Copy to clipboard 
Orthofix reported 4Q19 orthopedic revenue of USD $121.5 million, +0.3% vs. 4Q18, with full-year 2019 revenue of $460 million, +1.5% vs. 2018. The company remains negatively impacted by its structural organization and vacancies in leadership positions.
Orthofix’s largest business segment, bone growth therapies, lost two key distributors and experienced what leadership termed “normal churn” in its commercial channel. The company expects gradual recovery of this segment in 2020. Core spinal hardware was down in high single digits for the quarter, offsetting 68.5% growth for the M6-C artificial disc. For the year, M6 contributed $4.1 million in revenue, and the company expands that contribution to increase to $15 to $17 million in 2020. A large international tender offset Orthofix’s weaker U.S. trauma sales. Biologic sales are expected to decelerate in 2020 due to sales channel realignment.
The company provided 2020 full-year guidance in the range of $467 million to $477 million, representing growth between 1.5% and 3.7%.
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $25.5 | $25.0 | $0.5 | 2% |
| Trauma | $28.4 | $27.2 | $1.1 | 4.1% |
| Orthobiologics | $16.7 | $16.0 | $0.7 | 4.2% |
| Other (Bone Growth Therapies) | $51.0 | $52.8 | ($1.9) | (3.5%) |
| Total | $121.5 | $121.1 | $0.4 | 0.3% |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $94.5 | $91.7 | $2.9 | 3.1% |
| Trauma | $102.7 | $106.4 | ($3.7) | (3.5%) |
| Orthobiologics | $65.5 | $59.7 | $5.8 | 9.7% |
| Other (Bone Growth Therapies) | $197.2 | $195.3 | $1.9 | 1% |
| Total | $460.0 | $453.0 | $6.9 | 1.5% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $95.8 | $94.0 | $1.7 | 1.8% |
| Ex-US | $25.7 | $27.0 | ($1.3) | (4.8%) |
| Total | $121.5 | $121.1 | $0.4 | 0.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $121.5 | |
| Cost of Sales | ($26.2) | 21.6% |
| General and Admin | ($22.1) | 18.2% |
| Selling and Marketing | ($58.3) | 48% |
| R & D | ($8.4) | 7% |
| Other | $5.3 | 4.3% |
| Net Earnings | $11.7 | 9.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Orthofix reported 4Q19 orthopedic revenue of USD $121.5 million, +0.3% vs. 4Q18, with full-year 2019 revenue of $460 million, +1.5% vs. 2018. The company remains negatively impacted by its structural organization and vacancies in leadership positions.
Orthofix’s largest business segment, bone growth therapies, lost two key distributors...
Orthofix reported 4Q19 orthopedic revenue of USD $121.5 million, +0.3% vs. 4Q18, with full-year 2019 revenue of $460 million, +1.5% vs. 2018. The company remains negatively impacted by its structural organization and vacancies in leadership positions.
Orthofix’s largest business segment, bone growth therapies, lost two key distributors and experienced what leadership termed “normal churn” in its commercial channel. The company expects gradual recovery of this segment in 2020. Core spinal hardware was down in high single digits for the quarter, offsetting 68.5% growth for the M6-C artificial disc. For the year, M6 contributed $4.1 million in revenue, and the company expands that contribution to increase to $15 to $17 million in 2020. A large international tender offset Orthofix’s weaker U.S. trauma sales. Biologic sales are expected to decelerate in 2020 due to sales channel realignment.
The company provided 2020 full-year guidance in the range of $467 million to $477 million, representing growth between 1.5% and 3.7%.
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $25.5 | $25.0 | $0.5 | 2% |
| Trauma | $28.4 | $27.2 | $1.1 | 4.1% |
| Orthobiologics | $16.7 | $16.0 | $0.7 | 4.2% |
| Other (Bone Growth Therapies) | $51.0 | $52.8 | ($1.9) | (3.5%) |
| Total | $121.5 | $121.1 | $0.4 | 0.3% |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $94.5 | $91.7 | $2.9 | 3.1% |
| Trauma | $102.7 | $106.4 | ($3.7) | (3.5%) |
| Orthobiologics | $65.5 | $59.7 | $5.8 | 9.7% |
| Other (Bone Growth Therapies) | $197.2 | $195.3 | $1.9 | 1% |
| Total | $460.0 | $453.0 | $6.9 | 1.5% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $95.8 | $94.0 | $1.7 | 1.8% |
| Ex-US | $25.7 | $27.0 | ($1.3) | (4.8%) |
| Total | $121.5 | $121.1 | $0.4 | 0.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $121.5 | |
| Cost of Sales | ($26.2) | 21.6% |
| General and Admin | ($22.1) | 18.2% |
| Selling and Marketing | ($58.3) | 48% |
| R & D | ($8.4) | 7% |
| Other | $5.3 | 4.3% |
| Net Earnings | $11.7 | 9.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
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.
