Treace Medical Concepts reported 1Q22 orthopedic sales of $29 million, +55.3% compared to 1Q21.
Previous investments in its commercial channel are paying off for Treace. The company's growing direct sales for generated 63% of company revenue in 1Q22, up from 44% a year ago. By the end of 2022, Treace expects to have 150 direct sales reps accounting for 70% of all company sales.
Other underlying growth metrics are equally favorable for the company. A 40% year-over-year increase in active surgeon users brought the total to 1,901. Those surgeons used 10% more kits as well. The blended average selling price rose +3% to $5,503 per case.
Treace has yet to feel increased competitive pressure as the largest orthopedic companies focus more heavily on the foot and ankle markets.
Company CEO John Treace said, "We haven’t seen any real change in the competitive dynamics on that front. We continue to run our offense and build our business. We have a very refined system, a lot of great intellectual property around it and a huge head start in the market and direct sales channel. We're the only product with clinical data. The focus of this business is solely on Lapiplasty – it helps us a lot."
The company raised its previous 2022 guidance by $3 million on both the high and low ends. The revised guidance is revenue between $128 million and $133 million, reflecting growth between +36% and +41%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
|1Q22||1Q21||$ Chg||% Chg|
|Amt||% of Sales|
|Cost of Sales||$5.5||19%|
|Sales and Marketing||$21.9||75.5%|
|General and Admin||$6.7||22.9%|
|R & D||$3.1||10.5%|
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.