SeaSpine Announces 44% to 45% Preliminary Revenue Growth for Third Quarter 2022 and Raises Full Year 2022 Revenue Guidance
CARLSBAD, Calif., Oct. 11, 2022 (GLOBE NEWSWIRE) — SeaSpine Holdings Corporation (NASDAQ: SPNE), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, announced today preliminary financial results for the third quarter of 2022.
Preliminary and Unaudited Third Quarter 2022 Financial Results
- Total revenue is expected to range from $66.7 to $67.2 million, reflecting 44% to 45% year-over-year growth
- U.S. revenue is expected to range from $50.9 to $51.2 million, reflecting 23% to 24% year-over-year growth
- U.S. spinal implants and enabling technologies revenue is expected to reflect 29% to 30% year-over-year growth
- U.S. orthobiologics revenue is expected to reflect 17% to 18% year-over-year growth
- International revenue is expected to range from $15.8 to $16.0 million, reflecting 203% to 207% year-over-year growth
- Cash and cash equivalents at September 30, 2022 totaled $46.8 million, and included $25.8 million of outstanding borrowings against the Company’s credit facility
“Our revenue results once again exceeded expectations,” said Keith Valentine, President and Chief Executive Officer. “This year’s continued success results from our consistent execution across the organization and with our leading and innovative product portfolio in the hands of our transformational distributors and surgeon customers. We plan to carry this momentum and success into the fourth quarter, next year, and, more importantly, the next chapter of SeaSpine’s evolution with today’s announcement of our intent to merge with Orthofix Medical, Inc. Our combined portfolios will put us in a highly differentiated position in the spine market, combining leading bone growth therapy, enabling technologies, spinal implants, motion preservation and orthobiologics. This merger will be a union of two patient-focused companies with outstanding products that we believe will be stronger together.”
2022 Financial Outlook
SeaSpine now expects full-year 2022 revenue to be in the range of $236 to $238 million, reflecting growth of approximately 23% to 24% over full-year 2021. This compares to previous revenue guidance of $234 million to $236 million.
The revenue range for full-year 2022 reflects growth of 16% to 19% for the fourth quarter of 2022, after excluding European spinal implants revenue generated in the fourth quarter of 2021. The Company completed its exit from the European spinal implants market in the third quarter of 2022.
About SeaSpine
SeaSpine (www.seaspine.com) is a global medical technology company focused on the design, development, and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. SeaSpine’s complete procedural solutions feature its market-leading FLASH™ Navigation, a system designed to improve accuracy of screw placement and provide a cost-effective, rapid, radiation-free solution to surgical navigation, and a comprehensive portfolio of spinal implants and orthobiologics to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to facilitate spinal fusion in degenerative, minimally invasive surgery (MIS), and complex spinal deformity procedures on the lumbar, thoracic and cervical spine. With product development expertise in advanced optics, software, orthobiologic sciences and spinal implants, SeaSpine can offer its surgeon customers a complete solution to meet their patients’ evolving clinical needs. SeaSpine currently markets its products in the United States and in approximately 30 countries worldwide.
Forward-Looking Statements
SeaSpine cautions you that statements in this press release that are not a description of historical facts are forward-looking statements based on the Company’s current expectations and assumptions. Such forward-looking statements include, but are not limited to, statements relating to: expectations regarding fourth quarter and full-year 2022 revenue, and future revenue growth after 2022; the Company’s anticipated merger with Orthofix Medical, Inc. Among the factors that could cause or contribute to material differences between the Company’s actual results and the expectations indicated by the forward looking statements are risks and uncertainties that include, but are not limited to: the extent of the impact of SARS-CoV-2, including variants and sub-variants, on the Company’s business and the economy, including reductions in surgical volumes; the impact of staffing shortages, at both third-party facilities at which elective surgeries are performed and the Company’s facilities; surgeons’ willingness to adopt the Company’s newly launched products; the ability of newly launched products to meet the needs of surgeons and patients, including as a result of the lack of clinical validation of products in limited commercial (or “alpha”) launch; continued pricing pressure, whether as a result of consolidation in hospital systems, competitors or others, as well as exclusion from major healthcare systems; the risk of supply shortages and associated disruption to product sales, including as a result of the Company’s dependence on a limited number of third-party suppliers for components and raw materials, as a result of the COVID-19 pandemic, the conflict in Ukraine, or otherwise; the Company’s ability to continue to invest in medical education and training, product development, and/or sales and marketing initiatives at levels sufficient to drive future revenue growth; general economic and business conditions in the markets in which the Company does business, both in the U.S. and abroad; the Company and Orthofix Medical, Inc. obtaining shareholder approval for the proposed merger, and other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. The Company’s public filings with the Securities and Exchange Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date when made. SeaSpine does not intend to revise or update any forward-looking statement in this news release to reflect events or circumstances arising after the date hereof, except as may be required by law.
Investor Relations Contact
John Bostjancic
ir@seaspine.com
