Here are five spine-focused device company financial reports for 2011.
Synthes ($3.9 billion). Synthes revenue jumped 7.8 percent in 2011 to $3.9 billion, growth that comes on the heels of Johnson & Johnson's intended acquisition, which was announced in early 2011. The acquisition is expected to become final sometime in 2012. In the mean time, Synthes reported $2.2 billion in North American sales and $942 million in Europe for the full year. The company had success with its trauma line, but the spine market has proven more challenging. In 2011, Synthes reported its first quarterly revenue topping $1 billion and has continued to report growing profits after announcing the J&J acquisition. The company has received FDA clearance for several devices over the past year and partnered with Cranio-Maxillofacial Surgery to develop and distribute the company's products.
Medtronic Spine ($3.4 billion). Medtronic's spine business reported $3.4 billion in 2011, with overall revenue for the company exceeding $16.4 billion. In addition to spine and biologics, Medtronic's business lines include cardiac and vascular products, neuromodulation, surgical technologies and diabetes. One of the company's most profitable spine devices, it's recombinant bone morphogenic protein product Infuse, experienced a significant decrease in sales during the second half of 2011 after the product came under scrutiny for potentially having a higher complication rate than was initially reported. During the third quarter of fiscal year 2012, the company reported a 20 percent drop in biologics revenue, driven by lower U.S. sales of Infuse. However, the overall revenue experienced a 2 percent third quarter increase.
NuVasive ($520.5 million). Full year revenue for NuVasive was up in 2011 by 13 percent. The company attributes its success to a "market-share taking strategy," which drove an increase in revenue despite a challenging spine market. In the fourth quarter, the company saw a 16.2 percent increase in net sales over the same period in 2010. The company pioneers a minimally invasive lateral access spinal surgery system, and feels poised to gain market share as minimally invasive technology becomes more prominent over the next few years. In 2011, the company acquired Impulse Monitoring to increase its NeuroVision use and tangoed with Medtronic over alleged patent infringement lawsuits last year.
Alphatec Spine ($197.7 million). The company reported an increase in total revenue from 2010, when their revenue reached $171.6 million. Domestically, the company reported $133.8 million in revenue, an 11.6 percent increase. However, international growth was much higher, at 23.5 percent over 2010 revenue. The company introduced three new products during the fourth quarter at the North American Spine Society annual meeting, but still only saw a 2 percent increase in U.S. sales over the fourth quarter of 2010. Over the next year, the company will focus on streamlining and strengthening its operating fundamentals. In 2011, the company responded to an FDA letter on its PureGen product for spinal fusions and elected former DJO Global leader Leslie Cross as non-executive chairman of its board of directors.
TranS1 ($4 million). TranS1's total revenue dropped 32 percent during the fourth quarter of 2011. For the full year, the company reported $7 million less in 2011 than in 2010. The drop was driven by a sharp decrease in U.S. sales. However, the company recently learned its AxiaLIF procedure received a new Category I CPT code for the L5/S1 spinal fusion when performing a pre-sacral fusion. The CPT Editorial Panel also voted to establish a new Category III CPT code as add-on for surgeons performing L4/L5 spinal fusions. The codes won't go into effect until Jan. 1, 2013.
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Synthes ($3.9 billion). Synthes revenue jumped 7.8 percent in 2011 to $3.9 billion, growth that comes on the heels of Johnson & Johnson's intended acquisition, which was announced in early 2011. The acquisition is expected to become final sometime in 2012. In the mean time, Synthes reported $2.2 billion in North American sales and $942 million in Europe for the full year. The company had success with its trauma line, but the spine market has proven more challenging. In 2011, Synthes reported its first quarterly revenue topping $1 billion and has continued to report growing profits after announcing the J&J acquisition. The company has received FDA clearance for several devices over the past year and partnered with Cranio-Maxillofacial Surgery to develop and distribute the company's products.
Medtronic Spine ($3.4 billion). Medtronic's spine business reported $3.4 billion in 2011, with overall revenue for the company exceeding $16.4 billion. In addition to spine and biologics, Medtronic's business lines include cardiac and vascular products, neuromodulation, surgical technologies and diabetes. One of the company's most profitable spine devices, it's recombinant bone morphogenic protein product Infuse, experienced a significant decrease in sales during the second half of 2011 after the product came under scrutiny for potentially having a higher complication rate than was initially reported. During the third quarter of fiscal year 2012, the company reported a 20 percent drop in biologics revenue, driven by lower U.S. sales of Infuse. However, the overall revenue experienced a 2 percent third quarter increase.
NuVasive ($520.5 million). Full year revenue for NuVasive was up in 2011 by 13 percent. The company attributes its success to a "market-share taking strategy," which drove an increase in revenue despite a challenging spine market. In the fourth quarter, the company saw a 16.2 percent increase in net sales over the same period in 2010. The company pioneers a minimally invasive lateral access spinal surgery system, and feels poised to gain market share as minimally invasive technology becomes more prominent over the next few years. In 2011, the company acquired Impulse Monitoring to increase its NeuroVision use and tangoed with Medtronic over alleged patent infringement lawsuits last year.
Alphatec Spine ($197.7 million). The company reported an increase in total revenue from 2010, when their revenue reached $171.6 million. Domestically, the company reported $133.8 million in revenue, an 11.6 percent increase. However, international growth was much higher, at 23.5 percent over 2010 revenue. The company introduced three new products during the fourth quarter at the North American Spine Society annual meeting, but still only saw a 2 percent increase in U.S. sales over the fourth quarter of 2010. Over the next year, the company will focus on streamlining and strengthening its operating fundamentals. In 2011, the company responded to an FDA letter on its PureGen product for spinal fusions and elected former DJO Global leader Leslie Cross as non-executive chairman of its board of directors.
TranS1 ($4 million). TranS1's total revenue dropped 32 percent during the fourth quarter of 2011. For the full year, the company reported $7 million less in 2011 than in 2010. The drop was driven by a sharp decrease in U.S. sales. However, the company recently learned its AxiaLIF procedure received a new Category I CPT code for the L5/S1 spinal fusion when performing a pre-sacral fusion. The CPT Editorial Panel also voted to establish a new Category III CPT code as add-on for surgeons performing L4/L5 spinal fusions. The codes won't go into effect until Jan. 1, 2013.
More Articles on Spine Devices:
Ascendx Spine Names Eric Gilbert Vice President of U.S. Sales & Marketing
Medtronic Launches CD Horizon BalanC Spinal System
10 Milestones for Orthopedic Devices