Beyond Air (XAIR) investor relations material

Market overview and product positioning

• Inhaled nitric oxide is primarily used in hospital settings, especially neonatal ICUs, to address respiratory issues in newborns.

• Traditional delivery relies on bulky gas cylinders, creating logistical challenges for hospitals.

• The LungFit device generates nitric oxide from ambient air, eliminating the need for cylinders and simplifying logistics.

• Hospitals benefit from reduced operational complexity, lower soft costs, and potential headcount savings.

• Decision makers are typically respiratory therapists, with some involvement from chief nursing officers or procurement.

Customer relationships and contract dynamics

• Customer relationships are described as highly sticky, with a retention rate above 90%.

• Contracts are a mix of one-year and multi-year agreements, with renewals common due to high satisfaction.

• Most new business comes from replacing incumbent providers, as few hospitals are new to nitric oxide therapy.

• The sales cycle is often dictated by the expiration of existing contracts, typically ranging from four to nine months.

• Hospitals are transparent about contract timelines, facilitating targeted sales efforts.

Generation 2 product and market expansion

• Generation 2 enables patient transport outside the hospital, including ambulances and aircraft, a capability not present in Generation 1.

• Maintenance intervals increase from 1,000 to 4,000 hours, reducing device swaps and operational burden.

• The U.S. addressable market is expected to grow from $50–60 million to $400 million, with global potential reaching $1 billion.

• The competitive landscape is limited, with only a few major players in the market.

• Generation 2 is expected to drive significant revenue growth post-approval.