LivaNova (LIVN) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic evolution and business focus

• Refocused on core innovation, winding down non-core programs in 2024 to reallocate resources to core businesses and high-growth opportunities.

• Portfolio reshaped from 2019–2022, exiting low-growth cardiovascular assets and investing in promising early-stage opportunities.

• Strategy leverages leadership in epilepsy and cardiopulmonary to enter high-growth neuromodulation markets, including OSA and potentially depression.

• Two-phase plan: 2025–2028 focuses on core growth and OSA investment; 2028–2030 expects OSA to drive margin expansion.

Core business performance and market dynamics

• Cardiopulmonary business holds over 70% global share in open heart procedures, with market growth driven by aging populations and surgical complexity.

• Epilepsy business leads the $700M neuromodulation market, with VNS Therapy transforming over 175,000 lives and benefiting from recent CMS reimbursement increases.

• Cardiopulmonary and epilepsy markets are underpenetrated, offering significant growth potential through innovation and improved access.

• Real-world evidence from CORE-VNS shows improved outcomes, supporting further penetration and adoption.

Growth drivers and innovation

• OSA market entry leverages neuromodulation expertise, targeting patients underserved by current therapies, especially those with complete concentric collapse.

• OSPREY trial and PolySync algorithm demonstrated high responder rates, including conversion of non-responders, positioning the technology as a clinical game changer.

• Commercialization strategy for OSA includes a staged approach: initial focus on key opinion leaders, followed by full launch with expanded sales and market access.

• Synergies with existing infrastructure in manufacturing, R&D, and market access accelerate OSA profitability.