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Paragon 28 reported 4Q23 orthopedic revenue of $60.6 million, +17.6% compared to the fourth quarter of 2022. The company generated $216.4 million in orthopedic sales in 2023 and grew +19.3% compared to the prior year.
Supply chain headwinds continued in the fourth quarter, but improved significantly since the second and third quarters. Sequential growth of nearly 15% from the third quarter reflected normalized seasonality and improved supply. It compares favorably to the 11% 3Q to 4Q step up in 2022.
Paragon 28 laid the groundwork to scale up its organization in the fourth quarter of 2023, increasing its U.S. producing sales rep count by 14% and its surgeon customer base by 9% to a record 2,215 surgeons.
The company expects a second-half revenue bump from the impact of new product launches to bolster an already “buoyant” start to 2024. Paragon 28 said the foot and ankle market doesn’t have the same backlog bolus as large joints, but a slowdown in joint replacement might create operating room availability.
“This is maybe somewhat anecdotal, but I think it’s important,” said Paragon 28 CFO Stephen Deitsch. “Hips and knees, I know that they really did have more of a bolus impact in 2023, and the commentary that I’ve read is that that bolus isn’t as strong going into 2024. That bodes well for foot and ankle surgeons because there’s more operating room availability because of that. I don’t know if that will develop into a potential tailwind for these markets that we’re in, but I know that when there are fewer large joint orthopedic procedures taking place, it allows our smaller joint folks time to get in there and take advantage of the OR space.”
For 2024, the company expects total revenue between $249 million and $259 million, reflecting growth between 15% and 20%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.0 | $2.4 | $0.6 | 23.8% |
| Trauma | $52.1 | $44.5 | $7.6 | 17% |
| Sports Medicine | $2.4 | $2.0 | $0.4 | 20.6% |
| Orthobiologics | $3.0 | $2.5 | $0.5 | 20% |
| Total | $60.6 | $51.5 | $9.1 | 17.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $10.8 | $7.8 | $3.0 | 38.9% |
| Trauma | $186.1 | $158.8 | $27.3 | 17.2% |
| Sports Medicine | $8.7 | $6.7 | $2.0 | 29.6% |
| Orthobiologics | $10.8 | $8.2 | $2.7 | 32.7% |
| Total | $216.4 | $181.4 | $35.0 | 19.3% |
Orthopedic Sales by Geography
| Region | 4Q22 | 4Q21 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $51.7 | $45.3 | $6.4 | 14.1% |
| OUS | $8.8 | $6.2 | $2.7 | 43.1% |
| Total | $60.6 | $51.5 | $9.1 | 17.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $183.5 | $158.1 | $25.4 | 16.1% |
| OUS | $32.9 | $23.3 | $9.6 | 41.3% |
| Total | $216.4 | $181.4 | $35.0 | 19.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $60.6 | |
| Cost of Sales | $15.4 | 25.5% |
| R & D | $8.1 | 13.4% |
| Selling and Admin | $48.2 | 79.7% |
| Other | $8.3 | 13.8% |
| Net Income | ($19.6) | (32.3%) |
Paragon 28 reported 4Q23 orthopedic revenue of $60.6 million, +17.6% compared to the fourth quarter of 2022. The company generated $216.4 million in orthopedic sales in 2023 and grew +19.3% compared to the prior year.
Supply chain headwinds continued in the fourth quarter, but improved significantly since the second and third quarters....
Paragon 28 reported 4Q23 orthopedic revenue of $60.6 million, +17.6% compared to the fourth quarter of 2022. The company generated $216.4 million in orthopedic sales in 2023 and grew +19.3% compared to the prior year.
Supply chain headwinds continued in the fourth quarter, but improved significantly since the second and third quarters. Sequential growth of nearly 15% from the third quarter reflected normalized seasonality and improved supply. It compares favorably to the 11% 3Q to 4Q step up in 2022.
Paragon 28 laid the groundwork to scale up its organization in the fourth quarter of 2023, increasing its U.S. producing sales rep count by 14% and its surgeon customer base by 9% to a record 2,215 surgeons.
The company expects a second-half revenue bump from the impact of new product launches to bolster an already “buoyant” start to 2024. Paragon 28 said the foot and ankle market doesn’t have the same backlog bolus as large joints, but a slowdown in joint replacement might create operating room availability.
“This is maybe somewhat anecdotal, but I think it’s important,” said Paragon 28 CFO Stephen Deitsch. “Hips and knees, I know that they really did have more of a bolus impact in 2023, and the commentary that I’ve read is that that bolus isn’t as strong going into 2024. That bodes well for foot and ankle surgeons because there’s more operating room availability because of that. I don’t know if that will develop into a potential tailwind for these markets that we’re in, but I know that when there are fewer large joint orthopedic procedures taking place, it allows our smaller joint folks time to get in there and take advantage of the OR space.”
For 2024, the company expects total revenue between $249 million and $259 million, reflecting growth between 15% and 20%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $3.0 | $2.4 | $0.6 | 23.8% |
| Trauma | $52.1 | $44.5 | $7.6 | 17% |
| Sports Medicine | $2.4 | $2.0 | $0.4 | 20.6% |
| Orthobiologics | $3.0 | $2.5 | $0.5 | 20% |
| Total | $60.6 | $51.5 | $9.1 | 17.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Extremity Joint Replacement | $10.8 | $7.8 | $3.0 | 38.9% |
| Trauma | $186.1 | $158.8 | $27.3 | 17.2% |
| Sports Medicine | $8.7 | $6.7 | $2.0 | 29.6% |
| Orthobiologics | $10.8 | $8.2 | $2.7 | 32.7% |
| Total | $216.4 | $181.4 | $35.0 | 19.3% |
Orthopedic Sales by Geography
| Region | 4Q22 | 4Q21 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $51.7 | $45.3 | $6.4 | 14.1% |
| OUS | $8.8 | $6.2 | $2.7 | 43.1% |
| Total | $60.6 | $51.5 | $9.1 | 17.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $183.5 | $158.1 | $25.4 | 16.1% |
| OUS | $32.9 | $23.3 | $9.6 | 41.3% |
| Total | $216.4 | $181.4 | $35.0 | 19.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $60.6 | |
| Cost of Sales | $15.4 | 25.5% |
| R & D | $8.1 | 13.4% |
| Selling and Admin | $48.2 | 79.7% |
| Other | $8.3 | 13.8% |
| Net Income | ($19.6) | (32.3%) |
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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.
