Alphatec (US:ATEC)2019-12-05 21:54Financial Performance & Outlook - The company increased its FY 2019E total revenue expectation from $104 million to $109 million, and then again to $109 million to $112 million[19] - The company increased FY 2019E U S revenue expectation from $100 million to $104 million, and then again to $105 million to $107 million[19] - Strategic distribution revenue grew 42% YoY in Q3 2019, reaching $25 million compared to $17.6 million in Q3 2018[55] - Total U S product revenue increased 34% YoY in Q3 2019, from $21 million to $28.1 million[56] - The company anticipates approximately 40% revenue growth from the strategic distribution network in 2019, offset by a 22% to 28% decline in legacy and terminated distribution relationships[53] Strategic Initiatives & Innovation - The company launched 12 new products to date in 2019, aligning with its commitment to create clinical distinction[19] - New products are expected to drive over 80% of revenue by 2022, a significant increase from less than 10% in 2018 and approximately 35% in 2019E[26] - The company is focused on approach-specific procedural solutions, aiming to capture more revenue per surgical approach[42] Sales Channel & Market Adoption - The company has revitalized its sales channel by reducing distributor contracts from over 200 in 2016 to 80 in 2018, creating a strategic, exclusive network[46] - The company experienced a 17% YoY increase in revenue per case in Q3 2019, the highest rate of growth since the inception of the new ATEC[43] - Approximately 68% revenue growth from top 20 surgeons YoY reflects compelling surgeon adoption of the new ATEC[43]