Orthofix turns around bottom line with $6.2 million profit

October 30, 2009 by MassDevice staff

Spinal implants, stimulation devices drive big sales gains for Boston-based device supplier; company also cites successful rollout for new stem cell-based transplant materials.

Paced by strong sales growth for its spine stimulation products and implants, Orthofix International N.V. turned a $6.2 million profit on $135.1 million in sales during the three months ended Sept. 30.

The positive earnings reversed a gaping $237.3 million net loss from the year-ago quarter. Third-quarter sales also beat their 2008 benchmark, rising 4 percent for the Boston-based firm.

Sales of spine-related products generated just over half of all revenues, totaling $68.1 million during the quarter. Devices such as the Orthofix Spine Stim, a wrap-around device that helps promote bone growth following fusion surgery, rose 12 percent from 2008 levels to reach $39.1 million, while implant sales climbed 11 percent.

Orthofix also saw gains in its sports medicine business, helping offset a 2 percent drop in orthopedic sales. The company likewise saw revenues from biologic products in its implant division fall 11 percent, reflecting a change in supplier contracts for transplant materials. Company officials said unit sales and prices for the recently introduced Trinity Evolution allograft largely matched those of its predecessor, but the firm now shares 30 percent of those revenues with the supplier.

However, despite receiving a smaller share of the allograft revenues, Orthofix said the Trinity Evolution so far is beating the production levels set in its original commercialization plans.