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Paragon 28 reported 2Q22 orthopedic sales of $42.5 million, +18.9% compared to 2Q21.
The company experienced modest COVID disruptions to procedure volume, but offset those via increased revenue contributions from newly launched products. The new products drove an 17% increase in salesforce productivity, defined by the company as the average revenue generated by producing reps. Paragon 28 also grew its number of surgeon customers by 11% in the second quarter, to a quarterly total of 1,829.
The company continues to address the remaining gaps in its portfolio. Soft tissue products had been a weaker area for Paragon 28 until recently. Company CFO Stephen Deitsch also identified external fixation and enabling technology as areas of focus in the future.
“I still continue to expect to see some soft tissue products introduced into the market. I’d also expect to see some external fixation products. Then, if you remember, the Smart28 is something we’ve got some real ambition for moving forward. So I’d say those might be some of the gaps,” said Deitsch.
Paragon 28 expects the third quarter to be similar to the second, followed by a step up in revenue in the fourth quarter. For the full year, the company now expects revenue of $176 million, representing growth of +19% vs. 2021. This is $1 million above the top end of the previous guidance range.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $1.8 | $1.4 | $0.4 | 24.9% |
| Trauma | $37.5 | $31.4 | $6.1 | 19.3% |
| Sports Medicine | $1.4 | $1.3 | $0.2 | 12.1% |
| Orthobiologics | $1.8 | $1.6 | $0.2 | 11% |
| Total | $42.5 | $35.7 | $6.8 | 18.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.3 | $2.6 | $0.7 | 26.5% |
| Trauma | $74.0 | $60.7 | $13.2 | 21.8% |
| Sports Medicine | $3.0 | $2.4 | $0.6 | 25.2% |
| Orthobiologics | $3.6 | $3.1 | $0.5 | 16.4% |
| Total | $83.9 | $68.8 | $15.0 | 21.8% |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $36.8 | $31.0 | $5.8 | 18.7% |
| OUS | $5.7 | $4.7 | $1.0 | 20.4% |
| Total | $42.5 | $35.7 | $6.8 | 18.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $72.8 | $60.1 | $12.7 | 21.1% |
| OUS | $11.0 | $8.7 | $2.3 | 26.9% |
| Total | $83.9 | $68.8 | $15.0 | 21.8% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.5 | |
| Cost of Sales | $7.6 | 18% |
| R & D | $37.9 | 89.3% |
| Selling and Admin | $6.0 | 14.1% |
| Other | $1.1 | 2.6% |
| Net Earnings | ($10.2) | (24%) |
Paragon 28 reported 2Q22 orthopedic sales of $42.5 million, +18.9% compared to 2Q21.
The company experienced modest COVID disruptions to procedure volume, but offset those via increased revenue contributions from newly launched products. The new products drove an 17% increase in salesforce productivity, defined by the company as the average...
Paragon 28 reported 2Q22 orthopedic sales of $42.5 million, +18.9% compared to 2Q21.
The company experienced modest COVID disruptions to procedure volume, but offset those via increased revenue contributions from newly launched products. The new products drove an 17% increase in salesforce productivity, defined by the company as the average revenue generated by producing reps. Paragon 28 also grew its number of surgeon customers by 11% in the second quarter, to a quarterly total of 1,829.
The company continues to address the remaining gaps in its portfolio. Soft tissue products had been a weaker area for Paragon 28 until recently. Company CFO Stephen Deitsch also identified external fixation and enabling technology as areas of focus in the future.
“I still continue to expect to see some soft tissue products introduced into the market. I’d also expect to see some external fixation products. Then, if you remember, the Smart28 is something we’ve got some real ambition for moving forward. So I’d say those might be some of the gaps,” said Deitsch.
Paragon 28 expects the third quarter to be similar to the second, followed by a step up in revenue in the fourth quarter. For the full year, the company now expects revenue of $176 million, representing growth of +19% vs. 2021. This is $1 million above the top end of the previous guidance range.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $1.8 | $1.4 | $0.4 | 24.9% |
| Trauma | $37.5 | $31.4 | $6.1 | 19.3% |
| Sports Medicine | $1.4 | $1.3 | $0.2 | 12.1% |
| Orthobiologics | $1.8 | $1.6 | $0.2 | 11% |
| Total | $42.5 | $35.7 | $6.8 | 18.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.3 | $2.6 | $0.7 | 26.5% |
| Trauma | $74.0 | $60.7 | $13.2 | 21.8% |
| Sports Medicine | $3.0 | $2.4 | $0.6 | 25.2% |
| Orthobiologics | $3.6 | $3.1 | $0.5 | 16.4% |
| Total | $83.9 | $68.8 | $15.0 | 21.8% |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $36.8 | $31.0 | $5.8 | 18.7% |
| OUS | $5.7 | $4.7 | $1.0 | 20.4% |
| Total | $42.5 | $35.7 | $6.8 | 18.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $72.8 | $60.1 | $12.7 | 21.1% |
| OUS | $11.0 | $8.7 | $2.3 | 26.9% |
| Total | $83.9 | $68.8 | $15.0 | 21.8% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.5 | |
| Cost of Sales | $7.6 | 18% |
| R & D | $37.9 | 89.3% |
| Selling and Admin | $6.0 | 14.1% |
| Other | $1.1 | 2.6% |
| Net Earnings | ($10.2) | (24%) |
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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.
