Merit Medical Systems (MMSI) CL King's 22nd Annual Best Ideas Conference 2024 summary

WRAPSODY product update and clinical data

• WRAPSODY, a covered stent for dialysis, recently released positive clinical data showing an 89.8% patency rate, outperforming PTA and competitors.

• Additional data releases are planned over the coming months as approval approaches.

• The product is currently sold in Europe and parts of the Americas, with expectations that new data will accelerate international revenues.

• PMA approval is anticipated in Q1 2025, with commercial launch preparations underway.

• Reimbursement strategies under consideration include existing codes, NTAP, and unique code creation.

Commercial infrastructure and competitive positioning

• Sales force expansion and training are ongoing to support WRAPSODY’s launch.

• Recent acquisitions have strengthened the team and product portfolio for cross-selling.

• Main competitors are BD and Gore, with WRAPSODY data seen as potentially changing the standard of care.

• WRAPSODY is expected to be accretive to margins and is not yet included in current growth plans.

• Commercial opportunity details will be shared closer to approval for competitive reasons.

Business segment performance and growth drivers

• Peripheral interventions delivered 7.6% organic growth, driven by oncology, access, embolics, and biopsy devices.

• Cardiac interventions grew 1.5%, impacted by China and Russia, but expected to normalize to 4-5% growth.

• OEM business rebounded from a Q1 dip and is expected to deliver strong growth in the second half.

• Endoscopy segment nearly doubled revenue with the EndoGastric Solutions acquisition, with cross-selling expected to boost growth.