Matt Taylor

Matt Taylor asked if ResMed has quantified the tailwind from GLP-1s on the patient funnel and business growth, and how materially it impacts current or future growth rates.

Answer

CEO Mick Farrell acknowledged that the company is internally working to quantify the impact, leveraging macro data and insights from 11 million myAir users. He stated that while it is a contributor, they are not yet ready to publicly release specific quantification but may publish peer-reviewed evidence in the future.

Matt Taylor asked if ResMed could quantify the tailwind effect of GLP-1s on its business growth, both currently and in the future, and the material difference in growth if GLP-1s did not exist.

Answer

CEO Mick Farrell acknowledged that ResMed is working internally to quantify the exact basis points contribution from Big Tech and Big Pharma to growth. He mentioned using myAir data for insights but is not yet ready to publicly release specific numbers, confirming it is a contributor.

Matt Taylor from Jefferies & Company Inc. asked for a summary of the historical impact of competitive bidding on ResMed's business and how that past experience informs the company's view of the current proposal.

Answer

CEO & Chairman Michael Farrell contrasted the past with the present, noting that when competitive bidding began, Medicare rates were significantly above private payer rates, which is no longer the case. He recalled that the HME provider base matured in the last round, leading to stable bids. He characterized the current situation as 'much more benign' and expects ResMed and its customers to navigate it well while advocating for patient access.

Matt Taylor from Jefferies & Company Inc. asked for a summary of the historical impacts of competitive bidding on ResMed's business and how past experience informs the current outlook.

Answer

CEO Michael Farrell noted that unlike in the past, Medicare and private payer rates are now closely aligned, making the situation more benign. He recalled that HME providers bid appropriately in the last round, leading to a stable outcome, and he expects a similar, manageable result this time while ResMed continues to advocate for patient access.

Matt Taylor inquired about the dynamics and outlook for Abbott's diagnostics business in China, particularly concerning the impact of Value-Based Purchasing (VBP) programs, and sought an update on the potential for expanded non-insulin Type 2 CGM coverage in the U.S.

Answer

Chairman and CEO Robert Ford stated that the major impact of VBP in China diagnostics is largely past, with future VBP waves having minimal effect due to Abbott's low market share in those categories. He expects the China diagnostics business to stabilize, contributing to mid-single-digit overall diagnostics growth in 2026, or 7-8% excluding China. Regarding non-insulin Type 2 CGM coverage, Mr. Ford expressed enthusiasm, citing strong support from medical groups and CMS, backed by clinical data. He anticipates 'some sort of language' in H1 2026, followed by comment periods, and emphasized Abbott's readiness for execution, particularly in primary care, viewing it as a significant long-term market opportunity.

Matt Taylor asked for more details on diagnostics dynamics, specifically the outlook for China given VBP headwinds and the performance of the rest of the world. He also inquired about the optimism for non-insulin type 2 diabetes CGM coverage, progress in the process, and potential forms of new coverage.

Answer

CEO Robert Ford indicated that the bulk of VBP impact in China diagnostics has been felt, with future VBP waves having minimal impact on Abbott's market share. He expects the China business to stabilize, while U.S., Latin America, and European diagnostics are capturing market share and growing. Overall, he forecasts mid-single-digit growth for diagnostics this year, or 7-8% excluding China. For diabetes, Mr. Ford expressed enthusiasm for non-insulin type 2 CGM coverage, citing support from ADA and clinical data. He anticipates language in the first half of the year, followed by comment and evaluation periods, and emphasized Abbott's preparedness for execution, particularly in primary care.

Matt Taylor questioned the timing and reasons behind recent significant management changes, including CEO Brian Markison's retirement and Paul Blanchfield's departure, and the search process for a new CEO.

Answer

CEO Brian Markison explained his retirement as a personal decision after achieving his goal of rebuilding the pipeline and positioning the company for growth. He noted Paul Blanchfield's departure for a new opportunity and highlighted Mary Anne Heino's seamless transition as interim CEO while a comprehensive search is underway.

Matt Taylor asked for more details on the significant management changes, specifically Brian Markison's retirement, Paul Blanchfield's departure, the qualities sought in a new CEO, and the expected timeline for the search process.

Answer

Brian Markison, CEO, explained his retirement was a personal decision, noting Paul Blanchfield's move to a new opportunity. He highlighted Mary Anne Heino's seamless interim transition and the comprehensive CEO search led by the lead independent director, aiming for an outstanding individual to lead the company's future.

Matt Taylor of Jefferies & Company Inc. questioned if Lantheus can still achieve its goal of consistent double-digit growth in 2026, considering the current market pressures on its Polarify product.

Answer

CEO Brian Markison affirmed the goal is "certainly achievable." CFO Bob Marshall elaborated that the target relies on a combination of factors, including DEFINITY's return to high single-digit growth, the removal of the SPECT business from the base, and the annualized growth contribution from the newly acquired NeuroSeq product.

Matt Taylor asked about the potential for broader non-insulin Type 2 (NIT2) coverage earlier in 2026, given the 6 million commercial lives already covered, and the mechanisms to achieve this.

Answer

Jake Leach, President and Interim CEO, reiterated that broader NIT2 coverage is a matter of 'when, not if,' citing clear user benefits and cost savings for payers. He highlighted powerful outcomes from a primary care study in Ohio, where CGM use significantly improved A1C targets for non-insulin patients. He stated that timing is hard to predict but Dexcom will be prepared.

Matt Taylor asked about the potential for broader Type 2 non-insulin (NIT2) coverage earlier in 2026, given the 6 million commercial lives already covered and the expected RCT readout, and the mechanism for such early expansion.

Answer

Jake Leach, President and Interim CEO, reiterated that NIT2 coverage is a matter of 'when, not if,' driven by clear user benefits, cost savings for payers, and powerful outcome data from studies like the Ohio primary care trial. He emphasized that while timing is hard to predict, Dexcom will be ready for it.

Matt Taylor of Jefferies & Company Inc. requested an update on the company's progress with the FDA regarding the recent warning letter and the launch outlook for the 15-day G7 sensor.

Answer

President & COO Jacob Leach reported that the company has made fantastic progress in addressing the FDA's concerns with updated processes and documentation. He also confirmed the 15-day G7 sensor will begin its launch in the second half of the year, starting with the 'warrior population' in Q3, followed by a broader rollout.

Matt Taylor from Jefferies Financial Group Inc. asked CEO Andrew Heider for a qualitative description of the potential positive outcomes and range of possibilities over the coming quarters if Baxter's immediate and long-term actions, such as the Growth and Performance System (GPS), prove successful.

Answer

President and CEO Andrew Heider explained that the GPS (Growth and Performance System) is designed to drive continuous improvement and empower business units to monitor and enhance performance. While not providing quantitative guidance beyond Q4, Heider expressed excitement about the future, stating that the business aims to achieve at or above market performance. He highlighted strong early followership for GPS and the team's commitment to unlocking Baxter's full potential.

Matt Taylor asked Andrew Heider to qualitatively describe the range of possibilities and what could go right in the near-term with the immediate actions Baxter is taking, such as the launch of the Growth and Performance System (GPS).

Answer

President and CEO Andrew Heider reiterated the focus on stabilizing the business and driving improvement through the newly launched Growth and Performance System (GPS). He emphasized that the business is aligned to monitoring and improving, and while Q4 guidance is set, future updates will detail what success looks like, aiming for at or above market performance.

Matt Taylor of Jefferies & Company Inc. questioned the path to Nevro's earnings accretion, noting the business was already near EBITDA breakeven in Q2. He also asked if the Enabling Technologies business could still achieve double-digit growth for the full year.

Answer

SVP & CFO Kyle Kline stated that while profitability is good, there is still uncertainty and risk of sales impact as integration continues, making it prudent to maintain the timeline for accretion. President & CEO Keith Pfeil added they are cautiously optimistic but it's early. Regarding Enabling Tech, Pfeil noted that achieving double-digit growth would require 27% growth in the back half, which he deemed possible given the strength of the pipeline.

An analyst on behalf of Matt Taylor from Jefferies inquired about the number of sales reps with expiring guarantees and the profitability of the international spine business.

Answer

President & CEO Dan Scavilla refuted rumors, stating that a very low and manageable number of reps are on contracts and that the company's innovative portfolio allows reps to succeed without guarantees. COO & CFO Keith Pfeil confirmed that the international business can enhance overall profitability, as incremental volume in favorable pricing markets drops more profit to the bottom line.

Matt Taylor from Jefferies & Company Inc. requested an update on the investment status of the China distribution partner and asked for a comparison of the long-term potential between the Mia and Preservay procedures.

Answer

CFO Raj Denhoy acknowledged limited visibility into the partner's investment but noted the distributor is facing challenges in scaling its commercial operations. CEO Peter Caldini described Mia and Preservay as complementary, but projected that Preservay would ultimately be the larger business due to its broader applicability for more patients and surgeons.

Matt Taylor asked about the growth trajectory of the prescriber base, questioning if it could continue to expand significantly or if future growth would come more from increased utilization within the existing prescriber base.

Answer

Ashley McEvoy, Director, President & CEO, responded that there is significant room for growth in both the core Type 1 market and the greenfield Type 2 opportunity. While acknowledging the broader prescriber base for CGMs, she emphasized that Insulet has a long runway for growth, though the path in the new Type 2 market may be non-linear as the company learns and hones its approach.

Matt Taylor of Jefferies & Company Inc. inquired about the growth potential of Insulet's prescriber base, asking if it could approach the levels of CGM companies and whether future growth will come from new prescribers or deeper penetration with existing ones.

Answer

President and CEO Ashley McEvoy highlighted that significant opportunity remains due to low penetration in their core markets and the greenfield opportunity in Type 2 diabetes. She cautioned that growth in the new Type 2 market may not be linear as the company is still in the market creation phase, and indicated more details would be provided at the November 20th Investor Day.

Matt Taylor from Jefferies & Company Inc. asked for more details on the pharmacy channel progress, specifically regarding the Q4 launch of t:slim supplies, potential pricing benefits, and the channel's materiality in 2026.

Answer

EVP, CFO & Treasurer Leigh Vosseller expressed excitement about the pharmacy channel, highlighting its potential to increase volume by lowering patient out-of-pocket costs and to drive revenue and profit through premium pricing over DME. She noted that while currently a small part of the business, they expect to sign more contracts soon and that adding t:slim supplies in Q4 will accelerate the channel's contribution.

Representing Jefferies, Matthew asked for the latest expectations for the Essence launch in China and queried to what extent the raised Cardiopulmonary guidance was driven by this launch versus other factors.

Answer

CEO Vladimir Makatsaria responded that the company is guiding to double-digit growth for the Cardiopulmonary business in the second half of the year. He identified two key factors to watch: the successful rollout of Essence in China while maintaining a price premium, and the continued ability to increase oxygenator output to support ongoing market share gains.

Matt Taylor from Jefferies & Company Inc. asked if Masimo was experiencing similar competitive pressures from generics and reprocessing that a competitor had recently highlighted, and requested color on the performance of product lines beyond pulse oximetry.

Answer

CEO Katie Szyman stated that Masimo has not experienced the same level of pressure from reprocessed sensors as its competitor. CFO Micah Young added that advanced parameter categories like Rainbow, capnography, and brain monitoring are tracking well year-to-date and growing in line with long-range targets, with a more comprehensive update to come at year-end.

Matt Taylor, on behalf of Tycho Peterson at Jefferies, requested more clarity on the magnitude of the Process Chromatography growth, asked about the commercial strategy for the new ddPCR platforms, and inquired about academic demand trends in Europe and Asia.

Answer

Executive VP & CFO Roop Lakkaraju clarified that the year-over-year growth for Process Chromatography was strong but closer to half of the 50% figure suggested. President & COO Jonathan DiVincenzo explained the commercial strategy for the new ddPCR platforms is focused on market expansion, targeting qPCR conversions and high-end applications, rather than replacing the existing installed base. DiVincenzo and Lakkaraju noted that academic funding pressures are a global phenomenon affecting Europe, while China remains soft and Korea and Japan show positive movement.

Matt Taylor of Jefferies & Company Inc. asked for a breakdown of the updated 2025 guidance, seeking clarity on the contributions from tariffs, foreign exchange, and underlying business performance. He also inquired about the organic growth outlook for the newly acquired BioTronic Vascular Intervention business.

Answer

CEO Liam Kelly stated that the BioTronic business is expected to grow at a mid-single-digit rate in the second half of 2025 and 6% or better starting in 2026. CFO John Deren detailed the EPS guidance increase, attributing approximately $0.50 to a reduced tariff impact, about $0.20 to operational outperformance (which also covers any dilution from the acquisition), with foreign exchange, tax, and share count changes largely offsetting each other.

Matt Taylor of Jefferies & Company Inc. asked for more detail on the upcoming innovation pipeline of higher-margin products and sought an updated view on capital allocation priorities, particularly for M&A.

Answer

President & CEO Peter Arduini detailed a significant product refresh over the next 18 months across Ultrasound, Vascular, MR, and CT, including the photon-counting CT system, which he believes will fill portfolio gaps and drive margin expansion. VP & CFO James Saccaro reiterated that organic investment and M&A are top priorities, noting the M&A pipeline is robust and the company opportunistically repurchased $100M in shares during the quarter.

Matt Taylor of Jefferies & Company Inc. asked about the potential market share Edwards could capture from Boston Scientific's TAVR market exit and the likely impact of potential NCD changes, such as a single-operator model, on treatment capacity and volumes.

Answer

Corporate VP Larry Wood stated it was too early to quantify share capture, noting the key challenge is convincing customers to switch from a lower-priced product to Edwards' premium, evidence-backed platform. Regarding the NCD, he explained that reducing operator and facility requirements would significantly improve capacity, but the ultimate impact depends on the specifics of the CMS decision.

Matt Taylor of Jefferies & Company Inc. asked about the potential market share Edwards could capture from Boston Scientific's TAVR exit and the likely impact on procedure volumes if the TAVR NCD requirements were relaxed.

Answer

Larry Wood, Corporate VP of TAVR, explained it was too early to quantify share capture, noting the key variable is whether customers prioritize evidence and quality over the competitor's lower price point. Regarding the NCD, he stated that while the impact is unknown, the trend is toward loosening restrictions, which would improve patient access and capacity.