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Treace Medical Concepts reported 3Q22 orthopedic sales of $33.1 million, +52.9% compared to the third quarter of 2021.
The company’s expanding direct bunion-focused sales team accounted for 74% of sales in the quarter, up from 53% a year ago. The company anticipates exiting 2022 with an 80% direct revenue mix. These reps have been a key driver in Treace’s rapid growth.
Company founder and CEO John Treace said, “Our analytics show that our direct reps, on average, penetrate their markets faster, generate higher surgeon utilization levels and sell at higher blended ASPs. Our direct reps typically scale with significant revenue and cost leverage achieved within 12 to 24 months, primarily because they’re exclusively focused on our products and fully utilize our full suite of corporate resources and programs.”
Treace Medical Concepts ended the third quarter with a 39% increase in active surgeons and 6% growth in revenue per case due to the continued adoption of newer products. The company estimated it has 22% penetration into the 10,000 foot and ankle surgeons who perform bunion surgery in the U.S. Additionally, 2023 CMS payment rates include mid-single-digit increases for codes associated with Treace’s procedures.
Given the positive trends, the company increased 2022 orthopedic sales guidance to a range of $135 million to $138 million, representing an increase of 43% to 46%.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Trauma | $33.1 | $21.6 | $11.4 | 52.9% |
| 9mo22 | 9mo21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Trauma | $92.1 | $61.0 | $31.1 | 51% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $33.1 | |
| Cost of Sales | $6.6 | 20% |
| Sales and Marketing | $25.0 | 75.7% |
| General and Admin | $8.9 | 27% |
| R & D | $3.8 | 11.5% |
| Other | $0.8 | 2.5% |
| Net Earnings | ($12.1) | (36.7%) |
Treace Medical Concepts reported 3Q22 orthopedic sales of $33.1 million, +52.9% compared to the third quarter of 2021.
The company's expanding direct bunion-focused sales team accounted for 74% of sales in the quarter, up from 53% a year ago. The company anticipates exiting 2022 with an 80% direct revenue mix. These reps have been a key...
Treace Medical Concepts reported 3Q22 orthopedic sales of $33.1 million, +52.9% compared to the third quarter of 2021.
The company’s expanding direct bunion-focused sales team accounted for 74% of sales in the quarter, up from 53% a year ago. The company anticipates exiting 2022 with an 80% direct revenue mix. These reps have been a key driver in Treace’s rapid growth.
Company founder and CEO John Treace said, “Our analytics show that our direct reps, on average, penetrate their markets faster, generate higher surgeon utilization levels and sell at higher blended ASPs. Our direct reps typically scale with significant revenue and cost leverage achieved within 12 to 24 months, primarily because they’re exclusively focused on our products and fully utilize our full suite of corporate resources and programs.”
Treace Medical Concepts ended the third quarter with a 39% increase in active surgeons and 6% growth in revenue per case due to the continued adoption of newer products. The company estimated it has 22% penetration into the 10,000 foot and ankle surgeons who perform bunion surgery in the U.S. Additionally, 2023 CMS payment rates include mid-single-digit increases for codes associated with Treace’s procedures.
Given the positive trends, the company increased 2022 orthopedic sales guidance to a range of $135 million to $138 million, representing an increase of 43% to 46%.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Trauma | $33.1 | $21.6 | $11.4 | 52.9% |
| 9mo22 | 9mo21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Trauma | $92.1 | $61.0 | $31.1 | 51% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $33.1 | |
| Cost of Sales | $6.6 | 20% |
| Sales and Marketing | $25.0 | 75.7% |
| General and Admin | $8.9 | 27% |
| R & D | $3.8 | 11.5% |
| Other | $0.8 | 2.5% |
| Net Earnings | ($12.1) | (36.7%) |
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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.
