Becker's Spine Review

53 HEALTHCARE NEWS Medtronic Q1 2019 revenue flat at $7.3B, CEO Omar Ishrak 'bullish' on competitive opportunities: 5 things to know By Laura Dyrda M edtronic reported a slight de- crease in overall fiscal year 2019 first quarter revenue with a small increase in spine revenue, but CEO Omar Ishrak remains optimistic about the future. "We are excited about the growth opportu- nities in our end markets, and we are bullish about our competitive position," he said. "Our pipeline of innovation, invention and disrup- tion has never been stronger. We are also put- ting the pieces in place to improve free cash flow conversion, creating additional capital that can be returned to shareholders and re- invested to drive future growth, all with a goal of creating long-term shareholder value." Here are five things to know about Medtron- ic's first quarter: 1. e company reported a 0.1 percent de- crease in worldwide revenue to $7.3 billion. U.S. revenue represented 52 percent of over- all company revenue for the quarter and dropped 4.4 percent to $3.8 billion. Non-U.S. developed markets represented 33 percent of company revenue and was up 4 percent to $2.4 billion. 2. Spine revenue hit $652 million for the quarter, a 0.5 percent increase over the same period last year. e global spine revenue in- creased in the mid-single digits on a constant currency basis, driven by the company's Sur- gical Synergy strategy. 3. Medtronic's pain therapies revenue was up 16.7 percent to $314 million in the quarter, with low-twenties growth in the pain stimu- lation business due to the launch of its Intellis spinal cord stimulation platform. 4. Medtronic expects organic revenue to in- crease 4.5 percent to 5 percent over the next year. Assuming exchange rates hold for the remainder of the fiscal year, the company es- timates 2019 revenue will be negatively affect- ed by around $420 million to $520 million. 5. During the first quarter, the company reported a 14.8 percent increase in brain therapies revenue, hitting $599 million. e neurosurgery group was led by strong capital equipment sales of the O-arm 2 surgical im- aging system, StealthStation S8 surgical navi- gation system and Mazor X robotic guidance system. n CMS reviewing same-day spine cases for beneficiaries — 4 insights By Eric Oliver C MS is analyzing several procedures currently on the ASC payable list to determine whether to keep them there, the Washington Post reports. Here's what you should know: 1. CMS is proposing to review whether 38 procedures added to the ASC list of allowable procedures should remain on that list. Twenty-five of those procedures involve spine surgery. 2. Ambulatory Surgery Center Association CEO Bill Prentice, said, "The more resources they use, the better. I think that the more data points they have, the more likely they are to make the right decision. … We believe these procedures can be performed very safely in the ASC space." 3. The agency indicates that it will base its final decision about whether to continue to reimburse ASCs for providing these procedures on outcomes data, prevailing medical practice and public comments. 4. CMS also reviewed public comment when it first allowed for ASCs to perform these procedures on Medicare patients. n Orthofix Q2 sales spike 2.4% to $111.5M: 5 observations By Mackenzie Garrity O rthofix released its 2018 second quarter financial results. Here are five observations: 1. For the second quarter, the company's sales topped $111.5 million, a 2.4 percent increase year-over-year. 2. Orthofix's spine fixation business segment gener- ated $23.9 million in sales, an 11.8 percent increase year-over-year. 3. Within its biologics segment, Orthofix reported $17.7 million in sales, a 6.3 percent decrease year- over-year. 4. Orthofix reported $24.8 million in sales for its ex- tremity fixation segment, a 0.2 percent increase year- over-year. 5. The company predicts its full-year sales to range between $450 million to $456 million. n

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