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OrthoPediatrics (KIDS) investor relations material
OrthoPediatrics Piper Sandler 37th Annual Healthcare Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Business performance and guidance reset
Q3 saw strong underlying performance despite missing guidance due to no 7D capital sales and strategic reduction of low-margin Latin America set sales.
Forward guidance now excludes most 7D and Latin America set sales to reduce volatility and clarify a 12% baseline growth expectation.
Reset aims to provide more predictable results and set up for a strong 2026, with 7D sales considered upside rather than baseline.
Core growth drivers are T&D implants, OPSB, and international agency business, with scoliosis implants in Latin America expected to be flat.
International expansion, especially in Europe and Australia, is contributing to growth, particularly in scoliosis.
Product innovation and market opportunities
Major R&D investments are culminating in new launches like Verticale, eLLi, and the 3P system, expected to drive growth from 2026 onward.
PNP Femur and Tibia products are growing rapidly, with 3P Hip and Small Mini recently approved and positioned as future workhorses.
The plating market opportunity is estimated at $50+ million, with significant runway for new devices and market expansion.
New product launches will require some capital deployment, but focus remains on high-return, non-legacy devices.
Verticale and eLLi offer high ASPs and efficient cash usage, with eLLi leveraging RF technology for unique clinical and digital benefits.
Scoliosis and OPSB portfolio strategy
Scoliosis strategy targets the most complex cases, with products like Rib & Pelvic System, Verticale, and eLLi differentiating the portfolio.
ApiFix is showing strong results in a narrow patient band, supporting a continuum from bracing to fusion.
Early onset scoliosis market is estimated at $50+ million in the U.S., with little competition.
OPSB portfolio continues to expand with new products and high demand, with four to five new devices expected annually.
Clinic network has grown from 26 to over 40, with strong same-store and greenfield growth, and ambitions for national and international coverage.
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