OrthoPediatrics Corp. (NASDAQ:KIDS) Q4 2022 Earnings Call Transcript

In some of this, because there has not been any growth in these businesses for the last bit will be predicated on, as Fred said, when some of this Pega medical inventory hits the shell, as well as these businesses haven’t really been prolific in terms of their new product launches. And we do expect for the first time both of these businesses to launch new products in 2023, expect that those moments to potentially drive increasing revenue as well. So hope that answers your question. I think both growing at similar types of rates throughout the year, and some of that is indexed by when we get new products and inventory to the field.

Samuel Brodovsky: On 7D, you had mentioned that contributed well in 4Q, can you just maybe quantify that a little bit at all, and how much that plays into expectations for the Scoliosis business in 2023.

David Bailey: We’ve had a couple of additional deployments over the course of Q3 and early Q4. We look at those deployments and ultimately the contracted revenue that comes with both deployments as a source of growth for our scoliosis franchise. Scoliosis franchise historically grows faster, at least organically grows faster than the Trauma & Deformity business. We expect that again. Obviously, with more and more deployments of 7D that are leading to more market share gains with our RESPONSE fusion system, as well as the interaction that we see between the technologies of 7D, ApiFix kind of making the entire Scoliosis portfolio more credible to top KOL. So, 7D has performed really well. We’ve seen such positive response from surgeons, and we have several of these units right now that we think are at the 3-2-1 yard line in terms of being able to get them across the goal line and start to enjoy revenue increases with response as a result of their placement.

Operator: Thank you. There are no further questions at this time. I’d like to turn the call back over to David Bailey for closing remarks.

David Bailey: Great. Thank you all for joining us on the call. Sorry for the technical difficulties here. Hopefully, it wasn’t too disruptive and you could hear the answers to our questions, but we appreciate your ongoing interest in OrthoPediatrics and look forward to reporting out on a successful 2023. Thank you.

Operator: Thank you. This does conclude the program. You may now disconnect. Everyone, have a great day.