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NuVasive posted 2Q19 revenue of USD $292.1MM, +3.7% vs. 2Q18. Increasing case volumes and selling the entire procedure allowed NuVasive to keep pace with competitors that have launched robotic systems.
- Growth driven by U.S. spinal hardware on increasing case volumes and tangible growth in the company’s XLIF and ALIF franchises.
- Slower than expected ex-U.S. sales offset growth slightly. Limited set availability impacted growth in the Asia Pacific region and Latin America.
- The company is focused on expanding its advanced materials portfolio as well as funding studies to further substantiate implant technology.
- Pulse launched commercially in the U.S., with alpha and beta trials underway in international markets. Leadership expects revenue contributions from the system within the next two quarters.
- Price pressure for the quarter was -2%, though the company noted it is seeing consistently more aggressive hospital pricing environments particularly regarding commoditized areas like conventional fixation, open pedicle screws, cervical plates and disposables.
“It is challenging. The U.S. market is very competitive. Some of the competitors that were maybe not as competitive
over the last several years have renewed their focus through robotics and other key technologies.
I think we’re competing well, and I think our focus on proceduralization has paid off.”
– NuVasive CEO Chris Barry, on the impact of robotics in the U.S. spine market
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $257.3 | $246.7 | $10.6 | 4.3% |
| Trauma | $10.2 | $9.9 | $0.3 | 2.6% |
| Orthobiologics | $24.6 | $24.9 | -$0.3 | -1.2% |
| Total | $292.1 | $281.6 | $10.5 | 3.7% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $498.6 | $472.6 | $26.0 | 5.5% |
| Trauma | $19.3 | $18.6 | $0.7 | 3.5% |
| Orthobiologics | $49.0 | $50.9 | -$1.9 | -3.7% |
| Total | $566.9 | $542.1 | $24.8 | 4.6% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $236.1 | $226.9 | $9.2 | 4.0% |
| Ex-US | $56.0 | $54.6 | $1.4 | 2.5% |
| Â Â EMEA | $45.8 | $43.7 | $2.1 | 4.7% |
| Â Â Asia Pacific | $5.2 | $5.5 | -$0.3 | -5.2% |
| Â Â Rest of World | $5.0 | $5.5 | -$0.4 | -7.8% |
| Total | $292.1 | $281.6 | $10.5 | 3.7% |
Net Earnings Data
Net earnings are as follows ($MM):
| Amt | % of Sales | |
| Sales | $292.1 | |
| Â Â Cost of Sales | -$77.6 | 26.6% |
| Â Â R & D | -$17.6 | 6.0% |
| Â Â Selling and Admin | -$145.1 | 49.7% |
| Â Â Other | -$36.9 | 12.6% |
| Net Earnings | $15.0 | 5.1% |
Sources: NuVasive; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
NuVasive posted 2Q19 revenue of USD $292.1MM, +3.7% vs. 2Q18. Increasing case volumes and selling the entire procedure allowed NuVasive to keep pace with competitors that have launched robotic systems.
Growth driven by U.S. spinal hardware on increasing case volumes and tangible growth in the company’s XLIF and ALIF...
NuVasive posted 2Q19 revenue of USD $292.1MM, +3.7% vs. 2Q18. Increasing case volumes and selling the entire procedure allowed NuVasive to keep pace with competitors that have launched robotic systems.
- Growth driven by U.S. spinal hardware on increasing case volumes and tangible growth in the company’s XLIF and ALIF franchises.
- Slower than expected ex-U.S. sales offset growth slightly. Limited set availability impacted growth in the Asia Pacific region and Latin America.
- The company is focused on expanding its advanced materials portfolio as well as funding studies to further substantiate implant technology.
- Pulse launched commercially in the U.S., with alpha and beta trials underway in international markets. Leadership expects revenue contributions from the system within the next two quarters.
- Price pressure for the quarter was -2%, though the company noted it is seeing consistently more aggressive hospital pricing environments particularly regarding commoditized areas like conventional fixation, open pedicle screws, cervical plates and disposables.
“It is challenging. The U.S. market is very competitive. Some of the competitors that were maybe not as competitive
over the last several years have renewed their focus through robotics and other key technologies.
I think we’re competing well, and I think our focus on proceduralization has paid off.”
– NuVasive CEO Chris Barry, on the impact of robotics in the U.S. spine market
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Spine | $257.3 | $246.7 | $10.6 | 4.3% |
| Trauma | $10.2 | $9.9 | $0.3 | 2.6% |
| Orthobiologics | $24.6 | $24.9 | -$0.3 | -1.2% |
| Total | $292.1 | $281.6 | $10.5 | 3.7% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Spine | $498.6 | $472.6 | $26.0 | 5.5% |
| Trauma | $19.3 | $18.6 | $0.7 | 3.5% |
| Orthobiologics | $49.0 | $50.9 | -$1.9 | -3.7% |
| Total | $566.9 | $542.1 | $24.8 | 4.6% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $236.1 | $226.9 | $9.2 | 4.0% |
| Ex-US | $56.0 | $54.6 | $1.4 | 2.5% |
| Â Â EMEA | $45.8 | $43.7 | $2.1 | 4.7% |
| Â Â Asia Pacific | $5.2 | $5.5 | -$0.3 | -5.2% |
| Â Â Rest of World | $5.0 | $5.5 | -$0.4 | -7.8% |
| Total | $292.1 | $281.6 | $10.5 | 3.7% |
Net Earnings Data
Net earnings are as follows ($MM):
| Amt | % of Sales | |
| Sales | $292.1 | |
| Â Â Cost of Sales | -$77.6 | 26.6% |
| Â Â R & D | -$17.6 | 6.0% |
| Â Â Selling and Admin | -$145.1 | 49.7% |
| Â Â Other | -$36.9 | 12.6% |
| Net Earnings | $15.0 | 5.1% |
Sources: NuVasive; 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.
