Wright Medical 2Q17 Revenue

by Julie A. Vetalice on August 07, 2017

Wright Medical reported 2Q17 revenue of US $179.7MM, +5.3% from 2Q16, and 1H17 revenue of $356.9MM, +5.0% vs. 1H16. ORTHOWORLD estimates for segment sales and growth follow.

	2Q17	2Q16	$ Change	% Change
Joint Reconstruction Extremities	$82.3	$76.7	$5.6	7.3%
Trauma	$67.3	$65.4	$2.0	3.0%
Arthroscopy/Soft Tissue	$5.7	$6.0	-$0.3	-5.1%
Orthobiologics	$24.4	$22.7	$1.7	7.7%
Total	$179.7	$170.7	$9.0	5.3%

	1H17	1H16	$ Change	% Change
Joint Reconstruction	$163.4	$153.3	$10.1	6.6%
Trauma	$133.7	$130.6	$3.1	2.4%
Arthroscopy/Soft Tissue	$11.6	$12.1	-$0.6	-4.7%
Orthobiologics	$48.2	$44.0	$4.2	9.6%
Total	$356.9	$340.0	$16.9	5.0%

2Q17 Geographic results: U.S. $132.9MM, +9.1%; ex-U.S. $46.7MM, -4.3%

Performance highlights:

Growth supported by AUGMENT bone graft, SALVATION limb salvage, total ankles, BLUEPRINT surgical planning, INFINITY total ankle, SIMPLICITI shoulder and PERFORM Reversed glenoid; for the latter, releasing additional instrument sets in the U.S. during 3Q17
U.S. shoulders alone +16%, total ankles +28% (latter now >$60MM, annualized)
Core U.S. lower extremity plates & screws/biologics growth impacted by revenue dis-synergies, which appear to be done now, and the distraction of new direct quota-carrying reps
Ex-U.S. revenue affected by unfavorable impact of foreign currency exchange and timing of orders to stocking distributors, but offset by increase in direct Australia, EU and Japan markets
Year to date, added ~370 new AUGMENT customers, many of which are completely new to WMGI
The 100 sales reps added (primarily in lower extremities) are now through onboarding and training; will see meaningful benefit from them by 4Q
No plans to divest sports medicine products, but not investing in the business presently
After quarter close, launched the INVISION™ Revision Total Ankle and ORTHOLOC 3Di Ankle Fracture Low Profile System (latter ahead of expected 4Q launch)

Sources: Wright Medical Group, Inc.; ORTHOWORLD estimates

Wright Medical reported 2Q17 revenue of US $179.7MM, +5.3% from 2Q16, and 1H17 revenue of $356.9MM, +5.0% vs. 1H16. ORTHOWORLD estimates for segment sales and growth follow.

Q17
Q16
$ Change
% Change

Joint Reconstruction...

Wright Medical reported 2Q17 revenue of US $179.7MM, +5.3% from 2Q16, and 1H17 revenue of $356.9MM, +5.0% vs. 1H16. ORTHOWORLD estimates for segment sales and growth follow.

	2Q17	2Q16	$ Change	% Change
Joint Reconstruction Extremities	$82.3	$76.7	$5.6	7.3%
Trauma	$67.3	$65.4	$2.0	3.0%
Arthroscopy/Soft Tissue	$5.7	$6.0	-$0.3	-5.1%
Orthobiologics	$24.4	$22.7	$1.7	7.7%
Total	$179.7	$170.7	$9.0	5.3%

	1H17	1H16	$ Change	% Change
Joint Reconstruction	$163.4	$153.3	$10.1	6.6%
Trauma	$133.7	$130.6	$3.1	2.4%
Arthroscopy/Soft Tissue	$11.6	$12.1	-$0.6	-4.7%
Orthobiologics	$48.2	$44.0	$4.2	9.6%
Total	$356.9	$340.0	$16.9	5.0%

2Q17 Geographic results: U.S. $132.9MM, +9.1%; ex-U.S. $46.7MM, -4.3%

Performance highlights:

Growth supported by AUGMENT bone graft, SALVATION limb salvage, total ankles, BLUEPRINT surgical planning, INFINITY total ankle, SIMPLICITI shoulder and PERFORM Reversed glenoid; for the latter, releasing additional instrument sets in the U.S. during 3Q17
U.S. shoulders alone +16%, total ankles +28% (latter now >$60MM, annualized)
Core U.S. lower extremity plates & screws/biologics growth impacted by revenue dis-synergies, which appear to be done now, and the distraction of new direct quota-carrying reps
Ex-U.S. revenue affected by unfavorable impact of foreign currency exchange and timing of orders to stocking distributors, but offset by increase in direct Australia, EU and Japan markets
Year to date, added ~370 new AUGMENT customers, many of which are completely new to WMGI
The 100 sales reps added (primarily in lower extremities) are now through onboarding and training; will see meaningful benefit from them by 4Q
No plans to divest sports medicine products, but not investing in the business presently
After quarter close, launched the INVISION™ Revision Total Ankle and ORTHOLOC 3Di Ankle Fracture Low Profile System (latter ahead of expected 4Q launch)

Sources: Wright Medical Group, Inc.; ORTHOWORLD estimates