LivaNova (LIVN) Goldman Sachs 47th Annual Global Healthcare Conference 2026 summary

Strategic overview and growth drivers

• Focus on reinvesting in core cardiopulmonary and epilepsy businesses to sustain above-market growth and expand into high-growth areas like neuromodulation and obstructive sleep apnea (OSA).

• Achieved nearly 50% reimbursement improvement for VNS Therapy in epilepsy and accelerated manufacturing scale for oxygenators, increasing market share from 30% to 40% in 2.5 years.

• Growth is driven by geographic balance, price increases, market share gains, product upgrades, and improved penetration of VNS procedures.

• Leadership and culture initiatives include significant management changes and a focus on empowered accountability, resulting in higher employee engagement.

• Capital allocation remains focused on core business, OSA, and tuck-in acquisitions, with continued conviction in the OSA market despite industry headwinds.

Business segment updates and market opportunities

• VNS Therapy for epilepsy benefits from improved reimbursement and strong clinical data, with leading indicators suggesting increased patient pipeline and scientific community support.

• Barriers to VNS adoption are being addressed through updated clinical perceptions and technology advancements, with ongoing education for clinicians.

• Drug competition in epilepsy is not expected to materially impact the addressable market for VNS, as the proportion of drug-resistant patients remains stable.

• Essenz heart-lung machine upgrade cycle is driving double-digit growth, with most orders including full optionality and further opportunities in software and equipment upgrades.

• Oxygenator market share is targeted to increase further with new manufacturing lines and a differentiated product launch planned for 2028.

Financial outlook and operational execution

• Operating margin is maintained at a minimum of 20% while investing in OSA, with disciplined cost management and phased hiring aligned to commercialization milestones.

• OSA program is on track, with a PMA supplement filing expected in the second half of the year, leading to limited and then full commercial release.

• Engagement with CMS on reimbursement for treatment-resistant depression is ongoing, with internal teams preparing for various scenarios.

• Margin expansion is expected in the second half of the year as revenue phasing improves and OpEx levels off.