Paragon 28, Inc. (NYSE:FNA) Q3 2022 Earnings Call Transcript

So the U.K. market is very exciting for us. The Australian market, similarly, we’ve put in place a lot of new leaders over the last 2 years and built out infrastructure. So we have a lot of runway in both of those markets. And South Africa is a direct market for us. It’s just been amazing. And we’ve estimate we have the #1 market share position in South Africa, and it’s a market that we can continue to grow and expand. Beyond those markets — and I mentioned Spain, we have a new distributor in Spain that’s really, really excited to get his hands — her hands on these products and take them to the customer customers there in Spain. Beyond that, we’ve got really great opportunities in Germany. We just formed a subsidiary there. We just opened an office there, the same in Italy, and also in certain export markets that we’re really targeting.

So, this is an area that will continue to be a growth driver for us. We’ll provide some color — additional color when we give ’23 guidance on what we expect each of those businesses to do and contribute. But it’s a big part of our investment when we talk about the targeted investments, the international markets have been a significant part of that as well.

Albert DaCosta: And Craig, if I could just add a little bit to that too. Outside of the revenue impact of some of these international markets, we’ve professed our ambition is to really help define this space and to contribute to foot & ankle in a meaningful way. And we feel like we can’t do that without the international balance to our business. And so, it’s really important for us not just to be in some of these territories, but really to start sharing ideas and best practices around the world to really contribute to this space in a meaningful way.

Operator: The next question today comes from the line of Dave Turkaly from JMP Securities.

Dave Turkaly: Albert, maybe just looking at the strength, it seems like you’re taking share based on the growth rates that we’ve seen for some of the submarkets. But I was wondering if you might comment even if it would just be maybe on fracture fixation and bunion that have been kind of the 2 biggest. On what you’re seeing there, your growth exceeds a lot of the things we’re seeing across Ortho. So I’m just curious if you’re seeing anything new on the competitive front or is there an acceleration in procedures coming out of COVID? Any color you might give that would maybe help explain some of the strength you’re seeing?

Albert DaCosta: I’ll tell you a bit — just to highlight fracture fixation because you mentioned that first. I think that’s such a perfect example of the complementary and beneficial effect we have to launching additional products to address more and more of the needs of these particular areas and indications. We launched the R3ACT Stabilization System earlier this year that addresses the soft tissue component associated with ankle fractures. And I think above and beyond the impact of that one particular product, it just really put a spotlight on all things around the fracture fixation portfolio. So it generated a whole level of excitement. We’ve got medical education events going on around those topics now. And so, I think that’s such a great example of how some of these new products, they’re not attracting from anything, they’re not cannibalizing but they’re really putting a spotlight back on the entire area there.