SeaSpine projects 1% dip in Q1 revenue, $105M cash position to see it through COVID-19 pandemic

SeaSpine on April 6 projected first-quarter revenues to decrease 1 percent year over year to between $35.8 million and $36.2 million, but hopes cost savings and its cash position of about $105 million will help maintain operations during the coronavirus pandemic. 

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Five insights:

1. U.S. spinal implant revenues are expected to decrease by between 3 percent and 4 percent, compared to the same period for last year.

2. SeaSpine’s orthobiologics line is projected to decrease by between 1 percent and 2 percent year over year.

3. To maintain liquidity, the company is generating cost-savings in areas such as travel, consulting, events and clinical trials. All new hires have been frozen.

4. SeaSpine also plans to delay spending on product development and launches.

5. Keith Valentine, president and CEO of SeaSpine, pointed to the company’s balance sheet, which includes $92 million of net proceeds raised in January 2020, to help maintain operations during this challenging financial period.

SeaSpine’s cash position will enable it to “capitalize on any future growth opportunities when surgery volumes return to pre-pandemic levels,” according to Mr. Valentine.

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