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Orthofix reported orthopedic revenue of USD $73.1 million, -36.9% vs. 2Q19. COVID significantly impacted the company’s second-quarter, and while sequential month trends improved, Orthofix exited June down -15%. Sales in July declined -10% versus the prior year. The deformity correction focus of the company’s trauma portfolio acted as a liability due to the electiveness of those procedures. Sales of the M6-C artificial disc totaled $3.6 million in the quarter and keep the company on track to hit its pre-COVID target of $15 million for 2020.
In the quarter, Orthofix obtained FDA clearance for the 3D-printed Firebird SI Fusion System and the JuniOrtho Plating System, an internal fixation system to treat advanced deformity and trauma of the lower extremities for pediatric patients. JuniOrtho Plating is complemented by preoperative planning software to assist the surgeon in implant size and placement selection.
“We believe it is too early to predict a return to normalcy in the near term. The unpredictable nature of our current environment includes the comfort level of patients returning to clinics, continuing localized shutdowns, increased unemployment lead to a lack of medical coverage and hospital capacity constraints.” – Jon Serbousek, Orthofix President and 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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $18.6 | $23.2 | ($4.6) | (19.9%) |
| Trauma | $15.0 | $25.8 | ($10.7) | (41.7%) |
| Orthobiologics | $11.1 | $16.7 | ($5.6) | (33.6%) |
| Other (Bone Growth Therapies) | $28.4 | $50.1 | ($21.7) | (43.4%) |
| Total | $73.1 | $115.9 | ($42.7) | (36.9%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $41.5 | $46.1 | ($4.6) | (10%) |
| Trauma | $37.5 | $49.0 | ($11.4) | (23.3%) |
| Orthobiologics | $25.1 | $32.5 | ($7.4) | (22.8%) |
| Other (Bone Growth Therapies) | $73.8 | $97.4 | ($23.6) | (24.2%) |
| Total | $178.0 | $225.0 | ($47.0) | (20.9%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $59.3 | $91.4 | ($32.2) | (35.2%) |
| OUS | $13.9 | $24.4 | ($10.5) | (43.2%) |
| Europe | $5.8 | $10.5 | ($4.7) | (44.8%) |
| Other | $8.0 | $13.9 | ($5.8) | (42%) |
| Total | $73.1 | $115.9 | ($42.7) | (36.9%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $142.4 | $177.6 | ($35.1) | (19.8%) |
| OUS | $35.5 | $47.4 | ($11.9) | (25%) |
| Europe | $15.4 | $20.5 | ($5.1) | (25%) |
| Other | $20.2 | $26.9 | ($6.7) | (25.1%) |
| Total | $178.0 | $225.0 | ($47.0) | (20.9%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $73.1 | |
| Cost of Sales | $23.2 | 31.7% |
| General and Admin | $15.0 | 20.6% |
| Selling and Marketing | $43.5 | 59.5% |
| R & D | $8.8 | 12% |
| Other | $1.1 | 1.5% |
| Net Earnings | ($18.4) | (25.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Orthofix reported orthopedic revenue of USD $73.1 million, -36.9% vs. 2Q19. COVID significantly impacted the company's second-quarter, and while sequential month trends improved, Orthofix exited June down -15%. Sales in July declined -10% versus the prior year. The deformity correction focus of the company's trauma portfolio acted as a...
Orthofix reported orthopedic revenue of USD $73.1 million, -36.9% vs. 2Q19. COVID significantly impacted the company’s second-quarter, and while sequential month trends improved, Orthofix exited June down -15%. Sales in July declined -10% versus the prior year. The deformity correction focus of the company’s trauma portfolio acted as a liability due to the electiveness of those procedures. Sales of the M6-C artificial disc totaled $3.6 million in the quarter and keep the company on track to hit its pre-COVID target of $15 million for 2020.
In the quarter, Orthofix obtained FDA clearance for the 3D-printed Firebird SI Fusion System and the JuniOrtho Plating System, an internal fixation system to treat advanced deformity and trauma of the lower extremities for pediatric patients. JuniOrtho Plating is complemented by preoperative planning software to assist the surgeon in implant size and placement selection.
“We believe it is too early to predict a return to normalcy in the near term. The unpredictable nature of our current environment includes the comfort level of patients returning to clinics, continuing localized shutdowns, increased unemployment lead to a lack of medical coverage and hospital capacity constraints.” – Jon Serbousek, Orthofix President and 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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $18.6 | $23.2 | ($4.6) | (19.9%) |
| Trauma | $15.0 | $25.8 | ($10.7) | (41.7%) |
| Orthobiologics | $11.1 | $16.7 | ($5.6) | (33.6%) |
| Other (Bone Growth Therapies) | $28.4 | $50.1 | ($21.7) | (43.4%) |
| Total | $73.1 | $115.9 | ($42.7) | (36.9%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $41.5 | $46.1 | ($4.6) | (10%) |
| Trauma | $37.5 | $49.0 | ($11.4) | (23.3%) |
| Orthobiologics | $25.1 | $32.5 | ($7.4) | (22.8%) |
| Other (Bone Growth Therapies) | $73.8 | $97.4 | ($23.6) | (24.2%) |
| Total | $178.0 | $225.0 | ($47.0) | (20.9%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $59.3 | $91.4 | ($32.2) | (35.2%) |
| OUS | $13.9 | $24.4 | ($10.5) | (43.2%) |
| Europe | $5.8 | $10.5 | ($4.7) | (44.8%) |
| Other | $8.0 | $13.9 | ($5.8) | (42%) |
| Total | $73.1 | $115.9 | ($42.7) | (36.9%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $142.4 | $177.6 | ($35.1) | (19.8%) |
| OUS | $35.5 | $47.4 | ($11.9) | (25%) |
| Europe | $15.4 | $20.5 | ($5.1) | (25%) |
| Other | $20.2 | $26.9 | ($6.7) | (25.1%) |
| Total | $178.0 | $225.0 | ($47.0) | (20.9%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $73.1 | |
| Cost of Sales | $23.2 | 31.7% |
| General and Admin | $15.0 | 20.6% |
| Selling and Marketing | $43.5 | 59.5% |
| R & D | $8.8 | 12% |
| Other | $1.1 | 1.5% |
| Net Earnings | ($18.4) | (25.2%) |
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.
