Sales Off to Faster Than Expected Start in 2022
June 2, 2022
by Mike Evers, Orthoworld
Content republished with permission from ORTHOWORLD® Inc., www.orthoworld.com
Elective Procedure Recovery a Boon for Joint Replacement
As disruption from the omicron variant surge abated later in the first quarter, orthopedic companies saw a quick rebound in procedures. Most companies report significant pressure in January, followed by improvement in February and a strong March rebound that continued into April. Procedure volumes surpassed 2019 by the end of the quarter.
Joint replacement procedures, in particular, regained some ground lost over the last two years. We estimate the knee replacement segment grew in the high-single digits for the first quarter compared to the year prior, while hip replacement grew in the mid-single digits.
Sales Tumble for Capital Equipment in First Quarter
Sales of robotic units and other capital equipment were a critical revenue lifeline for some companies during the worst of the pandemic. Robotic sales repeatedly broke company records starting in late 2020. However, the first quarter of 2022 marked the end of the torrid pace.
Globus Medical's enabling technology sales fell by -12% in the quarter after propelling the company to stellar sales growth in 2021. The shortfall contributed to a rare weak quarter for Globus, which grew just +1.4% overall after a long string of stellar quarters. Stryker's orthopedic capital sales fell around -20%, as did Smith+Nephew's.
Companies Confident They Can Manage Market Challenges
Hospital staffing shortages remain a significant constraint in the U.S. The shortages have impacted elective procedures and hospitals' ability to receive and install capital purchases like robotics. The staffing deficit will also blunt any tailwinds from backlogged procedure recapture.
Mike Evers is ORTHOWORLD's Digital Content Strategist.
To read the full article, click here.
