Alphatec (ATEC) Stifel 2024 Healthcare Conference summary

Key revenue drivers and sales force expansion

• Competitive sales hires contributed to sequential growth, with $5 million increase from Q2 to Q3 despite typical market seasonality.

• Sales force expansion is ongoing, leveraging market disruption to attract talent and surgeons.

• Inventory and instrumentation levels are healthy, supporting continued growth.

• New hires are tracking as expected on productivity ramps.

• Confidence in growth extends into Q4 and the following year.

Market opportunity and product adoption

• Lateral procedures are growing faster than the overall market, with current market share at 12-13% of a $1 billion segment.

• Early stages of expanding into a $2 billion adjacent segment, with some business already transitioning.

• Technological advancements like SafeOp and PTP address key hurdles in lateral adoption, such as complications and radiation exposure.

• Integration of the Valence robotic platform aims to reduce radiation in procedures.

• Significant opportunity remains, as historical leaders in the space once held over 50% share.

Competitive differentiation and technology

• Neuromonitoring platform advancements, including automated SSEP and MEP, are seen as highly differentiated and protected by proprietary know-how.

• SafeOp and other innovations position the company as a thought leader in lateral procedures.