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

Strategic overview and business evolution

• Revenue reached $1.3 billion over the last 12 months, with market leadership in cardiopulmonary and epilepsy segments.

• Portfolio was reshaped from 2019–2022, exiting low-growth cardiovascular assets to focus on high-potential early-stage opportunities.

• Recent years saw renewed focus on core innovation, winding down heart failure and advanced circulatory support programs in 2024.

• Strategic investments and operational improvements have driven 10% organic revenue growth and 17% EPS growth over 11 quarters.

• Core businesses provide a foundation for expansion into high-growth markets like obstructive sleep apnea (OSA) and difficult-to-treat depression (DTD).

Market opportunities and innovation

• Epilepsy and cardiopulmonary markets are underpenetrated, with significant unmet needs and mid-single-digit growth rates.

• OSA neuromodulation market is expected to reach $1 billion, with double-digit growth driven by increased awareness and diagnosis.

• Differentiated technology enables treatment of challenging OSA patients, including those with higher BMI and severe conditions.

• VNS Therapy for epilepsy has transformed over 175,000 lives and is supported by impactful clinical evidence and innovation.

• CMS reimbursement for VNS Therapy increased by nearly 50% for both new patients and replacements, improving hospital economics.

Commercialization and financial strategy

• OSA commercialization will proceed in two stages: initial focus on key opinion leaders and centers, followed by a full launch with expanded sales force.

• PolySync titration algorithm for OSA device converted 8 out of 10 non-responders to responders, indicating a potential game changer.

• OSA revenue is projected to scale to $200–$400 million with >80% gross margin and 25%+ operating margin by 2030.

• Core businesses expected to maintain mid-single-digit revenue CAGR and margin expansion; OSA to break even by 2029.

• Capital allocation prioritizes core business growth, OSA commercialization, and selective tuck-in M&A.