SYK - Treace Medical Concepts: Facing Increasing Competitive Pressure
2024-06-14 11:19:03 ET
Summary
- Treace Medical Concepts, Inc. stock plummeted 63% after revising the FY24 outlook due to competitive pressure from MIS osteotomy devices and knockoff Lapiplasty products.
- Treace's Lapiplasty 3D Bunion Correction System offers a superior solution to traditional bunion surgeries, but poor marketing has hindered market penetration.
- Despite insider buying by CEO John Treace, analysts have downgraded Treace stock and foresee continued losses in FY24 and FY25.
- Are analysts or the insider wrong on the stock? An analysis of Treace Medical Concepts follows in the paragraphs below.
Shares of bunion surgery device manufacturer Treace Medical Concepts, Inc. ( TMCI ) cratered 63% one day after revising its FY24 top-line outlook due to an altered competitive landscape. Specifically, minimally invasive surgery ((MIS)) osteotomy devices and knockoffs to its Lapiplasty System are eroding the company’s market share. With only 29% surgeon penetration after eight years in the market, but two MIS devices of its own expected to launch by YE24, the recent insider buying merited a deeper dive. An analysis follows below....
Treace Medical Concepts: Facing Increasing Competitive Pressure