AngioDynamics (ANGO) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Company transformation and strategy

• Undergoing transformation to focus on high-growth med tech markets, especially cardiovascular and solid tumor care, with a shift to clinically differentiated platform technologies in cardiology and oncology.

• Shifted portfolio since 2019 to target larger, faster-growing addressable markets, expanding MedTech TAM from $3B in FY 2021 to $10B in FY 2024.

• Med tech segment now drives higher margins and is expected to outpace med device segment growth, improving overall gross margins and cash generation.

• Stable balance sheet with over $75 million in cash and no debt as of May 31, 2024, supporting ongoing investment.

• Manufacturing shift to Costa Rica and transition to a fully outsourced model aim to reduce costs and deliver $15M in annualized savings by FY 2027.

Product and market highlights

• Med tech segment focuses on Auryon (PAD), AlphaVac (mechanical thrombectomy for PE), and NanoKnife (solid tumor ablation, especially prostate), targeting large, underpenetrated markets.

• Auryon Atherectomy System surpassed $100M in cumulative sales, treated over 50,000 patients since 2020, and is expected to expand further after CE mark approval for Europe.

• AlphaVac received FDA clearance in April 2024, CE mark in May 2024, and PE indication, with strong clinical data and full US and EU launches in 2024.

• NanoKnife targets intermediate-risk prostate cancer, with FDA submission planned for September and potential approval by year-end, addressing over 505,000 U.S. patients.

• Med device segment remains 60% of revenue, providing $165M in fiscal 2024 and growing 1%-3% annually, supporting med tech investments.

Financial outlook and guidance

• Fiscal 2025 guidance projects 4.2%-6.2% total growth, with med tech up 10%-12% and med device up 1%-3%.

• Thrombectomy (AlphaVac) is expected to be the main growth driver in FY25, with additional upside from Auryon and NanoKnife.

• Gross margin guidance is 52%-53%, with temporary pressure during the manufacturing transition but a step-up expected after completion.

• Cash flow and EBITDA positive expected in FY26, supported by med device cash generation and no debt.

• Focus remains on internal product investment rather than M&A, given strong pipeline and market opportunities.