Penumbra (PEN) 2024 Truist Securities MedTech Conference summary

Market and product innovation

• CAVT (Computer-Assisted Vacuum Thrombectomy) technology is transforming clot removal by optimizing safety, speed, and simplicity, with Flash and Bolt products targeting venous and arterial spaces respectively.

• Flash 2.0 continues to drive innovation, making procedures faster and more accessible for a broader range of physicians, supporting democratization of care.

• Adoption curves for Flash and Bolt are accelerating, with significant market share gains in both VTE and arterial segments.

• CAVT penetration remains low in most vascular beds, with substantial growth potential as only about 10% of eligible patients are currently treated, compared to 30% in stroke.

• Ongoing market development and clinical evidence programs are key to expanding access and driving further adoption.

Financial performance and growth drivers

• U.S. thrombectomy is the primary growth engine, with VTE growing above 27%-30%, neurothrombectomy in the teens, and coronary in double digits but below average.

• VTE growth is driven by a larger patient base and higher revenue per procedure, with unit growth being the main contributor in 2024, as price/mix benefits moderate.

• Organic growth in VTE is around 20%, with additional gains expected from market development and share increases.

• Share gains in PE and DVT have been significant since the launch of Flash, with PE share rising from 5% to over 20% and DVT from around 30% to over 50%.

• Competitive responses have intensified, but continued physician adoption and positive outcomes are expected to sustain share gains.

Long-term outlook and strategy

• The company aims to double its business over five years, targeting a 15-16% CAGR, with U.S. thrombectomy as a key driver.

• Sustained growth is expected through a combination of market expansion, share gains, and higher-revenue procedures, with penetration projected to reach about 25% of eligible patients in five years.

• International growth opportunities exist, but are contingent on reimbursement improvements in key markets.

• The long-term vision is to make CAVT accessible to all patients with blood clots, both in the U.S. and globally.

• Ongoing innovation and market access initiatives are central to maintaining leadership and expanding the addressable market.