AtriCure (ATRC) Stifel 2024 Healthcare Conference summary

Business performance and growth drivers

• Strong growth across all franchises, with Q3 U.S. acceleration and international growth above 20%.

• AtriClip saw 15%, 17%, and 20% growth in Q1, Q2, and Q3, respectively, attributed to market expansion and increased awareness from competition.

• EnCompass Clamp experienced a 50% growth quarter, driven by ease of use, clinical evidence, and improved reimbursement.

• FLEX-Mini AtriClip launched, offering a 25%-30% price uplift and margin enhancement, expected to impact growth for several years.

• International expansion supported by new approvals, including China, and label expansion in Europe for pre-op AFib patients.

Innovation and product pipeline

• Ongoing innovation with new products like cryoSPHERE+ and cryoSPHERE MAX, reducing procedure time and driving growth.

• FLEX-Mini and minimally invasive platform expected to drive growth in 2025.

• Peripheral space products anticipated within 12 months, targeting new markets.

• LeAAPS trial aims to expand AtriClip use to all cardiac surgery patients globally, with long-term growth potential.

• PFA technology being integrated into surgical devices, with trials expected in the near future.

Market dynamics and competition

• Competition seen as positive, indicating a large, growing market and increasing awareness.

• PFA adoption is high for easier cases, but longstanding persistent patients (45% of market) remain underserved.

• Failure rates for PFA remain 30%-40% at 12-18 months, creating a funnel for future patients.

• CONVERGE and hybrid procedures expected to rebound as PFA failures increase, with steady account activity and new site additions.