Penumbra (PEN) 2024 Wells Fargo Healthcare Conference summary

Strategic growth outlook

• Focus on expanding access to mechanical thrombectomy for nearly a million untreated patients in stroke and peripheral vascular beds over the coming years.

• Emphasis on executing strategies to drive substantive growth beyond just hitting revenue milestones.

• Recent headwinds, such as China and CE Mark delays, are expected to be resolved, setting up a different growth trajectory next year.

• SKU exits and market withdrawals have created a different comparison base for future growth.

• Underlying embolization and access businesses remain strong, but thrombectomy is the primary growth focus.

Product innovation and competitive positioning

• Launched two major products in the past year, with strong physician feedback on speed and safety, especially for Flash 2.0.

• New products are planned, including one targeting below-the-knee vascular beds this year, with others in peripheral applications.

• CAVT technology is being extended to new vascular beds and patient populations.

• Thunderbolt in neuro uses modulated aspiration, not cyclical, and leverages proven technology from Lightning Bolt 7.

• Large bore catheters from competitors are seen as less viable due to anatomical limitations and aspiration science.

Market dynamics and clinical evidence

• U.S. vascular thrombectomy business grew mid-20%, with venous and arterial segments in the high 20s% and coronary in low double digits.

• Share gains in DVT have outpaced PE, but progress is being made in PE with Lightning Flash 2.0.

• Market share growth is not linear and depends on physician adoption, which is expected to accelerate as more try the new products.

• Ongoing and upcoming randomized controlled trials, especially in PE, may drive future market inflection points.

• Early hospital system feedback on health economics and clinical outcomes is highly positive, supporting broader adoption.