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OrthoPediatrics reported 4Q22 orthopedic sales of $31 million, +24.9% compared to 4Q21. For the full year 2022, the company grew 24.7% compared to the prior year. The performance continued a trend of growth in excess of 20% ongoing since the company’s inception, with the exception of pandemic-ridden 2020.
The company faced multiple headwinds throughout the year, including COVID impacts in the first quarter, record high rates of respiratory syncytial virus and flu in the back half of the year and ongoing hospital staffing shortages. However, OrthoPediatrics continued market share gains resulting from increasing account penetration, additional set deployments and sales synergies from recent acquisitions.
Adoption of the RESPONSE fusion system as well as the ApiFix non-fusion system drove the company’s scoliosis business. Organic growth in trauma resulted from cannulated screws, PNP Femur and the Orthex system.
While OrthoPediatrics expects some amount of disruption from the pending Globus Medical acquisition of NuVasive, the company didn’t factor anything additional into its 2023 revenue guidance.
“I think the disruption generally benefits us, probably benefits several companies,” said OrthoPediatrics CFO Fred Hite. “It’s not something that we’ve necessarily factored into our growth for next year. There’s probably some disruption, particularly on the NUVA side. That would drive us to be able to attract some different salespeople and add to our selling organization in areas where they’re strong. But, again, I don’t think it’s something that we’ve contemplated as one of our major growth drivers for next year.”
OrthoPediatrics expects 2023 orthopedic sales between $146 million and $149 million, representing growth between 20% and 22%. Organic growth is expected in the range of 15% and 18%, with the company taking a conservative view considering the ongoing market disruption.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 4Q22 | 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $8.0 | $7.2 | $0.9 | 12.2% |
| Trauma | $22.1 | $16.5 | $5.6 | 33.6% |
| Sports Medicine | $0.9 | $1.1 | ($0.2) | (21.9%) |
| Total | $31.0 | $24.8 | $6.2 | 24.9% |
| FY22 | FY21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $33.4 | $28.0 | $5.4 | 19.2% |
| Trauma | $85.1 | $65.8 | $19.2 | 29.2% |
| Sports Medicine | $3.8 | $4.2 | ($0.4) | (8.8%) |
| Total | $122.3 | $98.0 | $24.2 | 24.7% |
Orthopedic Sales by Geography
| 4Q22 | 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $22.7 | $19.9 | $2.9 | 14.5% |
| OUS | $8.3 | $5.0 | $3.3 | 66.5% |
| Total | $31.0 | $24.8 | $6.2 | 24.9% |
| FY22 | FY21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.4 | $77.8 | $14.6 | 18.8% |
| OUS | $29.9 | $20.3 | $9.6 | 47.4% |
| Total | $122.3 | $98.0 | $24.2 | 24.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $31.0 | |
| Cost of Sales | $9.8 | 31.5% |
| General and Admin | $10.9 | 35.3% |
| Selling and Marketing | $16.6 | 53.4% |
| R & D | $2.0 | 6.6% |
| Other | $10.5 | 33.8% |
| Net Earnings | ($7.8) | (25.3%) |
OrthoPediatrics reported 4Q22 orthopedic sales of $31 million, +24.9% compared to 4Q21. For the full year 2022, the company grew 24.7% compared to the prior year. The performance continued a trend of growth in excess of 20% ongoing since the company's inception, with the exception of pandemic-ridden 2020.
The company faced multiple...
OrthoPediatrics reported 4Q22 orthopedic sales of $31 million, +24.9% compared to 4Q21. For the full year 2022, the company grew 24.7% compared to the prior year. The performance continued a trend of growth in excess of 20% ongoing since the company’s inception, with the exception of pandemic-ridden 2020.
The company faced multiple headwinds throughout the year, including COVID impacts in the first quarter, record high rates of respiratory syncytial virus and flu in the back half of the year and ongoing hospital staffing shortages. However, OrthoPediatrics continued market share gains resulting from increasing account penetration, additional set deployments and sales synergies from recent acquisitions.
Adoption of the RESPONSE fusion system as well as the ApiFix non-fusion system drove the company’s scoliosis business. Organic growth in trauma resulted from cannulated screws, PNP Femur and the Orthex system.
While OrthoPediatrics expects some amount of disruption from the pending Globus Medical acquisition of NuVasive, the company didn’t factor anything additional into its 2023 revenue guidance.
“I think the disruption generally benefits us, probably benefits several companies,” said OrthoPediatrics CFO Fred Hite. “It’s not something that we’ve necessarily factored into our growth for next year. There’s probably some disruption, particularly on the NUVA side. That would drive us to be able to attract some different salespeople and add to our selling organization in areas where they’re strong. But, again, I don’t think it’s something that we’ve contemplated as one of our major growth drivers for next year.”
OrthoPediatrics expects 2023 orthopedic sales between $146 million and $149 million, representing growth between 20% and 22%. Organic growth is expected in the range of 15% and 18%, with the company taking a conservative view considering the ongoing market disruption.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 4Q22 | 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $8.0 | $7.2 | $0.9 | 12.2% |
| Trauma | $22.1 | $16.5 | $5.6 | 33.6% |
| Sports Medicine | $0.9 | $1.1 | ($0.2) | (21.9%) |
| Total | $31.0 | $24.8 | $6.2 | 24.9% |
| FY22 | FY21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $33.4 | $28.0 | $5.4 | 19.2% |
| Trauma | $85.1 | $65.8 | $19.2 | 29.2% |
| Sports Medicine | $3.8 | $4.2 | ($0.4) | (8.8%) |
| Total | $122.3 | $98.0 | $24.2 | 24.7% |
Orthopedic Sales by Geography
| 4Q22 | 4Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $22.7 | $19.9 | $2.9 | 14.5% |
| OUS | $8.3 | $5.0 | $3.3 | 66.5% |
| Total | $31.0 | $24.8 | $6.2 | 24.9% |
| FY22 | FY21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.4 | $77.8 | $14.6 | 18.8% |
| OUS | $29.9 | $20.3 | $9.6 | 47.4% |
| Total | $122.3 | $98.0 | $24.2 | 24.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $31.0 | |
| Cost of Sales | $9.8 | 31.5% |
| General and Admin | $10.9 | 35.3% |
| Selling and Marketing | $16.6 | 53.4% |
| R & D | $2.0 | 6.6% |
| Other | $10.5 | 33.8% |
| Net Earnings | ($7.8) | (25.3%) |
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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.
