Earnings
Biomet reported FQ3:08 net sales of $603.1 million, a 14% increase over the year-ago period. Excluding the impact of foreign currency, net sales increased 10%. U.S. revenue was $351.6 million. Adjusted net income for the third quarter was $25.2 million, down from $127.4 million for FQ3:07. Among segments, Recon sales were up 18% worldwide to $448.8 million; knee sales were up 25% worldwide and 22% in the U.S., and hip sales increased 15% worldwide and 7% in the U.S. Fixation sales were up 4% worldwide to $56.8 million. Worldwide spinal product sales declined 2% to $50.1 million.
Johnson & Johnson reported worldwide 1Q:08 revenue of $16.2 billion, up 8% over the year-ago period and beating estimates of $15.8 billion. Operational growth was 3% and currency contributed 5%. Net income was $3.6 billion, or $1.26 per share, beating estimates of $1.20 per share and up 40% over 1Q:07. DePuy's worldwide revenue was $1.25 billion, up 8% over the year-ago period. Among segments, currency-adjusted growth rates were 9% in hip; 2% in knee, and spine was flat. Mitek saw 11% currency-adjusted growth.
Stryker reported 1Q:08 revenue of $1.63 billion, up 15% over 1Q:07 (10% constant currency) and in line with estimates. Net income for 1Q:08 was $290.5 million, or $0.70 per share, beating estimates by a penny. Net sales of orthopedic products were $971.1 million, up 12% over the year-ago period. Adjusted for currency, orthopedic sales rose 7%. On a reported basis, hip rose 2% (currency-adjusted: down 1%), knee rose 12% (currency-adjusted: 9%), trauma increased 23% (currency-adjusted: 16%) and spine increased 25% (currency-adjusted: 18%).
Synthes reported 1Q:08 sales of $781.0 million, up 19% over the year-ago period. In Europe, strong growth was attributed to a snowy winter and associated weather-related accidents. North American revenues grew 13%, with trauma as the main growth contributor. Spine also performed well in North America, aided by the launch of ProDisc-C and N-Spine products. In Asia, Japan "gained momentum" from spine and trauma products and the region overall saw 19% growth.
M&A
BioHorizons, Inc. announced the completion of its purchase of Implant Logic Systems, Ltd., first announced on January 30, 2008. Implant Logic Systems will operate as a subsidiary of BioHorizons. Steve Boggan, CEO of BioHorizons, commented, “We are excited to expand our product offering to include VIP Virtual Implant Placement planning software and CAD/CAM surgical guides. This acquisition is a key milestone for us as we move the field of implant dentistry into the digital age.”
Reimbursement
Anulex Technologies, Inc. reported that CMS has made public two new ICD-9-CM procedure codes for anular repair. The codes which will go into effect October 1, 2008 and will include code 80.53 (repair of the anulus fibrosus with graft or prosthesis) and 80.54 (other and unspecified repair of the anulus fibrosus).
Distribution
Orthovita has acquired distribution rights to an absorbable hemostat product developed by Minneapolis-based Medafor, Inc. and plans to rebrand the product as VITASURE Absorbable Hemostat. The VITASURE product can be used throughout a surgical procedure; according to President and CEO Anthony Koblish, this complements VITA's existing hemostat technology, which is used primarily at the end of a procedure. The initial term of the agreement will expire in December 2013 and can be renewed if certain purchase obligations are met. The company plans to launch VITASURE by 3Q:08 in the U.S., and ex-U.S. marketing will begin in 2009.
Product Introduction
ArthroCare Corporation launched the Parallax Contour, which is designed to mechanically displace soft bone in fractured vertebrae. According to the press release, "The Contour utilizes a small access needle and is precisely advanced and rotated to prepare the space within the vertebral body." Within the Parallax line are additional products for the minimally invasive stabilization of VCFs.
DePuy Spine launched the EXPEDIUM 4.5 Spine System, a titanium and stainless steel hook, rod and screw system designed to treat complex spinal deformity in small-stature patients. The press release describes the system as "a complete set of in-line, low profile implants designed to reduce the disruption of soft tissue and overcome cosmetic challenges in smaller anatomies. Additionally, DePuy Spine launched the CONCORDE Bullet Vertebral Body Replacement, which has a bulleted nose "that facilitates easy insertion and pyramidal teeth that resist anterior migration" during posterior and minimally-invasive fusion procedures.
