KORU Medical Systems (KRMD) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase summary

Market trends and business overview

• Focus on subcutaneous drug delivery, supporting the shift from hospital to home care with the Freedom System, which delivers large drug volumes weekly for chronic patients.

• 90% of infusions are home-based, with expansion into infusion clinics planned over the next year.

• Cleared in 36 countries for 8 drugs, with 70+ global patents and 20 pending.

• Total addressable market estimated at $2.7 billion, with 40,000 global patients generating recurring revenue.

• Compliance rate of 97% in a 4,000-patient study, significantly higher than oral pharmaceuticals.

Growth drivers and product innovation

• Core business centers on immunoglobulin (IG) therapy, with a $500 million TAM and 7%-9% market growth.

• OUS market grew 50% last quarter, with a major focus on international expansion.

• Six new drugs expected on label by 2026, including three outside IG, such as oncology and rare disease biologics.

• Collaborations with 16 pharmaceutical partners, representing a $2.2 billion TAM.

• New pump launching next year will be compatible only with proprietary consumables, enhancing competitive advantage.

Financial performance and outlook

• Revenues doubled over four years, with 2023 guidance raised to $32-$32.5 million and 22% quarterly growth.

• Gross margin improvements from outsourcing and operational focus on cash flow breakeven by Q4 2024 and full year 2025.

• Cash burn significantly reduced, with stabilization of OpEx expected after Q3 2024.

• Profitability expected to be sustained in 2025 with new product launches.