Takeaways from the Embla Medical Q3 report.

The Embla Medical Q3 report is out. TLDR? Well, it all kicks off with information on the expanding US Medicare coverage to K2 patients.

Here are some takeaways straight from the report:

??Today Medicare accounts for ~30% of the revenue of an avg O&P facility in the US.

??ForMotion rebrand in US and Denmark is set for Q4.

??R&D progress - NAVii? and Icon? in limited launch progressing as planned & Naked Prosthetics next generation technology launched (at AOPA)

??Medicare total annual spend on lower limb MPKs: USD ~100M (Medicare + Medicare Advantage)

??Prosthetics & Neuro Orthotics sales grew +9% organic in Q3, and $332M YTD, driven by strong volume growth and increased fitting of high-end solutions. Sales remained soft in the Americas with good performance in some locations and product categories, offset by softness in others.

??Bracing & Supports grew moderately for the quarter. Sales performance in Americas continues to be indirectly negatively impacted by the cyberattack to Change Healthcare. Soft performance in both EMEA and Americas due to challenging market dynamics in selected product categories and markets.

??Patient Care business delivered +9% organically in Q3 driven by strong volume growth and positive mix effect. It all amounted to $214M in YTD sales globally with modest performance in Americas with solid contribution from most locations offset by weaker performance in other areas.

??Overall, Gross profit margin was 63% in the quarter compared to 62% in Q3 2023, partly resulting from cost reduction initiatives executed during Q1 2024 as well as positive product mix and manufacturing efficiency had a positive impact. Net profit was USD 22m for the quarter or 10% of sales vs. 7% of sales in Q3 2023.

You can read the full Q3 report from Embla Medical here.

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After nearly 9 years in the O&P market on the manufacturer side, Calibration Marketing was started with the goal of helping those in the O&P industry that need marketing support to grow their business/clinic, or cover for someone on short term leave.

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