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Treace Medical reported 2Q24 orthopedic sales of $44.5 million, up 6% from the second quarter of 2023. The company generated $95.6 million in the year’s first half, up 13.6% compared to the prior year.
An expanded active surgeon base, increased case volume and favorable product mix drove growth during the quarter.
Amid increasing competitive pressure and a potentially softening foot and ankle market, the company aims to expand its presence in the bunion market with 10 new products, including a minimally invasive osteotomy offering.
According to Treace Medical, the overall procedure volume in the U.S. bunion market is approximately 70% osteotomies. Of those osteotomies, 10% to 15% are performed using MIS techniques.
Despite the high interest of surgeons and patients, these MIS procedures are technically challenging and are predominantly performed freehand. The MIS osteotomy learning curve can be as high as 40 cases to achieve proficiency. Those factors have limited its adoption among foot and ankle surgeons.
However, Treace Medical believes it can lean on its core competency of simplifying complex procedures.
“We believe we can expand the minimally invasive segment of the osteotomy market by simplifying these MIS procedures and allowing surgeons to achieve reproducible 3D corrections,” said Treace Medical found and CEO John Treace. “This strategy follows the Lapiplasty playbook, where we made a challenging freehand 3D Lapidus procedure reproducible and accessible to the broad foot and ankle surgeon community. In doing so, we helped expand the overall Lapidus market segment from approximately 15% in 2015 to 30% or more today.”
Treace Medical reaffirmed its 2024 guidance of sales between $201 million and $210 million, representing growth between 7% and 13%.
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 |
|---|---|---|---|---|
| Trauma | $44.5 | $42.0 | $2.5 | 6% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $95.6 | $84.1 | $11.4 | 13.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.5 | |
| Cost of Sales | $8.8 | 19.8% |
| Sales and Marketing | $37.7 | 84.8% |
| General and Admin | $14.2 | 32% |
| R & D | $5.2 | 11.6% |
| Other | ($0.2) | (0.4%) |
| Net Earnings | ($21.2) | (47.7%) |
Treace Medical reported 2Q24 orthopedic sales of $44.5 million, up 6% from the second quarter of 2023. The company generated $95.6 million in the year's first half, up 13.6% compared to the prior year.
An expanded active surgeon base, increased case volume and favorable product mix drove growth during the quarter.
Amid increasing...
Treace Medical reported 2Q24 orthopedic sales of $44.5 million, up 6% from the second quarter of 2023. The company generated $95.6 million in the year’s first half, up 13.6% compared to the prior year.
An expanded active surgeon base, increased case volume and favorable product mix drove growth during the quarter.
Amid increasing competitive pressure and a potentially softening foot and ankle market, the company aims to expand its presence in the bunion market with 10 new products, including a minimally invasive osteotomy offering.
According to Treace Medical, the overall procedure volume in the U.S. bunion market is approximately 70% osteotomies. Of those osteotomies, 10% to 15% are performed using MIS techniques.
Despite the high interest of surgeons and patients, these MIS procedures are technically challenging and are predominantly performed freehand. The MIS osteotomy learning curve can be as high as 40 cases to achieve proficiency. Those factors have limited its adoption among foot and ankle surgeons.
However, Treace Medical believes it can lean on its core competency of simplifying complex procedures.
“We believe we can expand the minimally invasive segment of the osteotomy market by simplifying these MIS procedures and allowing surgeons to achieve reproducible 3D corrections,” said Treace Medical found and CEO John Treace. “This strategy follows the Lapiplasty playbook, where we made a challenging freehand 3D Lapidus procedure reproducible and accessible to the broad foot and ankle surgeon community. In doing so, we helped expand the overall Lapidus market segment from approximately 15% in 2015 to 30% or more today.”
Treace Medical reaffirmed its 2024 guidance of sales between $201 million and $210 million, representing growth between 7% and 13%.
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 |
|---|---|---|---|---|
| Trauma | $44.5 | $42.0 | $2.5 | 6% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $95.6 | $84.1 | $11.4 | 13.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.5 | |
| Cost of Sales | $8.8 | 19.8% |
| Sales and Marketing | $37.7 | 84.8% |
| General and Admin | $14.2 | 32% |
| R & D | $5.2 | 11.6% |
| Other | ($0.2) | (0.4%) |
| Net Earnings | ($21.2) | (47.7%) |
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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.
