2010 Company Financials: Orthopaedic and Spine

• Posted in Business Critical | March 31, 2011 | Comments (0)
• Tags: supplier, industry watch, earnings, spine, device company, financial, market growth, orthopaedic, company financials, sales, oem, earning
• By: Julie A. Vetalice

The following summarizes publicly available year over year earnings results to date. Our estimates place year over year market growth at 5% thus far, as indicated in Exhibit 1, which displays growth by product segment. Performance highlights relate to 2010, unless otherwise noted.

Exhibit 1: Orthopaedic Sales¹ Increases by Product Segment: 2010 vs. 2009

¹Orthopaedic products only; constant currency, pro forma growth
²For the quarter ended 11/30/10; excludes dental; trauma includes stimulators; spine includes stimulators and orthobiologics.
³ORTHOWORLD estimates

Biomet (for fiscal 2Q11, ended 11/30/10)

$698.3MM, +2%

• U.S. $416.9MM, +2%
• Europe $188.8MM, -1%
• International $92.6MM, +7%

Reconstructive $540.5MM, +3% (U.S. +3%)

• Hips flat (U.S. flat)
• Knees +3% (U.S. +3%)
• Extremities +23% (U.S. +36%)
• Other -3% (U.S. -2%)

Fixation $56.3MM, -2% (U.S. -1%)

Spine $56.0MM, -3% (U.S. flat)

Other $45.5MM, +2% (U.S. +2%)

• Sports Medicine +17% (U.S. +17%)
• Other -14% (U.S. -16%)

Overall growth includes Dental.

• Not observing a lot of movement in larger U.S. hospital customers toward purchasing to eliminate the distributor and manage inventory on their own