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Paragon 28 reported 2Q23 orthopedic sales of $51 million, +20% compared to the second quarter of 2022. The company generated $103 million in sales for the first half of 2023, +22.9% compared to the prior year period.
Since going public, Paragon 28 has grown at multiples of the overall foot and ankle market. The company launched 20 new products since the start of 2021, and its pipeline has 25 new products under development. Paragon 28 drove a 12% increase in its surgeon user base while getting excellent performance from its European and Australian markets.
Despite the stellar growth, Paragon 28 had to defer many surgeries using its newest products because of supply constraints. “Most of the lost or deferred cases in the U.S. were related to products that are sterile packed,” said Paragon 28 CFO Stephen Deitsch. “When you listen to some of the larger joint companies talking about their volume increases of the last couple of quarters, most of their products are sterile packed as well. We’ve been competing for space on the manufacturing lines, and it just happens that a number of our new products are sterile packed.”
While the supply constraints are resolving, the company expects a step down in its international sales due to normal third-quarter seasonality in Europe. Paragon 28 reaffirmed its 2023 orthopedic sales guidance between $214 million and $218 million, implying 20% growth at the midpoint.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $2.6 | $1.8 | $0.8 | 42.9% |
| Trauma | $43.9 | $37.5 | $6.3 | 16.9% |
| Sports Medicine | $2.0 | $1.4 | $0.6 | 45.5% |
| Orthobiologics | $2.6 | $1.8 | $0.8 | 42.9% |
| Total | $51.0 | $42.5 | $8.5 | 20% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $5.2 | $3.3 | $1.9 | 57.4% |
| Trauma | $88.6 | $74.0 | $14.6 | 19.8% |
| Sports Medicine | $4.1 | $3.0 | $1.1 | 36.7% |
| Orthobiologics | $5.2 | $3.6 | $1.5 | 42.9% |
| Total | $103.0 | $83.9 | $19.2 | 22.9% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $42.3 | $36.8 | $5.5 | 14.9% |
| OUS | $8.7 | $5.7 | $3.0 | 53.4% |
| Total | $51.0 | $42.5 | $8.5 | 20% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $87.2 | $72.8 | $14.4 | 19.8% |
| OUS | $15.8 | $11.0 | $4.8 | 43% |
| Total | $103.0 | $83.9 | $19.2 | 22.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $51.0 | |
| Cost of Sales | $8.9 | 17.4% |
| R & D | $43.8 | 85.9% |
| Selling and Admin | $7.7 | 15.1% |
| Other | $1.5 | 3% |
| Net Earnings | ($10.9) | (21.4%) |
Paragon 28 reported 2Q23 orthopedic sales of $51 million, +20% compared to the second quarter of 2022. The company generated $103 million in sales for the first half of 2023, +22.9% compared to the prior year period.
Since going public, Paragon 28 has grown at multiples of the overall foot and ankle market. The company launched 20 new...
Paragon 28 reported 2Q23 orthopedic sales of $51 million, +20% compared to the second quarter of 2022. The company generated $103 million in sales for the first half of 2023, +22.9% compared to the prior year period.
Since going public, Paragon 28 has grown at multiples of the overall foot and ankle market. The company launched 20 new products since the start of 2021, and its pipeline has 25 new products under development. Paragon 28 drove a 12% increase in its surgeon user base while getting excellent performance from its European and Australian markets.
Despite the stellar growth, Paragon 28 had to defer many surgeries using its newest products because of supply constraints. “Most of the lost or deferred cases in the U.S. were related to products that are sterile packed,” said Paragon 28 CFO Stephen Deitsch. “When you listen to some of the larger joint companies talking about their volume increases of the last couple of quarters, most of their products are sterile packed as well. We’ve been competing for space on the manufacturing lines, and it just happens that a number of our new products are sterile packed.”
While the supply constraints are resolving, the company expects a step down in its international sales due to normal third-quarter seasonality in Europe. Paragon 28 reaffirmed its 2023 orthopedic sales guidance between $214 million and $218 million, implying 20% growth at the midpoint.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $2.6 | $1.8 | $0.8 | 42.9% |
| Trauma | $43.9 | $37.5 | $6.3 | 16.9% |
| Sports Medicine | $2.0 | $1.4 | $0.6 | 45.5% |
| Orthobiologics | $2.6 | $1.8 | $0.8 | 42.9% |
| Total | $51.0 | $42.5 | $8.5 | 20% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Extremity Joint Replacement | $5.2 | $3.3 | $1.9 | 57.4% |
| Trauma | $88.6 | $74.0 | $14.6 | 19.8% |
| Sports Medicine | $4.1 | $3.0 | $1.1 | 36.7% |
| Orthobiologics | $5.2 | $3.6 | $1.5 | 42.9% |
| Total | $103.0 | $83.9 | $19.2 | 22.9% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $42.3 | $36.8 | $5.5 | 14.9% |
| OUS | $8.7 | $5.7 | $3.0 | 53.4% |
| Total | $51.0 | $42.5 | $8.5 | 20% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $87.2 | $72.8 | $14.4 | 19.8% |
| OUS | $15.8 | $11.0 | $4.8 | 43% |
| Total | $103.0 | $83.9 | $19.2 | 22.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $51.0 | |
| Cost of Sales | $8.9 | 17.4% |
| R & D | $43.8 | 85.9% |
| Selling and Admin | $7.7 | 15.1% |
| Other | $1.5 | 3% |
| Net Earnings | ($10.9) | (21.4%) |
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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.
