OrthoPediatrics reported 4Q21 orthopedic sales of $24.8 million, +31.1% vs. 4Q20. For the full year, the company generated $98 million in orthopedic sales, +37.9% vs. the year prior.
The company focuses on the top 300 pediatric hospitals in the U.S. and continues to convert new surgeons as well as broaden utilization by existing customers. OrthoPediatrics’ distribution agreement with SeaSpine for the 7D Surgical FLASH™ Navigation platform can be a market share driver for the company.
OrthoPediatrics CEO David Bailey said, “Capital equipment is new to us, but we think that about 80% of these units will be consigned to the hospital with earn-out agreements. Incremental market share will come for us consigning those units there, and the other 20% will actually be capital equipment sales that will show up as incremental one-time sales into those hospitals. We really prefer the consignment model because they benefit, we can deploy some capital and we can lock up some market share.”
The case backlog created by the omicron surge will provide a tailwind but its recapture rate will be flatter than previous recoveries due to hospital staffing pressures. Additionally, OrthoPediatrics plans to offset pockets of inflation by modest price increases.
The company estimated that the late-2021 COVID surge negatively impacted 4Q growth by 10%. Those pressures continued into the first quarter of 2022, but show signs of improvement in March. For the full year 2022, OrthoPediatrics expects orthopedic sales between $118 million and $121 million, representing growth between +20% and +23%.
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
4Q21 | 4Q20 | $ Chg | % Chg | |
---|---|---|---|---|
Spine | $7.2 | $6.6 | $0.5 | 8.1% |
Trauma | $16.5 | $11.3 | $5.2 | 46.5% |
Sports Medicine | $1.1 | $1.0 | $0.1 | 10.3% |
Total | $24.8 | $18.9 | $5.9 | 31.1% |
FY21 | FY20 | $ Chg | % Chg | |
---|---|---|---|---|
Spine | $28.0 | $20.7 | $7.3 | 35.2% |
Trauma | $65.8 | $47.7 | $18.2 | 38.1% |
Sports Medicine | $4.2 | $2.7 | $1.5 | 56.7% |
Total | $98.0 | $71.1 | $27.0 | 37.9% |
Orthopedic Sales by Geography
4Q21 | 4Q20 | $ Chg | % Chg | |
---|---|---|---|---|
US | $19.9 | $17.9 | $2.0 | 11.2% |
OUS | $5.0 | $1.1 | $3.9 | 363.3% |
Total | $24.8 | $18.9 | $5.9 | 31.1% |
FY20 | FY19 | $ Chg | % Chg | |
---|---|---|---|---|
US | $77.8 | $63.0 | $14.8 | 23.5% |
OUS | $20.3 | $8.1 | $12.2 | 149.9% |
Total | $98.0 | $71.1 | $27.0 | 37.9% |
Company Earnings
Amt | % of Sales | |
---|---|---|
Sales | $24.8 | |
Cost of Sales | $6.7 | 27.1% |
General and Admin | $10.0 | 40.2% |
Selling and Marketing | $12.0 | 48.6% |
R & D | $1.6 | 6.5% |
Other | $4.4 | 17.5% |
Net Earnings | $0.1 | 0.3% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
OrthoPediatrics reported 4Q21 orthopedic sales of $24.8 million, +31.1% vs. 4Q20. For the full year, the company generated $98 million in orthopedic sales, +37.9% vs. the year prior.
The company focuses on the top 300 pediatric hospitals in the U.S. and continues to convert new surgeons as well as broaden utilization by existing customers....
OrthoPediatrics reported 4Q21 orthopedic sales of $24.8 million, +31.1% vs. 4Q20. For the full year, the company generated $98 million in orthopedic sales, +37.9% vs. the year prior.
The company focuses on the top 300 pediatric hospitals in the U.S. and continues to convert new surgeons as well as broaden utilization by existing customers. OrthoPediatrics’ distribution agreement with SeaSpine for the 7D Surgical FLASH™ Navigation platform can be a market share driver for the company.
OrthoPediatrics CEO David Bailey said, “Capital equipment is new to us, but we think that about 80% of these units will be consigned to the hospital with earn-out agreements. Incremental market share will come for us consigning those units there, and the other 20% will actually be capital equipment sales that will show up as incremental one-time sales into those hospitals. We really prefer the consignment model because they benefit, we can deploy some capital and we can lock up some market share.”
The case backlog created by the omicron surge will provide a tailwind but its recapture rate will be flatter than previous recoveries due to hospital staffing pressures. Additionally, OrthoPediatrics plans to offset pockets of inflation by modest price increases.
The company estimated that the late-2021 COVID surge negatively impacted 4Q growth by 10%. Those pressures continued into the first quarter of 2022, but show signs of improvement in March. For the full year 2022, OrthoPediatrics expects orthopedic sales between $118 million and $121 million, representing growth between +20% and +23%.
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
4Q21 | 4Q20 | $ Chg | % Chg | |
---|---|---|---|---|
Spine | $7.2 | $6.6 | $0.5 | 8.1% |
Trauma | $16.5 | $11.3 | $5.2 | 46.5% |
Sports Medicine | $1.1 | $1.0 | $0.1 | 10.3% |
Total | $24.8 | $18.9 | $5.9 | 31.1% |
FY21 | FY20 | $ Chg | % Chg | |
---|---|---|---|---|
Spine | $28.0 | $20.7 | $7.3 | 35.2% |
Trauma | $65.8 | $47.7 | $18.2 | 38.1% |
Sports Medicine | $4.2 | $2.7 | $1.5 | 56.7% |
Total | $98.0 | $71.1 | $27.0 | 37.9% |
Orthopedic Sales by Geography
4Q21 | 4Q20 | $ Chg | % Chg | |
---|---|---|---|---|
US | $19.9 | $17.9 | $2.0 | 11.2% |
OUS | $5.0 | $1.1 | $3.9 | 363.3% |
Total | $24.8 | $18.9 | $5.9 | 31.1% |
FY20 | FY19 | $ Chg | % Chg | |
---|---|---|---|---|
US | $77.8 | $63.0 | $14.8 | 23.5% |
OUS | $20.3 | $8.1 | $12.2 | 149.9% |
Total | $98.0 | $71.1 | $27.0 | 37.9% |
Company Earnings
Amt | % of Sales | |
---|---|---|
Sales | $24.8 | |
Cost of Sales | $6.7 | 27.1% |
General and Admin | $10.0 | 40.2% |
Selling and Marketing | $12.0 | 48.6% |
R & D | $1.6 | 6.5% |
Other | $4.4 | 17.5% |
Net Earnings | $0.1 | 0.3% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. 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.