Kestra Medical Technologies (KMTS) 44th Annual J.P. Morgan Healthcare Conference summary

Market opportunity and growth

• Addressing an underserved $10 billion U.S. market, with only $1 billion currently penetrated and significant room for expansion, especially as the second entrant in a previously monopolized space.

• Market growth has accelerated to low double digits (11–12%), with 80% of Kestra's growth attributed to market share capture and 20% to market expansion.

• Only 1 in 7 eligible patients currently receive a wearable cardioverter-defibrillator (WCD), highlighting underpenetration and the need for market development and guideline changes.

• Historical rapid growth slowed after a competitor's trial missed endpoints, but Kestra's entry has revitalized the category and driven renewed growth.

• Market development activities and increased medical education are underway to further expand the addressable market.

Product innovation and clinical results

• The Assure Cardiac Recovery Platform features a wearable defibrillator for post-MI and heart failure patients, with strong clinical proof and high patient compliance (median wear time over 23 hours/day).

• A 21,000-patient post-approval study demonstrated 100% conversion of lethal arrhythmias and extremely low false alarm rates, supporting both safety and efficacy.

• The platform enables real-time patient monitoring, physician notifications, and automatic EMS dispatch after therapy, enhancing patient outcomes.

• Additional clinical utility includes diagnosis of atrial fibrillation and other comorbidities, with the platform designed for extensibility and future innovation.

• Recent partnership with Biobeat Technologies will integrate cuffless blood pressure monitoring, addressing the high prevalence of hypertension in the patient population.

Commercial execution and financial performance

• Commercial launch began in August 2022, with a successful IPO in March and a follow-on offering after strong clinical results.

• Insurance coverage now exceeds 290 million lives (90% U.S. coverage), unlocking the business model and supporting growth.

• Sales force has doubled to 100 territories, targeting 130 by fiscal year-end, with new reps reaching productivity in about six months.

• Rental model enables attractive unit economics, with eight consecutive quarters of gross margin expansion and a long-term target of over 70% gross margin.

• Revenue growth is strong, with recent quarters exceeding 50% growth, and the current fleet supports near-term revenue plans.