NuVasive, a San Diego-based manufacturer of devices used in minimally invasive spine surgeries, reported that three of its four business units saw double-digit U.S. revenue
growth, leading to smaller losses than the company saw in the same quarter last year.
The company had a net loss of $4.08 million in the second quarter of 2014, compared to a loss of $6.47 million in the same quarter a year ago. It attributed the quarterly loss to a one-time charge of $7.9 million related to patent litigation with Medtronic
and to higher operating costs.
Medical device manufacturers
have increasingly been facing pressure from U.S. hospitals to lower the prices of their products to offset reductions in reimbursement and lower patient volumes. However, companies that market technologies considered innovative can often maintain a pricing premium on their devices. NuVasive executives told investors that the pressure on pricing had remained consistent and they hadn’t seen any dramatic shifts in pricing.
NuVasive’s revenue rose 14% in the U.S., while worldwide revenue rose 15% to $190.7 million for the quarter, compared to $165.7 million in the third quarter of 2013. Sales of biologics in the U.S. rose 18% and revenue for the intraoperative monitoring service business rose 18%, but revenue for cervical devices fell by 1%.
“Strength across our lumbar and biologics products in the U.S. and the continued healthy growth of our international geographies drove results for the quarter as we continued to solidly execute our share-taking strategy,” Alex Lukianov, NuVasive chairman and CEO, said in a statement
Domestic sales of lumbar products increased 10%, which company executives attributed to an increase in market share as more surgeons switched to minimally invasive surgeries. They also said that data indicated spine procedure volume was flat for the quarter. Follow Jaimy Lee on Twitter: @MHjlee