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WARSAW, Ind. - OrthoPediatrics Corp. (NASDAQ:KIDS), a company dedicated to pediatric orthopedics with impressive revenue growth of 37.65% in the last twelve months and industry-leading gross margins of 72.58%, has announced the U.S. release of its new VerteGlide Spinal Growth Guidance System. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 6.98, though its stock has declined nearly 13% in the past week. This system is designed to treat children with Early Onset Scoliosis (EOS), a condition that can lead to severe health issues in patients under 10 years old.
The VerteGlide system, which has recently received FDA clearance, aims to correct spinal deformity while reducing the need for repeated surgeries until a child reaches skeletal maturity. It is the second in a series of technologies by OrthoPediatrics focused on addressing EOS, following the company's development of 80 systems targeting pediatric musculoskeletal conditions.
Pediatric orthopedic spine surgeons Dr. Richard McCarthy of Louisville, Kentucky, and Dr. Scott Luhmann of St. Louis have collaborated with OrthoPediatrics in the design and development of the VerteGlide system. Dr. McCarthy has regarded the system as a "breakthrough in technology for children."
Greg Odle, President of OrthoPediatrics' Scoliosis division, expressed enthusiasm for the new product, emphasizing the company's dedication to treating scoliosis comprehensively. CEO David Bailey also praised the engineering and business teams for their efforts in bringing VerteGlide to market, highlighting it as a significant advancement in treatment options for healthcare professionals.
VerteGlide utilizes Shilla™ technology, which is licensed from Medtronic, a major player in the medical device industry. The company plans a limited launch of the system, with initial surgeries at select children's centers anticipated for the summer of this year.
Founded in 2006, OrthoPediatrics has developed a comprehensive product offering in the pediatric orthopedic market, covering trauma, deformity, scoliosis, and sports medicine. The company's products are distributed across the United States and in over 70 countries worldwide.
This announcement is based on a press release statement from OrthoPediatrics Corp.
In other recent news, OrthoPediatrics Corporation reported a fourth-quarter 2024 revenue of $52.7 million, surpassing expectations of $50.72 million and marking a 40% year-over-year increase. However, the company experienced a larger-than-expected loss with an EPS of -$0.69, missing the forecasted -$0.30. JMP analysts maintained a Market Outperform rating with a $50 price target, highlighting the company's 52% year-over-year increase in U.S. sales and a 5% rise in international sales. Meanwhile, Stifel analysts revised their price target for OrthoPediatrics to $32 from $40, retaining a Buy rating, citing a positive outlook based on future sales drivers like the Specialty Bracing franchise and new product innovations. Lake Street Capital Markets also initiated coverage with a Buy rating and a $37 price target, noting the company's potential for high-teens revenue growth and strong gross margins. The company has reiterated its guidance for 2025, projecting revenue growth of 15%-18% and adjusted EBITDA between $15 million and $17 million. Additionally, OrthoPediatrics is aiming for its first positive free cash flow by the fourth quarter of 2025, supported by strategic moves like the closure of its Israeli office to centralize operations in the U.S.
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