NuVasive CEO Lukianov looks back, ahead

NuVasive logo

Medical device company NuVasive (NSDQ:NUVA) got a big boost this morning after releasing preliminary results for 2012, with a jocular chairman & CEO Alex Lukianov sharing some of the highlights with an audience at the J.P. Morgan healthcare conference in San Francisco.

NuVasive beat its own estimates for 2012 with full-year revenues of about $619 million, compared to previous guidance of $601-$606 million for the year.

That represents a 15% spike in growth over 2011 for NuVasive, which Lukianov variously referred to as a "market-maker," a "share-taker" and a "destructive force."

Wall Street responded with a 12.3% spike for NUVA shares, which were trading at $17.70 as of about 1 p.m. today.

Lukianov joked about the larger headwinds facing NuVasive, including push-back from insurers who aren’t fully sold on minimally invasive spinal surgery procedures.

"If you consider the state of spine, things could be worse," he said. "I mean, we could have a socialist president in charge … well, actually, never mind."

NuVasive has taken large steps to advance its position in the spinal surgery market, which Lukianov characterized as one with significant "share-shifting" and portfolio cannibalization among the segment’s top players.

Going forward, the company’s strategy involves paring down its inventory by combining its offerings into fewer platforms.

"We’re integrating systems, we’re putting together streamlined approaches," Lukianov said. "When you see all of those inventory SKUs that are out there, we’re in the process of really trying to cut down the number of SKUs and put forward fewer systems that actually do more. This is a pretty big advance for us."

The company is also looking to make larger moves in international markets, which comprise about 10% of NuVasive’s revenues. Lukianov hopes to raise that to 20%.

"What’s happening with international is we’ve been investing heavily in it, including Japan, for the last few years and it will now start to contribute to profitability," he said.

NuVasive projected that 2013 sales will reach about $655 million, representing growth of about 5.8%.

"You could, obviously, wonder why our guidance isn’t even higher than that, and that is simply because we’re in a challenged marketplace and we’re not going to get ahead of ourselves," Lukianov said today. "We think 6% growth in a market that’s been flat to slightly up is excellent, and that’s what we’re focused on."

He told conference attendees that he envisions NuVasive as a "billion-dollar startup," aiming to reach a billion in sales "in a certain way," which he characterized as "nimble, fast and responsive."

"We’re a share-taker in terms of our ability to growth the company as we have, we’ve been a very destructive force when it comes to new products," he said.

Although Lukianov noted the challenges facing the company and the global spinal devices business, he remained enthusiastic about the company’s progress and potential.

"We’ve been working in a market that is, to say the least, challenged," he said. "It does appear to be stabilizing – it seems to be flattening out of the last several quarters."

"As we’re digging out, there’s definitely light ahead," he added.

RSS From Medical Design & Outsourcing

  • Bayer rebrands material science biz as Covestro
    Bayer said the re-branding of its material sciences business as Covestro is complete, with a separate legal and economic structure for the Pittsburgh-based subsidiary ahead of a planned IPO next year. “Independence will enable us to bring our strengths to bear in global competition more quickly, effectively and flexibly,” Covestro CEO Patrick Thomas said in prepared […]
  • BRILAMET research project brought to successful conclusion: Precision laser-cutting technique optimized for thick metal sheets
    Using lasers to cut sheet metal is something that has typically been handled in the realm of CO₂ and fiber lasers, although this may not be the case for much longer. Diode lasers are increasingly emerging as the light source of choice for a large number of applications, as can be seen from the BRILAMET […]
  • Mobidiag and Unilabs enter into agreement over use of Amplidiag product line for molecular gastrointestinal diagnostics
    Mobidiag, a Finnish molecular diagnostics company specialized in the development of innovative diagnostics solutions for infectious diseases, and Unilabs, a diagnostics service provider, announced an agreement covering the supply of Amplidiag products over the next four years for Unilabs in Sweden and Norway. The Amplidiag product line covers six diagnostic products for various gastrointestinal infections, […]
  • Quick work keeps dental implants in place among women with osteoporosis
    As natural as aging is, it can tend to feel like a downward spiral. As the years increase, bone mass and strength decrease. Teeth can fall out, and the drugs and surgery designed to return things to normal may actually make bone related issues worse. Osteoporosis is a common problem for women who have gone […]
  • Cyberdyne CEO has severed spines on his agenda
    Editor’s Note: This article is from Bloomberg.com‘s Natasha Khan. Cyberdyne Inc.’s CEO, Yoshiyuki Sankai, is researching ways to repair damaged body tissue. The 57-year-old scientist’s vision: to treat patients with spinal injuries by using stem-cell related technology to repair nerve connections and robotic suits that aid movement. Sankai’s company is setting its sights on better […]
  • Teknor Apex to showcase wide range of PVC compounds for medical devices at Medtec China
    Building on its international leadership role as a supplier of medical-grade PVC compounds, Teknor Apex Company has developed flexible and rigid formulations that address the special needs of device manufacturers. The company will highlight these capabilities at Medtec China 2015. “Teknor Apex produces or markets medical-grade PVC compounds in China, Singapore, Europe, and the United […]
  • The Raspberry Pi eco-system goes interstellar with the new Raspberry Pi Sense HAT
    Newark element14 has globally launched the latest addition to the expanding ecosystem of Raspberry Pi accessories, the Raspberry Pi Sense HAT, as featured in the ‘Astro Pi’ space mission. The Sense HAT will enable enthusiasts to control the same hardware used in space. The Sense HAT attaches to the Raspberry Pi board, and can be […]
  • CommScope completes acquisition of TE Connectivity’s Telecom
    CommScope Holding Company, has completed its previously announced acquisition of TE Connectivity’s Telecom, Enterprise and Wireless businesses, a leader in fiber optic connectivity for wireline and wireless networks. The all-cash transaction, valued at approximately $3 billion, strengthens CommScope’s position as a leading communications infrastructure provider with deeper resources to meet the world’s growing demand for network […]
  • SPI awards IKO Prosthetic Creative System the Student Design International Design Excellence Award
    SPI: The Plastics Industry Trade Association congratulated IKO Prosthetic Creative System for winning the SPI Student Design Award, part of the Industrial Designers Society of America’s (IDSA’s) International Design Excellence Awards (IDEA) program. The award was presented to IKO, an innovative, youth-focused prosthetic design company led by Chicago-based designer Carlos Torres, by SPI’s Senior Director of […]
  • New assay could revolutionize diagnosis and treatment of life-threatening disease
    Invasive Fungal Disease (IFD) is an emerging global health problem associated with high mortality rates in severely immunocompromised patients, such as those undergoing intensive chemotherapy or stem cell transplantation, and in patients suffering immune compromising conditions such as AIDS. The most common causative agents of this disease have been identified as Candida and Aspergillus species, […]
  • Molex delivers ISO 13485-compliant, medical-grade surgical cables from its class 100,000 clean room facility
    Molex, LLC operates a fully ISO 146441-1:1999 Class 8-certified clean room, satisfying strict particulate contamination levels specified by ISO-compliant requirements. Located in Thailand, the facility has less than 100,000 particulates (≥0.5µm) per cubic foot of air and manufactures a variety of ISO 13485-compliant medical cables and surgical cables used in operating theatres, hospitals, laboratories and […]

Leave a Reply