Dev Naik

Dev Naik from Bank of America inquired about Omnicell's product booking expectations for the Titan XT cycle, specifically how the ramp compares to previous G-Series and XT replacement cycles, considering the maturity of the installed base. He also asked about the need for incremental investments in sales, clinical education, marketing, and support, and the outlook for SG&A spend over the next few years.

Answer

Baird Radford, EVP and CFO, confirmed the estimated $2.5 billion refresh cycle opportunity and noted a broadly similar rollout pace to the XT refresh over 8 years. Randall Lipps, Chairman, President, CEO, and Founder, emphasized that customer excitement is driven by the broader OmniSphere platform capabilities, not just hardware, enabling enterprise-level medication management and new technology solutions. Nnamdi Njoku, EVP and COO, and Baird Radford, EVP and CFO, stated that Omnicell is making targeted investments in the sales force, go-to-market strategies, pricing, packaging, and clinical engagement to capitalize on the market opportunity and support the Titan XT and OmniSphere transition.

Dev Naik asked about Omnicell's product booking expectations for the Titan cycle, comparing its ramp to previous product generations like the G-Series versus XT, and inquired about the company's internal data on placements and pricing over the next few years. Additionally, Dev Naik questioned the need for incremental investments in sales, clinical education, marketing, and support for the Titan cycle and OmniSphere, and how SG&A spend might trend.

Answer

Baird Radford, EVP and CFO, stated that the refresh cycle opportunity is estimated to be in excess of $2.5 billion, with a similar rollout pace over the next 8 years. Randall Lipps, Chairman, President, CEO, and Founder, emphasized that customer excitement is driven by the OmniSphere platform's capabilities for complex organizations, enabling enterprise-level management and new technology solutions, rather than just hardware. Nnamdi Njoku, EVP and COO, confirmed investments in the sales force, go-to-market strategy (pricing, packaging), and clinical field engagement to ensure customers understand the value of new offerings.