LivaNova (LIVN) Wolfe Research 2024 Healthcare Conference summary

Obstructive sleep apnea device pipeline

• Seven-month data for the OSPREY device showed strong safety and promising efficacy, with expectations for further improvement at 12 months.

• OSPREY demonstrated superior and faster AHI and ODI reductions compared to competitors, with a unique randomized controlled design and inclusion of Triple C patients, expanding potential market reach.

• FDA submission is planned for the first half of 2025, with potential approval in early 2026 and commercial launch thereafter.

• Commercial strategy and portfolio fit for OSA are under evaluation, considering both internal and external options.

• The device offers procedural advantages in speed and ease of use, which may appeal to physicians if clinical outcomes are competitive.

Cardiopulmonary business and innovation

• Cardiopulmonary segment has experienced seven quarters of double-digit growth, driven by increased procedure volumes post-COVID and strong demand for oxygenators.

• Manufacturing capacity has been expanded by 10% this year, with plans for further increases and a new generation oxygenator in development.

• The next-generation oxygenator aims to be best-in-class, improving key performance parameters and supporting further market share gains.

• The Essenz heart-lung machine launch is expected to support broader commercial efforts and create synergies with oxygenator sales.

Epilepsy segment outlook

• U.S. replacement volumes for epilepsy devices are projected to be flat to low single-digit growth through 2026, reflecting market maturity.

• New patient growth is being driven by improved commercial execution, low procedure penetration, and ongoing digital innovation to enhance patient-physician data exchange.

• Digitalization of the SenTiva platform is a current focus, with no new generation device announced.

• Efforts to secure higher reimbursement (Level 6 payment) continue, with another petition planned for 2026; current reimbursement status is business as usual.

• U.S. epilepsy revenue growth is expected to benefit from 1%-2% annual price increases.