AtriCure (ATRC) UBS Global Healthcare Conference summary

Business evolution and market opportunity

• Started in surgical Afib treatment; expanded into minimally invasive Afib therapies and pain management, where nerve-block technology can address pain across procedures exposing or interrupting large nerves.

• Management sees a market opportunity of $10B+, versus about $1B a decade ago, with potential to expand through ablation expertise and development of additional markets.

• Cardiac surgery growth could extend beyond Afib patients to others at higher risk of postoperative or long-term clinical Afib.

Cardiac surgery and Afib

• In the latest quarter, U.S. open ablation grew 21%, with EnCompass a major driver; appendage management grew in the mid-teens. Pain management was the largest growth driver.

• EnCompass simplifies ablation to an 8–10-minute procedure for most surgeons; growth is increasingly from existing surgeons treating more patients, as accounts cover nearly all U.S. cardiac surgery centers.

• U.S. appendage management penetration is close to 70% among Afib patients having cardiac surgery; rates are below 30% in each other country where the business operates, leaving a long runway.

• BoxX is powered to show a 10% absolute differential; stronger clinical differentiation could accelerate adoption. BoxX and LeAAPS could support broader prophylactic appendage management and ablation use.

• CONVERGE remains a clinical option for patients with longstanding Afib who have failed multiple catheter ablations, but management sees it as unlikely to be first-line amid PFA adoption.

Pain management

• CryoSPHERE use has expanded from thoracic procedures to sternotomy and other procedures; cryoXT, launched last year, is designed for amputation procedures.

• Most quarterly revenue growth comes from existing accounts; surgeons’ use is broadening as they gain experience, while device cost and lack of specific reimbursement can limit utilization.

• In the Nuss procedure, penetration is 90%+; pain control has helped patients recover and return to daily life sooner, removing the traditional seasonal timing of procedures.

• Amputation launch strategy starts with hospitals familiar with cryo nerve blocks, then connects to vascular surgeons; dedicated regional therapy-development resources began contributing in Q3.