Matt Taylor

Matt Taylor asked about Neuraceq's strong Q4 performance and the guidance for 'at least triple-digit growth' in 2026. He questioned why the growth projection wasn't higher, considering the current market momentum and sequential growth observed in Alzheimer's therapeutics.

Answer

Mary Anne Heino (Executive Chairperson and Interim CEO, Lantheus) clarified that Neuraceq was acquired mid-last year with 16 PMF sites, and they plan to add six more in 2026 to broaden its geographic footprint. She noted that growth will also come from deeper penetration in existing accounts and leveraging relationships with PYLARIFY customers. Robert Marshall (CFO and Treasurer, Lantheus) further specified that 'triple digits' refers to an inorganic growth range of 140%-150% off a strong Q4, which was the first full quarter with the asset.

Matt Taylor questioned why Neuraceq's projected triple-digit growth for 2026 couldn't be higher, considering its strong Q4 performance and the sequential growth observed in Alzheimer's disease-modifying therapeutics.

Answer

Mary Anne Heino (Executive Chairperson and Interim CEO) clarified that the triple-digit growth is considered strong, attributing the forecast to the need to expand Neuraceq's manufacturing footprint (PMF sites) from 16 at acquisition to a broader geographic network. She also highlighted opportunities to deepen penetration in existing accounts and leverage relationships with other Lantheus products. Robert Marshall (CFO and Treasurer) added that 'triple digits' refers to an inorganic growth range of 140-150% off a strong Q4 base.

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 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 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 for a more detailed explanation of how the pharmacy shift will impact Tandem Diabetes Care's P&L and sales growth in 2027 and 2028, given the ongoing transition over the next few years.

Answer

EVP and CFO Leigh Vosseller explained that while 2026 will experience headwinds, future years will see tailwinds. For each PayGo customer, supply reimbursement will be more than four times that of DME, building a base of higher-revenue customers. Additionally, transitioning the existing installed base of over 300,000 customers from DME to pharmacy will provide immediate revenue appreciation. She emphasized that despite near-term revenue moderation, the demonstrated margin expansion in 2026 indicates stronger financial performance in the coming years.

Matt Taylor asked for a high-level explanation of how the pharmacy shift is expected to impact the P&L and sales growth in 2027 and 2028, given that the shift will continue over the next few years.

Answer

EVP and CFO Leigh Vosseller explained that while 2026 sees headwinds, future years will benefit significantly. For every pay-as-you-go customer, supply reimbursement will be more than four times that of DME, creating a revenue tailwind. Additionally, converting the existing installed base of over 300,000 customers from DME to pharmacy will provide an immediate appreciation in revenue. She emphasized that despite moderated sales growth in 2026, margin expansion is still expected, demonstrating the power of this shift for future years.

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.

Matt Taylor of Jefferies followed up on capital allocation and TAVR, asking why Medtronic chose to invest in Anteris rather than acquiring the entire company. He also sought comments on the recently published JACC results for CoreValve, which indicated late catch-up in mortality in the TAVR arm.

Answer

Chairman and CEO Geoff Martha explained the Anteris investment as an opportunity to expand in the structural heart space, particularly into the larger balloon-expandable TAVR market, while maintaining multiple "shots on goal." Regarding the JACC article, he emphasized that it pertained to an old, no longer commercially available CoreValve and an outdated procedural technique, merely reiterating guidance provided in 2020.

Matt Taylor followed up on capital allocation, specifically asking why Medtronic chose to invest in Anteris for TAVR rather than acquiring the entire company. He also requested comments on the longer-term follow-up results for CoreValve, published in JACC, which indicated late catch-up in mortality.

Answer

Chairman and CEO Geoff Martha explained the Anteris investment as an opportunity to expand in the structural heart space, particularly into the larger balloon-expandable TAVR market, potentially as one of multiple shots on goal. Regarding the JACC article, he emphasized that it pertained to an old, no longer commercially available valve and reiterated guidance provided in 2020.

Matt Taylor from Jefferies inquired about Dexcom's long-term vision as a glucose sensing solution, focusing on the potential for growth in existing core markets and the anticipated impact of non-intensive Type 2 coverage over the next 12-24 months.

Answer

Jake Leach, President and CEO of Dexcom, emphasized the early stages of the metabolic health journey, highlighting significant opportunities across Type 1, Type 2 insulin users, and Type 2 non-insulin users due to proven health and financial outcomes. He noted the impending Medicare expansion for Type 2 non-insulin users, potentially adding 12 million people, and the even larger long-term international market opportunity.

Matt Taylor asked about the long-term vision for Dexcom's glucose sensing journey, including the potential for expanded coverage in existing core markets and the upcoming non-intensive Type 2 coverage over the next 12-24 months.

Answer

Jake Leach, President and CEO of Dexcom, emphasized the early stage of metabolic health management, highlighting significant outcomes for all patient segments (Type 1, Type 2 insulin, Type 2 non-insulin). He noted the recent commercial coverage for Type 2 non-insulin users and the impending Medicare expansion, which could provide access to 12 million people. Leach also projected the international opportunity to eventually surpass the U.S. market.

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 asked about the drivers behind the improved TAVR performance in the U.S. over the last couple of quarters, specifically inquiring if it's due to share gains (excluding Boston Scientific's exit), the contribution of EARLY TAVR, or other factors.

Answer

Dan Lippis, Global Leader of TAVR, attributed the growth to compelling clinical and economic data (EARLY TAVR, PARTNER 3/2 durability), which has increased urgency for intentional and proactive treatment of symptomatic AS. He noted that while asymptomatic patients aren't yet coming in waves, there's an increase in echos, referrals, and stress tests. The success of SAPIEN 3 Ultra RESILIA is also a meaningful contributor. Bernard Zovighian, CEO, reiterated that these catalysts, primarily impacting severe symptomatic patients, reinforce confidence in TAVR as a durable growth engine, with asymptomatic patients still representing future opportunity.

Matt Taylor asked for insights into the improved TAVR performance, particularly in the US, over the last couple of quarters. He sought to understand if Edwards was gaining share beyond the Boston Scientific benefit, to what extent Early TAVR contributed, and if other factors were at play.

Answer

CEO Bernard Zovighian and Dan Lippis, Global Leader of TAVR, reiterated that compelling clinical and economic data from Early TAVR, PARTNER 3, and PARTNER 2 are driving a wave of confidence, leading to intentional and urgent treatment of symptomatic AS patients. Lippis clarified that while asymptomatic patients aren't yet seen in waves through claims data (due to NCD limitations), there's an increase in echos, referrals, and a decrease in time from referral to CT. He also highlighted the significant contribution of SAPIEN 3 Ultra RESILIA to performance in Q3 and Q4. Zovighian emphasized that these catalysts, impacting severe symptomatic patients, underpin confidence in TAVR's durable growth, with asymptomatic patients still representing future opportunity.

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.

Matt Taylor asked for insights into the expected quarterly phasing of top-line revenue and margins for 2026, and the financial contribution from the Solaria CO2 and Apex RF launches in 2025. He also sought color on the anticipated contributions from new products in 2026.

Answer

Yair Malca, CFO, indicated that the quarterly distribution for 2026 is expected to be similar to 2025. Moshe Mizrahy, CEO, stated that the Solaria CO2 and Apex RF products contributed approximately $15 million in 2025. For 2026, Mr. Mizrahy detailed two new platforms: a proprietary Morpheus technology combined with Erbium YAG laser, and a Pico laser acquired from a Korean company, both expected to be well-received with intensive marketing.

Matt Taylor inquired about the various puts and takes impacting gross margins for 2026, and also asked for a high-level outlook on the trajectory of gross profit beyond 2026.

Answer

Suky Upadhyay, CFO and EVP of Finance, Operations, and Supply Chain, projected 2026 gross margins in the 70%-71% range, driven down by lower revenue growth, tapering FX hedge gains, price/geographic mix headwinds, and choppy tariffs. He noted SG&A restructuring would offset over half of this decline. Beyond 2026, it's too early to tell, but efficiency, sourcing, low-cost manufacturing, and portfolio rationalization benefits are expected.

Matt Taylor asked for a comprehensive overview of the factors impacting gross margins for 2026, including both positive and negative influences, and sought insight into the expected trajectory of gross profit beyond 2026.

Answer

Suky Upadhyay, CFO and EVP of Finance, Operations, and Supply Chain, Zimmer Biomet, projected 2026 gross margins to be 70-71%, a step down from 2025. Key drivers for the decline include a lower growth profile (volume), tapering FX hedge gains, price and geographic mix headwinds, and choppy tariff impacts. He noted that SG&A restructuring is expected to offset more than half of the gross margin decline. While it's too early to provide a precise outlook beyond 2026, future gross margins will largely depend on volumes and sales levels, with ongoing efforts in efficiency, sourcing improvements, low-cost manufacturing, and portfolio rationalization expected to yield midterm and long-term benefits.

Matt Taylor followed up on the GLP-1 franchise, asking if the potential to reach $1 billion in revenue by the end of the decade remains on track, and for an update on its current status and trajectory.

Answer

Tom Polen, Chairman, CEO and President, confirmed that the GLP-1 franchise is still very much on track to reach the $1 billion target, noting that the company is nearing the halfway point on that journey. He highlighted that future growth will be fueled by new novel molecules coming to market and the broad geographical reach of biosimilars expected in the latter half of the decade.

Matt Taylor followed up on the GLP-1 franchise, asking if the company still believes it can reach $1 billion by the end of the decade, given the signed deals, and inquired about its current status and long-term trajectory.

Answer

Tom Polen, Chairman, CEO and President, confirmed that the company remains on track for the GLP-1 franchise to reach $1 billion by the end of the decade, noting strong double-digit growth and nearing the halfway point of that journey. He emphasized that the pipeline includes new novel molecules and biosimilars, with a broad global biosimilar portfolio providing exposure across varying patent expiries.

Matt Taylor asked about the potential range of outcomes for the Champion trial, specifically if there's a chance of showing superiority on any endpoints, and whether a positive Champion result could boost concomitant procedures in the Option indication.

Answer

CMO Kenneth Stein clarified that the Champion trial's bleeding endpoint is powered for superiority, while the stroke endpoint aims for non-inferiority (as effective as drugs). He believes demonstrating superiority on bleeding, similar to the Option trial, is crucial. He also stated that a positive Champion result would strengthen the current Watchman indication, including Option, and provide increased impetus for referrals, while also sustaining Watchman growth over the long-range plan by developing a new indication.

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 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 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 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 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 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 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 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.

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.