Merit Medical Systems (MMSI) Wells Fargo 21st Annual Healthcare Conference summary

Leadership transition and strategic planning

• Smooth transition from founder-led to new leadership, maintaining consistent performance and focus on quarterly delivery.

• Strategic planning process is nearing completion, with a rigorous review of product platforms and global opportunities.

• Results of the new long-range plan will be shared with shareholders by the Q4 call in February at the latest.

• All product platforms are under review, with no areas considered untouchable, fostering healthy debate and potential changes.

• Emphasis on evolving systems and processes to support maturation and scalability.

Financial performance and guidance

• Achieved 9% growth in Q2 and expects 7%-7.5% organic constant currency growth for the year.

• Operating margin guidance is 21%-21.5%, with EPS growth projected at 11%-14%.

• Guidance approach remains conservative, pushing through first-half beats and maintaining flexibility for uncertainties.

• Long-range plans have targeted 5%-7% CAGR, with recent improvements adding 950 basis points to operating margin.

• No commitment yet on future margin growth, but leadership remains confident in continued improvement.

Market and product insights

• Procedure volumes remain robust globally, with no signs of softness in the U.S. or Europe.

• Embolic business in Europe is growing rapidly, driven by interest in GAE and PAE procedures, with an $80 million business size.

• Oncology platform expanded with the launch of OneMark, complementing SCOUT and expected to triple or quadruple the addressable market.

• OneMark launch targets $14-$16 million in sales next year, covering both capital and consumables.

• OEM segment is expected to deliver mid to high single-digit annual growth, despite inherent lumpiness.