Orthofix outlines turnaround progress at Canaccord Genuity event

Orthofix International N.V. executives outlined progress in the company's turnaround strategy during a presentation at the Canaccord Genuity 47th Annual Growth Conference on Tuesday.

Chief Executive Officer Orthofix Brad Holiday highlighted operational improvements implemented over the past year, including cost reductions and portfolio optimization initiatives. The company has focused on strengthening its core spine and orthobiologics businesses while divesting non-core assets.

Holiday noted that the spine segment, which represents the largest portion of Orthofix's revenue, continues to face competitive pressures and pricing challenges. The company is targeting mid-single-digit growth in the segment, though management acknowledged that achieving this will depend on market conditions and execution.

Orthofix reported first-quarter revenue of $151.2 million in April, a 4% decline year-over-year, with spine products accounting for $89.5 million of total sales. The company reiterated its full-year revenue guidance of $620 million to $640 million, citing steady demand in orthobiologics as a key driver.

Analysts at the conference pressed management on the timeline for sustained profitability, given ongoing investments in research and development. Holiday emphasized that the company remains committed to its turnaround plan, with a focus on margin expansion and cash flow generation.

Orthofix's shares were down 1.2% at $18.45 in midday trading on Tuesday, underperforming the broader medical device sector.