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Treace Medical Concepts reported 1Q24 orthopedic sales of $51.1 million, up 21.1% compared to the first quarter of 2023.
Increased procedure kit volume, an expanding surgeon base and an improving product mix drove sales growth. Sustained patient demand extended the company’s momentum from its seasonally strong fourth quarter.
Despite a fast start to 2024, the company reduced its guidance due to increased competitive headwinds a mere quarter after describing itself as “way out ahead” of copycats and large, distracted salesforces.
“The market environment and competitive landscape are quickly evolving,” said Treace Medical Founder and CEO John Treace. “We’re seeing increased use and surgeon adoption of MIS osteotomy solutions. At the same time, we’re facing even more competition from knockoffs of our Lapiplasty products. Both of these dynamics are creating incremental headwinds to our Lapiplasty growth.”
MIS osteotomy, which accounts for 70% of bunion procedures today, is a portfolio gap Treace Medical plans to fill this year. The company said the competitive headwinds are coming from companies across the revenue spectrum, both public and private. Treace Medical said it believes some competitive products violate its intellectual property.
Treace Medical lowered its 2024 guidance from the range of $220 million to $225 million to a revised range of $201 million to $211 million. The revised guidance implies growth between 7% and 13% compared to 2023.
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 | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $51.1 | $42.2 | $8.9 | 21.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $51.1 | |
| Cost of Sales | $10.1 | 19.8% |
| Sales and Marketing | $40.3 | 78.9% |
| General and Admin | $14.4 | 28.1% |
| R & D | $5.3 | 10.3% |
| Other | ($0.3) | (0.6%) |
| Net Earnings | ($18.7) | (36.5%) |
Treace Medical Concepts reported 1Q24 orthopedic sales of $51.1 million, up 21.1% compared to the first quarter of 2023.
Increased procedure kit volume, an expanding surgeon base and an improving product mix drove sales growth. Sustained patient demand extended the company's momentum from its seasonally strong fourth quarter.
Despite a...
Treace Medical Concepts reported 1Q24 orthopedic sales of $51.1 million, up 21.1% compared to the first quarter of 2023.
Increased procedure kit volume, an expanding surgeon base and an improving product mix drove sales growth. Sustained patient demand extended the company’s momentum from its seasonally strong fourth quarter.
Despite a fast start to 2024, the company reduced its guidance due to increased competitive headwinds a mere quarter after describing itself as “way out ahead” of copycats and large, distracted salesforces.
“The market environment and competitive landscape are quickly evolving,” said Treace Medical Founder and CEO John Treace. “We’re seeing increased use and surgeon adoption of MIS osteotomy solutions. At the same time, we’re facing even more competition from knockoffs of our Lapiplasty products. Both of these dynamics are creating incremental headwinds to our Lapiplasty growth.”
MIS osteotomy, which accounts for 70% of bunion procedures today, is a portfolio gap Treace Medical plans to fill this year. The company said the competitive headwinds are coming from companies across the revenue spectrum, both public and private. Treace Medical said it believes some competitive products violate its intellectual property.
Treace Medical lowered its 2024 guidance from the range of $220 million to $225 million to a revised range of $201 million to $211 million. The revised guidance implies growth between 7% and 13% compared to 2023.
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 | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Trauma | $51.1 | $42.2 | $8.9 | 21.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $51.1 | |
| Cost of Sales | $10.1 | 19.8% |
| Sales and Marketing | $40.3 | 78.9% |
| General and Admin | $14.4 | 28.1% |
| R & D | $5.3 | 10.3% |
| Other | ($0.3) | (0.6%) |
| Net Earnings | ($18.7) | (36.5%) |
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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.
