Managing Director and Senior Research Analyst at Raymond James Financial Inc.
Jayson Bedford is a Managing Director and Senior Research Analyst at Raymond James, specializing in the healthcare sector with a focus on medical devices and life sciences. He covers prominent companies such as DexCom, Boston Scientific, Johnson & Johnson, Abbott Laboratories, Becton Dickinson, and Teleflex, and is ranked #477 out of 9,978 Wall Street analysts, achieving a 63% success rate on 497 stock ratings and an average return of 9.3% per recommendation, with his most profitable call yielding nearly 194% on DexCom. Active since at least 2014 at Raymond James, Bedford previously worked at UBS and Ladenburg Thalmann, building a reputation as a top sector analyst. He holds FINRA registrations and securities licenses required for equity research professionals, underscoring his industry credibility and regulatory compliance.
Jayson Bedford asked for commentary on the utilization rates of Type 2 users compared to Type 1 users, specifically within the Type 2 uptake segment.
Jake Leach, President and Interim CEO, detailed customer utilization rates: AID users >90%, intensive insulin users >85%, basal users 80-85%, and non-insulin Type 2 users ~75%. He noted that Stelo, used by Type 2 non-insulin users without coverage, also shows high utilization.
Jayson Bedford asked about utilization rates within the Type 2 user base compared to Type 1 users, seeking to understand engagement differences across patient segments.
Jake Leach, President and Interim CEO, detailed utilization rates: AID users >90%, intensive insulin users >85%, basal insulin users 80-85%, and non-insulin Type 2 users ~75%. He noted high utilization for Stelo among Type 2 non-insulin users without CGM coverage, highlighting the product's value proposition.
Jayson Bedford from Raymond James Financial, Inc. asked about Stello, questioning if the 2-3% of annual sales guidance still holds and requesting details on the user mix between people with diabetes and wellness users.
EVP & CFO Jereme Sylvain confirmed the 2-3% revenue contribution guidance remains. CEO Kevin Sayer elaborated that the user base has shifted; with expanded G7 reimbursement, the largest Stello user group is now health and wellness consumers, followed by individuals with prediabetes.
Jayson Bedford from Raymond James noted that international revenue was below consensus and asked for color on performance in the segment, including whether it was disproportionately affected by supply dynamics.
CFO Jereme Sylvain acknowledged some choppiness in the international business due to the timing of coverage wins, with some expected wins sliding slightly. However, he highlighted pockets of strength in France and Japan and affirmed that underlying volume demand remains solid and the segment will be a meaningful contributor for the year.
Jayson Bedford sought confirmation of the Stelo revenue contribution guidance and asked about the timing of key growth drivers like the Amazon launch and Oura integration.
CFO Jereme Sylvain confirmed the Stelo guidance of 2-3% of total revenue for 2025. He noted the Amazon storefront launch is expected in Q1. Executive Jacob Leach added that deeper integration with Oura is in progress, with initial releases expected in the first half of the year and continued enhancements to follow.
Jayson Bedford sought clarification on the 'record new user adds,' asking if it was a record for any quarter or just Q3, if it applied to both U.S. and international markets, and if there was any change in patient attrition.
CFO Jereme Sylvain confirmed it was a record for any quarter in the company's history. While not breaking it out geographically, he stated that patient attrition rates have not changed and remain stable within their historical bands for each patient category (intensive, basal, and non-insulin).
Jayson Bedford sought to understand the underlying growth in MedTech, asking for quantification of the net impact of a reserve adjustment and a go-to-market change in the Energy business on the reported 5.7% adjusted operational growth.
CFO Joe Wolk stated that the reserve adjustment mentioned was not considered to have significant materiality and should not impact the overall performance from a moderate to certainly not material perspective.
Jayson Bedford asked for a quantification of the net impact of a reserve adjustment (positive) and a go-to-market change in Energy (negative) on MedTech's 5.7% adjusted operational growth, to gauge underlying growth.
CFO Joe Wolk stated that the adjustment referred to does not have significant materiality and should not impact the overall performance of the MedTech segment.
Jayson Bedford from Raymond James noted that the full-year MedTech guidance of around 5% implies a significant acceleration in Q4 against a tough comp. He asked what specific factors are expected to drive this improvement and sought clarification on the impact of IV solution shortages.
Tim Schmid, Executive VP of MedTech, confirmed the IV shortage impact is currently localized but remains a watch item. He expressed confidence in Q4 acceleration driven by strong momentum in Cardiovascular (Shockwave, Abiomed), significant improvement in the Vision business, which saw double-digit U.S. contact lens growth in Q3, and the benefit of numerous new product launches across the portfolio in a typically strong quarter.
Jayson Bedford of Raymond James Financial inquired about the assumptions for China tariffs, the rationale for lowering the top end of the EBITDA guidance, and the demand profile for the Duo pump and the broader infusion systems market.
CFO Brian Bunnell stated that the guidance assumes current China tariff rates and that the lowered EBITDA outlook is entirely due to tariff impacts. CEO Vivek Jain added that the company aims to provide a realistic forecast. Jain also described a strong demand environment for both consumables and IV systems, noting that the infusion pump market is opportunistic due to aging technology and that new Duo installations are progressing.
Jayson Bedford inquired about the specific drivers for the revenue acceleration in the Consumables segment, the contribution of pricing to its growth, the timing of revenue from the new Plum Duo system, and the geographic breakdown of the new tariff risks.
Executive Vivek Jain attributed the 10% constant currency growth in Consumables to strong performance in oncology, renal, and home infusion markets, along with pricing improvements from GPO contracts. Executive Brian Bonnell added that growth also benefited from an easier comparison to Q1 of the prior year. Vivek Jain clarified that Plum Duo installations are still minimal and expected to ramp up in the second half of the year. Regarding the $25-30 million tariff impact, Jain stressed it should not be annualized and ranked the exposure as: 1) Costa Rica, 2) sourced items from China, and 3) non-USMCA compliant items from Mexico.
Jayson Bedford inquired about the specific drivers behind the strong Q4 growth in the Consumables segment, the baseline 2024 EBITDA margin excluding the IV Solutions business, the expected revenue recognition from IV Solutions in H1 2025 before the JV closes, and the timing of Plum Duo's impact on Infusion Systems growth.
Executive Vivek Jain explained that Consumables growth was broad-based, stemming from new installs, global expansion, and price improvements. Regarding the ex-solutions EBITDA margin, both Vivek Jain and Executive Brian Bonnell indicated it wasn't materially different from the consolidated figure and provided a method for approximation. Vivek Jain noted the IV Solutions market is normalizing, with revenue recognition dependent on the exact Q2 closing date. Brian Bonnell clarified that the Plum Duo pump's impact would be more pronounced in the second half of 2025.
Jayson Bedford inquired about the international business, asking if the strong sequential growth was driven by new geographies and requesting an update on the Omnipod 5 adoption rate within the international customer base.
EVP & CFO Ana Maria Chadwick reported that international Omnipod 5 adoption has now reached approximately 50% of the customer base, up from 40% in the prior quarter. This rapid conversion was a key driver of growth, contributing a low-double-digit positive price/mix benefit in the quarter. She confirmed the growth remains durable across all international markets.
Jayson Bedford of Raymond James Financial inquired about the drivers of the strong sequential growth in the international business, the contribution from new geographies, and the current Omnipod 5 adoption rate within the international patient base.
EVP & CFO Ana Maria Chadwick reported that international Omnipod 5 adoption has reached approximately 50% of the user base, up from 40% in the prior quarter. This rapid conversion drove a significant price-mix benefit, which she quantified as being in the low-double-digits for the quarter. She emphasized that this is contributing to durable growth across both established and newer international markets.
Jayson Bedford from Raymond James sought clarification on the 2025 guidance, asking specifically if the forecast for U.S. new customer start growth includes an assumption of year-over-year growth for new Type 1 users, or if all growth is from Type 2.
President and CEO Jim Hollingshead reiterated that growing in both Type 1 and Type 2 is a "strategic imperative." He highlighted the significant remaining opportunity in the Type 1 market. However, he stated that the company has not provided a specific breakdown of the growth expectations between the two patient populations in its guidance.
Jayson Bedford sought clarification on whether the international utilization uptick was due to stocking and asked how high European Omnipod 5 adoption could reach, given it's at 25% versus 90% in the U.S.
CFO and Treasurer Ana Maria Chadwick confirmed the utilization uptick was not stocking but a natural dynamic of new users placing initial orders. President and CEO Jim Hollingshead expects European adoption to eventually mirror the U.S. but at a slower pace, as many users must wait for their 4-year reimbursement contracts to expire before switching from older products.
Jayson Bedford of Raymond James Financial, Inc. asked for the expected mix between new users and renewals for the full year 2025, given the updated U.S. pump guidance.
EVP, CFO & Treasurer Leigh Vosseller stated that renewals are now expected to be 'a little more than half' of U.S. shipments for the year. She clarified that the primary change in the guidance update was related to expectations for new pump starts, which are now projected to be flat to slightly down year-over-year, compared to a prior assumption of mid-single-digit growth.
Jayson Bedford inquired if the company has observed any early changes in the mix of new users between Type 1 and Type 2 diabetes patients.
CEO John Sheridan stated that it is too early to provide data on the new user mix. He confirmed that sales programs targeting the Type 2 community are underway but expects to share more concrete data on the next earnings call.
Jayson Bedford of Raymond James asked how achieving 20% of covered lives in the pharmacy channel impacts the P&L and the 2025 guidance, specifically regarding revenue growth and margin impact.
Leigh Vosseller, Executive Vice President and Chief Financial Officer, explained that they are in the very early stages of the pharmacy initiative. Consequently, the 2025 guidance only factors in a very modest contribution from this channel in terms of both volume and ASP. She emphasized its long-term strategic importance for overcoming patient affordability issues.
Jayson Bedford requested more details on pump renewal performance during the quarter and whether renewals grew sequentially.
EVP and CFO Leigh Vosseller described renewals as a continued "bright spot," stating that the company is renewing customers at its highest rates ever. She confirmed that the renewal opportunity continues to grow and that Q3 saw "nice growth year-over-year."
Jayson Bedford of Raymond James Financial asked which advanced parameter markets offer the best opportunity for share gains, questioned the reason for the sequential decline in unrecognized contract revenue, and asked for the updated full-year tax rate assumption.
CEO Katie Szyman stated that share gains will be driven by a combination of sales focus and new products, with the order of excitement matching the listed adjacent markets. CFO Micah Young explained the contract revenue decline was due to the timing of revenue recognition from a large OUS tender. He also provided a new full-year non-GAAP tax rate assumption of approximately 23.8%.
Jayson Bedford asked about the weakness in capital equipment sales, its primary drivers, and the outlook for hospital capital spending. He also inquired about the company's ability to take price and whether any disruption from hurricanes was factored into Q4 guidance.
COO Bilal Muhsin and CFO Micah Young attributed the capital weakness primarily to OEM ordering patterns and hospital capital prioritization, with hospitals focusing on larger projects first. They noted the trend is stabilizing. On pricing, Young described it as 'stable to positive,' supported by CPI clauses in contracts, though GPO agreements can create a ceiling. He also confirmed that no disruption from hurricanes is assumed in the Q4 guidance.
Jayson Bedford of Raymond James Financial asked about the primary driver for the sequential improvement in gross margin from Q1 to Q2, the increase in high potential accounts, and sought clarification on comments about potential logistical changes post-BLA.
CFO Lindsey Hartley attributed the gross margin improvement to savings from product costs and a reduction in inventory write-offs. President and CEO Michael Dale clarified that while the number of active high potential accounts grew, they have not yet targeted all 780 identified accounts. He elaborated that the post-BLA logistical change relates to managing 'trunk stock' for unscheduled procedures, a practice unlikely to continue post-approval, requiring a new supply model.
Jayson Bedford of Raymond James asked if maintaining the annual gross margin guidance implies an exit rate above 75% in Q4 and questioned whether business from non-high-potential accounts has significantly declined due to the new strategic focus.
CEO Michael Dale and CFO Nir Naor confirmed that while they expect quarterly gross margin to be higher than Q1, a Q4 rate north of 75% would be too high. Regarding account focus, Michael Dale explained that by definition, business has fallen off in some of the 3,000+ accounts touched in recent years, as resources are now concentrated on high-potential accounts to build recurring revenue, which is a necessary resource allocation decision.
Jayson Bedford of Raymond James inquired about the clinical data strategy for the prostatectomy market, its regulatory pathway, drivers for future gross margin improvement, and whether the impact of new business models was visible in Q4 2024 results.
CEO Michael Dale confirmed prostatectomy fits within the BLA but emphasized that continuous data generation is core to the strategy for all markets. CFO Nir Naor explained that gross margin is currently impacted by higher costs from the new facility, but efficiency improvements and higher capacity utilization are expected to drive future margin expansion post-BLA. Dale added that while the new strategies are showing progress, they are still being implemented.
Jayson Bedford from Raymond James asked about the market launch and uptake of the new Avive+ Soft Tissue Matrix and its contribution to Q3 results. He also questioned if gross margin is expected to trend higher and requested an update on production from the new APC facility.
CEO Michael Dale noted that Avive+ has been received favorably and supply is improving. CFO Nir Naor addressed gross margin, stating Q2 was likely the trough. He explained that while the higher-cost APC facility pressures margins, this is being offset by process improvements and higher utilization, which is expected to be the prevalent trend going forward.
Jayson Bedford of Raymond James Financial requested a growth breakdown between the core business (RemainCo) and the assets being separated (NewCo). He also asked about the sustainability of the strong 19.3% growth seen in the Interventional segment during the quarter.
CEO Liam Kelly confirmed that the full-year growth outlook for RemainCo is unchanged at 'upper 5s'. He explained that the Interventional segment's strong performance was driven by OnControl and complex catheters, in addition to balloon pumps, and reiterated the full-year expectation for the segment to grow in the high-single to low-double-digit range.
Jayson Bedford of Raymond James questioned whether Teleflex would consider selling pieces of 'NewCo' given the significant third-party interest, and asked for clarification on the timing of the $55 million tariff impact.
CEO Liam Kelly stated that the company is open to all options, including selling parts of NewCo, with the guiding principle of maximizing shareholder value. CFO John Deren clarified that the P&L impact from tariffs will begin in Q3 and be more heavily weighted to Q4 2025 as costs flow through inventory.
Jayson Bedford asked why CEO Liam Kelly is staying with RemainCo and whether the company explored an outright sale of business units instead of a spin-off.
CEO Liam Kelly stated the Board requested he lead RemainCo to oversee the separation and drive its high-growth strategy. Regarding strategic alternatives, Kelly explained that while a tax-free spin-off is the current plan to unlock shareholder value, the company remains open to a sale if such an opportunity were to create more value for shareholders.
Jayson Bedford sought to clarify the financial impact of the OEM business dynamics, asking for the annual revenue level of the lost customer. He also asked if the intra-aortic balloon pump opportunity contributed to results in Q3 and if underlying assumptions for Q4 had changed.
Liam Kelly, Chairman, President and CEO, specified that the full-year impact from the OEM issues is approximately $14 million, with $7 million realized in Q3 and another $7 million expected in Q4. He confirmed there was no material revenue contribution from the balloon pump opportunity in Q3, which was in line with expectations, and that the outlook for a significant Q4 contribution remains unchanged.
Jayson Bedford of Raymond James asked why the company is optimistic about securing a TPT payment after being rejected for an APC assignment for Rhapsody. He also inquired about the drivers behind the 6% sales decline in China, asking if it was due to competition or general demand.
CFO Raul Parra explained the key difference: APC is procedure-based, whereas TPT is cost-based and specifically acknowledges the novelty and performance of the product itself. Regarding China, Parra attributed the softness to the broader macro environment rather than a specific competitive pressure, reaffirming their expectation for low single-digit growth in the APAC region for the full year.
Jayson Bedford asked if tariff mitigation involves new or accelerated initiatives, what drove the recent step-up in underlying gross margin, and if the U.S. WRAPSODY launch is creating a halo effect internationally.
EVP and CFO Raul Parra clarified that mitigation relies on executing their existing CGI plan and attributed the gross margin improvement to the compounding effect of these long-term efforts, not a single inflection point. Chairman and CEO Fred Lampropoulos noted that the growing body of positive clinical data for WRAPSODY is beneficial for all global markets.
Jayson Bedford of Raymond James asked if there were any one-time items in the strong Q4 gross margin, what integration steps remain for the Cook and EGS acquisitions, and if any notable SKU rationalization is planned for 2025.
Executive Raul Parra confirmed the Q4 gross margin strength was due to solid execution with no one-time items. He noted EGS is fully integrated, with the focus now on the newly combined sales force. The Cook integration continues under a TSA for manufacturing. Executives Fred Lampropoulos and Raul Parra stated that while SKU rationalization is an ongoing process, no large-scale programs like the prior year's pack business initiative are planned for 2025.
Jayson Bedford of Raymond James asked if the positive WAVE trial data for WRAPSODY has increased commercial traction in Europe. He also questioned the drivers behind the Q4 organic growth guidance of 3-4%, noting it represents a tougher comparison.
Executive Joseph Wright responded that while the data was well-received at the CIRSI conference in Lisbon, it is too early to see a definitive impact on European traction. Executive Raul Parra addressed the Q4 guidance, stating it aligns with prior expectations and primarily accounts for softer OEM sales due to supply chain challenges and potential disruption from the Baxter IV issue, while emphasizing overall confidence in the full-year performance.
Jayson Bedford of Raymond James asked a series of clarifying questions: whether China accounts for roughly half of the $22 million tariff impact, if there were any other significant changes to segment-level guidance beyond private label, and what the expected Q2 revenue impact is from Integra Skin and private label components.
CFO Lea Knight confirmed that for 2025, China directionally accounts for close to half of the tariff impact. She stated there were no other notable segment-level changes to the guidance. For Q2, she clarified that Integra Skin revenue is expected to pick up, while the recovery in private label is not expected until Q3.
Jayson Bedford asked for quantification of the Q4 private label revenue impact, confirmation of the ship hold assumptions in the 2025 guidance, and an update on the timeline for the Braintree facility.
CFO Lea Knight quantified the Q4 private label impact at approximately $5 million and confirmed the guidance structure for ship holds was understood correctly. CEO Mojdeh Poul stated the Braintree facility remains on track to resume production in the first half of 2026, with construction complete and equipment qualification underway.
Jayson Bedford of Raymond James asked if the $50 million H2 2024 ERP impact was lost business or if recoupment is in the 2025 guide, and when the Oxford Cementless Knee would be in full launch.
President and CEO Ivan Tornos stated that the Oxford Cementless Knee will be in full launch mode in the second half of 2025, following extensive surgeon training in the first half. Regarding the ERP impact, he explained it was a mix of some lost business in areas like surgical, while other impacts in recon were likely delays. He noted it was difficult to quantify the exact amount of recoupment.
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