NuVasive CEO Gregory Lucier spoke on several key topics during the company's first quarter conference call, including biologics, outpatient spine and why NuVasive won't get into the robotics business, according to a Seeking Alpha transcript.
On spinal biologics: "Our biologics business performed better than expected, down 10 percent versus the hardest comparison quarter we will see this year, and better than the results we had guided to. I'm cautiously optimistic we are starting to see renewed traction with surgeons and healthcare systems as we implement new strategies to regain share and increase volume."
On future innovation: "Innovation remains at the heart of what NuVasive does best and we continue to lead the industry by delivering the technologies and innovations that surgeons want and need. Our commercial launch plans for 2018 include more than a dozen new product introductions spanning from implant systems to the introduction of our surgical intelligence platform, as well as the next generation MAGEC rods for early-onset scoliosis."
On manufacturing: "We have more work to do with our internal manufacturing capabilities in West Carrollton to achieve the desired impact on our income statement, not only getting us to the 20 percent operating margins, but even higher. Those benefits will start to flow in the second half of 2018."
On why the company won't get into robotics: "We have been consistent in our opinion in the world of healthcare, the last thing the OR needs in the world of spine is the addition of $1 million piece of hardware that basically only does one thing and that is to help place pedicle screws. When you actually look at what's needed in the operating room, we think it's more sophisticated navigation, radiation reduction and what we would just call smart automation. And smart automation is the right tasks at the right economics."
On spine going outpatient: "Most of the growth of spine procedures will happen outside of hospitals and that's where the economics are going to be really important. And I think you're seeing that we're designing systems for where surgery has to be a couple of years from now, not where it is today."
On company evolution: "The LessRay is the first element of now what we believe is a long trend of systems going into the operating room. A few years from now I just don't see a company being in the spine business unless it's integrated like we are going to be, and I'm sure some of our larger competitors."