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Orthofix reported 3Q20 orthopedic revenue of USD $111 million, -2.2% vs. 3Q19. Month-to-month volumes stabilized during the quarter, but have yet to recover to normalized levels for the company. Orthofix’s spinal implant business turned in the best performance of the company’s portfolio with +19% growth in the U.S., driven by $5.2 million in M6 disc sales. The company’s trauma portfolio is largely deformity correction and is thus more impacted by COVID procedure declines than emergent trauma products. Orthofix believes that its decline in biologics is roughly in line with the overall market but is further pressured by a strong 3Q19 comparison (+11.4%) and price erosion.
In late September, Orthofix announced a $10 million investment in and partnership with Neo Medical SA, a privately held Swiss-based spine company. The partnership is focused on developing a surgical platform that includes single-use sterile pack procedure solutions designed to increase operating room efficiency while reducing procedure times and infection rates. Orthofix positioned the partnership as a trial balloon into the ASC market as the company looks to expand its presence in those settings.
“Neo Medical is a very sophisticated disposable-based company for instruments and technology. They have an existing system that we are co-marketing and bringing into the ASC environment so we can learn about these markets going forward. We did not do this as a revenue accelerator. We did this as a learning activity. We will be monitoring that activity in real time in clinics and ASCs around the U.S.” – Jon Serbousek, Orthofix Director, President & 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 | $25.5 | $22.9 | $2.6 | 11.1% |
| Trauma | $23.2 | $25.4 | ($2.2) | (8.8%) |
| Orthobiologics | $15.2 | $16.3 | ($1.1) | (6.5%) |
| Other (Bone Growth Therapies) | $47.1 | $48.8 | ($1.8) | (3.6%) |
| Total | $111.0 | $113.5 | ($2.5) | (2.2%) |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $67.0 | $69.1 | ($2.1) | (3%) |
| Trauma | $60.7 | $74.4 | ($13.7) | (18.4%) |
| Orthobiologics | $40.3 | $48.8 | ($8.5) | (17.4%) |
| Other (Bone Growth Therapies) | $120.9 | $146.2 | ($25.3) | (17.3%) |
| Total | $288.9 | $338.5 | ($49.5) | (14.6%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $89.8 | $89.5 | $0.4 | 0.4% |
| OUS | $21.2 | $24.0 | ($2.9) | (12%) |
| Europe | $8.9 | $10.1 | ($1.3) | (12.5%) |
| Other | $12.3 | $13.9 | ($1.6) | (11.7%) |
| Total | $111.0 | $113.5 | ($2.5) | (2.2%) |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $232.3 | $267.0 | ($34.8) | (13%) |
| OUS | $56.7 | $71.4 | ($14.8) | (20.7%) |
| Europe | $24.2 | $30.6 | ($6.4) | (20.9%) |
| Other | $32.5 | $40.8 | ($8.4) | (20.5%) |
| Total | $288.9 | $338.5 | ($49.5) | (14.6%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $111.0 | |
| Cost of Sales | $26.2 | 23.6% |
| General and Admin | $52.9 | 47.7% |
| Selling and Marketing | $16.5 | 14.9% |
| R & D | $10.0 | 9% |
| Other | $0.7 | 0.6% |
| Net Earnings | $4.7 | 4.2% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Orthofix reported 3Q20 orthopedic revenue of USD $111 million, -2.2% vs. 3Q19. Month-to-month volumes stabilized during the quarter, but have yet to recover to normalized levels for the company. Orthofix’s spinal implant business turned in the best performance of the company’s portfolio with +19% growth in the U.S., driven by $5.2 million in...
Orthofix reported 3Q20 orthopedic revenue of USD $111 million, -2.2% vs. 3Q19. Month-to-month volumes stabilized during the quarter, but have yet to recover to normalized levels for the company. Orthofix’s spinal implant business turned in the best performance of the company’s portfolio with +19% growth in the U.S., driven by $5.2 million in M6 disc sales. The company’s trauma portfolio is largely deformity correction and is thus more impacted by COVID procedure declines than emergent trauma products. Orthofix believes that its decline in biologics is roughly in line with the overall market but is further pressured by a strong 3Q19 comparison (+11.4%) and price erosion.
In late September, Orthofix announced a $10 million investment in and partnership with Neo Medical SA, a privately held Swiss-based spine company. The partnership is focused on developing a surgical platform that includes single-use sterile pack procedure solutions designed to increase operating room efficiency while reducing procedure times and infection rates. Orthofix positioned the partnership as a trial balloon into the ASC market as the company looks to expand its presence in those settings.
“Neo Medical is a very sophisticated disposable-based company for instruments and technology. They have an existing system that we are co-marketing and bringing into the ASC environment so we can learn about these markets going forward. We did not do this as a revenue accelerator. We did this as a learning activity. We will be monitoring that activity in real time in clinics and ASCs around the U.S.” – Jon Serbousek, Orthofix Director, President & 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 | $25.5 | $22.9 | $2.6 | 11.1% |
| Trauma | $23.2 | $25.4 | ($2.2) | (8.8%) |
| Orthobiologics | $15.2 | $16.3 | ($1.1) | (6.5%) |
| Other (Bone Growth Therapies) | $47.1 | $48.8 | ($1.8) | (3.6%) |
| Total | $111.0 | $113.5 | ($2.5) | (2.2%) |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $67.0 | $69.1 | ($2.1) | (3%) |
| Trauma | $60.7 | $74.4 | ($13.7) | (18.4%) |
| Orthobiologics | $40.3 | $48.8 | ($8.5) | (17.4%) |
| Other (Bone Growth Therapies) | $120.9 | $146.2 | ($25.3) | (17.3%) |
| Total | $288.9 | $338.5 | ($49.5) | (14.6%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $89.8 | $89.5 | $0.4 | 0.4% |
| OUS | $21.2 | $24.0 | ($2.9) | (12%) |
| Europe | $8.9 | $10.1 | ($1.3) | (12.5%) |
| Other | $12.3 | $13.9 | ($1.6) | (11.7%) |
| Total | $111.0 | $113.5 | ($2.5) | (2.2%) |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $232.3 | $267.0 | ($34.8) | (13%) |
| OUS | $56.7 | $71.4 | ($14.8) | (20.7%) |
| Europe | $24.2 | $30.6 | ($6.4) | (20.9%) |
| Other | $32.5 | $40.8 | ($8.4) | (20.5%) |
| Total | $288.9 | $338.5 | ($49.5) | (14.6%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $111.0 | |
| Cost of Sales | $26.2 | 23.6% |
| General and Admin | $52.9 | 47.7% |
| Selling and Marketing | $16.5 | 14.9% |
| R & D | $10.0 | 9% |
| Other | $0.7 | 0.6% |
| Net Earnings | $4.7 | 4.2% |
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.
