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Surgalign reported 1Q22 orthopedic sales of $20.6 million, -11.5% compared to 1Q21.
COVID-related procedure volume headwinds hurt the company in January and February.
Surgalign CEO Terry Rich said, “Surgalign will be a substantially different company, beginning in earnest in 2023. While we anticipate growth in the spine device market, the greatest opportunity for value creation is through the HOLO AI platform.”
That platform, currently under development, builds upon the newly commercialized HOLO Portal surgical navigation system. Surgalign has one site up and running with HOLO Portal, and expects up to 15 additional sites by the end of the year. According to the company, each placement represents annual revenue between $1 million and $1.5 million.
However, Surgalign needs more cash to extend the commercial runway for the HOLO platform and expects to require additional financing before year-end. The company also announced a 1-for-30 reverse stock split aimed at increasing share price to regain NASDAQ compliance.
Surgalign remains bullish about its prospects, though. It raised its full-year 2022 guidance to the range of $86 million to $90 million, up $3 million from previous guidance.
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
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $15.9 | $17.8 | ($2.0) | (11%) |
| Orthobiologics | $4.7 | $5.5 | ($0.7) | (13.4%) |
| Total | $20.6 | $23.3 | ($2.7) | (11.5%) |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.2 | $19.8 | ($2.7) | (13.5%) |
| OUS | $3.4 | $3.4 | ($0.0) | (0.2%) |
| Total | $20.6 | $23.3 | ($2.7) | (11.5%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $20.6 | |
| Cost of Sales | $6.4 | 31.1% |
| General and Admin | $25.3 | 122.9% |
| R & D | $4.4 | 21.6% |
| Other | ($15.6) | (75.7%) |
| Net Earnings | $0.0 | 0.1% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Surgalign reported 1Q22 orthopedic sales of $20.6 million, -11.5% compared to 1Q21.
COVID-related procedure volume headwinds hurt the company in January and February.
Surgalign CEO Terry Rich said, "Surgalign will be a substantially different company, beginning in earnest in 2023. While we anticipate growth in the spine device market, the...
Surgalign reported 1Q22 orthopedic sales of $20.6 million, -11.5% compared to 1Q21.
COVID-related procedure volume headwinds hurt the company in January and February.
Surgalign CEO Terry Rich said, “Surgalign will be a substantially different company, beginning in earnest in 2023. While we anticipate growth in the spine device market, the greatest opportunity for value creation is through the HOLO AI platform.”
That platform, currently under development, builds upon the newly commercialized HOLO Portal surgical navigation system. Surgalign has one site up and running with HOLO Portal, and expects up to 15 additional sites by the end of the year. According to the company, each placement represents annual revenue between $1 million and $1.5 million.
However, Surgalign needs more cash to extend the commercial runway for the HOLO platform and expects to require additional financing before year-end. The company also announced a 1-for-30 reverse stock split aimed at increasing share price to regain NASDAQ compliance.
Surgalign remains bullish about its prospects, though. It raised its full-year 2022 guidance to the range of $86 million to $90 million, up $3 million from previous guidance.
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
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $15.9 | $17.8 | ($2.0) | (11%) |
| Orthobiologics | $4.7 | $5.5 | ($0.7) | (13.4%) |
| Total | $20.6 | $23.3 | ($2.7) | (11.5%) |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $17.2 | $19.8 | ($2.7) | (13.5%) |
| OUS | $3.4 | $3.4 | ($0.0) | (0.2%) |
| Total | $20.6 | $23.3 | ($2.7) | (11.5%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $20.6 | |
| Cost of Sales | $6.4 | 31.1% |
| General and Admin | $25.3 | 122.9% |
| R & D | $4.4 | 21.6% |
| Other | ($15.6) | (75.7%) |
| Net Earnings | $0.0 | 0.1% |
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.
