Here are financial report updates from 20 orthopedic and orthopedic-driven device companies for the first quarter of 2012 or the recently reported third quarter of the 2012 fiscal year. If you have comments or questions on this list, please contact Laura at lmiller@beckershealthcare.com. Alphatec Spine. During the first quarter of 2012, Alphatec Spine reported revenue of $48.5 million, slightly less than the same period last year. Net loss for the first quarter of 2012 was $1.3 million, compared to $1.9 million net loss during the first quarter of 2011. United States revenues were reported as $32.6 million, slightly less than the first quarter of 2011. U.S. hospital sales grew 3 percent, which was driven by biologics and minimally invasive products. International revenue was flat from last year to this year. Company CEO and Chairman Les Cross attributes the decreases to a challenging spine market.
BioMimetic Therapeutics. This Franklin, Tenn.-based device company reported a net loss of $6.1 million during the first quarter of 2012. The company's net loss was less than the same period last year, when the company reported a net loss of $8 million. The company reported $500,000 total revenues, slightly above the same period last year. Its research and development expenses were $2.8 million. Last month the company shipped its first orders of Augmatrix Biocomposite Bone Graft, which is in the process of being stocked at hospitals and surgery centers. The product is cleared for orthopedic applications and surgeon education for the device is ongoing.
Biomet. During the third quarter of the 2012 fiscal year, Biomet reported $709 million net sales worldwide, a 5 percent increase over the same period last year. Biomet reported growth in the large joint reconstructive business, including 4 percent growth in knees and 6 percent growth in hips. Total net sales for the large joint reconstructive business were $422.7 million. Sports medicine sales jumped 16 percent to $92.7 million while the company's trauma business only grew 1 percent in the third quarter. Despite the positive sports medicine and joint replacement growth, Biomet's spine and bone healing business took a hit. The overall business line sales dropped 5 percent to $76.5 million, while just spine products dropped 3 percent.
DJO Global. Net sales during the first quarter were reported as $278.9 million while net loss reached $29 million for DJO Global. The net sales represented an 11.7 percent increase over the net sales in the same period last year. The net loss for the first quarter was also higher than the same period last year, which was impacted by surgical non-cash items, non-recurring items and other adjustments. The company's surgical implant business segment grew 8.3 percent over the same period last year to $17.8 million. The increase was driven by strong sales in the shoulder products — including the launch of the RSP Monoblock — and hip sales.
Exactech. Exactech reported a slight increase in net income to $3.3 million during the first quarter. The increased income was driven by revenues and gross margin increases as a result of the company's direct operation transitions and international markets. The company's knee implant revenue increased 1 percent to $21.5 million while the revenue from extremities and hip business lines both increased 37 percent. Conversely, the company's spine and biologic revenue decreased 13 percent to $6.2 million. Research and development expenses increased 18 percent to $2.1 million, prompting a 29 percent increase in operating profit.
Johnson & Johnson. Johnson & Johnson's first quarter orthopedics sales were flat overall and dropped 3.5 percent in the United States. The company reported $1.4 million in worldwide orthopedics sales, which was slightly below the $1.5 million reported in the first quarter of 2011. The company's international orthopedics sales increased 2.6 percent, which offset a decrease in the U.S. market. During the first quarter, the company reported $271 million in expenses related to litigation and the DePuy ASR Hip recall costs.
Kensey Nash. During the third quarter of the 2012 fiscal year, Kensey Nash reported $22.2 million in revenue and $16.1 million in net sales. The company reported net sales of $4.8 million in sports medicine, $4.1 million in spine products and $2.7 million in trauma and craniomaxillofacial products. According to President and CEO Joe Kaufman, the increase in sports medicine sales was due to organic growth, and spine sales increase was driven by the organic growth from Stryker and its acquisition of the Norian business in May 2011. Recently, Kensey Nash announced the company would be acquired by Royal DSM.
Life Spine. Hoffman Estates, Ill.-based spine device company Life Spine reported a 37.9 percent growth in sales during the first quarter of 2012. The growth can be attributed to an increased demand for Life Spine's CENTRIC MIS Platform Products, including AILERON, a new minimally invasive in-situ expandable spinous process fixation system. AILERON is one of six new products the company is launching in limited releases.
MAKO Surgical. MAKO Surgical reported a 51 percent increase in total revenue for the first quarter of 2012 over the same period last year, reaching $19.6 million. However, after reporting first quarter sales at the low end of expectations, the company's shares fell 27 percent. As a result of the lower sales, the company adjusted its 2012 projections from selling 56 to 62 systems down to selling 52 to 58 systems. During the first quarter, the company reported selling six RIO systems and 13 MAKOplasty total hip arthroplasty applications. The company reported a 76 percent increase in MAKOplasty procedures performed during the first quarter of 2012 over the same period last year. The company reported net loss of $11.7 million, with a net loss of $0.28 per share and gross profit was reported as $14.1 million.
Mazor Robotics. Mazor Robotics, an Israel-based robotic spinal system company and developer of the Renaissance system, reported $2.4 million in revenue for the first quarter of 2012, an increase over the same period last year. The company also reported a $1.2 million loss for the period. In the first quarter, the company sold three Renaissance Systems for minimally invasive and complex spinal surgery. Operating expenses increased during the first quarter of 2012 due to higher sales and marketing costs.
Medtronic. In February, Medtronic reported third quarter fiscal year 2012 revenue of $3.9 billion, a 2 percent increase over the same period last year. Revenue from the international spine business grew by 7 percent as well, but core spine revenue decreased by 6 percent to $596 million. Biologics revenue declined by 20 percent, driven by floundering U.S. sales of Infuse, the company's recombinant bone morphogenic protein product. The decline was partially offset by other biologics sales. The company's neuromodulation business reported a 4 percent increase to $419 million.
MiMedx Group. MiMedx Group reported first quarter net sales at $3.7 million, with net loss at $1 million. During the first quarter, the company launched its AmnioFix Injectable nationwide, which is an allograft composed of micronized amniotic tissues for reducing inflammation and enhancing soft tissue healing of micro-tears in tendon tissue. The company also received a positive preliminary decision for the Q-code from CMS for its EpiFix allograft.
Orthofix. In the first quarter of 2012, Orthofix reported net sales at $143.1 million, a 3 percent growth over the same period last year. The company reported a $12 million net income loss and $22 million operating income loss. Orthofix recently sold its sports medicine business, which experienced 10 percent growth during the first quarter, to focus more resources on its orthopedics and spine business lines. Spine products net sales were up 3 percent to $75 million and orthopedics products were up 1 percent to $41 million. The company reported a 2 percent increase in its spinal regenerative stimulation products.
RTI Biologics. RTI Biologics reported $43.7 million in first quarter revenues, an 8 percent increase over the same period in 2011. Reported net income was $2 million for the first quarter, up from $1.2 million last year. The company attributes its success to its direct sports medicine and BGS/GO implants. The company is investing in new product development initiatives and direct distribution this year, which could positively impact future revenue growth.
Smith & Nephew. Smith & Nephew reported $1 billion in revenue for the first quarter of 2012, a 3 percent increase over the same period last year. The company's knee implant business was up 6 percent over the first quarter last year, driven by Legion Revision Knee System sales. The company's hip implant business dropped 2 percent in connection with the continuing controversy surrounding metal-on-metal total hip implants. Sales of the company's Birmingham Hip Resurfacing system particularly suffered. Its sports medicine joint repair business grew by 7 percent, and the arthroscopy enabling technologies business was up 1 percent.
Stryker. Orthopedic and spine device company Stryker reported $2.2 billion in first quarter net sales, a 7.2 percent increase over the same period last year. The increase was driven by similar jumps in the company's reconstructive, MedSurg, neurotechnology and spine business lines. Acquisitions in the spine and neurotechnology businesses drove a 12.4 percent net sales increase, while increased unit volume and changes in product mix also contributed to the business line's success. The company's knee and hip business lines also reported a net sales increase of 3.3 percent and 5.1 percent, respectively. During the first quarter, the company incurred $17 million in acquisition- and integration-related charges for Neurovascular, Orthovita, Memometal and Concetric acquisitions.
Symmetry Medical. In the first quarter of 2012, Symmetry Medical reported a 39 percent loss in net income. The company also reported a 19 percent decline in year-over-year adjusted net income. However, the company reduced its debt by more than $10 million since the 2011 year-end report. The company experienced a 9 percent drop in implant revenue and a 16 percent drop in instruments revenue during the first quarter. However, the Symmetry Surgical segment grew 197 percent to $26.7 million, driven by the company's acquisition of Codman & Shurtleff and Olsen Medical.
TranS1. TranS1, a Wilmington, N.C.-based spine device company, reported a 26 percent decrease in revenue for the first quarter of 2012. The company reported revenue at $3.8 million and net loss at $5.8 million. However, President and CEO Ken Reali said the company made progress during the first quarter toward securing physician reimbursement and driving the adoption of the VEO direct lateral system. The company is also investing in a Category I code for its AxiaLIF technology, which will be available January 2013. The company reported cash and cash-equivalents at $38.5 million at the end of the first quarter.
Wright Medical Group. In the first quarter of 2012, Wright Medical Group reported a 6 percent decrease in net sales to $126.7 million, driven by distributor transitions and challenges associated with the company's compliance process. During the third quarter of 2011, the company began to transition its independent distributor territories to direct sales representation. Net income totaled $4.6 million for the first quarter of 2012. The company's foot and ankle business grew 10.9 percent during the first quarter to $29.6 million while the hips and knees business lines dropped 9.6 percent and 5.3 percent respectively. The upper extremities business line saw a 13.3 percent decrease in revenues and the biologics line dropped 21.3 percent.
Zimmer. Zimmer's hip and knee sales were up 2 percent during the first quarter while spine sales dropped 7 percent. Total knee and hip sales reached $471 million and $344 million, respectively. Overall, the company $1.4 billion in first quarter net sales, a 2.2 percent increase over the same period last year. Net earnings for the first quarter were $209.6 million, a slight increase over the first period of 2011. Operating cash flow during the first quarter was $207.4 million. The company reported 1 percent growth in both the American and European markets, along with a 10 percent growth in the Asia Pacific market.
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BioMimetic Therapeutics. This Franklin, Tenn.-based device company reported a net loss of $6.1 million during the first quarter of 2012. The company's net loss was less than the same period last year, when the company reported a net loss of $8 million. The company reported $500,000 total revenues, slightly above the same period last year. Its research and development expenses were $2.8 million. Last month the company shipped its first orders of Augmatrix Biocomposite Bone Graft, which is in the process of being stocked at hospitals and surgery centers. The product is cleared for orthopedic applications and surgeon education for the device is ongoing.
Biomet. During the third quarter of the 2012 fiscal year, Biomet reported $709 million net sales worldwide, a 5 percent increase over the same period last year. Biomet reported growth in the large joint reconstructive business, including 4 percent growth in knees and 6 percent growth in hips. Total net sales for the large joint reconstructive business were $422.7 million. Sports medicine sales jumped 16 percent to $92.7 million while the company's trauma business only grew 1 percent in the third quarter. Despite the positive sports medicine and joint replacement growth, Biomet's spine and bone healing business took a hit. The overall business line sales dropped 5 percent to $76.5 million, while just spine products dropped 3 percent.
DJO Global. Net sales during the first quarter were reported as $278.9 million while net loss reached $29 million for DJO Global. The net sales represented an 11.7 percent increase over the net sales in the same period last year. The net loss for the first quarter was also higher than the same period last year, which was impacted by surgical non-cash items, non-recurring items and other adjustments. The company's surgical implant business segment grew 8.3 percent over the same period last year to $17.8 million. The increase was driven by strong sales in the shoulder products — including the launch of the RSP Monoblock — and hip sales.
Exactech. Exactech reported a slight increase in net income to $3.3 million during the first quarter. The increased income was driven by revenues and gross margin increases as a result of the company's direct operation transitions and international markets. The company's knee implant revenue increased 1 percent to $21.5 million while the revenue from extremities and hip business lines both increased 37 percent. Conversely, the company's spine and biologic revenue decreased 13 percent to $6.2 million. Research and development expenses increased 18 percent to $2.1 million, prompting a 29 percent increase in operating profit.
Johnson & Johnson. Johnson & Johnson's first quarter orthopedics sales were flat overall and dropped 3.5 percent in the United States. The company reported $1.4 million in worldwide orthopedics sales, which was slightly below the $1.5 million reported in the first quarter of 2011. The company's international orthopedics sales increased 2.6 percent, which offset a decrease in the U.S. market. During the first quarter, the company reported $271 million in expenses related to litigation and the DePuy ASR Hip recall costs.
Kensey Nash. During the third quarter of the 2012 fiscal year, Kensey Nash reported $22.2 million in revenue and $16.1 million in net sales. The company reported net sales of $4.8 million in sports medicine, $4.1 million in spine products and $2.7 million in trauma and craniomaxillofacial products. According to President and CEO Joe Kaufman, the increase in sports medicine sales was due to organic growth, and spine sales increase was driven by the organic growth from Stryker and its acquisition of the Norian business in May 2011. Recently, Kensey Nash announced the company would be acquired by Royal DSM.
Life Spine. Hoffman Estates, Ill.-based spine device company Life Spine reported a 37.9 percent growth in sales during the first quarter of 2012. The growth can be attributed to an increased demand for Life Spine's CENTRIC MIS Platform Products, including AILERON, a new minimally invasive in-situ expandable spinous process fixation system. AILERON is one of six new products the company is launching in limited releases.
MAKO Surgical. MAKO Surgical reported a 51 percent increase in total revenue for the first quarter of 2012 over the same period last year, reaching $19.6 million. However, after reporting first quarter sales at the low end of expectations, the company's shares fell 27 percent. As a result of the lower sales, the company adjusted its 2012 projections from selling 56 to 62 systems down to selling 52 to 58 systems. During the first quarter, the company reported selling six RIO systems and 13 MAKOplasty total hip arthroplasty applications. The company reported a 76 percent increase in MAKOplasty procedures performed during the first quarter of 2012 over the same period last year. The company reported net loss of $11.7 million, with a net loss of $0.28 per share and gross profit was reported as $14.1 million.
Mazor Robotics. Mazor Robotics, an Israel-based robotic spinal system company and developer of the Renaissance system, reported $2.4 million in revenue for the first quarter of 2012, an increase over the same period last year. The company also reported a $1.2 million loss for the period. In the first quarter, the company sold three Renaissance Systems for minimally invasive and complex spinal surgery. Operating expenses increased during the first quarter of 2012 due to higher sales and marketing costs.
Medtronic. In February, Medtronic reported third quarter fiscal year 2012 revenue of $3.9 billion, a 2 percent increase over the same period last year. Revenue from the international spine business grew by 7 percent as well, but core spine revenue decreased by 6 percent to $596 million. Biologics revenue declined by 20 percent, driven by floundering U.S. sales of Infuse, the company's recombinant bone morphogenic protein product. The decline was partially offset by other biologics sales. The company's neuromodulation business reported a 4 percent increase to $419 million.
MiMedx Group. MiMedx Group reported first quarter net sales at $3.7 million, with net loss at $1 million. During the first quarter, the company launched its AmnioFix Injectable nationwide, which is an allograft composed of micronized amniotic tissues for reducing inflammation and enhancing soft tissue healing of micro-tears in tendon tissue. The company also received a positive preliminary decision for the Q-code from CMS for its EpiFix allograft.
Orthofix. In the first quarter of 2012, Orthofix reported net sales at $143.1 million, a 3 percent growth over the same period last year. The company reported a $12 million net income loss and $22 million operating income loss. Orthofix recently sold its sports medicine business, which experienced 10 percent growth during the first quarter, to focus more resources on its orthopedics and spine business lines. Spine products net sales were up 3 percent to $75 million and orthopedics products were up 1 percent to $41 million. The company reported a 2 percent increase in its spinal regenerative stimulation products.
RTI Biologics. RTI Biologics reported $43.7 million in first quarter revenues, an 8 percent increase over the same period in 2011. Reported net income was $2 million for the first quarter, up from $1.2 million last year. The company attributes its success to its direct sports medicine and BGS/GO implants. The company is investing in new product development initiatives and direct distribution this year, which could positively impact future revenue growth.
Smith & Nephew. Smith & Nephew reported $1 billion in revenue for the first quarter of 2012, a 3 percent increase over the same period last year. The company's knee implant business was up 6 percent over the first quarter last year, driven by Legion Revision Knee System sales. The company's hip implant business dropped 2 percent in connection with the continuing controversy surrounding metal-on-metal total hip implants. Sales of the company's Birmingham Hip Resurfacing system particularly suffered. Its sports medicine joint repair business grew by 7 percent, and the arthroscopy enabling technologies business was up 1 percent.
Stryker. Orthopedic and spine device company Stryker reported $2.2 billion in first quarter net sales, a 7.2 percent increase over the same period last year. The increase was driven by similar jumps in the company's reconstructive, MedSurg, neurotechnology and spine business lines. Acquisitions in the spine and neurotechnology businesses drove a 12.4 percent net sales increase, while increased unit volume and changes in product mix also contributed to the business line's success. The company's knee and hip business lines also reported a net sales increase of 3.3 percent and 5.1 percent, respectively. During the first quarter, the company incurred $17 million in acquisition- and integration-related charges for Neurovascular, Orthovita, Memometal and Concetric acquisitions.
Symmetry Medical. In the first quarter of 2012, Symmetry Medical reported a 39 percent loss in net income. The company also reported a 19 percent decline in year-over-year adjusted net income. However, the company reduced its debt by more than $10 million since the 2011 year-end report. The company experienced a 9 percent drop in implant revenue and a 16 percent drop in instruments revenue during the first quarter. However, the Symmetry Surgical segment grew 197 percent to $26.7 million, driven by the company's acquisition of Codman & Shurtleff and Olsen Medical.
TranS1. TranS1, a Wilmington, N.C.-based spine device company, reported a 26 percent decrease in revenue for the first quarter of 2012. The company reported revenue at $3.8 million and net loss at $5.8 million. However, President and CEO Ken Reali said the company made progress during the first quarter toward securing physician reimbursement and driving the adoption of the VEO direct lateral system. The company is also investing in a Category I code for its AxiaLIF technology, which will be available January 2013. The company reported cash and cash-equivalents at $38.5 million at the end of the first quarter.
Wright Medical Group. In the first quarter of 2012, Wright Medical Group reported a 6 percent decrease in net sales to $126.7 million, driven by distributor transitions and challenges associated with the company's compliance process. During the third quarter of 2011, the company began to transition its independent distributor territories to direct sales representation. Net income totaled $4.6 million for the first quarter of 2012. The company's foot and ankle business grew 10.9 percent during the first quarter to $29.6 million while the hips and knees business lines dropped 9.6 percent and 5.3 percent respectively. The upper extremities business line saw a 13.3 percent decrease in revenues and the biologics line dropped 21.3 percent.
Zimmer. Zimmer's hip and knee sales were up 2 percent during the first quarter while spine sales dropped 7 percent. Total knee and hip sales reached $471 million and $344 million, respectively. Overall, the company $1.4 billion in first quarter net sales, a 2.2 percent increase over the same period last year. Net earnings for the first quarter were $209.6 million, a slight increase over the first period of 2011. Operating cash flow during the first quarter was $207.4 million. The company reported 1 percent growth in both the American and European markets, along with a 10 percent growth in the Asia Pacific market.
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