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Orthofix is well positioned to be a must-watch growth story, said President and CEO Massimo Calafiore.
Mr. Calafiore took the helm of Orthofix earlier this year to restore the company’s footing after a significant merger with SeaSpine and two leadership changes in 2023. He brought in a seasoned leadership team and redefined the company’s priorities to focus on profitable growth, synergy across platforms and innovation.
The third quarter of 2024 represented an inflection point for the company, as it achieved records for U.S. trauma sales, new agreements for its 7D platform and 18% growth in its spinal fixation franchise. Orthofix expects 2024 orthopedic sales between $795 million and $800 million, representing growth between 6.6% and 7.2% over 2023.
“We are at a very good moment in the history of the company,” Mr. Calafiore said. “Unlike competitors in the market, we believe we can balance growth with value creation.”
We spoke with Mr. Calafiore and Max Reinhardt, President of Global Spine, about what to expect from the company’s spine business. According to our estimates, spine, orthobiologics and enabling technology represent about 56% of the company’s revenue.
Mr. Calafiore’s previous experience includes positions as CEO of LimaCorporate and CCO at NuVasive. Mr. Reinhardt previously served as Worldwide President of DePuy Synthes Spine.
What attracted you to Orthofix?
Mr. Calafiore: For me, it was threefold. First, to win in this market, you need highly differentiated enabling technology. Our 7D system is compelling compared to our competitors’ technology. Second, this company is clearly undervalued. Given the turbulence that the company experienced, I thought there was an opportunity to increase the valuation of the organization. Third was the people and the quality of the product. There are a lot of levers we can pull to increase value creation.
Mr. Reinhardt: I was most attracted to speak to Massimo because I knew his reputation in the industry and saw how he built a new leadership team throughout the corporation. When you couple that with the vibrant culture and our technology, it adds up to a really great opportunity for the company. In just eight months, we built a leadership team with more than 250 years of experience in spine. We brought in new talent with considerable pedigree in every area of the company, and now we are positioned to scale and create a multi-billion-dollar operation.
What are the most significant factors driving your spine sales?
Mr. Reinhardt: We are focused on innovative product launches, and our product portfolio is comprehensive and competitive. We’ve had a great run of introductions in the interbody fusion space, including the recent launch of our lateral cage, Reef L. We’ve focused on distribution expansion, and the culture that we’ve created is allowing us to innovate at an accelerated rate and attract top talent in the industry to expand our representation across the country.
The technologies in our portfolio also have great synergy. The 7D Navigation System is designed and functions in a very different way than other technology, enabling intraoperative real-time precision for the surgeon with minimal radiation and very short registration times. Our navigation, coupled with our implants and biologics, gives us a strong position in the marketplace. Our growth therapy offering also has a strong market position and a long heritage of performance.
Mr. Calafiore: We’re focused on profitable growth, which means not just going wider with new partnerships but deeper into accounts. Our average case per procedure is improving quarter by quarter because of our ability to go deeper.
What’s driving your new product decisions?
Mr. Reinhardt: The 7D Navigation System is at the center of our innovation agenda because of its unique functionality. It gives us an opportunity to play in the deformity market, which includes the most complex spinal surgeries
Adult deformity procedures have a 30% reoperation rate. These surgeries have high complication rates, so we’re facing the toughest challenges with our enabling technology and comprehensive implant portfolio. Fusion is important for patients with comorbidities like high BMI and osteoporosis. We can bring the strength of our biologics and our bone growth therapies to enable the best bone healing. That’s where we’re targeting our energy.
What are spine surgeons’ pain points today, and how are you responding to them?
Mr. Calafiore: I attended a talk about enabling technology and the danger of high radiation exposure for surgeons. 7D can convert MRI to CT scan, which allows you to perform a procedure without radiation. Surgeons want enabling technology that creates value in the O.R., and we offer technology that helps to increase procedural proficiency and time.
Also, our interbody products are designed to reutilize instrumentation and decrease their footprint. We are working closely with surgeons to develop technology with practical applications.
Mr. Reinhardt: Surgeons speak highly of the fact that we listen to them, take action and move quickly. That’s reflected in the number of product launches that the company has executed over the last few years. We’re bringing what I call “all the 1%s” that go into making implant systems functional, beautiful, balanced, refined and comprehensive, as well as looking at new ways of operating by leveraging 7D to give different capabilities in the moment during the surgery.
How would you define the health of the spine market?
Mr. Calafiore: We are returning to the normal market rate of 4% to 5% growth. Given our size, we are less prone to being impacted by macro-level changes that our larger competitors face. We have the opportunity for significant growth. Everybody on our team has experience scaling a business. Even the partners that Max is bringing on to work with us have the same mindset of scale.
We are improving not just our top line, but all of our metrics. We have gotten much better at cash management, asset utilization and how we use our balance sheet. We have an internal team and external partners who think about the business as a whole and not just about growing and growing.
Orthofix is well positioned to be a must-watch growth story, said President and CEO Massimo Calafiore.
Mr. Calafiore took the helm of Orthofix earlier this year to restore the company’s footing after a significant merger with SeaSpine and two leadership changes in 2023. He brought in a seasoned leadership team and redefined the...
Orthofix is well positioned to be a must-watch growth story, said President and CEO Massimo Calafiore.
Mr. Calafiore took the helm of Orthofix earlier this year to restore the company’s footing after a significant merger with SeaSpine and two leadership changes in 2023. He brought in a seasoned leadership team and redefined the company’s priorities to focus on profitable growth, synergy across platforms and innovation.
The third quarter of 2024 represented an inflection point for the company, as it achieved records for U.S. trauma sales, new agreements for its 7D platform and 18% growth in its spinal fixation franchise. Orthofix expects 2024 orthopedic sales between $795 million and $800 million, representing growth between 6.6% and 7.2% over 2023.
“We are at a very good moment in the history of the company,” Mr. Calafiore said. “Unlike competitors in the market, we believe we can balance growth with value creation.”
We spoke with Mr. Calafiore and Max Reinhardt, President of Global Spine, about what to expect from the company’s spine business. According to our estimates, spine, orthobiologics and enabling technology represent about 56% of the company’s revenue.
Mr. Calafiore’s previous experience includes positions as CEO of LimaCorporate and CCO at NuVasive. Mr. Reinhardt previously served as Worldwide President of DePuy Synthes Spine.
What attracted you to Orthofix?
Mr. Calafiore: For me, it was threefold. First, to win in this market, you need highly differentiated enabling technology. Our 7D system is compelling compared to our competitors’ technology. Second, this company is clearly undervalued. Given the turbulence that the company experienced, I thought there was an opportunity to increase the valuation of the organization. Third was the people and the quality of the product. There are a lot of levers we can pull to increase value creation.
Mr. Reinhardt: I was most attracted to speak to Massimo because I knew his reputation in the industry and saw how he built a new leadership team throughout the corporation. When you couple that with the vibrant culture and our technology, it adds up to a really great opportunity for the company. In just eight months, we built a leadership team with more than 250 years of experience in spine. We brought in new talent with considerable pedigree in every area of the company, and now we are positioned to scale and create a multi-billion-dollar operation.
What are the most significant factors driving your spine sales?
Mr. Reinhardt: We are focused on innovative product launches, and our product portfolio is comprehensive and competitive. We’ve had a great run of introductions in the interbody fusion space, including the recent launch of our lateral cage, Reef L. We’ve focused on distribution expansion, and the culture that we’ve created is allowing us to innovate at an accelerated rate and attract top talent in the industry to expand our representation across the country.
The technologies in our portfolio also have great synergy. The 7D Navigation System is designed and functions in a very different way than other technology, enabling intraoperative real-time precision for the surgeon with minimal radiation and very short registration times. Our navigation, coupled with our implants and biologics, gives us a strong position in the marketplace. Our growth therapy offering also has a strong market position and a long heritage of performance.
Mr. Calafiore: We’re focused on profitable growth, which means not just going wider with new partnerships but deeper into accounts. Our average case per procedure is improving quarter by quarter because of our ability to go deeper.
What’s driving your new product decisions?
Mr. Reinhardt: The 7D Navigation System is at the center of our innovation agenda because of its unique functionality. It gives us an opportunity to play in the deformity market, which includes the most complex spinal surgeries
Adult deformity procedures have a 30% reoperation rate. These surgeries have high complication rates, so we’re facing the toughest challenges with our enabling technology and comprehensive implant portfolio. Fusion is important for patients with comorbidities like high BMI and osteoporosis. We can bring the strength of our biologics and our bone growth therapies to enable the best bone healing. That’s where we’re targeting our energy.
What are spine surgeons’ pain points today, and how are you responding to them?
Mr. Calafiore: I attended a talk about enabling technology and the danger of high radiation exposure for surgeons. 7D can convert MRI to CT scan, which allows you to perform a procedure without radiation. Surgeons want enabling technology that creates value in the O.R., and we offer technology that helps to increase procedural proficiency and time.
Also, our interbody products are designed to reutilize instrumentation and decrease their footprint. We are working closely with surgeons to develop technology with practical applications.
Mr. Reinhardt: Surgeons speak highly of the fact that we listen to them, take action and move quickly. That’s reflected in the number of product launches that the company has executed over the last few years. We’re bringing what I call “all the 1%s” that go into making implant systems functional, beautiful, balanced, refined and comprehensive, as well as looking at new ways of operating by leveraging 7D to give different capabilities in the moment during the surgery.
How would you define the health of the spine market?
Mr. Calafiore: We are returning to the normal market rate of 4% to 5% growth. Given our size, we are less prone to being impacted by macro-level changes that our larger competitors face. We have the opportunity for significant growth. Everybody on our team has experience scaling a business. Even the partners that Max is bringing on to work with us have the same mindset of scale.
We are improving not just our top line, but all of our metrics. We have gotten much better at cash management, asset utilization and how we use our balance sheet. We have an internal team and external partners who think about the business as a whole and not just about growing and growing.
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Carolyn LaWell is ORTHOWORLD's Chief Content Officer. She joined ORTHOWORLD in 2012 to oversee its editorial and industry education. She previously served in editor roles at B2B magazines and newspapers.
