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SeaSpine reported 3Q21 orthopedic revenue of $46.4 million, +7.5% vs. 3Q20. Sudden and significant disruptions impacted the spine market starting in August due to the Delta variant. By October, many of the hardest-hit states saw COVID cases declining, but hospital staffing shortages could offset any fourth quarter volume recovery.
Third quarter highlights for SeaSpine included continuing integration of the 7D Surgical team, an exclusive distribution agreement with OrthoPediatrics for 7D’s FLASH Navigation system and the addition of new distributors in key U.S. sales territories.
According to company leadership, surgeons indicate that they have full schedules for the fourth quarter, but staffing shortages will preclude any potential upside from procedure backlogs. Those deferred cases are likely to play out over the first half of 2022. SeaSpine “feels good” about its supply chain, noting that it has increased order sizes throughout the pandemic and is looking to consolidate suppliers as well as become a larger customer for those suppliers.
Given these factors, SeaSpine anticipates fourth quarter revenue in the range of $54 million to $55 million (+16% to +18% vs. prior year), with 2021 full-year revenue between $190 million and $191 million (+19% to +20% vs. prior year).
“We did not waver from our plan to invest in the people, development projects, and additional inventory and spinal implant sets needed to take market share and consistently grow 4.0 to 5.0x faster than the overall spine market. In the third quarter of 2021, we invested nearly $11 million in additional inventory and in spinal implant sets. That investment exceeds $32 million, which is more than double the amount invested in the comparable prior year period. We recently accelerated various development programs to advance the 7D enabling technology platform. Within the past year, we have hired nearly 50 additional employees, not including the 7D Surgical team, an increase of more than 10% to help enable that future growth. These investments are so important to fostering confidence with our expanding distribution network that we can support our and their aggressive growth plans as we emerge from the pandemic.” – SeaSpine CEO Keith Valentine
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 | $24.2 | $21.6 | $2.6 | 12.1% |
| Orthobiologics | $22.2 | $21.6 | $0.6 | 2.9% |
| Total | $46.4 | $43.2 | $3.2 | 7.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $68.9 | $52.8 | $16.1 | 30.4% |
| Orthobiologics | $67.0 | $55.1 | $11.9 | 21.7% |
| Total | $135.9 | $107.9 | $28.0 | 25.9% |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $41.2 | $39.1 | $2.2 | 5.5% |
| OUS | $5.2 | $4.1 | $1.1 | 26.2% |
| Total | $46.4 | $43.2 | $3.2 | 7.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $121.3 | $96.8 | $24.5 | 25.4% |
| OUS | $14.6 | $11.1 | $3.5 | 31% |
| Total | $135.9 | $107.9 | $28.0 | 25.9% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $46.4 | |
| Cost of Sales | $18.3 | 39.4% |
| Selling and Marketing | $27.6 | 59.4% |
| General and Admin | $11.6 | 25.1% |
| R & D | $6.3 | 13.5% |
| Other | $0.3 | 0.6% |
| Net Earnings | ($17.6) | (38%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
SeaSpine reported 3Q21 orthopedic revenue of $46.4 million, +7.5% vs. 3Q20. Sudden and significant disruptions impacted the spine market starting in August due to the Delta variant. By October, many of the hardest-hit states saw COVID cases declining, but hospital staffing shortages could offset any fourth quarter volume recovery.
Third...
SeaSpine reported 3Q21 orthopedic revenue of $46.4 million, +7.5% vs. 3Q20. Sudden and significant disruptions impacted the spine market starting in August due to the Delta variant. By October, many of the hardest-hit states saw COVID cases declining, but hospital staffing shortages could offset any fourth quarter volume recovery.
Third quarter highlights for SeaSpine included continuing integration of the 7D Surgical team, an exclusive distribution agreement with OrthoPediatrics for 7D’s FLASH Navigation system and the addition of new distributors in key U.S. sales territories.
According to company leadership, surgeons indicate that they have full schedules for the fourth quarter, but staffing shortages will preclude any potential upside from procedure backlogs. Those deferred cases are likely to play out over the first half of 2022. SeaSpine “feels good” about its supply chain, noting that it has increased order sizes throughout the pandemic and is looking to consolidate suppliers as well as become a larger customer for those suppliers.
Given these factors, SeaSpine anticipates fourth quarter revenue in the range of $54 million to $55 million (+16% to +18% vs. prior year), with 2021 full-year revenue between $190 million and $191 million (+19% to +20% vs. prior year).
“We did not waver from our plan to invest in the people, development projects, and additional inventory and spinal implant sets needed to take market share and consistently grow 4.0 to 5.0x faster than the overall spine market. In the third quarter of 2021, we invested nearly $11 million in additional inventory and in spinal implant sets. That investment exceeds $32 million, which is more than double the amount invested in the comparable prior year period. We recently accelerated various development programs to advance the 7D enabling technology platform. Within the past year, we have hired nearly 50 additional employees, not including the 7D Surgical team, an increase of more than 10% to help enable that future growth. These investments are so important to fostering confidence with our expanding distribution network that we can support our and their aggressive growth plans as we emerge from the pandemic.” – SeaSpine CEO Keith Valentine
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 | $24.2 | $21.6 | $2.6 | 12.1% |
| Orthobiologics | $22.2 | $21.6 | $0.6 | 2.9% |
| Total | $46.4 | $43.2 | $3.2 | 7.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $68.9 | $52.8 | $16.1 | 30.4% |
| Orthobiologics | $67.0 | $55.1 | $11.9 | 21.7% |
| Total | $135.9 | $107.9 | $28.0 | 25.9% |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $41.2 | $39.1 | $2.2 | 5.5% |
| OUS | $5.2 | $4.1 | $1.1 | 26.2% |
| Total | $46.4 | $43.2 | $3.2 | 7.5% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $121.3 | $96.8 | $24.5 | 25.4% |
| OUS | $14.6 | $11.1 | $3.5 | 31% |
| Total | $135.9 | $107.9 | $28.0 | 25.9% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $46.4 | |
| Cost of Sales | $18.3 | 39.4% |
| Selling and Marketing | $27.6 | 59.4% |
| General and Admin | $11.6 | 25.1% |
| R & D | $6.3 | 13.5% |
| Other | $0.3 | 0.6% |
| Net Earnings | ($17.6) | (38%) |
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.
