Paragon 28 expands board with new director

Published 12/11/2024, 10:06 PM
ATEC
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ENGLEWOOD, Colo. - Paragon 28, Inc. (NYSE: FNA), a company specializing in foot and ankle orthopedic solutions, announced the appointment of Dave Demski as an independent director, effective immediately. The addition of Demski expands the company's Board of Directors to nine members, aiming to enhance strategic oversight and governance. This appointment comes at a crucial time for the orthopedic devices sector, where companies like Alphatec Spine (NASDAQ: ATEC), where Demski serves on the board, have shown strong momentum. According to InvestingPro data, ATEC has demonstrated robust revenue growth of 27% in the last twelve months.

Demski's prior roles include President and CEO of Globus Medical (NYSE:GMED), where he served from August 2017 to April 2022, and positions as CFO, COO, and President of Emerging Technologies. His experience extends to board memberships at Alphatec Spine (NASDAQ: ATEC) since October 2023 and Axonics, Inc. until its November 2024 acquisition by Boston Scientific (NYSE:BSX). ATEC, currently valued at $1.37 billion, has shown strong financial fundamentals with a current ratio of 2.32, indicating solid liquidity. InvestingPro analysis reveals several additional insights about ATEC's market position and growth potential, available in the comprehensive Pro Research Report. Demski holds a B.S. in Business Administration from the University of Michigan and an M.B.A. from Stanford Graduate School of Business.

Albert DaCosta, Chairman and CEO of Paragon 28, expressed confidence in Demski's ability to contribute to the company's mission of improving patient outcomes in foot and ankle care. Demski reciprocated the sentiment, emphasizing his commitment to advancing the company's goals. Analysts maintain a bullish outlook on ATEC, with targets ranging from $10 to $22.50 per share, suggesting potential upside from current levels. Discover more detailed analysis and financial metrics with a subscription to InvestingPro, which offers exclusive insights on over 1,400 US stocks.

Based in Englewood, Colorado, Paragon 28 is dedicated to addressing a wide range of foot and ankle conditions with its medical devices and aims to enhance surgical procedures and patient results.

This announcement is based on a press release statement from Paragon 28, Inc. The company cautions that forward-looking statements within the press release are not guarantees of future performance and involve risks and uncertainties. These statements are current as of their publication date, and the company does not undertake any obligation to update them.

In other recent news, ATEC's third-quarter earnings call showcased a robust financial performance. The company reported a 27% year-over-year revenue growth to $151 million, including a 30% increase in surgical revenue. A notable $7.4 million adjusted EBITDA was achieved, improving from a previous loss. Additionally, ATEC managed to reduce its cash burn by more than half.

The company has set ambitious targets for the coming years. ATEC's revenue target for 2024 is approximately $605 million, which would represent a 25% increase, with surgical revenue expected to reach about $540 million. ATEC also projects a significant $70 million adjusted EBITDA for 2025, the year it aims to reach cash flow breakeven.

Despite facing challenges with inventory and lower gross margins in certain areas, the company remains focused on its growth trajectory. ATEC continues to invest in its technologies, with the EOS imaging system expected to contribute $18 million in Q4 revenue. The company is also refining the Valence system for a broader launch in 2025. These recent developments underscore ATEC's commitment to innovation and efficiency in the medical technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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