Musculoskeletal News Roundup 30-Jul-09
BY LAUREN UZDIENSKI, JULY 30, 2009
Earnings
Exactech reported 2Q:09 revenues of $43.3 million, representing a 1% decrease from the year-ago period and beating estimates by $0.3 million. The company reported net income of $2.6 million, or $0.20 per share, representing a 14% decrease from 2Q:08 and beating estimates by $0.02. Among segments, knee sales decreased by 7%; hips increased by 18%; biologics and spine increased by 4%; and extremities increased by 29%.
CONMED reported 2Q:09 sales of $164.6 million, representing a 10% decrease from the year-ago period and beating estimates by $1.6 million. Arthroscopy sales declined by 14% and powered instruments declined by 9%. Growth rates exclude the effects of currency. Net income excluding unusual items was $4.8 million, or $0.17 per share, down from $12.5 million and $0.43 per share in 2Q:08. Analyst had forecast EPS of $0.15.
DJO reported 2Q:09 revenues of $235.1 million, up 1% from the year-ago period, excluding the effects of currency. Sales in the domestic surgical implant segment increased by 7% over 2Q:08. The growth was driven by shoulder products, and while large joint procedure volumes were said to be impacted by the economy, knee sales increased 2% over the year-ago period. Net loss for the quarter was $13.1 million, narrowing from a net loss of $20.8 million in 2Q:08.
Orthofix reported 2Q:09 revenue of $137.5 million, representing a 10% increase over the year-ago period and beating estimates by $5.0 million. Among segments, spine sales increased by 13% overall, with sales of spinal stimulation up by 13% and sales of spine implants and biologics up by 12%. Additionally, orthopedics increased by 9%, and sports medicine increased by 6%. All growth rates reflect constant currency. Net income for 2Q:09 was $5.9 million, or $0.35 per share, up from $5.8 million, or $0.34 per share, in 2Q:08. Analysts had forecast EPS of $0.23.
Osteotech reported 2Q:09 revenue of $23.5 million, down 15% from the year-ago period and missing estimates by $0.4 million. Among product segments, DBM declined by 11%; hybrid/synthetic products decreased by 11%; traditional tissue increased by 4%; spinal allograft decreased by 19%; and client services revenue decreased by 89%. Net loss for 2Q:09 was $1.2 million, or $0.07 per share, down from net income of $1.8 million, or $0.10 per diluted share, in 2Q:08. Analysts had forecast a loss of $0.10 per share.
RTI Biologics reported 2Q:09 revenue of $41.1 million, representing a 1% increase over 2Q:08 and beating estimates by $1.0 million. Net income for the quarter was $1.0 million, or $0.02 per fully diluted share, in line with estimates and decreasing from $1.5 million and $0.03 per fully diluted share in 2Q:08.
Smith & Nephew reported 2Q:09 revenue of $926.0 million, flat over the year-ago period and missing estimates by $19.0 million. Orthopedic revenue totaled $531.0 million, flat over 2Q:08, with knees up by 1%, hip down by 1%, trauma up by 2% and clinical therapies down by 4%. Endoscopy declined by 2%. Adjusted EPS increased 10% to $0.15, beating estimates by a penny.
Synthes reported 2Q:09 revenues of $831.0 million, representing an 11% increase over the year-ago period and beating analyst estimates by $6.0 million. Among geographies, North American sales increased by 9%; Europe increased by 14%; Asia Pacific increased by 19%; and ROW was up 10%. All growth rates reflect local currency. Net earnings for 1H:09 increased by 13% in local currency to $381.7 million. Analysts had forecast net earnings of $356.0 million.
Trans1 reported 2Q:09 revenues of $7.9 million, representing a 33% increase over the year-ago period and missing estimates by $0.4 million. The company said that 796 TranS1 procedures performed during the quarter. Net loss for 2Q:09 was $6.8 million, or $0.33 per share, compared to a net loss of $5.3 million and $0.26 per share in 2Q:08. Analysts had forecast a loss of $0.36 per share.
Funding
Paradigm Spine completed a $21.5 million financing comprised of a $15 million debt facility and $6.5 million equity placement. Fifth Third Bank was the sole lender in the debt funding, and the $6.5 million equity round was led by Praefinium Group and Trevi Health Ventures. The company plans to use the funds to strengthen the U.S. sales infrastructure, fund its ongoing study for the coflex device and drive international expansion.
Product Introduction and Update
Cardium Therapeutics announced plans to develop a DNA-based orthobiologics product portfolio that will initially focus on non-union bone fractures for medically-compromised patients and spinal fusion for patients with degenerative disc disease. The first product in this line will be Osteorate, a non-surgical injectable bone graft gel.
OrthoDynamix introduced its ArthroSteer product platform, a disposable, multi-control instrumentation system that the company says improves access to joints during arthroscopic procedures.
SpineAlign Medical, Inc. announced the completion of the first procedure in the IDE study for its SpineAlign System, a treatment for vertebral compression fractures. The system reconstructs the vertebral body via a transpedicular, minimally-invasive approach and features a nitinol implant.
Education
Zimmer launched the enhanced Zimmer Institute, which the company says combines its medical education, BioSkills training and surgeon-to-surgeon programs into a number of new course formats. Zimmer has 800 events scheduled in 2009 and intends to train more than 12,000 medical professionals and more than 8,000 dental professionals.
Appointments
US Spine appointed Paul J. Sendro Executive Vice President. Previously, Mr. Sendro was President and CEO of Vertebron and served as Vice President, Domestic Sales at Blackstone Medical. At US Spine, Mr. Sendro will oversee the company's Sales, Marketing, Professional Education and Business Development efforts.
Custom Spine appointed three new board members: Gualberto (Gil) Medina, Executive Managing Director of Cushman & Wakefield; James Pastena, founder and CEO of ElectroCore, LLC and former President and CEO of EBI and Corporate Vice President of Biomet; and Doug Daniels, President and CEO and Director at Hydrocision. Additionally, David Hess was appointed CFO.
