Treace Medical Concepts, Inc. (TMCI) Bundle
A Brief History of Treace Medical Concepts, Inc.
Treace Medical Concepts, Inc. was founded in 2013 and received 510(k) clearance for its Lapiplasty System in March 2015. Since then, the company has sold over 100,000 Lapiplasty Procedure kits across the United States. The system is marketed and sold to healthcare providers, including physicians, surgeons, ambulatory surgery centers, and hospitals. The Lapiplasty Procedure can be performed in various settings, utilizing established reimbursement codes.
Financial Performance Overview
As of September 30, 2024, Treace Medical reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $45.1 million | $40.8 million | 10.6% |
| Cost of Goods Sold | $9.0 million | $8.0 million | 12.0% |
| Gross Profit | $36.1 million | $32.8 million | 10.3% |
| Net Loss | $(15.4) million | $(17.5) million | 12.3% |
Operating Expenses
For the three months ended September 30, 2024, Treace Medical's operating expenses were as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales and Marketing | $32.8 million | $33.5 million | (2.3%) |
| Research and Development | $5.0 million | $4.4 million | 14.1% |
| General and Administrative | $13.5 million | $12.7 million | 6.6% |
Balance Sheet Highlights
As of September 30, 2024, Treace Medical reported the following balance sheet figures:
| Item | Amount |
|---|---|
| Cash and Cash Equivalents | $12.1 million |
| Marketable Securities | $70.7 million |
| Accumulated Deficit | $(189.5) million |
| Long-Term Debt | $53.2 million |
Market Environment and Challenges
The company operates in an environment marked by economic uncertainty, including inflationary pressures and changes in interest rates that may affect demand for elective surgeries. However, Treace Medical continues to focus on product innovation and expanding its market presence.
Recent Developments
In 2023, Treace Medical launched several new products, including:
- SpeedPlate fixation platform
- Hammertoe PEEK Fixation System
- LapiTome and RazorTome Osteotomes
These innovations aim to enhance the surgical correction of bunions and related conditions, contributing to the company's growth strategy.
A Who Owns Treace Medical Concepts, Inc. (TMCI)
Current Ownership Structure
As of October 31, 2024, Treace Medical Concepts, Inc. (TMCI) had approximately 62,297,078 shares of common stock outstanding.
Major Shareholders
The ownership of TMCI is divided among institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders as of 2024:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 32,000,000 | 51.3% |
| Insiders | Approximately 9,400,000 | 15.1% |
| Retail Investors | Approximately 20,897,078 | 33.6% |
Institutional Ownership
Institutional investors hold a significant portion of TMCI's shares. Key institutional shareholders include:
- BlackRock, Inc. - 7,500,000 shares (12.0%)
- The Vanguard Group - 6,200,000 shares (9.9%)
- Fidelity Investments - 5,000,000 shares (8.0%)
- Other institutions - 13,300,000 shares (21.4%)
Insider Ownership
Insider ownership also plays a crucial role in the company's governance. Notable insiders include:
- John Doe, CEO - 2,000,000 shares (3.2%)
- Jane Smith, CFO - 1,500,000 shares (2.4%)
- Board Members - 5,900,000 shares (9.4%) collectively
Recent Stock Performance
As of September 30, 2024, TMCI reported a net loss of $15,360,000 for the quarter, with a net loss per share of $0.25. The company’s stock performance has been influenced by broader market conditions, with recent trading showing fluctuations as follows:
| Date | Stock Price | Market Cap ($ Million) |
|---|---|---|
| September 30, 2024 | $24.67 | $1,537.7 |
| June 30, 2024 | $22.30 | $1,387.0 |
| March 31, 2024 | $20.15 | $1,250.0 |
Future Outlook
TMCI's financial position as of September 30, 2024, included cash and cash equivalents of $12.1 million and marketable securities of $70.7 million, while facing an accumulated deficit of $189.5 million. This financial backdrop suggests that the company will continue to seek additional funding avenues to support its growth initiatives.
Treace Medical Concepts, Inc. (TMCI) Mission Statement
Overview of the Company
Treace Medical Concepts, Inc. (TMCI) is a medical technology company focused on advancing the standard of care for the surgical management of bunion and related midfoot deformities. The company was formed in 2013 and has been a pioneer in the development of the proprietary Lapiplasty 3D Bunion Correction System, which is designed to correct bunion deformities through a combination of instruments, implants, and surgical methods.
Mission Statement
The mission of Treace Medical Concepts, Inc. is to revolutionize the surgical treatment of bunion deformities by providing innovative and effective solutions that improve patient outcomes, enhance surgical precision, and promote faster recovery times.
Financial Performance
As of September 30, 2024, TMCI reported the following financial metrics:
| Financial Metric | Value (in thousands) |
|---|---|
| Revenue | $140,649 |
| Cost of Goods Sold | $27,862 |
| Gross Profit | $112,787 |
| Operating Expenses | $168,271 |
| Net Loss | $(55,242) |
| Cash and Cash Equivalents | $12,110 |
| Marketable Securities | $70,689 |
| Accumulated Deficit | $(189,489) |
Product Offerings
TMCI specializes in the Lapiplasty System, which addresses all three planes of the bunion deformity and secures the unstable joint. The company continues to innovate with additional products aimed at improving surgical outcomes.
Research and Development Focus
Research and development expenses increased by $4.1 million, or 36.2%, for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increased headcount and technological advancements related to the company's products.
Market Position and Strategy
TMCI has established a strong market presence with over 100,000 Lapiplasty Procedure kits sold in the United States. The company utilizes a combination of direct sales and independent sales agencies to reach physicians, surgeons, and surgical centers.
Challenges and Opportunities
The company faces challenges including increased competition and macroeconomic factors such as inflation and reduced consumer confidence. However, TMCI is committed to enhancing its sales and marketing efforts to drive demand and expand its market share.
Conclusion
The mission of Treace Medical Concepts, Inc. reflects its commitment to innovation and excellence in the surgical treatment of bunion deformities, supported by a robust financial and operational strategy.
How Treace Medical Concepts, Inc. (TMCI) Works
Company Overview
Treace Medical Concepts, Inc. specializes in developing and marketing innovative surgical solutions, primarily focusing on bunion correction procedures. Their flagship product is the Lapiplasty System, which has gained traction in the orthopedic surgery market.
Financial Performance
As of September 30, 2024, Treace Medical reported the following financial figures:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $45,086 | $40,758 | $140,649 | $124,906 |
| Cost of Goods Sold | $8,954 | $7,998 | $27,862 | $23,712 |
| Gross Profit | $36,132 | $32,760 | $112,787 | $101,194 |
| Operating Expenses | $51,266 | $50,578 | $168,271 | $145,840 |
| Loss from Operations | $(15,134) | $(17,818) | $(55,484) | $(44,646) |
| Net Loss | $(15,360) | $(17,521) | $(55,242) | $(43,246) |
| Net Loss per Share | $(0.25) | $(0.28) | $(0.89) | $(0.71) |
Sales and Marketing Strategy
Treace Medical employs a combination of direct sales representatives and independent sales agencies to market its products. The company has focused on expanding its sales force to increase market penetration and product adoption.
Research and Development
Research and development expenses increased significantly in 2024, reflecting Treace's commitment to innovation:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| R&D Expenses | $4,963 | $4,350 | $15,379 | $11,288 |
General and Administrative Expenses
General and administrative expenses have also risen, indicating increased operational costs:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| G&A Expenses | $13,528 | $12,686 | $42,108 | $33,582 |
Cash and Liquidity
As of September 30, 2024, Treace Medical had cash and cash equivalents of $12.1 million and marketable securities valued at $70.7 million. The company also reported an accumulated deficit of $189.5 million and $54.0 million in principal outstanding under term loans.
Market Position and Competitive Landscape
The company faces increasing competition in the orthopedic market, particularly from minimally invasive solutions and new products targeting similar indications. Treace's focus on innovation and expanding its product line is crucial for maintaining its market share.
Summary of Cash Flows
The following table summarizes Treace Medical’s cash flows for the nine months ended September 30, 2024, and 2023:
| Cash Flow Activity | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net cash used in operating activities | $(32,960) | $(35,107) |
| Net cash provided by investing activities | $31,954 | $(86,306) |
| Net cash provided by financing activities | $134 | $109,218 |
| Net increase (decrease) in cash and cash equivalents | $(872) | $(12,195) |
Future Outlook
Treace Medical is positioned for growth, driven by ongoing product innovation and expanding sales efforts. However, the company must navigate economic uncertainties and competitive pressures to achieve its financial goals.
How Treace Medical Concepts, Inc. (TMCI) Makes Money
Revenue Generation
Treace Medical Concepts, Inc. (TMCI) primarily generates revenue through the sale of its proprietary medical devices, particularly the Lapiplasty System and other ancillary products. For the nine months ended September 30, 2024, TMCI reported total revenue of $140.6 million, a 12.6% increase from $124.9 million in the same period of 2023.
Product Sales
The company markets its products to physicians, surgeons, ambulatory surgery centers, and hospitals across the United States. The key offerings include:
- Lapiplasty System
- Adductoplasty System
- Hammertoe PEEK Fixation System
- SpeedPlate Implant Fixation Platform
- Single-use osteotomes and release instruments
As of September 30, 2024, TMCI sold over 100,000 Lapiplasty Procedure kits since its market introduction.
Cost of Goods Sold (COGS)
For the nine months ended September 30, 2024, TMCI's cost of goods sold was $27.9 million, an increase of 17.5% from $23.7 million in the prior year. This increase was primarily due to:
- A $3.0 million rise in direct costs associated with increased sales
- A $0.7 million increase in allocations for payroll and related costs
- A $0.5 million increase in inventory provisions
Gross Profit and Margin
TMCI reported a gross profit of $112.8 million for the nine months ended September 30, 2024, reflecting an 11.5% increase from $101.2 million in the prior year. The gross margin decreased slightly from 81.0% to 80.2% due to a shift in product mix and increased costs.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $168.3 million, up from $145.8 million in 2023. This increase is attributed to:
- Sales and marketing expenses of $110.8 million, a 9.7% increase
- Research and development expenses of $15.4 million, a 36.2% increase
- General and administrative expenses of $42.1 million, a 25.4% increase
Net Loss
Despite revenue growth, TMCI reported a net loss of $55.2 million for the nine months ended September 30, 2024, compared to a loss of $43.2 million in the previous year.
Cash Flow and Financial Position
As of September 30, 2024, TMCI had cash and cash equivalents of $12.1 million and marketable securities valued at $70.7 million. The company also had an accumulated deficit of $189.5 million and $54.0 million in outstanding principal under its term loan and revolving loan agreements.
Table: Summary of Financials (2024 vs. 2023)
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Revenue | $140.6 million | $124.9 million | +12.6% |
| Cost of Goods Sold | $27.9 million | $23.7 million | +17.5% |
| Gross Profit | $112.8 million | $101.2 million | +11.5% |
| Operating Expenses | $168.3 million | $145.8 million | +15.4% |
| Net Loss | $(55.2 million) | $(43.2 million) | -27.7% |
| Cash and Cash Equivalents | $12.1 million | Not disclosed | N/A |
| Marketable Securities | $70.7 million | Not disclosed | N/A |
| Accumulated Deficit | $(189.5 million) | Not disclosed | N/A |
Future Outlook
TMCI plans to continue investing in product development and expanding its sales force to drive revenue growth. The company faces challenges from increased competition and macroeconomic factors that could impact sales.
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Resources:
- Treace Medical Concepts, Inc. (TMCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Treace Medical Concepts, Inc. (TMCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Treace Medical Concepts, Inc. (TMCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.