Full Press Release Details
Foot & Ankle Specialists
Except for the historical information contained herein, the matters set forth in this presentation are forward-looking statements within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including, but not limited to: Paragon 28, Inc.'s (the "Company," "Paragon 28," "we," or "our") potential to shape a better future for foot and ankle patients and its
estimated 2022 and first quarter 2022 net revenues. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our
current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware. Forward-looking statements
should not be read as a guarantee of future performance or results and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These
forward-looking statements are based on Paragon 28's current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially
from those anticipated in such forward-looking statements as a result of these risks and uncertainties. These risks and uncertainties are described more fully in the section titled "Risk Factors" in
Paragon 28's filings with the Securities and Exchange Commission (the "SEC"), including Paragon 28's annual report on Form 10-K filed with the SEC on March 8, 2022. Paragon 28 does not undertake
any obligation to update forward-looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained
herein. These forward-looking statements should not be relied upon as representing Paragon 28's views as of any date subsequent to the date of this presentation. Paragon 28's results for the quarter
and year ended December 31, 2021 are not necessarily indicative of our operating results for any future periods.
In addition to our results and measures of performance determined in accordance with U.S. GAAP presented in this presentation , we believe that certain non-GAAP financial measures are useful in
evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans, and making strategic decisions.
Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes.
We believe that Adjusted EBITDA, together with a reconciliation to net income, helps identify underlying trends in our business and helps investors make comparisons between our company and other
companies that may have different capital structures, tax rates, or different forms of employee compensation. Accordingly, webelieve that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance andfuture prospects, and allowing for greater transparency with respect to
a key financial metric used by our management in its financial and operational decision-making. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider these
measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these potential limitations include:
-other companies, including companies in our industry which have similar business arrangements, may report Adjusted EBITDA, or similarly titled measures but calculate them differently, which
reduces their usefulness as comparative measures;
-although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect
cash capital expenditures for such replacements or for new capital expenditure requirements;
-Adjusted EBITDA also does not reflect changes in, or cash requirements for, our working capital needs or the potentially dilutive impact of stock-based compensation; and
-Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur.
-Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other GAAP-based financial measures.
Proven Leadership Team
CTO, Co-Founder, and Board Director
Paragon 28 Investment Highlights
Large ($4.3B), fast - growing (7% CAGR), and underdeveloped F&A market
Unique culture and passion F&A specialists
Total solutions provider and exclusive focus on F&A
73 product systems on market and 30+ products in development
Proven commercial model with clinical and medical education focus
Smart28 to improve patient outcomes, transform F&A market
Compelling financial profile: scale, high - growth, EBITDA positive, $109mm cash
Our Mission is to Continuously Improve Patient Lives
par.a.gon: a model of excellence or perfection
twen.ty.eight: number of bones in the human foot; a perfect number
Our mission is to continuously improve the outcomes and experiences of patients
suffering from foot and ankle conditions.
We strive to disrupt and transform the market by focusing exclusively on the foot
and ankle in order to develop and commercialize differentiated, high quality
orthopedic solutions, advanced procedural approaches and instrumentation that
are collectively designed to enable surgeons to provide consistent, reproducible
and effective outcomes.
Tendons, muscles and ligaments
Foot & Ankle Is the Fastest Growing Market in Orthopedics
Key Macro Market Drivers
Increased desire to lead more active lifestyle
Increased incidence of obesity and diabetes
Surgeon specialization
The Foot and Ankle market is growing rapidly on macro tailwinds
Potential Drivers of TAM Expansion &
Advanced technologies such as AI and data analytics
Increased utility and use of patient specific solutions (implants and instrumentation)
Increased focus on clinical education and improved clinical outcomes
Custom / 3D implant technology for complex cases
And is poised for potential expansion and growth acceleration from advanced technologies
U.S. Foot & Ankle Market Dynamics
Foot & Ankle Is Concentrated Among 3 Large Med-tech Incumbents
U.S. Foot & Ankle Market
Significant opportunity for P28 to gain additional market share
-Exclusive focus on Foot & Ankle
-Continued innovation and new product development, including Smart28
-US commercial expansion
-Increased surgeon / account penetration
-International market expansion
Source: Wall Street, SmartTrak, Millennium Research Group and Paragon 28 Management Estimates
(1) Other includes Smith & Nephew, Zimmer Biomet, DJO Orthopedics, TreaceMedical, and other regional competitors
Global Market by Segment
2021E Global Foot & Ankle Market
Fracture Fixation31%
Our portfolio is highly diversified and represented in all sub-markets
(1)Ankle includes all non-fracture ankle conditions surrounding the ankle including surrounding soft tissue.
(2)Represents orthobiologicsspecific to the foot and ankle market.
Foot & Ankle Consists of Several Distinct Existing Sub-markets
(1)Ankle includes all non-fracture ankle conditions surrounding the ankle including surrounding soft tissue.
(2)Represents orthobiologicsspecific to the foot and ankle market.
Paragon 28 is Disrupting the Foot & Ankle Market
Focused and innovative med tech companies have been disruptive in their respective markets
Pure Play Disruptors
Why is Paragon 28 Differentiated from the Competition?
-Exclusive dedication to single industry
-Focus on innovation
-Novel approaches & solutions
-Targeted commercial strategy
-Broad portfolio of solutions to address all patients and complexities
-Array of options for varying complexities
-Financial flexibility for development
Single-Product Companies
Diversified, Orthopedic Incumbents
Full-bag; lacking focus
Opportunities to Improve Foot & Ankle Outcomes
(2)Source: Hip and knee -https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2528048/
Exclusive focus on foot and ankle
Education and awareness of optimal approaches