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OrthoPediatrics reported 3Q20 orthopedic revenue of USD $22.2 million, +7% vs. 3Q19. The company’s U.S. sales accelerated monthly throughout the third quarter, ultimately driving the highest revenue quarter in OrthoPediatrics’ history. However, COVID continues to pose challenges to the company’s overseas markets and Latin America. The company has observed a high number of last-minute cancellations abroad, perhaps indicating parental concerns over bringing their children into a hospital setting.
The company estimates that 50% of its salesforce is now actively supporting complex external fixation with Orthex. Australia recently approved Orthex, and the company expects launching it in Europe in 1Q21. ApiFix is now in various phases of Institutional Review Board approval at 20 U.S. sites. Seven of those sites are now fully approved to conduct surgery, with the balance of the sites gaining full approval by early 2021.
OrthoPediatrics expects fourth-quarter U.S. revenue to improve modestly compared to the third quarter, while international revenues decline due to fewer procedures and reduced stocking orders.
“We are going to have to digest some of the technologies that we’ve acquired over the last few years. You can expect not to see anything major on the horizon at least for the short-term. You might see some small bolt-on stuff, particularly in the external fixation area. We like our position with the Orthex Hexapod, but there are some add-on technologies and products that I think could strengthen our market position.” – Dave Bailey, OrthoPediatrics President
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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $6.6 | $6.5 | $0.1 | 1.3% |
| Trauma | $15.0 | $13.8 | $1.1 | 8.2% |
| Sports Medicine | $0.7 | $0.4 | $0.2 | 55.5% |
| Total | $22.2 | $20.7 | $1.5 | 7% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $14.1 | $16.6 | ($2.5) | (15%) |
| Trauma | $36.4 | $35.7 | $0.7 | 1.8% |
| Sports Medicine | $1.7 | $1.3 | $0.4 | 30.6% |
| Total | $52.2 | $53.6 | ($1.4) | (2.7%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $19.6 | $16.8 | $2.8 | 16.7% |
| OUS | $2.6 | $4.0 | ($1.3) | (33.8%) |
| Total | $22.2 | $20.7 | $1.5 | 7% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $45.1 | $40.9 | $4.2 | 10.3% |
| OUS | $7.0 | $12.7 | ($5.7) | (44.6%) |
| Total | $52.2 | $53.6 | ($1.4) | (2.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22.2 | |
| Cost of Sales | $4.6 | 20.6% |
| General and Admin | $9.2 | 41.6% |
| Selling and Marketing | $9.8 | 44.2% |
| R & D | $1.1 | 4.9% |
| Other | $11.3 | 50.8% |
| Net Earnings | ($4.5) | (20.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
OrthoPediatrics reported 3Q20 orthopedic revenue of USD $22.2 million, +7% vs. 3Q19. The company’s U.S. sales accelerated monthly throughout the third quarter, ultimately driving the highest revenue quarter in OrthoPediatrics’ history. However, COVID continues to pose challenges to the company’s overseas markets and Latin America. The company...
OrthoPediatrics reported 3Q20 orthopedic revenue of USD $22.2 million, +7% vs. 3Q19. The company’s U.S. sales accelerated monthly throughout the third quarter, ultimately driving the highest revenue quarter in OrthoPediatrics’ history. However, COVID continues to pose challenges to the company’s overseas markets and Latin America. The company has observed a high number of last-minute cancellations abroad, perhaps indicating parental concerns over bringing their children into a hospital setting.
The company estimates that 50% of its salesforce is now actively supporting complex external fixation with Orthex. Australia recently approved Orthex, and the company expects launching it in Europe in 1Q21. ApiFix is now in various phases of Institutional Review Board approval at 20 U.S. sites. Seven of those sites are now fully approved to conduct surgery, with the balance of the sites gaining full approval by early 2021.
OrthoPediatrics expects fourth-quarter U.S. revenue to improve modestly compared to the third quarter, while international revenues decline due to fewer procedures and reduced stocking orders.
“We are going to have to digest some of the technologies that we’ve acquired over the last few years. You can expect not to see anything major on the horizon at least for the short-term. You might see some small bolt-on stuff, particularly in the external fixation area. We like our position with the Orthex Hexapod, but there are some add-on technologies and products that I think could strengthen our market position.” – Dave Bailey, OrthoPediatrics President
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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $6.6 | $6.5 | $0.1 | 1.3% |
| Trauma | $15.0 | $13.8 | $1.1 | 8.2% |
| Sports Medicine | $0.7 | $0.4 | $0.2 | 55.5% |
| Total | $22.2 | $20.7 | $1.5 | 7% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $14.1 | $16.6 | ($2.5) | (15%) |
| Trauma | $36.4 | $35.7 | $0.7 | 1.8% |
| Sports Medicine | $1.7 | $1.3 | $0.4 | 30.6% |
| Total | $52.2 | $53.6 | ($1.4) | (2.7%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $19.6 | $16.8 | $2.8 | 16.7% |
| OUS | $2.6 | $4.0 | ($1.3) | (33.8%) |
| Total | $22.2 | $20.7 | $1.5 | 7% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $45.1 | $40.9 | $4.2 | 10.3% |
| OUS | $7.0 | $12.7 | ($5.7) | (44.6%) |
| Total | $52.2 | $53.6 | ($1.4) | (2.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22.2 | |
| Cost of Sales | $4.6 | 20.6% |
| General and Admin | $9.2 | 41.6% |
| Selling and Marketing | $9.8 | 44.2% |
| R & D | $1.1 | 4.9% |
| Other | $11.3 | 50.8% |
| Net Earnings | ($4.5) | (20.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
