Wright Medical 2Q17 Revenue

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 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