Treace Medical Concepts (TMCI) Stifel 2024 Healthcare Conference summary

Market trends and demand

• Bunion procedures address a large unmet need, with 65 million affected and over 1 million surgical candidates annually in the US.

• Patient demand fluctuated due to travel priorities and macroeconomic concerns, but rebounded strongly in Q4.

• Competitive pressures from new entrants and minimally invasive trends were most impactful in summer but have since diminished.

• Seasonal patterns drive a surge in procedures in Q4 as patients seek surgery after meeting deductibles.

• Weather events and supply shortages caused some delays, but most cases are expected to return in Q4 or Q1.

Strategic expansion and innovation

• The company is expanding from Lapiplasty to a broader foot and ankle portfolio, including metatarsal osteotomy and minimally invasive procedures.

• Nanoplasty targets the 70% of bunion procedures done via osteotomy, offering three-plane correction through a minimally invasive approach.

• The initial focus is on the fastest-growing, yet challenging, minimally invasive osteotomy segment, aiming to democratize adoption.

• Limited market release of Nanoplasty is underway, with full commercial launch planned for the back half of next year.

• An unbranded minimally invasive osteotomy product will launch simultaneously to address all surgeon preferences and expand pull-through revenue.

Product pipeline and future outlook

• Four major technology platforms are being launched, including Nanoplasty, a new screw platform, RedPoint PSI, and new SpeedPlate forms.

• RedPoint PSI offers personalized, CT-based cutting guides, with first Adductoplasty cases starting before Thanksgiving.

• Adductoplasty system adoption is growing, with new PSI technology expected to further drive market penetration.

• Additional complementary and TAM-expanding products are set to enter the market in early 2025.

• Sales force and surgeon excitement is high, with robust training and support for new product launches.