Alphatec reports 9.9% drop in 2018 revenue, secures $30M in additional financing: 7 key notes

Written by Laura Dyrda | March 08, 2019 | Print  |

Alphatec Holdings reported total revenue for the fourth quarter and full year of 2018 dropped compared to 2017, although the company received FDA clearance for 12 products.

 

Seven things to know:

1. Total fourth quarter revenue dropped 3.44 percent from $26.2 million in 2017 to $25.3 million in 2018. Full-year revenue declined 9.9 percent, from $101.7 million in 2017 to $91.6 million in 2018.

2. The company reported total net loss for the fourth quarter at $10.6 million, compared to a $6.5 million gain in fourth of 2017. It reported a net loss of $28.9 million for the full year in 2018.

3. In 2018, Alphatec sought to transform its sales force, increasing revenue per distributor by around 20 percent but reduced the number of distributors by around 20 percent. The sales force generated around 30 percent year-over-ear revenue growth from strategic distribution partners.

4. Change occurred beyond the sales team as well; the company hired around 45 percent of its current team in 2018, many of whom are focused on the product and technology pipeline.

5. Total operating expenses for the fourth quarter were $24.3 million and hit $85.7 million for the full year, an increase from $77.2 million in 2017.

6. On March 7, the company secured up to $30 million in additional secured financing from Squadron Medical Finance Solutions, and it plans to issue Squadron warrants to purchase 4.8 million shares of ATEC common stock. Alphatec plans to close the transaction before the end of the month.

"We anticipate that this financing will allow us to execute our business and fund our growth initiatives into the second half of 2020," said CFO Jeff Black. "Importantly, with this financing we can continue our focus on unlocking value through new innovative technologies and partnerships."

7. In 2019, the company expects to generate $98 million to $103 million in revenue, and U.S. product revenue is estimated to hit $92 million to $98 million, a 13 percent to 17 percent growth year over year.

More articles on orthopedic devices:
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RTI Surgical reports $71.2M in Q4 revenue & more: 10 device company notes
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