OFIX - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the Orthofix Medical Inc Q2 2021 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Alexa would to conference I speaker your Huerta. Instructions] like the to over [Operator Please go ahead.

Alexa Huerta

Thank you, second call. Orthofix' Welcome to operator, and good quarter morning, XXXX everyone. the earnings

Chief today Officer, Financial Rice. Jon. then I'll safe our call pass and the Doug the with statement on Jon Serbousek; me President Joining and harbor Executive start it Officer, Chief to are and over

in are those and make will statements, facts do During will we any as forward-looking such forward-looking risks revise beliefs, statements such plans, statements and today's our making X, or on on not The XXXX. statements We earnings not statements. cautioned assurance statements, forward-looking we any statements we there forward-looking Investors place contained goals is objectives. involve occur. will be and as uncertainties. are the today, of August undue other expectations guidance than no or call, beliefs forward-looking that undertake statements based All reliance call strategies, any expectations, of update to are on historical such our including to provide matter about that obligation the

well X, as for ended June the quarter XXXX, the XX, in could to different additional year the on in the our XX-Q we this XXXX, be statements actual December factors ended from morning, disclosed us cause the the filed made heading Form for future. SEC materially by risk make include August Risk Factors Some and forward-looking call XX, factors that the results under XXXX, Form filings XX-K as

at Orthofix documents, these of contact in Texas. Lewisville, copies office my need you If please

financial to that financial order matters measures as today's to understand short-term call determined to Please At I in We for refer financial financial GAAP financial long-term reconciliation a wish call, measures. to press non-GAAP measures non-GAAP results. U.S. on to turn these various addition, XXXX results our and release this with the over a the second review to supplement of we may Jon. properly our will our in quarter U.S. these today's investors to trends, accordance refer point, In believe GAAP. announcing will

Jon Serbousek

of second questions. second Thank before thank conference of our against provide you, performance. the our review close handing I'll today's each second results initiatives, joining on made disruption On Doug, quarter call. will an call our Alexa. perspective with everyone, year, better order I opening XXXX I'll COVID XX% was XXXX and our strategic the constant XXXX will call, given to financial revenue our balance and over a update you for performance. we've we quarter provide last on performance, for strong sequentially and the XX% the our a Total XXXX over reported on by constant our reported during XXXX. to grew over second giving XXXX Total basis. both in X% basis. growing will and revenue X% a $XXX.X currency or on to a first compared was million, basis on to comparisons of approximately total up who of Starting Welcome, our of quarter quarter $X.X XXXX, basis with progress line revenue XX% for massive the quarter before be provide the update. context When million currency then caused approximately

we what accomplished this We during are very quarter. proud of

QX benefit business due were lesser our also the saw in COVID to to delayed While in from pockets of international in a and extent, in in U.S., saw headwinds QX that procedures procedural we XXXX. some still we a certain

artificial channel products, as cervical number lengthening the a contributions commercial well new including MX-C line by top driven strong of system from the as FITBONE performance strategic was new Our and from disc contributions key partners. limb

sales product were quarter, over was procedures, volumes, our see in spine expect continue of procedures. These quarter complex million, Performance improve multilevel our Now XXXX. in particularly in throughout to result are products, to to return our Starting were a Bone BGT, complex let's quarter high utilized XXXX, which Sequentially BGT a we the in during as XX% back for continued a Therapies, surge growth up turn complex to pulling the procedures a or largely Growth $XX second with categories. the to on of due COVID Compared any barring back sales XX%. setbacks sequential XXXX quarter in over cases. within half of levels relatively over of the the the the year, each the BGT flat. BGT in significant to first and quarter sales of grew rebound XXXX, performance hospitals

Spinal preservation. increasing on was primarily second XX% second Spinal first motion due XX% the Implants new when to spine for quarter XX% of over business, over a compared and ongoing attracting driven Revenue basis XXX% Spinal Implants, more the grew marketing, XXXX. was XXXX. disc to training XXXX, was quarter of compared a surgeon fixation users up quarter growth as compared XXXX. our grew and by cervical our and in Revenue artificial quarter solid success to XX% up U.S. MX-C to this impressively, U.S. Moving of over sequentially in education efforts. This result sales of continued second our Implants XXXX performance reported includes to

in revenue U.S. surgeons procedure our first the their MX-C performing from fact, strongly In to continues new perform.

XXXX business slightly to Overall, modestly Fixation our as significantly spine still see compared by fell somewhat XXXX Spine base being XXXX levels. versus surgeon below COVID. increased we has in U.S. but U.S. Our increased continue XXXX versus when despite impacted volumes the procedural fixation to

impact although complex quarter, to a factors. on continue procedures to due COVID negative we experience improving, sequentially multilevel second the During

experienced in global channel MX-C QX we our the success strengthen Two-Level focusing Our on related our the current spine broaden entire including physician recent strategy IDE of with to Orthofix new MX-C mentioned training users continues be and practices introducing next-generation evidence, Spine to physician also our working initiation I adoption, their disc users, new within to clinical the portfolio surgeons to study. MX partners. the

to attracting Our a new surgeon meeting strategic distribution important together experienced we which new strategic is respected work care leadership plan sales in to on our and as This strong structure, very partners as strengthen mutual needs. value group patient provide and industry with our very to team performance. focused includes growth relationships

Turning We driven first XXXX. of and multilevel to channel our procedures down decrease XXXX, biologic X% portfolio, in primarily up an revenue was sequentially experience to when revenue XX%, over overall anticipated complex XXXX. quarter growth Compared previously disruption. did compared of XX% the to was by

portfolio, to key long-term strategy. to Our growth with of biologic piece technologies expand in evidence investing the investments along of clinical our our this We're biologics is success additional support a and portfolio products business.

surgeon on constant of our second limb from in our up and despite investment Sales by XXXX. this shutdowns and FITBONE a volumes new quarter impact on to a which Orthopedics to very These COVID-related headwinds Global reported as The we flat basis technology Sequentially, completed moving global a first this XXXX, relatively XX% our has positive growth offset platform. constant XXXX generated certain procedure were just up procedural quarter from headwinds for sales were reported in been were currency basis to were When during feedback on the on a X% of our the continued over increased the launch. a key contribution system, basis and geographies. sales confirms Lastly, currency compared solid and business. on XX% quarter basis. XX% lengthening European the often

Cathy directors Before enjoying initiatives, that by of nomination the partnership. commitments. new follow great was resigned preserve announcement the Burzik our of Chair. update Sainz, I changes Maria Board pursue highly our Directors. the In Board in by reelection the Orthofix to not he Chair, our and focus I'm food year company personally to agreed conflict of order opportunity Cathy's our as former to on leadership that pleased our providing on the July, our this Cathy shareholders to and our Lukianov Alex already and engaged am business an interest. to I key is outside highlight opted want in that to elected providing both and from stand a Matricaria for Ron personal Board

leadership to We forward contributions are and going forward. of Alex, and the and years Maria friendship of and our look very the Ron maintaining appreciative of

we Cathy of experience ahead, part brings companies. of very some organization. medical an and incredible diagnostic the the very are knowledge wealth She joining successful having and been excited device Looking space, about in healthcare

moving Now to the innovation and differentiation. our product first initiative,

unmet the quarter, made solutions that and few During marketplace. we we I the quarter. to highlight during in in acquire efforts needs and a our develop want this specifically products address to to products launched solid procedure progress

fibers matrix bone providing preformed is our allograft that for consists healing. bone fiberFUSE demineralized is which of and a ideal an cortical Strip, mineralized cancellous First

Strip spine surgical it hydrated, partnership in with cervical portfolio, addition after maintains its procedurally our being shape solutions site lumbar XXX% Biologics, In fiberFUSE for the and to focused fiberFUSE to MTF allograft. provides procedures. is conforms

Our have very initial technology. on received surgeon positive this feedback cases

Our quarter Biologics our focused multiple third agreement. and the in This These completed aid we implantation. will products which marketed site, for demonstrate this portfolio. and This our provide the are stress commitment in providing handling settable as through further product injectable this synthetic second the procedure-specific, a headed and fracture biologic versatile to a applications. license MG set Opus of to pillar, trauma to biologic post FITBONE portfolio new a is compressive recently to year expanding growth care providing magnesium-based new clinical surgical Orthofix space on immediate

January growth launched place multiple orthopedic June, Transforaminal this of since we our products optimize through posterior our these Ti products devices to of interbody of continued important product operate design Fusion introduction to new fast-growing TLIF, fusion our these Technology. part to FORZA Ti regenerative early enhance ability procedures. new within XX technologies, we portfolio of in allows bone am proud for feature into FORZA and new interbody It spacer. the our addition COVID that The our launched In Nanovate products, I recent through surface products the optimized the to XXXX. further into introduction developed progress an plan of our put within leading interbody FORZA unique accelerates XD-printed having The our TLIF is launches and Both cadence we launched In the market. launched that April, our products penetration XXXX. Lumbar in transformational of of demonstrates we these grow with titanium porosity and spine In Interbody lumbar interbody into leverage to and strategy. family development of procedures. Ti designed help

second Our initiative channel is development. commercial

strength BGT of is dedicated channel our It Orthofix of the representatives. key partners sales organization. and distribution tenured, sound Our direct and is clinically comprised

predictable Orthopedic on Spinal Biologics, our a our for channel and efforts We are focusing Implants building lines. U.S. committed similarly and product

in QX, our which In are strategic partners investment and and is we are as to distribution that biologics, pleased made Biologics remaining our This our we've channel and define revenue. growth progress this partners, up made group strategy. U.S. XX% committed hardware XX% which date. for of ongoing, selling network, the While both strategic with the products, same grew to validates Orthofix carry time period Implants, that same compared we U.S. the to Spinal X% really Orthopedic distributors

will continue in drive added be our higher our strategic current within We new growth and will the to future. that partners

initiative is operational final execution. Our

and for We our a was and this efficient improvements and a shortages current of our an quarter transformation, microchips products the Doug? therapy across continue second to is unique the excited turn and rapidly We've future microchip supply refinement will of the One is to continue. while successfully beyond. chain innovate innovation call secure look to accelerated I'll operational and when the Orthofix process more Operational of and through supply bone and am devices foundation performance. of organization review the our focused our the necessary. structure the in our chain in work about agile, continue deliver environment leveraging end initiative, to to and execution our adaptability where be ongoing With continuing growth financial allowing Doug to our of out momentum supply on global We of year during delivering to example our to become I over term that the continued long-term for our the execution. we near and very growth execute that, while performance the adapt plan Overall, forward quarter. build throughout our

Doug Rice

second for our up many the the compared the I quarter everyone. mentioned, morning, Jon quarter some a earnings XX% second on led primarily When net basis of currency X% prior our strong details discuss quarter constant currency financial at then good net measures U.S., system to over of X% total restrictions and second net the our well call of and total to quarter OUS on financial in quarter second on the the as please XX% constant total mentioned basis. was of up lengthening the of X% up sales and reported sales reported and and further the today's reported and in easing and provide other as year. a and of the from regarding Jon, reconciliations $XXX that John are The compared Implants from as compared volumes increase earlier. on over some when of were approximately the Because total sales net results over distributors. the measures. Spinal the with In was second by in will in year information today's Thanks, X% of Gross a a recovery up non-GAAP basis, prior sales Starting were XXXX, stocking up earnings non-GAAP XX% XXXX for XX% into were sales COVID release in international additional basis refer return strong FITBONE constant XXXX, reflecting over million, to currency disclosures. margin period. quarter the revenue, revenue the the to was due basis our quarter to as on case a growth limb X% XXXX, for covered XXXX.

level. a The our second indicates to quarter margin pre-COVID gross return margin

were result sales XX% now in to range of primarily costs increased and which improvement short-term mix net a we sales, expected the as shortage. well in of be of XXXX XX% For in global the the in microchip of the was Sales the decrease a XXXX, marketing gross quarter an in The changes reflects of increase quarter XXXX. expenses second as full the sales second to of XX%, as an our XX% XXXX. in margin year microchip result expect from

travel second to third is areas and shows. these timing The the quarter reflects trade and of in of lower including in quarter the delays industry events expenses, XXXX in Spending beyond. expected increase

period. travel third are expect participate our to further normal volumes be in XX% XX% excited second channel. to the GAAP about the get travel to event of due and the dollar quarter prior more increased of to XXXX quarter sales, mainly back marketing the the quarter. percentage commercial expenses XX% of trade decrease in were normal and three expense sales increased shows G&A now to net XXXX versus and of even spending XXXX, are approximately major return in the We from absolute XX% to in year, in sales in net In down The million. the spending though expected prior significantly sales and $X was invest we year as net to we second

freeze suspension, of of in reminder, XXXX savings second to a reductions, a quarter quarter GAAP down math from the salary net travel in XXX(k) investment spending. second the in prior levels R&D decreased reflected for short-term a including period. and XX% expenses sales, XX% the measures, cost year As spending several pause

two-level The in spending invest study innovation build as our $X to VR We However, approximately drive to pipeline differentiation, and both indication the spending development, ramp continue integration our foot product cuffs dollar to clinical efforts a costs spine with organic absolute continue intend our and expense new increase dollar as rotator robust studies, in to such spend and increased to studies efforts. MX-C and orthopedics. and well EU support product associated to as reflects compliance bone clinical million.

spending growth GAAP over the second causing related XX% in We to million to XXXX impact an we quarter XXX XXXX, term. to by non-GAAP prior compared sales quarter expect As Adjusted net compliance approximately of XX% toward, about MDR a increased adjust expense the second in be a significantly reminder, of EU now R&D EBITDA revenue sales, the sales loss increase percentage quarter $X.X points which our as $XX.X in of efforts year. metrics. sales a to our million, of near outpace the the net XX% to second of directly is R&D our within this driven net basis of primarily in financial the of including

tax. and were rate before had for of $X.X million affected to the the resulting in tax global XXXX. income in expense turning period income tax of quarter XX% income COVID X% tax million taxes income The GAAP before We expense XXXX income significantly compared the by on earnings. impact of of $X.X Now taxes of effective to same income the of or or negative as expense

results, our losses effective which non-GAAP normalizes we that as changes certain XX% long-term and to rate, law For tax for continue our have GAAP no tax acquisition-related benefit. use expenses, adjusted operating

for effective the loss net $X.XX adjusting per increased the using loss share $X.XX XXXX, compared share tax XXXX of second earnings to second per second GAAP quarter of non-GAAP share adjusted for primarily per items a long-term when rate, share earnings normalizing quarter certain This the as After of quarter quarter compared the for GAAP reported XXXX. by tax our in we an For adjusted sales. $X.XX of second $X.XX XXXX. increase and of driven of per was to was of in

the sales, which and the continue $XX revenue by $XX QX the Regarding milestone trailing of liquidity of a no we in $XX In of during first We Kinetics quarter cash, the at XX-month sellers paid facility. $XXX of of out credit revolving this second payment borrowings senior million Spinal the end year. secured achieving to million quarter triggered the we compared of million sixth XXXX, global strong our first million end million position at to XXXX. under second XXXX outstanding we have of to maintain with currently quarter the $XX

$X of commenced $X.X million expenditures prior primarily million operations with instruments compared year that our million for operating define XXXX, $XX.X due Consistent our during We Act now was to expect quarter, down we to QX CARES cash expect leaving in $XX million second repayment new at the flow, XXXX, cash still second the partners, outflow operating of million plans. a of $XX an in quarter quarter of free from the the the the XXXX. primarily our flow, in that XX, minus support during Due products as cash during June of quarter, the the compared an future from Medicare the million in provided cash expenditures, we to substantially were range strategic to million to decreased million as the be expenditures the by $XX.X in the growth last second complete to and capital our demand Net period, of quarter received we addition, in instruments the XXXX $XX.X increase in $X.X of to support in early the an XXXX. and outflow as $XX.X we due of to $XX inflow XXXX. for year, XXXX. million be advance QX balance investment capital Capital of of flow we new was of activities million quarter by to which part to million In received $X.X $XX was which benefits. million inflow our down repayment in

of growth decrease significantly advance, to I'll Spinal as turn earlier, product MDR support in call XXXX to compliance including innovation The sellers our QX the over payment Jon. channels additional EU levels due efforts. the mentioned back flow to well will increased investments on and spending items, our compared sales to now milestone to cash the as repayment the future Medicare free in Kinetics XXXX Our several

Jon Serbousek

Doug. Thanks,

expand spine these half drivers. cervical the focused like remain of U.S. I'd each our disc, three revenue market. train utilization existing increased over MX-C conversions to growth XXXX delivering within date, limb consistently new MX-C new continue system been doctors since to on we of we see of more surgeons highly we see educate drivers, Starting to To Looking and launch our quick interbody disc, of expect disc, the have we overall the artificial update and to growth to XXXX, share as near-term artificial take leading the on as growth trained we a including lengthening provide and cervical portfolio. FITBONE the cervical the users. the surgeon back and size continue MX-C a certain with triple-digit have we disc artificial and attract, XXX

growing IDE the the end, the benefits our clinical attract am years, our will study, outcomes ongoing high-quality long-term on we year's four We at pain this patient in surgeons patients clinical MX-C presented disability and demonstrating cervical pleased benefit. this efficacy retention to data ISAS of have neck, artificial our We in continue continue long-term this MX-C first develop compilation scores At I three and conference was the because set To disc. procedure. post in the May, and data with new will from believe this of data to device of that of the enrolled MX-C disc, like of two-level study. announce shoulder to

the Although quickly the accelerate initiation anticipate of patients into slowed in study, study. area we this to multiyear enrollment the this COVID of

in our pediatric turned been performance product X-millimeter half is during our a system, be limb portfolio the on acquisition, offering. $X seeing this to the strong been time frame, current of to particularly The million FITBONE solution, the inter-medullary the suited XXXX. acquisition enables environment massively surgeons Since trained. first the the options expanded near-term expect in given driver in the pediatric of strategically for Early FITBONE we the what integration mill. lengthening given growth deformity the clinical macro and the adoption and In commercialization limited during well our relatively pediatric use, enthusiasm see outside trained clearance acquisition of mill procedure, that are secured and has patient There XXXX. only FITBONE FDA is out which ramped for sales we mostly we disruptive XXX strong, and is technology have alignment and technology, completed our available launched for already the limb a FITBONE in population, U.S. interest second more robust use deformity full correction This key our filled approximately comprehensive smaller and over in that of a this as accelerated and patient system, surgeons of surgeons FITBONE U.S. the short

The with our near-term unique is portfolio, cervical nano-clearance of titanium titanium growth, the Nanovate lumbar all the products. we and with comprehensive interbody are third companies key all technology-leading however, for Technology, systems truly with interbody and introduction XD-printed one of few the PTC and

titanium beyond. quarter, the positive line during during the to second of With introduction the of interbody and products expect balance our to top we impact XXXX see

In number that business will drive long-term. near-term opportunities, our addition high exciting we to priority over growth growth believe segments a we have of of the

expanding is commitment stimulation the first bone our to The market. growth

is development. to expansion of therapy our the spinal grow first focus the technology to Beginning one and pulse ultrasound second agreement company as indications the new and of technologies deformity; The plans low-intensity expansion anticipate innovative expansion, We offerings. an entered bone on are in bone portfolio as new last approval these with Italy. our capacitive of for and technologies platform a of will partnership and announced in actively with we U.S. treatment such go-to-market from into CC. quarter, technology expand Ingea, portfolio modalities current based FITBONE number portfolio devices commercialize Biologics limb the our XXXX, a stimulation a stimulation first U.S. in or the is LIPUS coupling, This of lengthening regulatory in medical our during from product

patients – data four indicating Beyond announced fusion to risk technologies. in remote procedures. three reconfirm of when and our July, the generated rates used linked lumbar rates growth we fusion as a factors patients that industry-leading in therapy of have bone multilevel our showed nonunion X- age benefit the The of patients expanded to with the surgery provide rate study can osteoporosis, and by level advanced that tobacco with results existing obesity, publication XX.X% Ingea that organically healing demonstrated was rates patients, X-level invest system continued conditions such lumbar been or in surgery. the and bone fusion efficacy utilized we've results all diabetes, utilization complications. the and investment, infusion use, to temp when same therapy the higher to without in efficacy These Spinal-Stim In

rotator We initial also our clinical entry ongoing tissue our invest will to be ID the trial, cuff which in into market. continue soft regeneration

successful be the in first those opportunity therapy the cuff postsurgical year. results, reconstruction. its To trial rotator With kind XXX,XXX market, over belief the this of could patient in undergoing patients this for care consider enhance cuff the show rotator in outlook positive soft and regeneration received surgery tissue in repair and for in every the U.S. These investments markets. our business our continued BGT bone to

lengthening limb from expansion adolescent rod called pediatric comes This intervention our from FITBONE for and non-fusion technology scoliosis deformities. our second platform an FITSPINE growth of to technology of driver early spinal long-term is The growth expansion application. treatment

scoliosis leaders will and Spine XXXX our to with with next be initiated will approaches and amplify long-term global engagement We differentiate our the FITSPINE technology. project in further of group thought clinical surgeon highly innovative this and Orthofix expect pediatric developed to was markets the over The the outline several commitment years.

as of on buoyed fiberFUSE launched in highlighted bone biologic partnership Strip, are pillar we that the Opus MG just MTF Biologics Lastly, set our our with by expanding portfolio. planned and commercialization focused

solutions surgeons of growth, top are orthopedic our offering goal and spine orthopedics offerings. use biologic products, having support We our the line will and EITE on with associated also not products Trinity for but comprehensive market-leading just to procedures. products this the of with and with building Allograft biologic a the our believe and spine We

spinal growth we based create During of also deformity four spine initiated projects poster major the minimally anterior support, and in a call XXXX, lumbar product development solutions platforms, first systems the areas cervical half system. of organic to top and supported to drive line the market products correction key long Orthofix products we These term. by surgeon differentiate the resulting help in are in the and innovation opinion leaders expect

guidance. revenue to Now shifting

year the to XXXX we environment. full areas $XXX half the revenue assume U.S. and the top be volumes open levels minimal COVID return of million. are in Europe when of to and in lockdowns ranges line begin XXXX, the high-risk to $XXX now should despite second These For range million cover be will in restrictions procedure the to year expecting

COVID-related over We to believe and million using our and between we expect from each and the ratably Orthofix. of $XX half a have year will very now minimal Assuming future of adjusted impacts, tax about the rate $XX the quarter. growth $X.XX to range million our be fairly in to earnings second mid-single-digit is EBITDA XX%. be non-GAAP adjusted occurring $X.XX still the of expected I'm long-term per excited share XXXX

inspiration to a to everyday please it their open to to and transition is activities. Orthofix most question-and-answer biologics her Operator, note She journey implant training finals and Olympic an and of execute spinal trials. and another We like Wilkinson's little Olympic a as in than also will to take long-term high-value patients near-term seeking work physicians an a proud is initiatives solutions sponsor innovative, gold return to us. Olympic on further like I'd mobility. to Olympic to the strategies lines. of closing to therapies, With all of On continue diver that, U.S. diving advancing just patient to delivering congratulate for Laura pursuit appearance, improve to to drive to Laura an happened our patient we'd the by medalist the impact growth our the recent and bone growth session. in

Operator

the [Operator Matthew Stifel. line Instructions] Your first from of Blackman question comes with

Matthew Blackman

quarter. for How of my for I XQ? morning, of questions. Jon. ratable. expect one think of should that questions revenues then half the and Thanks maybe just on very a I we dollars. want couple Jon second for think Good a everybody. absolute make growth sort start Congratulations nice ratable about mentioned to Doug, sure taking in was shape opposed the particular, I to to had as

there would helpful So way be to any start. color a

Doug Rice

compared we our and had with question. in We Thanks, there. We to it. Matt. comparisons to to in Jon XXXX. a prepared performance year of appreciate on pleased remarks, as digits QX stronger-than-expected lot said a XXXX. like I feedback tried in our mid-single really Good his And expect exit the QX Very focus to QX.

I So QX be terms of QX and And would in at it. that's the yes, way should look similar. cadence,

Matthew Blackman

wanted as and the of think to but question see of mid-single-digit to our then back bit. a this. the XXXX this line of point in year, the about sort you models probably about early Okay. know little mid-single-digit I growth. this think one that doing And XXXX, And a I sort final of then ask, sort push we too we it's of a as in fact for year, sort top after the starting three final just good we of quarters growth? Is half

Jon Serbousek

channel. Matt, Yes, product our We're at the pipeline, the That's look the on it's of pipeline, Thanks executing it. rebuilding all to question. the Jon. way reason for initiatives, the

And seeing of traction we'll this so out on we're good execute coming COVID continue that to and horizon.

Matthew Blackman

of MX? MX on when the be helpful. seeing of guess color Thanks to Any you new And really just the what onboarded whether really, portfolio; the or question, pull see kind the rest perform portfolio? you in much. sort then the for there pull-through with of of well. would are final so I that customers through customers existing it's rest continues are I'm curious, Do

Jon Serbousek

a is area MX channel; right focused – we'll now. team. is Pull-through that that continue focus forward. minimal It's area on Everyone But for Matt. better our on going enhance Thanks, surgeons fix focused pull-through in of to a getting are regard. in sorry, we those get for early now, the we're our areas. MX MX pull-through key develop basically as focus spine us key right and on is The

Matthew Blackman

am No. much. Thank so good. you I

Operator

Your comes Jefferies. from with Petrone Anthony the next of question line

Anthony Petrone

of of backlog doing coming the this on sort across just ortho in checking second there quarter is of Maybe that in well. still patients. in the just some there. pool Obviously, but the a a high-level large joint view everyone it's in, there's least backlog, or still Hope at spine, certainly, talk quarter, whether of Hi. space, tailwind large out there's

the is Orthofix terms cervical, maybe Level they just on with out view then and from Simplify obviously, and views clearance. back? So surgeries, they got And of X have NuVasive on the that the there MX obviously, in

competitively hands? I'll that, Just then in new if that you're asset follow-up. the wondering hearing – if Thanks. one And is now have cervical anything

Jon Serbousek

Thanks question. the Yes. for

just followed activity We going participate far don't joint, activities spine. – I we're COVID that as on. attenuation in We of some of we but heading that large about where On saw directly good the And of some quarter. activity. some the are the the in we've area, as press talked second the in see did some

patients little the there's as or get We're – is in fixation about we surgical of little growth, our happening. the without our about a back still back below levels and better think still The good care intervention. bit – necessarily a that spine so marketplace channel So some is far this as don't XXXX we thing loaded. some see that's thing still

So believe are regard. see come We decided physicians hospitals the there, going volume those to that sizable and soon in – those cases flow marketplace. there are will impacted and to care, into all it's as or that's we as but patients a they don't sitting their out COVID in, seek

side, highlighted, on – XXX mimics focus Second to out MX is continue over MX, only we'll the talking native disc the – trained about disc of the surgeons, training, the cervical with to education. truly artificial continue there differentiation MX as natural we that disk. and I the motion on we And

us of a surgeons procedure. to to going things that to going we're one the consider motion these switching also so them helps actually And that, off is we're on and fusion a attracts that really focus that. drive And to of procedure and

So we're in seeing that move well. as regard

from we really seen to in date haven't Regarding competitive and training, where significant any education, we're impact focused activities, ourselves. going on we're

Anthony Petrone

the I'll back for and And last one get in. me,

versus the the go Thanks. cervical education on say, average, So the now? across, time, fusion when fusion over right let's motion think where as about can versus you high procedure, motion a improve? motion on But is do account? user you penetration think continues Where to

Jon Serbousek

Yes.

you're the moving it's of is spine, things It discs a procedure one fusion One and that to motion cervical have to to do key spine about surgeons when of a talking progression. focus on move. is and were logical the Those most is made predictable done. that procedures

that. Once do from bigger it's about taking surgeons the surgeons logical procedures that it we most so motion. not successful – transition and once a patient doing to the see But to push also they again, slower their want and practice one that training the motion. community. on once to the go to do they to And you're opportunities start how community a there's react educating see patient patients of when hear it, most and it, the And some. of transition motion for they Also, pull to doing a it's focus benefit from only their toward the more basically and but

Anthony Petrone

Thank you.

Operator

from [Operator and with Cohen Instructions] Your Ladenburg comes question next Jeffrey Thalmann.

Jeffrey Cohen

and Hi, Jon, you? Alexa. How are Doug

Jon Serbousek

Jeff. morning, Good

Doug Rice

Good Jeff. morning,

Jon Serbousek

great. doing We're

Alexa Huerta

Good morning, Jeff.

Jeffrey Cohen

some opposed as wondering PMS healing? as I relationship talk different as on the it bone was if Pulsed space particularly and a And the to skeletal about with energy may could bit cartilage such find little how you is as and technology as far thoughts your run through IGEA. utility, some Ultrasound different

Jon Serbousek

obviously that then bone positive on soft many What ultrasound, signal as and a acute thank Jeff, a to me for also as what which IGEA healing, start, surgical, it. has And effects but only in – view fair we as that that redirect you areas. we electrical you towards have healing. And really what through There I'll attracts we get fresh the the data focused have alternative us attracted amount, strong fracture question. to the is PEMF tissue robust not for and front, can bone was stimulation we is is of for IGEA far area for an nonunion. and

like data to that's have take the a a PEMF we're of also that and in have and exploring – and clearly, area focus jump we're with in going the utilize. then to it So in that you IDE a that tissue comes down, study. on they When cuff so area, middle key and soft we our we that rotator

we effect know believe there's how we a positive clinical as bear will a positive So there out and the forward. we data – come is there

a has that an area early IGEA effect of has cartilage, it research cartilage days. has data says a Moving affects on towards it deal it cartilage. is going very great That it's and and into positive

basically to be a it might as is be not So prudent. directional make statement as really how it or that be far would efficacious

of However, there's indication cartilage strong signals that a of degeneration. has positive effect

Jeffrey Cohen

little talk perfect, bit got about FITBONE to it. Okay, And and I wanted FITSPINE. a just

a you're as far about how work and like FITSPINE thinking the as in there. about through talk one you're us and FITBONE adding X- walk So second SKUs on It side. sounds SKUs forward millimeters going then clinical

Jon Serbousek

in when this was are area they FITBONE, not March the asset On anyone a Certainly. portfolio. been working very diameter had One it a Sure. XXXX, acquired nail that on smaller we had of perfected in industry. that strong by

we the that focus on a X-millimeter to did clearance we clearance. that we taken has getting get pediatric in getting So on and time or because that. nail no place one focused Also, indication

to build not but which also in adult as you this we deformity X, we got but we for correction where got the FITBONE is that pediatric only to key used want also So also marketplace. the is remind clearance, It's pediatrics, well. also

made robust that standpoint, in, of they've let's application a broad us FITBONE. opportunity So for a from say,

scoliosis I cases but with sheer adolescent in for those the couldn't scoliosis and external work onsets, of And standpoint, – who from say internally of make more the similar We how idiopathic We to have early we've proud needs. be of in leaders, area going item a best surgeon be Now create they're use they're work procedures. opinion that we're well. global will put applications, FITSPINE. and tell guidance. These us also assembled and the map key young onset to make together the early are way to – that clinical basically one rod attention on the group not got, that us to rod key helping only how clinical for space we And who's to an patients, going know the group the opinion must FITSPINE, have the care. that leader a for scoliosis. very the it's different team One in mechanism as a we which -- use who's early we have of

Jeffrey Cohen

the Have day. great Thanks Jon. a answer. Thanks Perfect. for

Jon Serbousek

Jeffrey. you, Thank

Operator

There are no time. this additional questions at

Jon Serbousek

more Orthofix And Thank making. So, that, the for hearing call with and about and very the call. who we're progress close everyone the operator, thanks you we'll much. joined appreciate

Operator

today's conclude conference. does this gentlemen, and Ladies

disconnect. You may now

Orthofix Medical (OFIX) 8 Aug 212021 Q2 Earnings call transcript