Jon Young

Jon Young asked about the drivers behind the raised guidance, specifically inquiring if mechanical thrombectomy and NanoKnife segments are the primary contributors, and sought color on the growth cadence between these two, especially with NanoKnife's prostate reimbursement coming online. He also asked for details on NanoKnife disposable revenue, prostate's contribution, any stocking, and relevant KPIs.

Answer

CFO Steve Trowbridge confirmed that the raised guidance is primarily driven by mechanical thrombectomy and NanoKnife. He noted Auryon's continued strong performance but highlighted the sustained growth in both AngioVac and AlphaVac. For NanoKnife, he emphasized its importance as a short, medium, and long-term growth driver, acknowledging the upcoming CPT-1 code but not expecting an immediate 'hockey stick' effect. He clarified that the growth in NanoKnife disposable and capital sales is largely attributable to the prostate initiative and increased urology community awareness, and did not indicate significant one-time stocking.

Jon Young with Canaccord Genuity Corp. inquired about AngioDynamics' updated guidance, specifically if the increased med-tech outlook is primarily driven by mechanical thrombectomy and NanoKnife, and the expected growth cadence for these segments, particularly with the upcoming CPT-1 reimbursement code for NanoKnife prostate treatments. He also asked for color on NanoKnife disposable revenue, the contribution from prostate, and any stocking trends or key performance indicators.

Answer

CFO Steve Trowbridge confirmed that the raised guidance for med-tech is largely due to strong performance in mechanical thrombectomy (AngioVac and AlphaVac) and NanoKnife, noting Auryon's continued solid contribution. He emphasized NanoKnife as a long-term growth driver, acknowledging the CPT-1 code's impact won't be immediate but expressed satisfaction with increasing urology interest. Regarding NanoKnife disposables, Steve Trowbridge clarified that growth is primarily from the prostate initiative and increased urology awareness, with no unusual stocking patterns observed.

Jon Young of Canaccord Genuity Group Inc. inquired about the regulatory pathway for the AlphaVac blood return product, whether the current product is facing a revenue ceiling, and if the MedTech guidance anticipates a significant inflection for NanoKnife after its new reimbursement code becomes effective in January 2026.

Answer

President and CEO Jim Clemmer explained that the AlphaVac blood return feature is an ancillary add-on requiring a 510(k) process, with discussions ongoing with the FDA. He asserted that AlphaVac is not hitting a revenue ceiling, citing growing hospital approvals and synergistic selling with AngioVac, and expects continued sequential growth. EVP and CFO Steve Trowbridge added that while NanoKnife growth will accelerate with reimbursement, it will not be an immediate "light switch" but a more gradual ramp in the second half of the fiscal year.

Jon Young inquired about the pricing assumptions factored into the gross margin guidance and the company's ability to raise prices. He followed up by asking how quickly tariff-related price increases could be implemented given customer contract structures.

Answer

CFO Scott Blumberg stated the current margin guidance does not assume any new price increases, though he noted customers have been receptive to past increases due to the value delivered. He explained that since contracts are typically annual and expire on a rolling basis, any price changes would be implemented gradually as individual contracts come up for renewal.

Jon Young inquired about the pricing assumptions factored into the gross margin commentary and asked about Ceribell's ability to raise prices in the current macroeconomic environment, including how receptive hospitals have been.

Answer

CFO Scott Blumberg clarified that the current gross margin guidance does not assume any changes in pricing policy or any new tariff-related price increases. He noted that customers have been receptive to appropriate price increases in the past due to the value Ceribell delivers. He also mentioned that contracts are typically for one to two years and expire on a rolling basis, governing the timing of any price adjustments.