LivaNova (LIVN) Morgan Stanley 24th Annual Global Healthcare Conference summary

Business overview and growth strategy

• Core businesses in cardiopulmonary and neuromodulation for epilepsy hold leading global market shares and drive sustainable growth.

• Expansion targets high unmet need areas, including obstructive sleep apnea (OSA) and potentially difficult-to-treat depression, leveraging differentiated technology.

• Recent tailwinds include improved reimbursement for epilepsy, new clinical data, and a long-term supply agreement for oxygenators.

• Talent acquisition, execution, and innovation are key drivers of outperformance and sustained growth.

• R&D and external innovation have been upgraded, with new product launches planned in core and new categories.

Cardiopulmonary business performance and outlook

• Cardiopulmonary market is growing at a mid-single-digit rate, supported by aging populations and return of patients to open heart surgery.

• Market share in oxygenators increased from 30% to 40% over two years, aided by improved supply chain and a long-term Thermo Fisher agreement.

• Growth is driven by upgrades to new heart-lung machines, share gains, pricing improvements, and upcoming technology launches (heater-cooler, Air Manager) starting in 2027.

• Clinically differentiated oxygenator product to launch in 2028, expected to further drive share gains.

• Next-generation modular components will launch at approximately double the ASP of legacy products, supporting durable growth.

Epilepsy business developments

• Epilepsy market remains under-penetrated, with less than 15,000 advanced therapy cases annually out of 1 million drug-resistant patients in the U.S.

• 50% reimbursement increase for new and replacement procedures is driving patient pipeline growth.

• CORE-VNS real-world study shows 77% median seizure reduction, reshaping perceptions and care pathways.

• Next-generation Bluetooth-enabled device with remote titration launches next year, reducing patient burden and improving access.

• Guidance for epilepsy business raised to 7–8% growth, supported by pricing, new patient growth, and strong international performance.