K2M leads the pack with 3D printing for spine, analysts say

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K2MK2M (Nasdaq: KTWO) continues to lead the 3D printed spine device market with its new 3D printed Mojave expandable cage and its Cascadia family of 3D printed implants, according to a new equity research report out of Barclays.

Leesburg, Va.–based K2M presently has a 3D printed portfolio with 10 approved products making up about 12% of its revenues.

“We continue to believe KTWO is the leader in 3D implant innovation and portfolio breadth. Benefits of 3D printing include intricate design geometries that can’t be replicated with subtractive (traditional) manufacturing, reduced density of titanium leading to enhanced and optimal imaging,” Matthew Taylor, Young Li and Ian Mahmud said in their Wednesday report, published after Barclays hosted K2M CEO Eric Major at its Miami Healthcare Conference.

Barclays analysts think K2M is well-positioned to deliver on 2018 guidance since the company is guiding based on approved products and sales reps who are already onboard. The company saw a shortfall in the third quarter of 2017 because it bet on product wins and salesforce additions, according to Barclays.

K2M’s revenue in 2017 grew 9% year-0ver-year, to $258.0 million. The company, founded in 2004, saw losses of $37.1 million last year, a narrowing from $41.7 million in losses the previous year.

The company expects revenue to grow another 9–10% this year — to $280 million to $284 million — with losses continuing to narrow, to $30 million to $34 million.

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