Orthopedic devices maker and market bellwether Biomet this week posted strong 3rd quarter revenue growth, with a boost in sales in the U.S. and abroad and a new trauma acquisition performing admirably, but losses continued to widen for the Warsaw, Ind.-based medical device company.
That’s a sort of mixed bag for the clutch of orthopedic device makers who look to Biomet as a sign of things to come. Biomet is the 5th largest player on the orthopedics market, and its quarterly reports, which run about a month earlier than many of its peers, are considered a bellwether of sorts for larger trends in the industry.
Overall the company posted losses of $304.5 million during its 3rd quarter or 2013, a hefty slide from the $16.5 million in losses reported for the same period in 2012. Excluding the impact of special items, however, Biomet posted net Q3 2013 income of $80.4 million, up nearly 74% compared to the $55.1 million in adjusted earnings posted in Q3 2012.
The orthopedics giant saw flat overall sales growth during the 3 months ended February 28, 2013, not including the effects of its acquisition of Johnson & Johnson (NYSE:JNJ) subsidiary DePuy Orthopedics‘ global trauma business. Excluding the trauma acquisition, Biomet posted $712.1 million in sales for the 3rd quarter, just about 0.5% higher than the $708.9 million in sales reported for the same period in 2012.
The trauma buyout had a strong effect on the company’s top line, adding nearly $60 million in revenue to bring quarterly sales up to $771.5 million, an 8.8% bump from last year.
Biomet in the spring of 2012 purchased the trauma business from DePuy for about $280 million as DePuy parent Johnson & Johnson was looking to divest some assets ahead of a $21 billion buyout of Synthes. Biomet said at the time that the company was looking to expand its sports, extremities and trauma business in hopes of growing "well ahead of the market."
The acquisition fueled a 71% boost in the company’s sports, extremities & trauma business, which grew to $161 million worldwide, according to Biomet’s latest financial report.
Biomet saw sales growth in market in the U.S. and abroad during its 3rd quarter, with U.S. sales up 9% to $472.9 million, European sales up 5% to $184.7 million and international sales up 15% to $113.9 million, especially in Canada, South American, Mexico and the Pacific Rim, according to the report.
The orthopedics maker also took some hits during the quarter, including a $334.1 million impairment related to its dental reconstructive business, which the company had been looking to divest until deciding late last month "not to proceed with a spin-off."
