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SeaSpine reported 1Q21 orthopedic revenue of USD $42 million, +16.2% vs. 1Q20. The company pointed to a positive inflection point for surgical volumes in February, with momentum continuing through March and April. SeaSpine’s leadership reported that spinal implant volumes increased +10% for the quarter, the culmination of a robust new product cadence and geographic expansion in the U.S. In addition to the volume growth, revenue per case and products per case increased as well.
SeaSpine expects to close the acquisition of 7D Surgical at the end of the second quarter. The decision to acquire, instead of partner with, 7D Surgical makes SeaSpine’s core distributors more competitive in the market. For 2021, SeaSpine expects a $7 million revenue contribution from 7D systems.
The company remains bullish on its 2021 prospects. It provided full-year revenue guidance of $193 million to $198 million, growth in the range of 25% to 28%. Inclusive of 7D Surgical, the growth range is 30% to 33%.
“We had a different arrangement with 7D previous to this that really was more of a discount off of list price. Now, we would be making decisions on the cost of goods at a baseline. We can make the right decision on whether to do an earn-out or place the unit outright. Our distributors are excited because it’s a different economic equation, and they can be much more competitive in the market.” – 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
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $20.5 | $16.5 | $4.0 | 24.1% |
| Orthobiologics | $21.5 | $19.6 | $1.9 | 9.5% |
| Total | $42.0 | $36.1 | $5.8 | 16.2% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $37.5 | $31.8 | $5.7 | 17.8% |
| OUS | $4.5 | $4.3 | $0.2 | 4.3% |
| Total | $42.0 | $36.1 | $5.8 | 16.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.0 | |
| Cost of Sales | $15.4 | 36.6% |
| Selling and Marketing | $23.4 | 55.8% |
| General and Admin | $10.4 | 24.9% |
| R & D | $4.5 | 10.7% |
| Other | $1.0 | 2.3% |
| Net Earnings | ($12.7) | (30.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
SeaSpine reported 1Q21 orthopedic revenue of USD $42 million, +16.2% vs. 1Q20. The company pointed to a positive inflection point for surgical volumes in February, with momentum continuing through March and April. SeaSpine’s leadership reported that spinal implant volumes increased +10% for the quarter, the culmination of a robust new product...
SeaSpine reported 1Q21 orthopedic revenue of USD $42 million, +16.2% vs. 1Q20. The company pointed to a positive inflection point for surgical volumes in February, with momentum continuing through March and April. SeaSpine’s leadership reported that spinal implant volumes increased +10% for the quarter, the culmination of a robust new product cadence and geographic expansion in the U.S. In addition to the volume growth, revenue per case and products per case increased as well.
SeaSpine expects to close the acquisition of 7D Surgical at the end of the second quarter. The decision to acquire, instead of partner with, 7D Surgical makes SeaSpine’s core distributors more competitive in the market. For 2021, SeaSpine expects a $7 million revenue contribution from 7D systems.
The company remains bullish on its 2021 prospects. It provided full-year revenue guidance of $193 million to $198 million, growth in the range of 25% to 28%. Inclusive of 7D Surgical, the growth range is 30% to 33%.
“We had a different arrangement with 7D previous to this that really was more of a discount off of list price. Now, we would be making decisions on the cost of goods at a baseline. We can make the right decision on whether to do an earn-out or place the unit outright. Our distributors are excited because it’s a different economic equation, and they can be much more competitive in the market.” – 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
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $20.5 | $16.5 | $4.0 | 24.1% |
| Orthobiologics | $21.5 | $19.6 | $1.9 | 9.5% |
| Total | $42.0 | $36.1 | $5.8 | 16.2% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $37.5 | $31.8 | $5.7 | 17.8% |
| OUS | $4.5 | $4.3 | $0.2 | 4.3% |
| Total | $42.0 | $36.1 | $5.8 | 16.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.0 | |
| Cost of Sales | $15.4 | 36.6% |
| Selling and Marketing | $23.4 | 55.8% |
| General and Admin | $10.4 | 24.9% |
| R & D | $4.5 | 10.7% |
| Other | $1.0 | 2.3% |
| Net Earnings | ($12.7) | (30.3%) |
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.
