Here are the results of 18 orthopedic and spine device companies that recently released quarterly financial reports.
Alphatec Holdings reported $50.9 million in revenue for the second quarter of 2011, which is a 12 percent increase over last year. The U.S. revenue experienced a 17.8 percent increase to $34.5 million, driven by purchase orders for Alphatec Spine products such as the OsseoFix and OsseoScrew.
Biomet reported $715.2 million in net sales during the fourth quarter of the 2011 fiscal year, a 2 percent increase over last year. The United States net sales decreased by 3 percent during the last quarter, which was offset by the 7 percent increase in European net sales and 11 percent increase in other international sales. The company's reconstructive sales were flat while the extremities sales grew by 17 percent worldwide. The spine business reported $55.4 million in net sales, a 10 percent decrease from last year.
DePuy Orthopaedics, a Johnson & Johnson company, reported $1.4 million in worldwide sales during the second quarter of 2011, which is a slight increase over last year. The company is still reeling from expenses related to litigation stemming from the DePuy ASR Hip recall. Johnson & Johnson spent $233 million on litigation and recall expenses last year.
DJO Global experienced a 14.5 percent increase in net sales during the second quarter of 2011, to $277.8 million. The company attributes its success to favorable foreign currency exchange rates and numerous acquisitions made already this year. The company's surgical implant sales increased by 8 percent, reflecting strong sales of the Reverse Shoulder Prosthesis and newly-launched Turon shoulder product.
InVivo Therapeutics reported a net loss of $1.3 million during the second quarter of 2011, and the company's research and development expenses were significantly increased over the second quarter of last year. The company appointed a new medical director, Jonathan Slotkin, MD, during the quarter.
Kensey Nash reported a 14 percent decrease in revenue during the fourth quarter of the 2011 fiscal year to $18.7 million. The company's sports medicine business experienced a 39 percent decrease from last year while the spine sales saw a 19 percent increase. Both spine and sports medicine sales were higher during the second half of the fiscal year than the first.
MAKO Surgical reported an 81 percent increase in revenue over the second quarter of last year to $18.6 million. The company sold 12 RIO systems during the second quarter and reported 1,577 MAKOplasty procedures performed, which was a 96 percent increase over last year.
Medtronic reported $4 billion in revenue for the first quarter of the 2012 fiscal year, which represents a 7 percent overall revenue increase. However, net sales were down by 1 percent to $821 million, largely due to a 3 percent drop in the company's spine business. The Core Spinal revenue experienced a 5 percent drop to $610 million, and despite the controversy surrounding Infuse, the company's spine biologics market grew by 2 percent to $215 million. The decline in Infuse sales was offset by the acquisition of Osteotech during the second quarter.
NuVasive reported an 11.2 percent increase in revenue over last year, to $133 million. However, there was a slight decline in net income, from $6.7 million last year to $5.3 million this year. The company experienced success with its lateral lumbar interbody fusion products, MaXcess split blade retractor system and other Maximum Access Surgery platform products.
Orthofix reported flat net sales of $143.6 million during the second quarter, which is only slightly higher than the $142.8 million reported last year. The company's spinal product net sales experienced a 3 percent decrease, which includes a 12 percent drop in stimulation products. Net sales of spinal implants and biologics rose by 9 percent and the company's orthopedics and sports medicine products grew by 7 and 9 percent, respectively.
Smith & Nephew's second quarter 2011 financial report showed a 9 percent increase in revenues to $1 billion for the quarter. The company's orthopedics, trauma, sports medicine and endoscopy markets experienced growth while hip sales were flat. Knee sales grew by 7 percent due to the VERILAST bearing technology.
Stryker reported $2.05 billion in net sales, which is a 12 percent increase over last year. However, the company experienced a 2.1 percent decrease in net earnings to $309 million. The company's hip business reported an 11 percent increase, spine business an 8 percent increase and knee business a 4 percent increase over last year. The company completed the acquisition of Orthovita during the second quarter as well.
Symmetry Medical reported a 6.6 percent increase in revenue during the second quarter of 2011, to $94.7 million. However, the company experienced a decrease in orders, which may have been driven by lower numbers from the orthopedic market. Net income dropped slightly from $4.5 million in 2010 to $4.2 million in 2011, which is still higher than the first quarter of 2011.
Synthes, which is being acquired by Johnson & Johnson, reported consolidated sales of $992 million during the second quarter of 2011, which is an 11.2 percent increase over last year. The company continued to expand use of its comprehensive pedicle screw system and experienced growth in the trauma market, despite the tough economy, in the United State and Europe. Sales growth declined in other places around the world due to a one time effect of a Middle Eastern tender order delivery.
Titan Spine was able to beat the gloomy market trend by experiencing a 70 percent increase in sales revenues during the first half of 2011. The first half net income increased by 135 percent and the number of surgeons using Titan Spine implants increased by 60 percent.
TranS1 reported total revenue of $5.2 million during the second quarter of 2011, which is a nearly $2 million decrease from last year. The 26 percent increase is attributed to ongoing physician reimbursement pressures. Even so, the company launched two new products during the second quarter. Domestic revenues decreased by nearly $2 million as well and net loss increased from $3.6 million last year to $4.3 million this year.
Wright Medical Group reported $132.5 million in net sales during the second quarter of 2011, which is a 4 percent increase over last year. Total net income also increased from $4.8 million to $6.1 million, due to success in the foot and ankle market. The company's sales were carried by the international market, which grew by 11.5 percent. By contrast, domestic market net sales decreased by 1.5 percent.
Zimmer Holdings reported $1.1 billion in net sales during the second quarter of 2011, a 7.5 percent increase over last year. The increase was driven by the European and Asian Pacific markets, which grew by 17 and 19 percent, respectively. The American market experienced flat sales during the second quarter. The U.S. knee market experienced a 5 percent decrease and the reconstructive and spine markets reported a 2 percent decrease, while the hip market experienced a 2 percent increase.
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Alphatec Holdings reported $50.9 million in revenue for the second quarter of 2011, which is a 12 percent increase over last year. The U.S. revenue experienced a 17.8 percent increase to $34.5 million, driven by purchase orders for Alphatec Spine products such as the OsseoFix and OsseoScrew.
Biomet reported $715.2 million in net sales during the fourth quarter of the 2011 fiscal year, a 2 percent increase over last year. The United States net sales decreased by 3 percent during the last quarter, which was offset by the 7 percent increase in European net sales and 11 percent increase in other international sales. The company's reconstructive sales were flat while the extremities sales grew by 17 percent worldwide. The spine business reported $55.4 million in net sales, a 10 percent decrease from last year.
DePuy Orthopaedics, a Johnson & Johnson company, reported $1.4 million in worldwide sales during the second quarter of 2011, which is a slight increase over last year. The company is still reeling from expenses related to litigation stemming from the DePuy ASR Hip recall. Johnson & Johnson spent $233 million on litigation and recall expenses last year.
DJO Global experienced a 14.5 percent increase in net sales during the second quarter of 2011, to $277.8 million. The company attributes its success to favorable foreign currency exchange rates and numerous acquisitions made already this year. The company's surgical implant sales increased by 8 percent, reflecting strong sales of the Reverse Shoulder Prosthesis and newly-launched Turon shoulder product.
InVivo Therapeutics reported a net loss of $1.3 million during the second quarter of 2011, and the company's research and development expenses were significantly increased over the second quarter of last year. The company appointed a new medical director, Jonathan Slotkin, MD, during the quarter.
Kensey Nash reported a 14 percent decrease in revenue during the fourth quarter of the 2011 fiscal year to $18.7 million. The company's sports medicine business experienced a 39 percent decrease from last year while the spine sales saw a 19 percent increase. Both spine and sports medicine sales were higher during the second half of the fiscal year than the first.
MAKO Surgical reported an 81 percent increase in revenue over the second quarter of last year to $18.6 million. The company sold 12 RIO systems during the second quarter and reported 1,577 MAKOplasty procedures performed, which was a 96 percent increase over last year.
Medtronic reported $4 billion in revenue for the first quarter of the 2012 fiscal year, which represents a 7 percent overall revenue increase. However, net sales were down by 1 percent to $821 million, largely due to a 3 percent drop in the company's spine business. The Core Spinal revenue experienced a 5 percent drop to $610 million, and despite the controversy surrounding Infuse, the company's spine biologics market grew by 2 percent to $215 million. The decline in Infuse sales was offset by the acquisition of Osteotech during the second quarter.
NuVasive reported an 11.2 percent increase in revenue over last year, to $133 million. However, there was a slight decline in net income, from $6.7 million last year to $5.3 million this year. The company experienced success with its lateral lumbar interbody fusion products, MaXcess split blade retractor system and other Maximum Access Surgery platform products.
Orthofix reported flat net sales of $143.6 million during the second quarter, which is only slightly higher than the $142.8 million reported last year. The company's spinal product net sales experienced a 3 percent decrease, which includes a 12 percent drop in stimulation products. Net sales of spinal implants and biologics rose by 9 percent and the company's orthopedics and sports medicine products grew by 7 and 9 percent, respectively.
Smith & Nephew's second quarter 2011 financial report showed a 9 percent increase in revenues to $1 billion for the quarter. The company's orthopedics, trauma, sports medicine and endoscopy markets experienced growth while hip sales were flat. Knee sales grew by 7 percent due to the VERILAST bearing technology.
Stryker reported $2.05 billion in net sales, which is a 12 percent increase over last year. However, the company experienced a 2.1 percent decrease in net earnings to $309 million. The company's hip business reported an 11 percent increase, spine business an 8 percent increase and knee business a 4 percent increase over last year. The company completed the acquisition of Orthovita during the second quarter as well.
Symmetry Medical reported a 6.6 percent increase in revenue during the second quarter of 2011, to $94.7 million. However, the company experienced a decrease in orders, which may have been driven by lower numbers from the orthopedic market. Net income dropped slightly from $4.5 million in 2010 to $4.2 million in 2011, which is still higher than the first quarter of 2011.
Synthes, which is being acquired by Johnson & Johnson, reported consolidated sales of $992 million during the second quarter of 2011, which is an 11.2 percent increase over last year. The company continued to expand use of its comprehensive pedicle screw system and experienced growth in the trauma market, despite the tough economy, in the United State and Europe. Sales growth declined in other places around the world due to a one time effect of a Middle Eastern tender order delivery.
Titan Spine was able to beat the gloomy market trend by experiencing a 70 percent increase in sales revenues during the first half of 2011. The first half net income increased by 135 percent and the number of surgeons using Titan Spine implants increased by 60 percent.
TranS1 reported total revenue of $5.2 million during the second quarter of 2011, which is a nearly $2 million decrease from last year. The 26 percent increase is attributed to ongoing physician reimbursement pressures. Even so, the company launched two new products during the second quarter. Domestic revenues decreased by nearly $2 million as well and net loss increased from $3.6 million last year to $4.3 million this year.
Wright Medical Group reported $132.5 million in net sales during the second quarter of 2011, which is a 4 percent increase over last year. Total net income also increased from $4.8 million to $6.1 million, due to success in the foot and ankle market. The company's sales were carried by the international market, which grew by 11.5 percent. By contrast, domestic market net sales decreased by 1.5 percent.
Zimmer Holdings reported $1.1 billion in net sales during the second quarter of 2011, a 7.5 percent increase over last year. The increase was driven by the European and Asian Pacific markets, which grew by 17 and 19 percent, respectively. The American market experienced flat sales during the second quarter. The U.S. knee market experienced a 5 percent decrease and the reconstructive and spine markets reported a 2 percent decrease, while the hip market experienced a 2 percent increase.
Related Articles on Orthopedic and Spine Devices:
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