Alphatec (ATEC) investor relations material

Market opportunity and growth drivers

• Lateral spine procedures are in early stages, with significant room for clinical and technological improvement, especially through integration and navigation that reduce radiation and improve predictability.

• Robotics, 3D-printed implants, and next-generation patient positioning are expected to further enhance procedural adoption and outcomes.

• The lateral market is estimated at $1 billion, with an additional $2 billion in traditional posterior surgeries that could convert to lateral, driving future growth.

• Expansion into complex pathologies and improved patient outcomes are increasing the addressable market and attracting new patient demographics.

• Growth is supported by higher average selling prices, new implant systems, and expanded procedural applications.

Financial performance and guidance

• Achieved $130 million growth in both 2023 and 2024, with guidance implying nearly $150 million growth year-over-year.

• Every surgeon cohort since 2018 has increased procedural volume annually, supporting continued growth even without adding new surgeons.

• Net surgeon growth rate is 20%, outpacing market expectations and supporting future volume increases.

• Guidance philosophy is to set achievable targets, with current models projecting $130 million growth, but internal ambitions are higher.

• Profitability in 2025 is critical to self-funding future investments, with EBITDA expected to fund growth in sets and inventory.

Strategic initiatives and competitive positioning

• Focused on procedural innovation, expanding utility and complexity, and building an informatics ecosystem (EOS) to support predictive analytics in spine care.

• Penetration into major academic centers is increasing, with long-term commitments required for full adoption; early stages in some regions, more maturity in others.

• Sales force is the fifth or sixth largest in the industry, with significant room for expansion to drive further geographic and procedural penetration.

• Near-term growth will come from sales force expansion and elegant procedural offerings; informatics will become a major catalyst by 2027-2028.

• Geographic and procedural market share has significant upside, with some regions already at 20% share and others with substantial room to grow.