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Orthopedic and Dental Industry News
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| Company | Revenues ($mm) |
% Chg | Net Income ($mm) |
% Chg | Diluted EPS | Notes | ||
| 1Q:06 | 1Q:05 | 1Q:06 | 1Q:05 | |||||
| Anika Therapeutics | 7.0 | 7.3 | -5% | 0.88 | 1.20 | -26% | $0.08 | |
| Biomet* | 506.3 | 482.0 | 5% | 106.07 | 101.62 | 4% | $0.43 | Adjusted Earnings in 2005 |
| DePuy (JNJ) ^ | 1,039.0 | 993.0 | 5% | N/A | N/A | N/A | ||
| Exactech | 25.4 | 22.6 | 12% | 1.60 | 1.20 | 33% | $0.10 | |
| IsoTis OrthoBiologics | 9.8 | 7.8 | 26% | (2.4) | (2.2) | N/A | ($0.03) | Excludes effect of foreign exchange |
| Kyphon | 91.4 | 66.2 | 38% | 12.83 | 6.42 | 99% | $0.28 | Non-GAAP basis |
| LifeCell | 30.7 | 19.9 | 54% | 4.06 | 2.13 | 91% | $0.12 | |
| NuVasive | 19.7 | 13.3 | 48% | (4.27) | (2.62) | N/A | ($0.14) | Non-GAAP basis |
| Orthofix | 81.1 | 77.7 | 4% | 8.9 | 9.5 | -6% | $0.56 | Excludes miscellaneous charges |
| Smith and Nephew PLC | 643.0 | 628.0 | 2% | 87.00 | 86.00 | 1% | $0.92 | Continuing operations only |
| Stryker | 1,320.9 | 1,202.5 | 10% | 200.20 | 166.70 | 20% | $0.49 | Adjusted Earnings |
| Synthes | 576.4 | 502.9 | 15% | N/A | N/A | N/A | ||
| Wright Medical | 86.3 | 82.6 | 4% | 5.07 | 7.40 | -32% | $0.14 | Non-GAAP basis |
| Zimmer Holdings | 860.4 | 828.5 | 4% | 217.9 | 186.9 | 17% | $0.87 | Adjusted earnings |
| Total^ | 5,297.3 | 4,934.3 | 7% | 637.8 | 564.2 | 13% | ||
* 3Q:06
^ Excluding net income for DePuy and Synthes.
Biologics: LifeCell Corp. reported strong product revenues growth in 1Q:06 with sales increased by 55%. Product sales totaled $30.5 million compared to $19.7 million in 1Q:05, strong sales were driven by higher demand for the AlloDerm® Regenerative Tissue Matrix used in complex hernia repair. Orthopedics sales, which included the Graft Jacket® and AlloCraft™DBM, reported 16% growth in the quarter. Net income for the quarter was $4.1 million compared to $2.1 million in 1Q:05; LifeCell beat street estimates by $0.03 cents and reported $0.12 for the quarter. The Company has revised its future earnings outlook for 2006. In FY2006, product revenues will be in the range of $130 million to $138 million. The product revenue mix will be approximately 86% reconstructive, 7% orthopedic and 7% urogynecology. Excluding stock based compensation, diluted earnings per share for the year will be $0.67 to $0.73.
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Even though total revenue was down by 5%, Anika Therapeutics reported 1Q:06 product revenue up by 10% ($6.3 million vs. $5.8 million) compared to 1Q:05. During the quarter, net income was down by 26% ($0.9 million vs. $1.2 million) compared to prior year. The OrthoVisc® hyalronic injection for the knee product line reported $2.6 million or an increase of 10% for the quarter.
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IsoTis OrthoBiologics reported 1Q:06 with revenue grew 26% from $7.8 million to $9.8 million year-over-year. The U.S. division grew 14%, while international grew 42%. IsoTis had a net loss of $3.8 million for the quarter, of which $1.4 million was contributed to the effect of foreign exchange. The Company anticipates full year 2006 to be growing above 20%. Bracing: Orthofix International N.V. reported its 1Q:06 with sales of $81 million, or an increase of 4% over 1Q:05. Net income for the quarter was reported at $8.2 million or a $0.51 diluted EPS. Included in the net income was a total of $2.4 million in non-operating costs and management transition costs. For the quarter, spine division was strong and grew by 20% while trauma division was down by 5%. Overall, the total orthopedic division had a 5% increase from 1Q:05.
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Large Joint: Exactech reported 1Q:06 with sales of $25 million or an increase of 12% over 1Q:05. Net income was reported at $1.5 million or diluted earnings per share of $0.10. Overall, Exactech had a good quarter with strong bottom line growth of 36%; the tissue services division had 27% growth, while the hip division had a decline of 5% during the quarter. Management estimates that for the FY 2006, revenues will be in the range of $100 million to $106 million with diluted earnings per share to be in the range of $0.58 to $0.66. For 2Q:06, revenues will be in the range of $24.6 million to $27 million with diluted EPS of $0.16 to $0.18.
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Smith & Nephew PLC reported its 1Q:06 taking in $643 million in sales and $87 million in net profit (for continuing operations only). Revenues for the quarter were up by slightly up by 6%, constant currency. During the quarter, orthopedic reconstruction revenue had a moderate increase of 7% while advanced wound management division continues to struggle with a DERMAGRAFT dilution. However, management remains positive that orthopedic reconstruction and trauma will be reporting in low double digits for the full year. |
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Stryker Corp. reported $1.3 billion and $200 million in net income, as adjusted for 1Q:06. Total revenue was up by 10% and net income was up by 20% compared to 1Q:05. During the quarter, Stryker's orthopedic implant division had a good start reporting 11% in constant currency; its spinal implant division came in strong reporting a 20% increase in constant currency; knee and trauma divisions also fare well and report an increase of 15% in constant currency. Stryker is optimistic about its future growth and estimated that excluding miscellaneous charges, diluted EPS for FY 2006 will be $2.02. Excluding the effect of foreign currency, estimated sales growth rate will be 12% to 15% in 2006.
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Wright Medical reported a 4% increased in total sales for 1Q:06 compared to 1Q:05. On a non-GAAP basis, net income came in at $5.1 million, which was down by 32% from $7.4 million. During the quarter SG&A increased by 36% from $41 million to $49 million, while R&D expense also increased by 50% from $5 million to $7 million. Extremity division did fairly well and reported a 16% increase, while biologics division was basically flat during the quarter. Management is revising its FY 2006 target to be in the range of $334 million to $340 million, this representing an annualized growth rate of 5% - 7%. For FY 2006, diluted EPS will be $0.56 to $0.61, as adjusted.
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Zimmer reported its 1Q:06 with net sales of $860 million, an increase of 4% on a reported basis and 7% constant currency. Excluding miscellaneous charges, net income for the quarter was $217.9 million compared to $186.9 million, or an increase of 17% for the quarter. Diluted EPS rose to $0.87 from $0.75 in prior year. While all other major large joints players had a slight increase in their hip division, Zimmer's hip was basically flat for the quarter. Its extremity and dental divisions did considerably well and reported 11% and 21%, respectively. Zimmer is raising its earning guidance for 2006 with second quarter diluted EPS will be $0.81 and $0.82 per share. For the full year, EPS will be $3.40. |
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Spine: Kyphon reported strong results in 1Q:06 with revenues growing 38% ($91.4 million vs. $66.2 million). On a non-GAAP basis, net income for the quarter was exceptionally strong and grew by 99% ($12.8 million vs. $6.4 million) year-over-year. On a constant currency basis, Kyphon reported a 30% growth rate in the U.S, 107% international and 40% worldwide. Kyphon has updated its future revenue outlook to be $398 million for FY 2006, and 2Q:06 to be between $97 million to $101 million. International operations are expected to contribute between 17% and 19% of revenue for the full year.
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NuVasive reported 48% increased in revenue ($19.7 million vs. $13.3 million) for 1:06 compared to 1Q:05. On a non-GAAP basis, net loss was increased by 50% from a loss of $2.6 million to a loss of $4.2 million. During 1Q:06, the company raised a total of $142 million in a secondary offering; it had 132 surgeons trained on the MAS™ Platform and have increased its sales force from 60% in December to 84% as of March 31, 2006. Trauma: Synthes reported its 1Q:06 with sales of $576.4 million vs. $502.9 million, a 15% increase year-over-year. Spine, trauma and CMF (Cranio-maxillofacial) all received double-digits growth rate. By geographic divisions, North America was up by 14%, Europe 22%, Asia Pacific 18% and the rest of the world was up by 40%, which brings a total of 17% increase on a constant currency basis. |
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See all posts on Anika | Biologics | Biomet | Encore Medical | Exactech | Extremity | Hip | IsoTis | Johnson & Johnson | Knee | Kyphon | Lifecell | NuVasive | Orthofix | Orthopedic News Roundup | Smith & Nephew | Spine | Sports Medicine | Stryker | Synthes | Trauma | Wright Medical | Zimmer