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Conformis reported 2Q22 orthopedic sales of $15.3 million, -72.9% compared to 2Q21. A one-time royalty payment last year drove the decline. Product revenue for 2Q22 declined -0.4% vs the prior year.
The full launch of the company’s Imprint Knee got pushed into the late third quarter because of key component shortages. While currently in limited release, shortages have elongated lead times that lessen the product’s value proposition.
Conformis CEO Mark August said, “As we’ve been building up inventories, we’ve kept Imprint at sort of the six-week lead time, which is too long for that product. We know that customers want it sooner. And that’s why we’re talking about full market release, getting it down to that three to four weeks.”
The company will also have to wait longer to harness the attractive growth of cementless knees. Supplier lead times will push Confirmis’ cementless option into the late first quarter or early second quarter of 2023.
Finally, the company is waiting on deliveries from one instrument supplier for its Actera hip implant. That product is expected to get a limited release in the fourth quarter and help Conformis return its hip business to growth.
With less momentum entering the third quarter than expected and ongoing market volatility, Conformis lowered its 2022 product revenue guidance to the range of $57 million to $61 million. The range represents growth between -2.3% and +4.6% compared to 2021. The company had previously guided to the range of $60 million to $70 million in product revenue.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.6 | $55.4 | ($40.9) | (73.8%) |
| Joint Replacement Hips | $0.7 | $0.9 | ($0.2) | (17.3%) |
| Total | $15.3 | $56.3 | ($41.1) | (72.9%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $29.3 | $68.6 | ($39.3) | (57.3%) |
| Joint Replacement Hips | $1.5 | $1.6 | ($0.0) | (2.3%) |
| Total | $30.8 | $70.2 | ($39.3) | (56%) |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.6 | $54.6 | ($41.0) | (75.1%) |
| OUS | $1.7 | $1.8 | ($0.0) | (2.7%) |
| Total | $15.3 | $56.3 | ($41.1) | (72.9%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $27.0 | $66.3 | ($39.4) | (59.4%) |
| OUS | $3.9 | $3.9 | $0.0 | 0.4% |
| Total | $30.8 | $70.2 | ($39.3) | (56%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.3 | |
| Cost of Sales | $9.8 | 64.3% |
| Selling and Marketing | $6.6 | 42.9% |
| General and Admin | $7.7 | 50.3% |
| R & D | $4.0 | 25.9% |
| Other | $2.8 | 18.1% |
| Net Earnings | ($15.5) | (101.5%) |
Conformis reported 2Q22 orthopedic sales of $15.3 million, -72.9% compared to 2Q21. A one-time royalty payment last year drove the decline. Product revenue for 2Q22 declined -0.4% vs the prior year.
The full launch of the company's Imprint Knee got pushed into the late third quarter because of key component shortages. While currently in...
Conformis reported 2Q22 orthopedic sales of $15.3 million, -72.9% compared to 2Q21. A one-time royalty payment last year drove the decline. Product revenue for 2Q22 declined -0.4% vs the prior year.
The full launch of the company’s Imprint Knee got pushed into the late third quarter because of key component shortages. While currently in limited release, shortages have elongated lead times that lessen the product’s value proposition.
Conformis CEO Mark August said, “As we’ve been building up inventories, we’ve kept Imprint at sort of the six-week lead time, which is too long for that product. We know that customers want it sooner. And that’s why we’re talking about full market release, getting it down to that three to four weeks.”
The company will also have to wait longer to harness the attractive growth of cementless knees. Supplier lead times will push Confirmis’ cementless option into the late first quarter or early second quarter of 2023.
Finally, the company is waiting on deliveries from one instrument supplier for its Actera hip implant. That product is expected to get a limited release in the fourth quarter and help Conformis return its hip business to growth.
With less momentum entering the third quarter than expected and ongoing market volatility, Conformis lowered its 2022 product revenue guidance to the range of $57 million to $61 million. The range represents growth between -2.3% and +4.6% compared to 2021. The company had previously guided to the range of $60 million to $70 million in product revenue.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.6 | $55.4 | ($40.9) | (73.8%) |
| Joint Replacement Hips | $0.7 | $0.9 | ($0.2) | (17.3%) |
| Total | $15.3 | $56.3 | ($41.1) | (72.9%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $29.3 | $68.6 | ($39.3) | (57.3%) |
| Joint Replacement Hips | $1.5 | $1.6 | ($0.0) | (2.3%) |
| Total | $30.8 | $70.2 | ($39.3) | (56%) |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.6 | $54.6 | ($41.0) | (75.1%) |
| OUS | $1.7 | $1.8 | ($0.0) | (2.7%) |
| Total | $15.3 | $56.3 | ($41.1) | (72.9%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $27.0 | $66.3 | ($39.4) | (59.4%) |
| OUS | $3.9 | $3.9 | $0.0 | 0.4% |
| Total | $30.8 | $70.2 | ($39.3) | (56%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.3 | |
| Cost of Sales | $9.8 | 64.3% |
| Selling and Marketing | $6.6 | 42.9% |
| General and Admin | $7.7 | 50.3% |
| R & D | $4.0 | 25.9% |
| Other | $2.8 | 18.1% |
| Net Earnings | ($15.5) | (101.5%) |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
