Beyond Air (XAIR) Piper Sandler 36th Annual Healthcare Conference summary

Financial and operational updates

• Debt was restructured, deferring $12 million in payments for two years and raising equity to strengthen the balance sheet.

• CE Mark approval was achieved, triggering a $1 million milestone payment and enabling shipments to Southeast Asia in the first half of next year.

• New international distribution partnerships are expected to expand presence to several dozen countries by 2025.

• Revenue recognition models include both royalty-based and upfront distribution, with future deals likely favoring the latter.

• Market size is estimated at $350 million, with pricing down 50% from monopoly levels and some hospitals switching from Treprostinil.

Commercial strategy and leadership

• A new Chief Commercial Officer, David Webster, has improved execution, team structure, and marketing, leading to better hospital access and awareness.

• Partnerships with veteran-owned businesses and GPOs like Vizient are being optimized, with expected impact in 2025.

• The commercial organization is described as ten times better than six months ago, with improved marketing and targeted outreach.

• Social media and conference presence have increased product understanding among respiratory therapists.

Product development and market adoption

• Upgrades to the first-generation system have improved reliability, shortened sales cycles, and expanded the customer base.

• The next-generation system, featuring transport capabilities, is seen as a potential game changer and will be submitted to the FDA in the March quarter.

• Approval for the next-gen system is expected to impact fiscal 2027, with current customers prioritized for upgrades.

• The upgrade process is designed to be simple, requiring minimal training and no major operational disruptions.