Strata Critical Medical (SRTA) 25th Annual Needham Virtual Healthcare Conference summary

Business overview and mission

• Provides end-to-end critical logistics and clinical services for organ transplants, with over 80% of revenue from transplant-related activities.

• Operates the largest air transporter network for organs in the US, using an asset-light model with a mix of owned and third-party aircraft.

• Offers ground logistics and employs licensed transplant surgeons for efficient, cost-effective organ recovery.

• Delivers perfusion services to regional hospitals, enabling smaller centers to perform open-heart surgeries at lower costs.

• Provides a one-call solution, integrating logistics and clinical services for transplant centers and organ procurement organizations.

Industry trends and growth drivers

• The transplant market is highly fragmented, with significant opportunities for organic growth and acquisitions.

• Regulatory changes, such as the shift to national organ distribution and acuity circles, have increased the average distance organs travel and improved matching efficiency.

• Advances in perfusion technology have expanded the pool of viable donor organs, especially from donation after circulatory death (DCD) donors.

• The company has seen over 35% organic growth year-over-year, outpacing the market due to its national footprint and pay-by-the-hour model.

• Uptake of normothermic regional perfusion (NRP) is rising, with 50% of DCD donors using NRP in recent months, supporting above-market growth.

Competitive differentiation and strategy

• Maintains an agnostic approach to third-party preservation and perfusion devices, supporting any technology preferred by customers.

• Flexible, asset-light fleet enables cost-effective, rapid response tailored to each mission, reducing repositioning fees and optimizing resource use.

• Employs only licensed physicians for organ recovery, ensuring high clinical standards.

• National network allows for local deployment of resources, minimizing costs and enabling faster, more efficient organ recovery.

• Focuses on cross-selling logistics and clinical services to existing customers to drive efficiency and cost savings.