Merit Medical Systems (MMSI) Wells Fargo 2024 Healthcare Conference summary

Leadership and organizational priorities

• New president is focused on executing the long-range plan, talent development, commercial excellence, and gross margin improvement over the next 6–12 months.

• Succession planning is underway, with the board considering both internal and external CEO candidates, aiming for continuity and timely announcement.

• Chairman will shift focus to M&A, legal, and patent matters, enabling the next generation of leaders to take on more responsibility.

Rhapsody product and market outlook

• Six-month pivotal trial data for Rhapsody will be presented soon, with high expectations based on prior results and market standards.

• Reimbursement strategies are being developed, with multiple pathways under consideration and external advisors engaged.

• Commercial rollout leverages existing customer relationships and a dedicated sales force, with training and capacity planning underway.

• Rhapsody is expected to be accretive to gross and operating margins upon approval and launch.

• Product differentiation centers on a unique non-permeable layer, potentially reducing restenosis and offering clinical and economic benefits.

Financial performance and guidance

• Organic growth was 6% in the first half, with some expected seasonal slowing in the second half; guidance remains realistic and achievable.

• China outperformed expectations in Q2 despite ongoing headwinds from volume-based purchasing and anti-corruption initiatives.

• OEM segment is rebounding, with inventory normalization and new deals expected to drive growth in the second half and beyond.

• Gross margin reached 51.5% in Q2, with full-year performance expected to be strong and supportive of long-term targets.