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SeaSpine reported 3Q20 orthopedic revenue of USD $43.2 million, +8.3% vs. 3Q19. Unlike some peers, SeaSpine saw surgical volumes accelerate throughout the quarter despite most surgeons depleting their backlogs early in 3Q. The company attributes the acceleration to its cadence of new products, contracting wins in large health systems and geographic expansion of its revenue footprint. For example, California, Texas and Florida historically combine to account for 35% of SeaSpine’s U.S. revenue. Those areas grew only +2% in 3Q, but the company still managed to drive +10% growth in the U.S. overall.
New products have closed gaps in the company’s portfolio, allowing it to capture a larger share of more complex surgeries. Surgical volumes increased +5% and revenue per procedure increased +7% for SeaSpine in 3Q20. The company also sold 1.9 products per case compared to 1.7 in the prior year quarter. Revenue from new products accounted for 66% of U.S. spinal hardware revenue.
The company expects its momentum to continue into the fourth quarter. SeaSpine provided guidance of revenues in the range of $47 million to $48 million, or +7% to +10% over 4Q19.
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 | $21.6 | $19.8 | $1.8 | 9% |
| Orthobiologics | $21.6 | $20.1 | $1.5 | 7.6% |
| Total | $43.2 | $39.9 | $3.3 | 8.3% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $52.8 | $56.2 | ($3.4) | (6%) |
| Orthobiologics | $55.1 | $59.2 | ($4.1) | (6.9%) |
| Total | $107.9 | $115.3 | ($7.4) | (6.4%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $39.1 | $35.5 | $3.5 | 10% |
| OUS | $4.1 | $4.4 | ($0.2) | (5%) |
| Total | $43.2 | $39.9 | $3.3 | 8.3% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $96.8 | $102.6 | ($5.8) | (5.7%) |
| OUS | $11.1 | $12.8 | ($1.6) | (12.6%) |
| Total | $107.9 | $115.3 | ($7.4) | (6.4%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $43.2 | |
| Cost of Sales | $14.1 | 32.6% |
| Selling and Marketing | $22.2 | 51.3% |
| General and Admin | $8.9 | 20.6% |
| R & D | $3.9 | 9.1% |
| Other | $0.7 | 1.7% |
| Net Earnings | ($6.6) | (15.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
SeaSpine reported 3Q20 orthopedic revenue of USD $43.2 million, +8.3% vs. 3Q19. Unlike some peers, SeaSpine saw surgical volumes accelerate throughout the quarter despite most surgeons depleting their backlogs early in 3Q. The company attributes the acceleration to its cadence of new products, contracting wins in large health systems and...
SeaSpine reported 3Q20 orthopedic revenue of USD $43.2 million, +8.3% vs. 3Q19. Unlike some peers, SeaSpine saw surgical volumes accelerate throughout the quarter despite most surgeons depleting their backlogs early in 3Q. The company attributes the acceleration to its cadence of new products, contracting wins in large health systems and geographic expansion of its revenue footprint. For example, California, Texas and Florida historically combine to account for 35% of SeaSpine’s U.S. revenue. Those areas grew only +2% in 3Q, but the company still managed to drive +10% growth in the U.S. overall.
New products have closed gaps in the company’s portfolio, allowing it to capture a larger share of more complex surgeries. Surgical volumes increased +5% and revenue per procedure increased +7% for SeaSpine in 3Q20. The company also sold 1.9 products per case compared to 1.7 in the prior year quarter. Revenue from new products accounted for 66% of U.S. spinal hardware revenue.
The company expects its momentum to continue into the fourth quarter. SeaSpine provided guidance of revenues in the range of $47 million to $48 million, or +7% to +10% over 4Q19.
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 | $21.6 | $19.8 | $1.8 | 9% |
| Orthobiologics | $21.6 | $20.1 | $1.5 | 7.6% |
| Total | $43.2 | $39.9 | $3.3 | 8.3% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $52.8 | $56.2 | ($3.4) | (6%) |
| Orthobiologics | $55.1 | $59.2 | ($4.1) | (6.9%) |
| Total | $107.9 | $115.3 | ($7.4) | (6.4%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $39.1 | $35.5 | $3.5 | 10% |
| OUS | $4.1 | $4.4 | ($0.2) | (5%) |
| Total | $43.2 | $39.9 | $3.3 | 8.3% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $96.8 | $102.6 | ($5.8) | (5.7%) |
| OUS | $11.1 | $12.8 | ($1.6) | (12.6%) |
| Total | $107.9 | $115.3 | ($7.4) | (6.4%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $43.2 | |
| Cost of Sales | $14.1 | 32.6% |
| Selling and Marketing | $22.2 | 51.3% |
| General and Admin | $8.9 | 20.6% |
| R & D | $3.9 | 9.1% |
| Other | $0.7 | 1.7% |
| Net Earnings | ($6.6) | (15.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers Mike Evers is an 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.
