Wright Medical Reports 2Q18 Revenue

Wright Medical (WMGI) reported 2Q18 revenue of US $205.4MM, +14.3% from 2Q17, and 1H18 revenue of $403.9MM, +13.2% vs. 1H17.

ORTHOWORLD estimates for segment sales and growth follow.

Revenue by geographic region:

U.S. shoulder sales once again drove growth, +24% year over year. The SIMPLICITI shoulder, PERFORM Reversed launch and growing adoption of BLUEPRINT enabling technology will continue to support this segment of the business. (SIMPLICITI alone grew +31% vs. 2Q17.) As of 2Q, >20% of WMGI’s shoulder customers use BLUEPRINT 3D planning software.

After the quarter’s close, Wright launched the PROstep Minimally Invasive Surgery System and AUGMENT Injectable Bone Graft. These products, plus the ongoing launch of the SALVATION 2 limb reconstruction system and momentum from shoulders, are expected to help sustain strong revenue growth. Leadership also mentioned a revision shoulder, launching in 4Q.

The AUGMENT launch alone is expected to contribute $3MM in 2H18 revenue; initially, it will cannibalize “classic” AUGMENT sales, but is expected to move deeper into existing accounts due to improved handling characteristics vs. the legacy version.

Of the 2Q and 1H drops in Arthroscopy/Soft Tissue Repair revenue, which WMGI reports as Sports Medicine and Other, President and CEO Bob Palmisano stated, “It’s not strategically important. It’s a very small business. We don’t invest in it. It’s just not an important product area for us. We don’t expect to get growth out of it.”

Based on the strength of the underlying business and FDA approval and launch of AUGMENT Injectable, WMGI raised full-year revenue guidance range to $808MM-$820MM, an increase of $8MM.

Sources: Wright Medical Group; ORTHOWORLD estimates