MDxHealth (MDXH) Piper Sandler 36th Annual Healthcare Conference summary

Market trends and growth drivers

• Diagnostic test volumes have rebounded post-pandemic, with a backlog of patients returning and prostate cancer rates expected to rise due to an aging population and pandemic effects.

• Organic growth above 20% is attributed to market recovery, menu expansion, and effective commercial execution, with a particular focus on tissue-based tests following a key acquisition.

• Both tissue and liquid test segments are growing, but commercial emphasis is on tissue due to higher pricing and proprietary positioning.

• Growth is supported by strong sales team performance and managed care efforts, with high confidence in continued sustainable expansion.

• The main competitive challenge is changing entrenched physician behaviors rather than direct competition from other products.

Commercial strategy and operational execution

• Sales incentives are structured to drive desired behaviors, with annual quota resets and no cap on compensation, supporting sustainable growth.

• Sales rep productivity has doubled over two years, reducing the need for headcount expansion and enabling scalable growth.

• Peer-to-peer selling and Medical Science Liaisons are leveraged to drive clinical adoption and support the sales force.

• Expansion of the sales team is considered only if demand outpaces current coverage, focusing on servicing the base rather than driving growth.

• Forecasting improvements and business predictability have been achieved, with Q4 guidance reflecting seasonality and business day effects.

Product portfolio and future opportunities

• Menu expansion includes tissue and liquid tests, with Germline expected to contribute to revenue next year but not required for 20% growth.

• Adjacent opportunities in bladder and kidney cancer are being evaluated, with urology as the core channel; no additional internal capabilities are needed for these expansions.

• Coverage is a prerequisite for entering new test categories, with regulatory and payer diligence seen as key de-risking steps.

• The company’s laboratory operations are fully integrated and flexible, supporting both current and potential future test types.

• Menu expansion is seen as a credible way to address a $5 billion total addressable market, with significant runway remaining.