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Orthopedic and Dental Industry News Complete Archive »

Musculoskeletal News Roundup 30-Oct-15 BY BLAKE MOSSY, OCTOBER 30, 2015

EARNINGS
Anika Therapeutics reported financial results for 3Q:15. Product revenue was $23.7 million in 3Q:15, beating consensus by 6% and representing an increase of 8% compared to $22.0 million in 3Q:14. Product gross margin for 3Q:15 increased to 76.7%, from 73.9% in 3Q:14. The company's segments grew by: Orthobiologics +8%, Dermal 3%, Surgical (3%), Ophthalmic (6%) and Veterinary +22% in 3Q:15 respectively. European and ROW revenues grew by 11% and 42% respectively in 3Q:15 compared to 3Q:14. All growth rates are on a reported basis.

Exactech reported financial results for 3Q:15. Total revenue was $56.2 million in 3Q:15, in-line with consensus estimates and representing flat growth compared to $57.9 million in 3Q:14. Gross margin for 3Q:15 decreased slightly to 70.5%, from 70.8% in 3Q:15. The company's segments grew by: Knee (13%), Hip (1%), Extremity +9% and Biologic & Spine +4% in 3Q:15 respectively. All growth rates are on a constant currency basis.

IMPLANET reported financial results for 3Q:15. Total revenue was €1.7 million ($1.9 million) in 3Q:15, increasing 42% compared to €1.2 million ($1.5 million) in 3Q:14. Total revenues from the company's core spinal implant, JAZZ, totaled €0.8 million ($0.9 million) in 3Q:15, representing an increase of 101% compared to €0.4 million ($0.5 million) in 3Q:14. The company's other segment, Knee & Arthroscopy, increased 14% 3Q:15. All growth rates are on a reported basis.

NuVasive reported financial results for 3Q:15. Total revenue was $200.5 million in 3Q:15, in-line with consensus estimates and representing an increase of 8% compared to $189.9 million in 3Q:14. Adjusted EBITDA was $53.6 million and the company exhibited an adjusted EBITDA margin of 26.7% in 3Q:15. Gross margin for 3Q:15 increased to 75.5%, from 74.9% in 3Q:14. All growth rates are on a constant currency basis.

RTI Surgical reported financial results for 3Q:15. Revenue was $66.5 million in 3Q:15, missing consensus estimates by 4% and representing an increase of 3% compared to $65.2 million in 3Q:14. Adjusted EBITDA was $10.7 million in 3Q:15, increasing 32% on a reported basis from $8.2 million in 3Q:14. Adjusted EBITDA margin increased to 16.2% in 3Q:15 from 12.5% in 3Q:14. Gross margin for 3Q:15 decreased to 53.0%, from 53.2% in 3Q:14. The company's segments grew by: Spine (12%), Ortho Fixation +44%, Sports Medicine (5%), Bone Graft Substitutes & General Orthopedic +6%, Dental 20%, Surgical Specialties (25%), Other +9% in 3Q:15 respectively. Domestic and International revenues grew by 2% and 13% in 3Q:15 respectively. All growth rates are on a constant currency basis, unless stated otherwise.

Smith & Nephew reported financial results for 3Q:15. Total revenue was $1,105 million in 3Q:15, beating consensus estimates by 2% and representing an increase of 4% compared to $1,148 million in 3Q:14. The company's segments grew at: Knee +6%, Hip (2%), Sports Medicine / Joint Repair +4%, Arthroscopic Enabling Technologies (2%), Trauma & Extremities +2% and Other Surgical +10% respectively in 3Q:15. All growth rates are on a constant currency basis.

Stryker reported financial results for 3Q:15. Total revenue was $2.42 billion in 3Q:15, missing consensus estimates by 1% and representing an increase of 6% compared to $2.39 billion in 3Q:14. Gross margin for 3Q:15 increased to 67.1%, from 65.3% in 3Q:14. The company's segments grew by: Knees +4%, Hips +3%, Trauma & Extremities +9%, Instruments +7%, Endoscopy +1%, Medical +6%, Spine +2% and Neurotechnology +16% respectively in 2Q:15. International revenues grew by 2% in 3Q:15 compared to 3Q:14 and represented 27% of total revenue in 3Q:15. All growth rates are on a constant currency basis.

Zimmer Biomet reported financial results for 3Q:15. Total revenue was $1.76 billion in 3Q:15, in-line with consensus estimates and representing an increase of 1% compared to 3Q:14. Gross margin for 3Q:15 decreased to 68.71%, from 73.2% in 3Q:14. The company's segments grew at: Knees +2%, Hips (0%), Surgical, Sports Medicine, Foot and Ankle, Extremities & Trauma +1%, Dental (1%), Spine & CMF +0% and Other (1%) respectively in 3Q:15. The company's Americas, Europe and Asia-Pacific segments grew at (1%), 2% and 5% respectively in 3Q:15. All growth rates are on an adjusted pro forma constant currency basis.

FUNDING
Stryker priced an offering to sell $750 million in senior unsecured notes with a 2025 maturity and an annual coupon rate of 3.375%.The company intends to use the proceeds from the offering to repay $200 million of existing commercial paper at its maturity and for working capital and other general corporate purposes, including acquisitions, stock repurchases and other business opportunities.

M&A
Smith & Nephew (LSE:SN, NYSE:SNN), the global medical technology business, announces it has agreed to acquire Blue Belt Holdings, Inc. (“Blue Belt Technologies”) for $275 million, securing a leading position in the fast-growing area of orthopaedic robotics-assisted surgery. Smith & Nephew is at present Blue Belt Technologies’ most successful implant sales partner, with the Navio robotics system available for the JOURNEY UNI partial knee and the recently acquired ZUK unicompartmental knee. Combining our next generation products in development with robotic technology will give Smith & Nephew an enhanced platform from which we intend to deliver further expansion.

Greatbatch completed its $1.7 billion acquisition of Lake Region Medical, valuing the company at 2.1x LTM revenues of 806 million, or 11.6x LTM adjusted EBITDA of $144 million. Lake Region Medical develops access, delivery and retrieval medical devices for electrophysiology, vascular access, cardiovascular, urology, oncology, orthopedics, laparoscopy, biopsy/drug delivery and arthroscopy sectors. Greatbatch will now be able to offer a more comprehensive portfolio.

Nextremity Solutions completed the acquisition of a foot fusion technology from Del Palma Orthopedics (DPO). The asset purchase consists of multiple and in-prosecution utility and design patents, associated intellectual propert, and partially developed foot fusion devices.

PRODUCT INTRODUCTION & UPDATE
Globus Medical launched its CREO MIS, a thoracolumbar posterior stabilization pedicle screw system that features extended modular screw heads. The system's low profile design and small diameter screw heads aim to minimize muscle disruption and to reduce clutter at the L5-SI levels of the spine.

INTELLECTUAL PROPERTY
Regenexx received a patent from the US Patent and Trademark Office (USPTO) covering their proprietary same day stem cell procedure used to treat joint injuries, spine pain and degenerative orthopedic conditions, such as osteoarthritis (OA). The patent focuses on the use of an inflammatory agent to prompt repair of cartilage by stem cells.

REIMBURSEMENT
Zyga Technology announced that the Medicare Administrative Contractor (MAC) covering the states of Iowa, Kansas, Missouri, Nebraska, Indiana and Michigan, Wisconsin Physicians Service Insurance Corporation (WSP), updated their Local Coverage Determinations (LCD) to include percutaneous minimally invasive fusion of the sacroiliac (SI) joint for treatment of back pain. The expanded coverage decision was based on greater clinical evidence demonstrating that minimally invasive SI joint fusion is an effective and appropriate treatment for Medicare patients with SI joint disorders.

COLLABORATION
A-SPINE entered into an agreement with Jiangsu IDEAL Medical Science & Technology to distribute A-SPINE's spinal implants across China, effectively immediately. A-SPINE's product portfolio includes cervical, thoracic and lumbar fixation, interbody fixation, osteoplasty and vertebral body replacement systems. The collaboration with IDEAL Medical will help A-SPINE penetrate the Chinese spinal market.

Vericel entered into a supply agreement with Matricel for the ACI-Maci collagen membrane used to manufacture vericel's its MACI product, an autologous cultured chrondrocyte implant for the treatment of symptomatic full-thickness cartilage defects of the knee.

APPOINTMENTS
Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a global provider of spinal fusion technologies, announced that James R. Glynn is retiring as a member of the board of directors and Audit Committee Chairman, effective November 2, 2015. Alphatec Spine's board of directors has appointed Donald A. Williams, an independent director of Alphatec's board of directors and current member of the Audit Committee, as the Chairman of the Audit Committee, effective November 2, 2015.

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