Musculoskeletal News Roundup 22-Oct-08
BY LAUREN UZDIENSKI, OCTOBER 22, 2008
Earnings
CONMED reported 3Q:08 revenues of $179.4 million, up 9% over the year-ago period and beating estimates by $2.95 million. Arthroscopy was up 18% (17% constant currency), contributing $69.5 million to total sales. On a non-GAAP basis, diluted earnings per share were $0.37, up 28% over 3Q:07 and beating estimates by $0.04.
Genzyme reported 3Q:08 revenue of $1.16 billion, up 21% over the year-ago period but missing estimates by $20 million. Non-GAAP net income was $289.8 million, up 20% over 3Q:07. Non-GAAP earnings were $1.04 per diluted share, beating estimates by $0.04 and up 16% over the year-ago period. Synvisc and Synvisc-ONE revenues were $67.5 million, up 10% over the year-ago period.
Kensey Nash reported FQ1:09 revenues of $20.1 million, up 14% over the year-ago period and beating estimates by $0.26 million. Biomaterials sales contributed $12.7 million in revenues, up 25% over the year-ago period, which was attributed to strong sales in the orthopedic and cardiovascular product lines. Orthopedic sales contributed $8.0 million, up 30% over FQ1:08, which the company was said to due to increased sales in the company's sports medicine and spine product portfolios.
NuVasive reported 3Q:08 revenues of $66.9 million, beating estimates by $6.4 million and up 74% over 3Q:07. Revenues include $4.4 million in Osteocel sales, and CEO Alex Lukianov attributed overall sales growth to the company's "growing expertise in leveraging our unique XLIF procedure to drive greater pull through of our comprehensive suite of spinal products." Non-GAAP net income was $8.0 million, or $0.21 per share. Analysts had anticipated earnings of $0.01 per share.
Synthes reported 3Q:08 sales of $807.7 million, up 17% (14% local currency) over 3Q:07. The company achieved double-digit sales growth across all geographical regions and product groups, noting "accelerated sales growth" globally in the company's spine division. Among segments, sales growth in trauma was driven by the TFN (Trochanteric Fixation Nail) and the PFNA (Proximal Femoral Nail) as well as the expansion of the LCP (Locking Compression Plate) platform. Spine sales were driven by the Synapse portfolio of instruments and implants for posterior stabilization of the upper spine; the Pangea pedicle screw system; the Zero-P zero-profile plate/spacer combination and the SynFix-LR cage. The company adds that the ProDisc TDR systems "continued to gain traction" in the U.S. market.
Zimmer reported 3Q:08 revenues of $952.2 million, beating estimates by $11.0 million and representing a 5% increase (3% constant currency) over 3Q:07. Adjusted net income was up 1% to $218.5 million, or $0.97 per share, beating estimates by $0.08. Reconstructive sales were $783.0 million, up 7% (4% constant currency) over 3Q:07. Knee was up 9% (7% constant currency); hip was up 5% (1% constant currency); extremity was up 15% (13% constant currency) and dental was up 3% (1% constant currency.) Additionally, during 3Q:08 trauma grew 10% (7% constant currency) over the year-ago period and spine was up 9% (8% constant currency.)
Funding
Cambridge-based Orthomimetics received a GBP 0.6 million ($0.9 million) government grant to support the development of its cell-based therapies for cartilage, tendon and ligament repair. The company plans to collaborate with the Orthopaedic Research Unit at Addenbrooke's Hospital, University of Cambridge and Devro plc, a supplier of medical-grade collagen, in its research.
Zyga Technology Inc. raised a $4.0 million series A round. Investors included MB Venture Partners, Split Rock Partners, and Domain Associates. Zyga is said to be developing treatments for low back pain.
Product Update
In an announcement on World Osteoporosis Day, Medtronic noted a 500,000-case milestone for Kyphon Balloon Kyphoplasty, which was commercialized in 2000.
Legal
Orthopedic Development Corporation filed a patent complaint in a Florida court alleging that NuTech Medical Inc.'s NuFix drill is substantially the same as its own. ODC's drill guide is part of a system used to treat facet joint disorders.
The DOJ filed a brief in federal court in Newark, New Jersey, seeking to dismiss Stryker's lawsuit against them.
Distribution
Active Implants Corporation entered into an exclusive agreement with Joint Replacement Instrumentation, Ltd to expand U.K. distribution of its TriboFit Hip System.
Partnerships
Enztec and OMNI Life Science have partnered to form Orthopaedic Synergy in New Zealand. Omni Life Science manufactures hip and knee implants, and Enztec provides instrumentation used in hip and knee replacements. The companies say Orthopaedic Synergy would be the "first New Zealand majority-owned full-service orthopedic company in the Australian market."
Operations
Raymedica has changed its name to Centinel Spine, and the company describes its new corporate identity as an effort to "better position the company in both existing and new fusion markets and gain further recognition in non-fusion markets."
Smith & Nephew has established Durham, N.C. as the company's base for its Biologics and Spine operations, the company's fifth business unit. No further details, such as how many people the new unit will employ, were released.
Clinical
A study of OA patients conducted at Hull Royal Infirmary found that Synvisc provided longer knee pain relief and a higher rate of patient satisfaction when compared to Hyalgan.
Appointment
Bone Solutions appointed Nancy Lynch, M.D., to its Scientific Advisory Board. Dr. Lynch is a Principal with Scale Venture Partners, based in Foster City, CA.
