Becker's Spine Review

28 DEVICES & IMPLANTS SI-Bone 2020 revenue increases 9% year over year — 5 things to know By Alan Condon F ull-year 2020 revenue for SI-Bone, a sacropelvic device company, increased 9 percent to between $73.1 million and $73.4 million year over year, according to a preliminary unaudited report on Jan. 7. Five things to know: 1. Fourth-quarter revenue is expected to be within the range of $21.9 million and $22.2 million, representing 11 percent to 12 percent growth compared to the same period the year prior. 2. Full-year U.S. revenue is projected to be between $67.9 million and $68.1 million, equating to year-over-year growth of about 10 percent. International revenue is expected to be in the range of $5.2 million to $5.3 million. 3. Cash and marketable securities were expected to be about $196 mil- lion as of Dec. 31, 2020. 4. SI-Bone will provide final financial results for the fourth quarter and full year during an earnings call in March. 5. The company announced that Jeff Dunn will step down as CEO after 14 years at the helm. Laura Francis, SI-Bone's CFO and COO, will transition into the role. n SeaSpine 2020 revenue down 3% year over year — 5 things to know By Alan Condon F ull-year 2020 revenue for SeaSpine declined 3 percent year over year to between $154.1 million and $154.5 million, according to a preliminary unaudited report released Jan. 11. Five things to know: 1. Fourth-quarter revenue is projected to be within the range of $46.2 million to $46.6 million, representing 6 percent to 7 percent growth com- pared to the same period the year prior. 2. For the fourth quarter, the company expects spinal implants revenue to increase by between 7 percent and 8 percent and orthobiologics reve- nue to rise between 6 percent and 7 percent year over year. 3. Fourth-quarter international revenue is projected to decrease 3 per- cent to about $4.3 million. 4. U.S. sales saw year-over-year growth in November and December, but at a lower rate than October. SeaSpine launched five products in the fourth quarter. 5. As of Dec. 31, cash, cash equivalents and short-term investments were about $77 million. SeaSpine had no outstanding debt under its credit facility. n Stryker expects big things from spine in 2021, but no timeline on a spine robot yet By Laura Dyrda S tryker's spine business was steadier in 2020 than other lines during the pan- demic. Spine sales were down 9.5 percent for the full year, reaching just over $1 billion in net sales, com- pared to hip sales, which dropped 12.8 percent, and knee sales, which were down 13.7 percent. "We saw spine procedures in general holding up a little better than some of the other elective proce- dures, particularly for our spine business outside the United States," said Preston Wells, vice presi- dent of investor relations, during the company's 2020 earnings call on Jan. 28, as transcribed by Seeking Alpha. He attributed the line's lower sales drop to the successful integration it has had with K2M, which Stryker acquired in 2018 for $1.4 bil- lion, and technologies it purchased from Mobius in 2019 for $500 million. Stryker also reported more stability in the spine line outside the U.S., most notably in Japan and Canada. "We definitely expect that business to continue to perform well as we go into 2021 and really harness the power across K2M, our legacy spine business as well as the enabling technology," said Mr. Wells. Stryker's Mako robotic technology has grown in the last year, but CEO Kevin Lobo said he was unable to give a timeline for when the company would have a robotic spine surgery product. "We have two options for spine," he said. "One is the robotic program that was being developed by Mobius prior to the acquisition, as well as Mako. We have work done in both areas. But I'm not ready to give timelines. Robotics is complicated, and we will keep you posted." n

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