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Medtronic reported FY 4Q19 orthopedic revenue of USD $862.9MM, +4.9% vs. FY 4Q18, with full fiscal year 2019 revenue of $3.2BB, +3.9% vs. FY18.
Performance Highlights
- Based on the fiscal year 2020 guidance provided by Medtronic, ORTHOWORLD estimates that the company’s orthopedic revenue will increase by +4.3% to a total of USD $3.3 billion.
- Core spine products growth decreased -1.1% in the quarter, offset by strength in new products such as Infinity OCT and Solera Voyager 5.5/6.0. and biologics.
- When combined with enabling technologies such as Mazor X (reported by Medtronic in their Brain segment), spine grew 5.6% in the quarter and 4.5% for the fiscal year.
- Core spine plus enabling technology grew 11% in the U.S. for the quarter, driven by Medtronic’s Surgical Synergy strategy.
Mazor Update
- Medtronic sold 26 Mazor X systems in the quarter.
- Company leadership says they hold 70% spine robot market share with an installed unit base more than three times the next closest competitor.
- Combined capital and implant contracts account for 80% of all Mazor systems sold.
- Use of Medtronic spine implants in Mazor cases reached 60% in 4Q, up double digits from 3Q.
ORTHOWORLD estimates segment sales and growth on an as-reported basis as follows ($MM).
| FY 4Q19 | FY 4Q18 | $ Chg | % Chg | |
| Spine | $714.4 | $676.7 | $37.7 | 5.6% |
| Orthobiologics | $148.6 | $146.0 | $2.6 | 1.8% |
| Total | $862.9 | $822.7 | $40.3 | 4.9% |
| FY19 | FY18 | $ Chg | % Chg | |
| Spine | $2,657.4 | $2,543.1 | $114.3 | 4.5% |
| Orthobiologics | $540.9 | $536.0 | $4.9 | 0.9% |
| Total | $3,198.3 | $3,079.1 | $119.2 | 3.9% |
ORTHOWORLD estimates Medtronic’s orthopaedic revenue by geographic region as follows ($MM).
| Geographic Region | FY 4Q19 | FY 4Q18 | $ Chg | % Chg |
| US | $557.74 | $521.23 | $36.5 | 7.0% |
| Ex-US | $305.20 | $301.43 | $3.8 | 1.2% |
| Total | $862.9 | $822.7 | $40.3 | 4.9% |
Net earnings in the quarter for all Medtronic revenue (including non-ortho) are as follows ($MM).
| FY 4Q19 | Amount | % of Sales |
| Sales | $8,146.0 | |
| Â Â Cost of Sales | -$2,483.0 | 30.5% |
| Â Â R & D | -$594.0 | 7.3% |
| Â Â Selling and Admin | -$2,620.0 | 32.2% |
| Â Â Other | -$1,267.0 | 15.6% |
| Net Earnings | $1,182.0 | 14.5% |
Sources: Medtronic; ORTHOWORLD estimates
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Medtronic reported FY 4Q19 orthopedic revenue of USD $862.9MM, +4.9% vs. FY 4Q18, with full fiscal year 2019 revenue of $3.2BB, +3.9% vs. FY18.
Performance Highlights
Based on the fiscal year 2020 guidance provided by Medtronic, ORTHOWORLD estimates that the company’s orthopedic revenue will increase by +4.3% to a...
Medtronic reported FY 4Q19 orthopedic revenue of USD $862.9MM, +4.9% vs. FY 4Q18, with full fiscal year 2019 revenue of $3.2BB, +3.9% vs. FY18.
Performance Highlights
- Based on the fiscal year 2020 guidance provided by Medtronic, ORTHOWORLD estimates that the company’s orthopedic revenue will increase by +4.3% to a total of USD $3.3 billion.
- Core spine products growth decreased -1.1% in the quarter, offset by strength in new products such as Infinity OCT and Solera Voyager 5.5/6.0. and biologics.
- When combined with enabling technologies such as Mazor X (reported by Medtronic in their Brain segment), spine grew 5.6% in the quarter and 4.5% for the fiscal year.
- Core spine plus enabling technology grew 11% in the U.S. for the quarter, driven by Medtronic’s Surgical Synergy strategy.
Mazor Update
- Medtronic sold 26 Mazor X systems in the quarter.
- Company leadership says they hold 70% spine robot market share with an installed unit base more than three times the next closest competitor.
- Combined capital and implant contracts account for 80% of all Mazor systems sold.
- Use of Medtronic spine implants in Mazor cases reached 60% in 4Q, up double digits from 3Q.
ORTHOWORLD estimates segment sales and growth on an as-reported basis as follows ($MM).
| FY 4Q19 | FY 4Q18 | $ Chg | % Chg | |
| Spine | $714.4 | $676.7 | $37.7 | 5.6% |
| Orthobiologics | $148.6 | $146.0 | $2.6 | 1.8% |
| Total | $862.9 | $822.7 | $40.3 | 4.9% |
| FY19 | FY18 | $ Chg | % Chg | |
| Spine | $2,657.4 | $2,543.1 | $114.3 | 4.5% |
| Orthobiologics | $540.9 | $536.0 | $4.9 | 0.9% |
| Total | $3,198.3 | $3,079.1 | $119.2 | 3.9% |
ORTHOWORLD estimates Medtronic’s orthopaedic revenue by geographic region as follows ($MM).
| Geographic Region | FY 4Q19 | FY 4Q18 | $ Chg | % Chg |
| US | $557.74 | $521.23 | $36.5 | 7.0% |
| Ex-US | $305.20 | $301.43 | $3.8 | 1.2% |
| Total | $862.9 | $822.7 | $40.3 | 4.9% |
Net earnings in the quarter for all Medtronic revenue (including non-ortho) are as follows ($MM).
| FY 4Q19 | Amount | % of Sales |
| Sales | $8,146.0 | |
| Â Â Cost of Sales | -$2,483.0 | 30.5% |
| Â Â R & D | -$594.0 | 7.3% |
| Â Â Selling and Admin | -$2,620.0 | 32.2% |
| Â Â Other | -$1,267.0 | 15.6% |
| Net Earnings | $1,182.0 | 14.5% |
Sources: Medtronic; ORTHOWORLD estimates
Mike Evers is ORTHOWORLD’s Market Analyst. 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.
