Samantha Kurtz

Samantha inquired about the drivers of strength in the 'ortho other' category and its growth durability. She also sought more commentary on the supply chain disruption in the medical business and the expected steep rebound in Q4.

Answer

Jason Beach (VP of Finance and Investor Relations, Stryker) attributed the 'ortho other' strength to record Mako installations and business mix, including outright purchases, but cautioned that such high growth is not expected every quarter. He reiterated that medical supply issues would linger, but an acceleration in Q4 is expected to achieve the 10% annual growth target, with October showing a good start.

Samantha Ahn asked about the drivers and durability of the strong performance in the 'ortho other' category and sought more commentary on the supply chain disruption in the Medical business and its expected steep rebound in Q4.

Answer

Jason Beach, Vice President of Finance and Investor Relations, attributed the 'ortho other' strength to record MEKO installations and outright purchases, cautioning that this growth rate is not sustainable every quarter. Regarding Medical, he and Kevin Lobo, Chair and Chief Executive Officer, confirmed lingering supply issues but reiterated expectations for a significant Q4 acceleration to achieve 10% full-year growth, supported by a strong order book.

Samantha Kurtz, on for Matt O'Brien from Piper Sandler, asked about the potential impact of ongoing clinical trials for competing aspiration-based thrombectomy devices on Penumbra's sales growth or the broader market.

Answer

CEO Adam Elsesser stated that the handful of competing trials are not having a real impact on Penumbra's sales, as demonstrated by the strong quarterly results. He suggested that speaking directly with physicians using those products reveals the true story and that these trials do not change Penumbra's strategy or momentum.

Samantha Kurtz, on for Matt O'Brien, requested more detail on the new Bolt 6X and Bolt 12 devices, including the technical differences of the 6X for below-the-knee procedures and the competitive landscape in the arterial market. She also asked about the timing of the THUNDER trial data release.

Answer

CEO Adam Elsesser explained that the Bolt 6X is a smaller 6 French catheter designed to reach more distal arteries and incorporates technology for easier tracking. He characterized the arterial competition as primarily open surgery and lytics, not other mechanical devices, positioning Penumbra's modulated aspiration as a superior technology. He declined to give a specific timeline for the THUNDER data release, pending trial completion.