Artivion (AORT) Stifel 2024 Healthcare Conference summary

Growth and financial performance

• Achieved double-digit revenue growth in 2022 and 2023, with expectations to continue through 2024 and 2025, supported by a robust innovation pipeline.

• Adjusted EBITDA growth has outpaced sales, and the business remains free cash flow positive.

• 2025 outlook projects around 10% revenue growth, with stent grafts in mid-teens, On-X valves in low double digits, and BioGlue/tissue in mid-single digits.

• EBITDA margin expansion is driven by a leverageable sales force and G&A efficiencies, with further upside expected from new product launches.

• Gross margins are expected to rise with the U.S. launch of high-margin products like AMDS.

AMDS innovation and clinical impact

• AMDS offers a five-minute solution for acute type A aortic dissection, reducing mortality and complications compared to standard care.

• Clinical trials (DARTS in Europe, PERSEVERE in the U.S.) show significant reductions in mortality, stroke, dialysis, and reoperation rates.

• No DANE events (dangerous leaks) reported in trials, compared to up to 70% in standard care.

• AMDS is expected to democratize advanced care, making life-saving treatment accessible in more hospitals.

• Five-year European data shows 94% of patients avoided reoperation, with stable or improved aortic anatomy.

Market opportunity and adoption

• U.S. total addressable market (TAM) for AMDS is estimated at 6,000 cases, with potential to grow as under-treatment is addressed.

• 80% of acute type A dissection cases are suitable for AMDS, excluding certain genetic conditions and complex tears.

• AMDS is priced at $25,000, well within existing reimbursement structures, and is designated as a breakthrough technology by the FDA.

• Training is simple, requiring a one-day program and a learning curve of one to two cases.

• U.S. commercialization will leverage an existing 60-person sales force, with initial focus on 600 high-volume centers.