ConforMIS (NSDQ:CFMS) last week posted second quarter earnings that missed expectations on Wall Street and announced that the first procedures had been performed using its 3D designed and printed Conformis hip system implants.
In its earnings release, the Billerica, Mass.-based company posted losses of $14.1 million. or 24¢ per share, on sales of $18.9 million for the three months ended June 30, seeing losses grow 16.3% while sales grew a smaller 4.8% compared with the same period during the previous year.
Losses per share were just behind the 21¢ consensus on Wall Street.
“Our US growth of 7% represents a meaningful step-up in performance versus prior quarters. We continue to make progress in the US while facing headwinds in our OUS business due to reimbursement challenges. Furthermore, our continued gross margin expansion demonstrates that the gross margin improvements should be sustainable. This performance is a reflection of our operational focus and execution and we believe positions us well for the remainder of the year,” prez & CEO Mark Augusti said in a press release.
The company also touted the initial implants of its 3D printed total hip replacement, performed as part of a limited launch of the device. A full launch of the hip systems is planned for next year, Conformis said.
The first surgeries with the devices were performed by Dr. Gregory Martin at Alantis, Fla.’s JFK Medical Center on July 31, the company said.
“The Conformis Hip System is designed to address many of the short comings of primary hip replacement today. For the first time, orthopedic surgeons have a fully-guided system designed to address the wide variations in anatomy presented across our cases. The Conformis system builds upon traditional methods for hip replacement surgery with proven materials and components which, today, are offered in only limited standard configurations. Due to the accuracy of the personalized pre-operative surgical plan, the 3D printed patient conforming cutting guides and hip implant components, my hope is that with the new Conformis Hip system, surgeons will be able to improve both patient outcomes and operational efficiencies,” Dr. Martin said in a prepared statement.
The Conformis hip system uses proprietary imaging and design software to produce an FDA-cleared, patient-conforming hip implant. To produce the implants, patient computed tomography scans are converted into 3D models, the company said. The system also includes pre-operative surgical plans delivered to surgeons in advance of operations.
“Partnering with our expert surgeon design team and leveraging our extensive experience in automated 3D printing and additive manufacturing enabled us to bring a revolutionary new hip replacement system to market. Our 3D implant design process provides surgeons with interactive input and improves operational efficiencies compared to 2D templating. The design process produces specific individualized pre-navigated cutting guides and implants. A groundbreaking acetabular reaming system has also been developed. With this launch, we expect to lead the way in innovative solutions for the $7B hip replacement market by providing surgeons with game-changing operative solutions to better serve them and their patients both in hospitals and ambulatory surgical settings,” Augusti said in prepared remarks..
In February, Conformis saw shares fall slightly after the medical device maker posted shrinking sales for its fourth quarter and full fiscal year 2017, despite having topped Q4 losses per share expectations on Wall Street.