Alphatec (ATEC) Jefferies Global Healthcare Conference summary

Growth drivers and market positioning

• Achieved 40% CAGR since 2018, outpacing the spine market due to a procedural approach and alignment with surgeon needs.

• Lateral surgery sophistication and procedural innovation have driven aggressive business growth.

• Expanded patient eligibility for spine surgery due to less invasive procedures and reduced morbidity.

• Q1 2024 saw 27% total and 30% surgical revenue growth, with 23% procedural volume growth.

• Long-range plan targets $1B revenue by 2027, with sustained low-20% surgical revenue growth.

Industry disruption and competitive strategy

• Ongoing industry consolidation is in early stages, with opportunities for competitive hiring expected to continue.

• Approach to competitive hiring is methodical and deliberate, focusing on predictability and effectiveness.

• Increased guidance for 2024 revenue to $601M, up $45M from nine months prior.

• High surgeon training and adoption rates in Q1 signal strong future growth.

• Significant investment in instruments and implants reflects high confidence in business outlook.

Financial outlook and cash utilization

• Q1 2024 cash burn was $70M, expected to decrease to $40M in Q2, turn slightly negative in Q3, and become positive in Q4.

• Cash raised is being invested in revenue-generating assets, with spending front-loaded in the year.

• Confident in ability to leverage competitive opportunities and drive meaningful growth.