Musculoskeletal News Roundup 28-Oct-10
BY LAUREN UZDIENSKI, OCTOBER 28, 2010
Earnings
Artimplant reported 3Q:10 revenue of SEK 5.1 million ($0.8 million), down by 7% over the year-ago period. The company said that they have been focusing their marketing efforts on the U.S. and that that U.S. sales have tripled in the first nine months of 2010. Net loss for 3Q:10 totaled SEK 5.2 million ($0.8 million), widening from SEK 4.7 ($0.8 million) in 3Q:09.
CONMED reported 3Q:10 revenues of $172.2 million, down 2% from the year-ago period and missing estimates by $3.6 million. Arthroscopy sales were flat at $68.2 million. Growth rates exclude the effects of currency. Non-GAAP diluted earnings was $0.34, up 21% over 3Q:09 and beating estimates by $0.07.
Integra LifeSciences reported 3Q:10 revenues of $186.6 million, up 9% over the year-ago period and beating estimates by $4.1 million. Orthopedics sales increased by 14% to $73.0 million. Growth rates exclude the effects of currency. Adjusted net income for 3Q:10 was $22.1 million, or $0.73 per diluted share, up from $18.8 million, or $0.64 per diluted share, in 3Q:09 and beating estimates by $0.06.
NuVasive reported 3Q:10 revenue of $120.3 million, up 27% over the year-ago period and missing estimates by $2.7 million. The company said that while slowing procedure volumes had a "greater impact on our results than we anticipated", they were confident delayed procedures would ultimately be performed. The company reported adjusted net income of $18.4 million, or $0.46 per share, beating estimates by $0.04.
Orthofix reported 3Q:10 revenue of $138.9 million, up 4% over the year-ago period and in line with estimates. Among segments, spine sales increased by 14%, with implant and biologic revenue up 20%. Orthopedic sales increased by 6% and sports medicine sales declined by 4%. Growth rates exclude the effects of currency. Adjusted net income was $0.50 per diluted share, up 14% over 3Q:09 and beating estimates by $0.06.
Ossur reported 3Q:10 sales of $87.0 million, representing a 7% increase over 3Q:09. Bracing and supports sales increased by 12%, with the company reporting that sales in this segment were particularly strong in the U.S., while prosthetics sales increased by 3%. Net profit for the quarter was $4.0 million, compared to $5.0 million in 3Q:09. The company attributed the decline in profit to "negative exchange rate adjustments related to financial items."
Wright Medical reported 3Q:10 net sales of $121.7 million, up 4% over 3Q:09 and missing estimates by $2.7 million. The company said the global economy continued to affect procedure volumes, though sales in the biologics and extremities sectors accelerated from 2Q:10 for the second straight quarter. Hip sales were flat; knee declined by 1%; extremity increased by 18%; and biologics increased by 1%. Adjusted net income for 3Q:10 was $7.3 million, or $0.19 per diluted share, compared to $7.6 million, or $0.19 per diluted share, in 3Q:09. Analysts had forecast adjusted EPS of $0.16.
Zimmer reported 3Q:10 sales of $965.0 million, down 1% over the year-ago period and missing estimates by $30.2 million. The company said the quarter was "affected by challenging global economic conditions." Among segments, recon sales declined by 1%, with knee down 3%, hip up 1% and extremity up 4%. Dental sales increased by 5%. Trauma increased by 1%, and spine declined by 7%. Growth rates exclude the effects of currency. Diluted EPS increased by 9% during the quarter to $0.96, missing estimates by $0.03.
M&A
Boston Scientific agreed to sell their neurovascular business to Stryker for $1.5 billion in cash, of which $1.4 billion is payable at closing and $100 million will be payable at the achievement of certain milestones. The unit develops and markets less-invasive medical technologies used to treat vascular disease of the brain. The transaction is expected to close by the end of the year.
Wright Medical acquired certain assets of EZ Concept Surgical Device Corporation, specifically the patented EZ Frame external fixator for the foot. The company says the device combines elements of a circular fixator for the foot with a full contact brace for the calf. Terms of the transaction were not disclosed.
Regulatory
ArthroCare received 510(k) clearance to market the Spartan PEEK Suture Implant system, a preloaded PEEK threaded anchor indicated for use in fixation of soft tissue to bone.
Medtronic received 510(k) clearance to market the Kyphon Xpander II Inflatable Bone Tamp for the treatment of vertebral compression fractures with Kyphon Balloon Kyphoplasty. According to the press release, benefits of the new device include a pre-determined inflation pattern and greater lifting force than the first-generation device. The company will initiate a limited U.S. launch of the product next month and introduce the product OUS in 2011.
Product Introduction and Update
Centinel Spine announced that the first procedure utilizing the STALIF MIDLINE Integrated Interbody Fusion system has been completed in Las Vegas. This limited launch will continue through January of 2011.
Sites Medical announced the completion of the first surgeries with medical devices containing its BioSync technology. Local press described the technology as "part of a therapeutic delivery system" and noted that it "can also be used to form a scaffold around an orthopedic implant."
Wright Medical initiated a full commercial launch of their PRO-STIM Injectable Inductive Graft in the U.S. and certain OUS markets. The product, which combines calcium sulfate and calcium phosphate with DBM, has been in limited commercial use for the past 13 months while the company collects human data.
Legal
NuVasive intends to appeal an "unfavorable jury verdict" delivered against the company regarding its use of the NeuroVision name. Chairman and CEO Alex Lukianov said, "We believe strongly that we are the proper owners of the NeuroVision name and are confident that this will be resolved through the appeals process," and he emphasized that the case has no bearing on the company's products or marketing, only the brand name. The verdict awarded damages to the plaintiff of $60.0 million.
Clinical
Creaspine announced that their SupStance Small PEEK Vertebral Body Replacement has "achieved two years of clinical success." The product enables "whole silhouette visualization" and was designed to help surgeons "more easily assess fusion."
