Treace Medical Concepts, Inc. (NASDAQ:TMCI) Q1 2024 Earnings Call Transcript

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John Treace: Yes, Simon. John, here. It’s really not one competitor per se, but it’s an amalgamation of a number of competitors, big companies, small companies, public and private, that are now selling products intended to directly compete with Lapiplasty. Several of those companies also offer MIS osteotomy products, which as of this time we do not have. But that’s a temporary situation for us, and there are more competitors today than there were last year. But we’re focused on effectively navigating this market environment and continue to work to capture opportunities ahead, innovate for our surgeon base, and we’ve got a great MIS osteotomy platform coming in Q4, and we’re very excited about the capabilities that will have in transforming Treace Medical into a full line bunion product company and feeling the next leg of the growth of this business.

Simon Nigan: That’s really helpful. And just a quick follow up for you. There were a couple of comments on how efficiency per surgeon has come in maybe a bit less than expectations. Do we think that this is impacting, I guess, maybe your future targets for total Lapiplasty penetration growth? And how should we think about this impacting utilization over the next, I guess over the near term?

Mark Hair: Yeah, that’s a great question. One thing that we continue to see is a nice, steady uptick of net surgeon ads. So we continue, we had 475 ads last year. We’ve had a lot of surgeons ads. We’ve had healthy surgeon additions this year as well. So we continue to see that. It’s been more of – surgeons have always had the option of how to approach bunions, and so we believe that Lapiplasty provides a great solution. We have a lot of clinical data, we believe more than any other Lapidus type solution. And so we have a lot of confidence that our Lapiplasty solution gives great results and it’s elegantly designed for surgeons. We constantly and regularly hear how much they appreciate the design in the OR. We’ve made it faster and more effective and more efficient.

However, surgeons have always had the option of whether or not they’re going to approach a patient’s surgery with a Lapidus procedure or an osteotomy, and there have been some differences between the two approaches. And so we continue to see that. And some surgeons continue to use Lapiplasty, but may have – may decide that maybe the percentage of the Lapidus or the Lapiplasty procedures in their overall patient base is shifting a little bit. So it’s more of that. I don’t want to say that’s the answer for every surgeon, because every surgeon is different. But we’ve definitely seen a trend that MIS osteotomy’s are more and more of the overall procedure base.

John Treace: And, Mark, I think that’s why we’re pretty excited about this upcoming MIS osteotomy program that we’re going to be launching, because now we can be the solution provider for for those cases that they’re opting to do MIS osteotomy’s on today instead of a Lapiplasty, potentially, so.

Operator: Julia?

Julie Dewey: Operator, are you there?

Operator: Yes, I am. I am showing no further questions at this time. I would now like to turn it back to Julie Dewey for closing remarks.

Julie Dewey: Thank you. And thanks, everybody, for joining us today. We appreciate your time and interest. If you have more questions, please reach out, and we’ll look forward to talking to you next quarter. This concludes our call.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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