Artivion (AORT) Canaccord Genuity's 46th Annual Growth Conference summary

Business overview and strategy

• Focuses on aortic valve replacements and products for aortic dissections and aneurysms, with a core business in allografts, mechanical valves, and surgical sealants.

• Targets double-digit revenue growth and aims to grow EBITDA at twice the revenue growth rate annually.

• Legacy segments grow at low to mid-single digits but are highly profitable and durable, while future growth is driven by high-margin mechanical valves and stent grafts.

• Leverages a global sales force and G&A infrastructure to expand EBITDA margins.

• Products are highly differentiated, FDA-approved, and face high barriers to competitive entry.

Recent performance and financial outlook

• Achieved 9% revenue growth in the latest quarter, slightly below target but with expectations for improvement.

• Stent grafts and On-X mechanical valves showed strong growth, with On-X achieving high-teens growth rates.

• Full PMA approval for AMDS and NEXUS devices, with NEXUS acquisition solidifying the product pipeline for over five years.

• Guidance for the year was reiterated after a challenging Q1 and a strong Q2, with improved confidence in meeting targets.

• Free cash flow in 2025 would have been $20 million excluding non-recurring building purchases; expects to build on this level going forward.

R&D, investments, and product pipeline

• R&D investment is concentrated in high-growth product lines, with 7%-8% of sales allocated overall but over 20% for the main innovation segment.

• Endospan acquisition brings a platform for future products, with near-term focus on U.S. approval for advanced NEXUS devices.

• Manufacturing scale-up for NEXUS is underway, with full U.S. launch planned for January next year.

• AMDS and NEXUS are high ASP products, requiring modest investment to scale.

• Ongoing clinical trials, such as ARTIZEN for Arcevo, continue to advance the pipeline.