Shoulder Innovations (SI) Morgan Stanley 23rd Annual Global Healthcare Conference summary

Business overview and market positioning

• Focused exclusively on the shoulder surgical care market, particularly arthroplasty, covering about 85% of a $2–3 billion global market growing at 10% annually.

• Operations are U.S.-centric, selling through an independent sales organization, with a robust product line developed over 10 years.

• Product ecosystem includes AI-enabled preoperative planning software, with 98% engagement in procedures.

• Differentiated by a two-tray instrumentation platform, improving efficiency and reducing costs for healthcare systems.

• InSet technology addresses historical challenges in anatomic shoulder arthroplasty, reducing revision rates and improving outcomes.

Financial performance and growth

• Achieved $11 million in Q2 revenue, representing 33% year-over-year growth, driven by increased adoption and a 50% rise in total customers.

• Guidance for the second half of the year anticipates growth rates similar to the first half and prior year, with momentum expected to continue.

• Growth is supported by consistent market share gains and a scalable commercial organization.

• ASPs (average selling prices) remained strong in Q2, with targeted efforts to maintain higher ASPs at select centers.

• $75 million raised in the IPO will primarily fund commercial scaling and continued innovation in implant development and enabling technology.

Operational and engineering innovation

• Two-tray system is a key differentiator, addressing space and sterilization challenges in ambulatory surgery centers (ASCs).

• Instrumentation minimization was achieved by starting with implant design, allowing for efficient reconfiguration as new products are introduced.

• Lower capital requirements and easier workflow for staff and surgeons, enabling rapid response to customer needs and easier market entry.

• Word-of-mouth from surgeons and positive patient outcomes have driven customer growth.