- Also—unrelated to these updates—Quentin Blackford has resigned as Chief Financial Officer
Performance highlights:
- Growth driven by strong ex-U.S. sales, new surgeon volume increase of 20% year-over-year
- Sales impacted by inability to collect revenue from an entire procedure—for instance, selling ReLine posterior fixation, but not a cage or biologics for that procedure
- Biologics also potentially affected by sales of Medtronic’s INFUSE; product development underway to address that
- High billing backlog caused by relocation of a Biotronic department affected estimated reimbursement that could be designated as revenue, creating a loss of about $1MM
- 2H U.S. revenue should be bolstered by new products (such as ReLine on the iGA platform, MLX and TLX expandable lumbar interbody fusion cages), new surgeons and sales reps rolling off non-competes
- Launched ReLine trauma spinal fracture repair system, including the pediatric-specific ReLine Small Stature for use with MAGEC magnetically-adjustable rods
- Commenced clinical validation of 3D-printed Modulus XLIF fully porous titanium implant in preparation for full launch during 2017; additive techniques allow control over the material’s stiffness—to more closely mimic bone (ACDF, ALIF and TLIF devices are planned)
- By end of 3Q, will launch LessRay radiation-reducing/image-enhancing software, focusing on use in spine but may address additional markets over time
- Received a subpoena from OIG seeking documents from 2014 to mid-2017 regarding possible improper claims submitted to Medicare/Medicaid; not expected to materially affect the revenue stream
- All-digital 180K-sq.-ft. manufacturing headquarters now online in Ohio; produced 160K parts in 2Q (double that of 1Q)
Sources: NuVasive, Inc.; ORTHOWORLD estimates
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
