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Treace Medical Concepts reported 4Q23 orthopedic sales of $62.2 million, +25% compared to the fourth quarter of 2022. The company generated $187.1 million in orthopedic sales in 2023 and grew +31.9% compared to the prior year.
Nearly one in four U.S. adults are affected by bunions, equating to a vast $5 billion total addressable market that is underpenetrated. Treace also expanded its total addressable market by approximately $750 million with the launch of complementary procedures and technologies like Adductoplasty and hammertoe correction that frequently co-exist with bunions and are treated at the same time.
However, some of the largest companies in orthopedics entered the foot and ankle space over the last three years through aggressive M&A. Treace Medical is confident in its ability to take on those new peers in the bunion sub-segment of foot and ankle.
“It’s a really exciting market that we pioneered and developed,” said Treace Medical Founder and CEO John Treace. “So, no surprise, other companies want to enter that space. The total addressable market is really huge and we continue to expand it. We’re way ahead, our retention rates with our surgeons are very high and our IP makes it difficult for these copycats and tends to produce less elegant solutions that work more like the old freehand Lapidus than Lapiplasty. Keep in mind these new entrants are entering the market using multiline, largely distracted salesforces. So, they only get really a fraction of that salesforce’s time and attention.”
It is hard to argue with the company’s results. With nearly 32% growth in 2023, Treace Medical grew more than four times faster than the overall foot and ankle market. Despite its momentum, the company throttled back its 2024 guidance. It expects 2024 orthopedic sales between $220 million and $225 million, representing growth between 18% 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 |
|---|---|---|---|---|
| Trauma | $62.2 | $49.8 | $12.4 | 25% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $187.1 | $141.8 | $45.3 | 31.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $33.4 | |
| Cost of Sales | $6.3 | 18.9% |
| Sales and Marketing | $22.3 | 66.8% |
| General and Admin | $7.0 | 21% |
| R & D | $3.4 | 10.1% |
| Other | $1.0 | 3.1% |
| Net Income | ($6.6) | (19.8%) |
Treace Medical Concepts reported 4Q23 orthopedic sales of $62.2 million, +25% compared to the fourth quarter of 2022. The company generated $187.1 million in orthopedic sales in 2023 and grew +31.9% compared to the prior year.
Nearly one in four U.S. adults are affected by bunions, equating to a vast $5 billion total addressable market...
Treace Medical Concepts reported 4Q23 orthopedic sales of $62.2 million, +25% compared to the fourth quarter of 2022. The company generated $187.1 million in orthopedic sales in 2023 and grew +31.9% compared to the prior year.
Nearly one in four U.S. adults are affected by bunions, equating to a vast $5 billion total addressable market that is underpenetrated. Treace also expanded its total addressable market by approximately $750 million with the launch of complementary procedures and technologies like Adductoplasty and hammertoe correction that frequently co-exist with bunions and are treated at the same time.
However, some of the largest companies in orthopedics entered the foot and ankle space over the last three years through aggressive M&A. Treace Medical is confident in its ability to take on those new peers in the bunion sub-segment of foot and ankle.
“It’s a really exciting market that we pioneered and developed,” said Treace Medical Founder and CEO John Treace. “So, no surprise, other companies want to enter that space. The total addressable market is really huge and we continue to expand it. We’re way ahead, our retention rates with our surgeons are very high and our IP makes it difficult for these copycats and tends to produce less elegant solutions that work more like the old freehand Lapidus than Lapiplasty. Keep in mind these new entrants are entering the market using multiline, largely distracted salesforces. So, they only get really a fraction of that salesforce’s time and attention.”
It is hard to argue with the company’s results. With nearly 32% growth in 2023, Treace Medical grew more than four times faster than the overall foot and ankle market. Despite its momentum, the company throttled back its 2024 guidance. It expects 2024 orthopedic sales between $220 million and $225 million, representing growth between 18% 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 |
|---|---|---|---|---|
| Trauma | $62.2 | $49.8 | $12.4 | 25% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $187.1 | $141.8 | $45.3 | 31.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $33.4 | |
| Cost of Sales | $6.3 | 18.9% |
| Sales and Marketing | $22.3 | 66.8% |
| General and Admin | $7.0 | 21% |
| R & D | $3.4 | 10.1% |
| Other | $1.0 | 3.1% |
| Net Income | ($6.6) | (19.8%) |
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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.
