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 a CEO search process involving both internal and external candidates, aiming for continuity and timely announcement.

• Leadership is shifting focus to M&A, legal, and patent issues, while empowering the next generation of management.

Product pipeline and Wrapsody update

• Six-month pivotal WAVE trial data for Wrapsody will be presented soon, with high expectations based on interim results and market comparisons.

• Reimbursement strategies are being developed, with multiple pathways under consideration and ongoing FDA processes.

• Commercial rollout preparations include hiring a dedicated sales force and leveraging established customer relationships.

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

• Product differentiation centers on a unique non-permeable layer to prevent restenosis, targeting dialysis patients.

Market opportunity and competition

• U.S. market for AV recanalization procedures estimated at $1.2 billion, with additional off-label and international opportunities.

• Main competitors are BD and Gore, with Gore as the market leader; company leverages strong customer relationships and experienced staff.

• Pricing strategy is evolving, with a shift from low-end pricing to value-based pricing reflecting product quality.