EDAP TMS (EDAP) Piper Sandler 36th Annual Healthcare Conference summary

Market environment and sales cycle

• Sales cycles for capital equipment have lengthened from a few quarters to four or five quarters, driven by hospital due diligence and macroeconomic factors like higher interest rates.

• Hospitals evaluate new technology purchases based on ROI, reimbursement, technology quality, and projected patient volumes.

• Flexible purchasing options, such as leases and bridge-to-buy programs, have become more important due to changing rate environments.

• Seasonality affects sales, with Q3 typically lighter and Q4 heavier due to budget cycles and patient scheduling.

• A strong pipeline and notable wins are reported, with top hospitals adopting the technology.

Reimbursement and payer coverage

• Medicare reimbursement for the technology is increasing by 5.4% starting January 1, improving patient access.

• Commercial payers like United, Blue Cross Blue Shield, Aetna, and Cigna are paying for treatments, but no primary commercial policy exists yet.

• The HIFI study, a large prospective trial, demonstrated equivalency to surgery and superior functional outcomes, supporting future commercial coverage.

• Hospitals often use conservative Medicare data for ROI analysis, with payback possible at two to three patients per month.

• Publication of the HIFI study in a major journal is imminent, expected to help secure broader commercial payer policies.

International and strategic focus

• Leadership has been strengthened in France and the DACH region, with a focus on expanding from mobile to fixed placements in Europe.

• 61 fixed placements exist in Europe and other regions, with significant growth potential in Western/Eastern Europe, Nordics, and the UK.

• The company is shifting away from distribution and legacy ESWL business to focus on HIFU and new indications like endometriosis and BPH.