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Orthofix reported 1Q23 orthopedic sales of $175.2 million, +64.6% compared to the first quarter of 2022. On a pro forma basis, the company grew by +11.1% for the same period.
The company decided to rationalize its spinal implant portfolio to reduce complexity and low-margin products. Additionally, Orthofix announced a new U.S. sales management team responsible for spinal implants, enabling technology and biologics.
“The announcement of our new US sales management responsible for spinal implants and biologics was an important first step in removing the uncertainty paralysis that can result from a merger like ours,” said Orthofix CEO Keith Valentine. “To date, we have not experienced any meaningful revenue dissynergies in the spinal implants business, as our first quarter results would support, and we remain cautiously optimistic that we can successfully navigate through any remaining dissynergy risks to the business.”
In the first quarter, the company’s pro forma spinal implant sales grew over 20%, while the M6 disc grew in the mid-single-digits. Orthofix’s DBM biologics maintained robust growth but its high-priced cell-based products faced a more difficult path.
Orthofix’s 7D navigation system marked its 50th international placement during the quarter and also saw the first fully integrated case using legacy Orthofix spinal implants.
The company expects 2023 total sales between $750 million and $756 million.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $58.6 | $24.8 | $33.8 | 136.2% |
| Trauma | $26.0 | $23.8 | $2.2 | 9.4% |
| Orthobiologics | $40.6 | $14.1 | $26.5 | 188.1% |
| Enabling Technology | $2.3 | $1.8 | $0.5 | 27.8% |
| Other (Bone Growth Therapies) | $47.7 | $41.9 | $5.8 | 13.7% |
| Total | $175.2 | $106.4 | $68.8 | 64.6% |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $146.1 | $82.4 | $63.7 | 77.3% |
| OUS | $29.1 | $24.0 | $5.1 | 21.2% |
| EMEA | $16.0 | $12.8 | $3.2 | 25.3% |
| APAC | $11.1 | $9.3 | $1.8 | 19.3% |
| ROW | $2.0 | $2.0 | $0.1 | 3.4% |
| Total | $175.2 | $106.4 | $68.8 | 64.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $175.2 | |
| Cost of Sales | $64.9 | 37% |
| General and Admin | $93.8 | 53.5% |
| Selling and Marketing | $48.8 | 27.9% |
| R & D | $23.3 | 13.3% |
| Other | $5.4 | 3.1% |
| Net Earnings | ($60.9) | (34.8%) |
Orthofix reported 1Q23 orthopedic sales of $175.2 million, +64.6% compared to the first quarter of 2022. On a pro forma basis, the company grew by +11.1% for the same period.
The company decided to rationalize its spinal implant portfolio to reduce complexity and low-margin products. Additionally, Orthofix announced a new U.S. sales...
Orthofix reported 1Q23 orthopedic sales of $175.2 million, +64.6% compared to the first quarter of 2022. On a pro forma basis, the company grew by +11.1% for the same period.
The company decided to rationalize its spinal implant portfolio to reduce complexity and low-margin products. Additionally, Orthofix announced a new U.S. sales management team responsible for spinal implants, enabling technology and biologics.
“The announcement of our new US sales management responsible for spinal implants and biologics was an important first step in removing the uncertainty paralysis that can result from a merger like ours,” said Orthofix CEO Keith Valentine. “To date, we have not experienced any meaningful revenue dissynergies in the spinal implants business, as our first quarter results would support, and we remain cautiously optimistic that we can successfully navigate through any remaining dissynergy risks to the business.”
In the first quarter, the company’s pro forma spinal implant sales grew over 20%, while the M6 disc grew in the mid-single-digits. Orthofix’s DBM biologics maintained robust growth but its high-priced cell-based products faced a more difficult path.
Orthofix’s 7D navigation system marked its 50th international placement during the quarter and also saw the first fully integrated case using legacy Orthofix spinal implants.
The company expects 2023 total sales between $750 million and $756 million.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $58.6 | $24.8 | $33.8 | 136.2% |
| Trauma | $26.0 | $23.8 | $2.2 | 9.4% |
| Orthobiologics | $40.6 | $14.1 | $26.5 | 188.1% |
| Enabling Technology | $2.3 | $1.8 | $0.5 | 27.8% |
| Other (Bone Growth Therapies) | $47.7 | $41.9 | $5.8 | 13.7% |
| Total | $175.2 | $106.4 | $68.8 | 64.6% |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $146.1 | $82.4 | $63.7 | 77.3% |
| OUS | $29.1 | $24.0 | $5.1 | 21.2% |
| EMEA | $16.0 | $12.8 | $3.2 | 25.3% |
| APAC | $11.1 | $9.3 | $1.8 | 19.3% |
| ROW | $2.0 | $2.0 | $0.1 | 3.4% |
| Total | $175.2 | $106.4 | $68.8 | 64.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $175.2 | |
| Cost of Sales | $64.9 | 37% |
| General and Admin | $93.8 | 53.5% |
| Selling and Marketing | $48.8 | 27.9% |
| R & D | $23.3 | 13.3% |
| Other | $5.4 | 3.1% |
| Net Earnings | ($60.9) | (34.8%) |
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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.
