LivaNova (LIVN) 2026 Global Healthcare Conference summary

Growth drivers and strategic focus

• Sustained double-digit top-line growth attributed to talent development, execution, and innovation, with 45% of directors and above new in their roles.

• Expansion into faster-growing markets like sleep apnea, aiming to outpace core market growth and reinvest in high-potential areas.

• Recent tailwinds include a 50% reimbursement improvement for epilepsy, a long-term supply agreement with Thermo Fisher, and superior clinical data in sleep apnea.

• Strategy through 2028 targets mid to high single-digit earnings growth, with margin expansion leveraged into new market launches.

• Confidence in long-range financial plan is bolstered by new reimbursement, supply chain stability, and strong clinical outcomes.

Financial outlook and margin dynamics

• Margin expansion from core businesses will be reinvested in obstructive sleep apnea (OSA), moderating overall margin growth.

• EPS is expected to grow in line with top-line growth, with operating margin guidance maintained at or above 20% through 2028.

• Improved top-line drivers may offer upside to operating margin, but guidance will be updated closer to 2027 as investments in OSA ramp up.

• Timing of OSA launch and related investments will dictate margin profile, with sales force build-out planned post-PMA submission (late 2026 or early 2027).

• No specific investment figures for OSA sales force disclosed yet; transparency expected as 2027 approaches.

Epilepsy (VNS) business developments

• 50% reimbursement increase and new clinical data (80% efficacy) are driving both price and volume growth in VNS.

• Price renegotiations are yielding double the usual annual price increases, with this effect expected to phase out by late 2027.

• Next-generation IPG device launching in 2027 will feature Bluetooth connectivity, enabling remote patient-physician interaction and workflow improvements.

• New product expected to command a premium price, with value proposition seen as a significant step change.

• New epilepsy drugs are not expected to disrupt neuromodulation demand, as drug-resistant epilepsy rates remain stable and new drugs are typically adjunctive.