Kestra Medical Technologies (KMTS) investor relations material

Key clinical and market developments

• Post-approval study of over 21,000 patients met all primary and key secondary endpoints, strengthening regulatory standing and competitive positioning.

• Combined with competitor data, nearly 40,000 patients' worth of evidence now supports the need for broader wearable defibrillator adoption.

• Only about 1 in 7 eligible patients currently receive wearable defibrillators, with a total addressable market of 850,000 and current penetration just over 120,000.

• New data is expected to influence future clinical guidelines and expand the market, though timing for guideline changes remains uncertain.

• The study's results are expected to make it easier for sales reps to win market share and open new accounts.

Competitive landscape and commercial strategy

• The new data set removes a key competitive argument, positioning the product as having the largest and most robust clinical evidence.

• Sales reps will first reinforce relationships with top prescribers, then activate new prescribers and expand into new institutions.

• Commercial strategy focuses on direct-to-cardiology sales, targeting high-prescribing and high-payer coverage regions, and leveraging contract partners for patient fittings.

• New sales territories typically reach full productivity in about six months, with both new and existing reps showing strong productivity trends.

• Plans to double the sales force over the next couple of years are on track, with potential to accelerate further following positive clinical results.

Financial performance and outlook

• Recent quarters have shown beat-and-raise performance, with a philosophy of setting achievable guidance and consistently exceeding it.

• Market growth has averaged 8% per year (6% unit growth plus 2-3% price increases), with potential for acceleration as new data is adopted.

• Conversion rate from prescription to revenue is in the mid-40% range, with expectations to reach the high 50s by fiscal 2028 as insurance coverage and operational efficiencies improve.

• In-network insurance coverage has improved from 60-70% to 80% in the past 18 months, streamlining claims and revenue conversion.

• The company benefits from a mature operational foundation due to its origins within established medtech organizations, supporting quality and supply chain reliability.