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Paragon 28 reported 2Q24 orthopedic sales of $61 million, up 19.6% from the second quarter of 2023. The company generated $122.1 million in orthopedic sales for the year’s first half, up 18.5% from the prior year.
During the quarter, the company grew its surgeon base by 11% compared to the prior year and saw a 7% increase in sales rep productivity. Additionally, Paragon 28 has launched 12 new products so far in 2024.
Among those new products is the SMART 28 case management portal, which hosts 3D pre-operative planning modules and patient-specific implants, as well as case coordination and image submission features.
SMART 28’s first module, SMART Bun-Yo-Matic for bunion correction, can leverage both CT scans and x-ray imaging to make 3D planning widely available to all surgeons. Paragon 28 said using AI-enabled algorithms and statistical models will allow surgeons to export a surgical plan in about 10 minutes.
“Perhaps what differentiates SMART Bun-Yo-Matic the most is the ability for surgeons to precisely implement the plan down to the millimeter with full intraoperative surgeon control,” said Paragon 28 CEO Albert DaCosta. “The SMART 28 ecosystem is a massive advancement in helping surgeons understand highly complex deformities and optimize multiplanar correction, which we believe will ultimately result in improved precision and reproducible outcomes.”
While Paragon 28’s top-line growth is well ahead of peers, the company acknowledged the choppy dynamics of the current foot and ankle market. To lay the foundation for the next level of growth, Paragon 28 is undertaking a strategic review of its operational efficiency.
The restructuring includes reduction of the current and planned workforce, an executive compensation adjustment and cost cuts in areas like travel, IT, professional services and freight. Paragon 28 also initiated an inventory burn-down plan that will preserve cash through out 2025.
For the full year of 2024, the company expects sales between $249 million and $255 million, representing 15.1% to 17.8% growth.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.2 | $2.6 | $0.7 | 25.6% |
| Trauma | $51.9 | $43.9 | $8.0 | 18.3% |
| Sports Medicine | $2.7 | $2.0 | $0.7 | 34.6% |
| Orthobiologics | $3.2 | $2.6 | $0.6 | 24.4% |
| Total | $61.0 | $51.0 | $10.0 | 19.6% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $6.4 | $5.2 | $1.3 | 25% |
| Trauma | $103.9 | $88.6 | $15.3 | 17.2% |
| Sports Medicine | $5.4 | $4.1 | $1.3 | 31.8% |
| Orthobiologics | $6.3 | $5.2 | $1.2 | 23.2% |
| Total | $122.1 | $103.0 | $19.1 | 18.5% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $49.7 | $42.3 | $7.4 | 17.6% |
| OUS | $11.3 | $8.7 | $2.6 | 29.4% |
| Total | $61.0 | $51.0 | $10.0 | 19.6% |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $100.8 | $87.2 | $13.5 | 15.5% |
| OUS | $21.3 | $15.8 | $5.5 | 35.1% |
| Total | $122.1 | $103.0 | $19.1 | 18.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $61.0 | |
| Cost of Sales | $15.3 | 25% |
| R & D | $49.4 | 81% |
| Selling and Admin | $7.1 | 11.6% |
| Other | $2.8 | 4.5% |
| Net Earnings | ($13.5) | (22.2%) |
Paragon 28 reported 2Q24 orthopedic sales of $61 million, up 19.6% from the second quarter of 2023. The company generated $122.1 million in orthopedic sales for the year's first half, up 18.5% from the prior year.
During the quarter, the company grew its surgeon base by 11% compared to the prior year and saw a 7% increase in sales rep...
Paragon 28 reported 2Q24 orthopedic sales of $61 million, up 19.6% from the second quarter of 2023. The company generated $122.1 million in orthopedic sales for the year’s first half, up 18.5% from the prior year.
During the quarter, the company grew its surgeon base by 11% compared to the prior year and saw a 7% increase in sales rep productivity. Additionally, Paragon 28 has launched 12 new products so far in 2024.
Among those new products is the SMART 28 case management portal, which hosts 3D pre-operative planning modules and patient-specific implants, as well as case coordination and image submission features.
SMART 28’s first module, SMART Bun-Yo-Matic for bunion correction, can leverage both CT scans and x-ray imaging to make 3D planning widely available to all surgeons. Paragon 28 said using AI-enabled algorithms and statistical models will allow surgeons to export a surgical plan in about 10 minutes.
“Perhaps what differentiates SMART Bun-Yo-Matic the most is the ability for surgeons to precisely implement the plan down to the millimeter with full intraoperative surgeon control,” said Paragon 28 CEO Albert DaCosta. “The SMART 28 ecosystem is a massive advancement in helping surgeons understand highly complex deformities and optimize multiplanar correction, which we believe will ultimately result in improved precision and reproducible outcomes.”
While Paragon 28’s top-line growth is well ahead of peers, the company acknowledged the choppy dynamics of the current foot and ankle market. To lay the foundation for the next level of growth, Paragon 28 is undertaking a strategic review of its operational efficiency.
The restructuring includes reduction of the current and planned workforce, an executive compensation adjustment and cost cuts in areas like travel, IT, professional services and freight. Paragon 28 also initiated an inventory burn-down plan that will preserve cash through out 2025.
For the full year of 2024, the company expects sales between $249 million and $255 million, representing 15.1% to 17.8% growth.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.2 | $2.6 | $0.7 | 25.6% |
| Trauma | $51.9 | $43.9 | $8.0 | 18.3% |
| Sports Medicine | $2.7 | $2.0 | $0.7 | 34.6% |
| Orthobiologics | $3.2 | $2.6 | $0.6 | 24.4% |
| Total | $61.0 | $51.0 | $10.0 | 19.6% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $6.4 | $5.2 | $1.3 | 25% |
| Trauma | $103.9 | $88.6 | $15.3 | 17.2% |
| Sports Medicine | $5.4 | $4.1 | $1.3 | 31.8% |
| Orthobiologics | $6.3 | $5.2 | $1.2 | 23.2% |
| Total | $122.1 | $103.0 | $19.1 | 18.5% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $49.7 | $42.3 | $7.4 | 17.6% |
| OUS | $11.3 | $8.7 | $2.6 | 29.4% |
| Total | $61.0 | $51.0 | $10.0 | 19.6% |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $100.8 | $87.2 | $13.5 | 15.5% |
| OUS | $21.3 | $15.8 | $5.5 | 35.1% |
| Total | $122.1 | $103.0 | $19.1 | 18.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $61.0 | |
| Cost of Sales | $15.3 | 25% |
| R & D | $49.4 | 81% |
| Selling and Admin | $7.1 | 11.6% |
| Other | $2.8 | 4.5% |
| Net Earnings | ($13.5) | (22.2%) |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
