Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 170

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 170
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2023

    2022

    2024/2023

    2023/2022

    Sales, general, and administrative
     
    $
    532,525

    $
    530,395

    $
    308,776

    0.4
    %

    71.8
    %

    As a percentage of net sales

    66.6
    %

    71.0
    %

    67.0
    %

    -4.4
    %

    4.0
    %

2024 Compared to 2023

Sales, general, and administrative expense increased $2.1 million 

•Increase of $16.0 million in variable compensation expenses, including commissions, largely resulting from changes in sales volume and sales mix

•Increase of $7.3 million in depreciation expense primarily related to an increase in deployed instrumentation to support increased sales demand

•Increase of $7.0 million in succession charges as a result of recent changes in executive leadership positions

•Partially offset by a decrease of integration-related expenses of $16.2 million primarily comprised of professional fees, advisor fees, and severance and retention costs

•Further offset by a decrease in sales, general, and administrative costs of over $10.0 million as a result of the realization of synergies, primarily related to compensation costs, professional fees, and share-based compensation expense

Research and Development Expense

    Percentage Change

    (U.S. Dollars, in thousands)
     
    2024

    2023

    2022

    2024/2023

    2023/2022

    Research and development
     
    $
    73,643

    $
    80,231

    $
    49,065

    -8.2
    %

    63.5
    %

    As a percentage of net sales

    9.2
    %

    10.7
    %

    10.7
    %

    -1.5
    %

    0.0
    %

2024 Compared to 2023

Research and development expense decreased $6.6 million

•Decrease of $7.0 million in costs to comply with the European Union Medical Device Regulations

•Decrease of $2.2 million related to merger and integration-related expenses, primarily related to severance and retention costs. In addition