Treace Medical Concepts (TMCI) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Market trends and competitive landscape

• Foot and ankle market saw softening in late Q1 and early Q2, attributed to new competitive systems and increased interest in minimally invasive osteotomies.

• Bunion procedures are elective but tend to be deferred rather than avoided, with strong seasonality and a typically robust Q4.

• U.S. foot and ankle market growth is estimated at 6%-7%, with bunion market unit growth at 2%-4%.

• Lapidus procedures have grown from 10%-15% to 30% of bunion cases since 2015; minimally invasive osteotomies are a fast-growing trend within the remaining 70%.

• MIS osteotomy share is still low due to procedural complexity, but new solutions aim to expand this segment.

Product innovation and commercialization

• Nanoplasty, a minimally invasive osteotomy solution, is set for limited release in late Q4, with full-scale launch and revenue impact expected in 2025.

• A second MIS osteotomy platform will follow Nanoplasty, initially available to design surgeons in Q4.

• SpeedPlate product line expanded with new designs for larger bone fusions and small incision approaches, with further launches planned for early 2025.

• RedPoint PSI, a personalized surgical planning and cutting guide technology, will expand user access in Q4 and is expected to be fully available in Q1 2025.

• Ten new products are planned for release between late 2024 and 2025, targeting increased utilization and wallet share.

Reimbursement and facility access

• Proposed CMS rule changes could double ASC reimbursement for Lapiplasty from $4,500 to $9,700, potentially driving adoption in cost-sensitive settings.

• 40%-50% of procedures are already reimbursed at higher outpatient rates; new rules could elevate reimbursement for the remaining cases.

• Commercial payers often follow Medicare trends, amplifying the impact of CMS changes.

• Facility access is improving, with a menu of technologies at different price points aiding penetration into private ASCs.