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NuVasive reported 3Q20 orthopedic revenue of USD $295.3 million, +1.5% vs. 3Q19. Strong international performance in the Asia Pacific and select European markets helped the company recover faster than expected. While some spinal hardware product lines grew in the high single digits, declines in legacy cervical products partially offset those gains.
Leadership said that consistent case volumes and results month-to-month throughout the third quarter indicate flattened market volatility, but the market lacks uniformity across regions. NuVasive believes that overall spinal surgery volumes are approaching pre-COVID levels, but not necessarily growing, based on data it collects through its clinical services business.
The Pulse platform remains on track to launch in the summer of 2021, with “a few million” in revenue realized in the back half of that year. NuVasive resumed weekly cadaver labs with surgeons validating the technology modules integrated into the system and testing workflow efficiency. Due to recent hardware updates, the company is required to file a submission with FDA and is working in parallel to secure CE Mark approval in the hopes of a simultaneous launch. NuVasive also shifted resources back to Pulse robotics, with a first in human timeline of 2022.
The company increased its R&D spend by about $1 million each quarter this year as it executes on its “innovation roadmap.” New products launching by the end of 2020 include:
- The C360 cervical portfolio
- An anterior cervical plate system featuring the thinnest plate on the market
- The Cohere XLIF, the first FDA-cleared porous PEEK implant for use in XLIF
- The Cohere XLIF AMS (anti-migration) Plate
“The spine market continued to stabilize throughout the third quarter, and we saw several positive recovery trends continuing. These trends include positive patient sentiment to return to hospital and clinic settings, surgeons working through their patient backlog and the new patient funnel starting to replenish.” – 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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $257.5 | $252.7 | $4.8 | 1.9% |
| Trauma | $13.3 | $12.9 | $0.4 | 3.1% |
| Orthobiologics | $24.5 | $25.3 | ($0.8) | (3%) |
| Total | $295.3 | $290.8 | $4.4 | 1.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $661.2 | $745.5 | ($84.3) | (11.3%) |
| Trauma | $32.6 | $35.1 | ($2.5) | (7.1%) |
| Orthobiologics | $65.0 | $77.2 | ($12.1) | (15.7%) |
| Total | $758.8 | $857.7 | ($98.9) | (11.5%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $232.1 | $233.7 | ($1.6) | (0.7%) |
| OUS | $63.2 | $57.2 | $6.0 | 10.5% |
| EMEA | $41.7 | $37.4 | $4.3 | 11.4% |
| Asia Pacific | $16.4 | $13.7 | $2.7 | 19.7% |
| Rest of World | $5.1 | $6.0 | ($0.9) | (15.8%) |
| Total | $295.3 | $290.8 | $4.4 | 1.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $597.6 | $692.6 | ($95.0) | (13.7%) |
| OUS | $161.2 | $165.1 | ($3.9) | (2.4%) |
| EMEA | $105.2 | $107.9 | ($2.6) | (2.4%) |
| Asia Pacific | $41.4 | $40.1 | $1.2 | 3% |
| Rest of World | $14.6 | $17.1 | ($2.5) | (14.7%) |
| Total | $758.8 | $857.7 | ($98.9) | (11.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $295.3 | |
| Cost of Sales | $84.6 | 28.7% |
| R & D | $146.3 | 49.5% |
| Selling and Admin | $20.4 | 6.9% |
| Other | $38.1 | 12.9% |
| Net Earnings | $5.9 | 2% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
NuVasive reported 3Q20 orthopedic revenue of USD $295.3 million, +1.5% vs. 3Q19. Strong international performance in the Asia Pacific and select European markets helped the company recover faster than expected. While some spinal hardware product lines grew in the high single digits, declines in legacy cervical products partially offset those...
NuVasive reported 3Q20 orthopedic revenue of USD $295.3 million, +1.5% vs. 3Q19. Strong international performance in the Asia Pacific and select European markets helped the company recover faster than expected. While some spinal hardware product lines grew in the high single digits, declines in legacy cervical products partially offset those gains.
Leadership said that consistent case volumes and results month-to-month throughout the third quarter indicate flattened market volatility, but the market lacks uniformity across regions. NuVasive believes that overall spinal surgery volumes are approaching pre-COVID levels, but not necessarily growing, based on data it collects through its clinical services business.
The Pulse platform remains on track to launch in the summer of 2021, with “a few million” in revenue realized in the back half of that year. NuVasive resumed weekly cadaver labs with surgeons validating the technology modules integrated into the system and testing workflow efficiency. Due to recent hardware updates, the company is required to file a submission with FDA and is working in parallel to secure CE Mark approval in the hopes of a simultaneous launch. NuVasive also shifted resources back to Pulse robotics, with a first in human timeline of 2022.
The company increased its R&D spend by about $1 million each quarter this year as it executes on its “innovation roadmap.” New products launching by the end of 2020 include:
- The C360 cervical portfolio
- An anterior cervical plate system featuring the thinnest plate on the market
- The Cohere XLIF, the first FDA-cleared porous PEEK implant for use in XLIF
- The Cohere XLIF AMS (anti-migration) Plate
“The spine market continued to stabilize throughout the third quarter, and we saw several positive recovery trends continuing. These trends include positive patient sentiment to return to hospital and clinic settings, surgeons working through their patient backlog and the new patient funnel starting to replenish.” – 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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $257.5 | $252.7 | $4.8 | 1.9% |
| Trauma | $13.3 | $12.9 | $0.4 | 3.1% |
| Orthobiologics | $24.5 | $25.3 | ($0.8) | (3%) |
| Total | $295.3 | $290.8 | $4.4 | 1.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $661.2 | $745.5 | ($84.3) | (11.3%) |
| Trauma | $32.6 | $35.1 | ($2.5) | (7.1%) |
| Orthobiologics | $65.0 | $77.2 | ($12.1) | (15.7%) |
| Total | $758.8 | $857.7 | ($98.9) | (11.5%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $232.1 | $233.7 | ($1.6) | (0.7%) |
| OUS | $63.2 | $57.2 | $6.0 | 10.5% |
| EMEA | $41.7 | $37.4 | $4.3 | 11.4% |
| Asia Pacific | $16.4 | $13.7 | $2.7 | 19.7% |
| Rest of World | $5.1 | $6.0 | ($0.9) | (15.8%) |
| Total | $295.3 | $290.8 | $4.4 | 1.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $597.6 | $692.6 | ($95.0) | (13.7%) |
| OUS | $161.2 | $165.1 | ($3.9) | (2.4%) |
| EMEA | $105.2 | $107.9 | ($2.6) | (2.4%) |
| Asia Pacific | $41.4 | $40.1 | $1.2 | 3% |
| Rest of World | $14.6 | $17.1 | ($2.5) | (14.7%) |
| Total | $758.8 | $857.7 | ($98.9) | (11.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $295.3 | |
| Cost of Sales | $84.6 | 28.7% |
| R & D | $146.3 | 49.5% |
| Selling and Admin | $20.4 | 6.9% |
| Other | $38.1 | 12.9% |
| Net Earnings | $5.9 | 2% |
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.
