SeaSpine’s Preliminary Q4 Revenue Falls 6 Percent

SeaSpine Holdings Corporation, a developer of spine surgery solutions, ended 2016 not with a bang, but a whimper. 
 
Preliminary and unaudited revenue for Q4 2016 is expected to range between $32.5 and $32.7 million, a decrease of approximately 6 percent compared to the fourth quarter of 2015. Based on this preliminary estimate, spinal hardware revenue is expected to be approximately $15.9 million and orthobiologics revenue is expected to be approximately $16.7 million. Compared to the fourth quarter of 2015, total U.S. revenue is expected to decrease approximately 4 percent, to approximately $29.9 million, with both spinal hardware and orthobiologics revenue expected to decrease approximately 4 percent.
 
Preliminary and unaudited full year 2016 revenue is expected to range between $128.8 and $129.0 million. Cash and cash equivalents at Dec. 31, 2016, are expected to total $14.6 million and outstanding borrowings under the credit facility are expected to be approximately $3.8 million. 
 
“During the quarter, we executed on several critical objectives to drive future revenue growth, while exercising solid expense control and cash management. We added several new distributors, continued our focus on surgeon education, and initiated the alpha launches of our Shoreline and Mariner systems, positioning the company well for accelerating sales momentum in 2017,” said Keith Valentine, president and CEO of SeaSpine. “In the year ahead, we plan to further broaden our relationships with high quality distributors, expand our launch of key alpha systems and continue the surgeon-centric product development and innovation that will drive business and improve patient lives.”
 
The company expects to issue full-year 2017 revenue and other relevant financial guidance with the release of its final fourth quarter and year-ending 2016 financial results in March.
 
SeaSpine designs, develops, and commercializes surgical solutions to treat spinal disorders. SeaSpine has a portfolio of orthobiologics and spinal fusion hardware solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures on the lumbar, thoracic and cervical spine. SeaSpine’s orthobiologics products consist of a range of advanced and traditional bone graft substitutes and cellular grafts that are designed to improve bone fusion rates following a wide range of orthopedic surgeries, including spine, hip, and extremities procedures. SeaSpine’s spinal fusion hardware portfolio consists of an extensive line of products to facilitate spinal fusion in minimally invasive surgery (MIS), complex spine, deformity and degenerative procedures. Carlsbad, Calif.-based SeaSpine currently markets its products in the United States and in more than 30 countries worldwide.