Guidance & China Outlook
Q: Updated guidance and China assumptions?
A: Management noted Q2 revenue exceeded expectations with China declining by only 5% (rather than a forecasted 20% drop) and emphasized strong unit growth alongside stable overall guidance, despite currency headwinds.

Acquisition Integration
Q: How is EndoGastric integration progressing?
A: They are combining the EndoGastric team with their existing Endoscopy force and expect $13–$15 million of additional revenue in H2, which should be accretive to margins and drive cross-selling opportunities.

Free Cash Flow Performance
Q: How is free cash flow trending?
A: The company raised its free cash flow target from $115 million to $130 million for 2024, driven by disciplined inventory management and strong operational execution.

OEM Revenue Growth
Q: Can OEM achieve double-digit growth?
A: After a rebound from a weak start—OEM grew 5% in Q2—management expects a significant second-half ramp, aiming for double-digit growth as market conditions normalize.

Gross Margin Outlook
Q: Are margins sustainable going forward?
A: Management expressed confidence in maintaining gross margins around 51% by leveraging pricing, a favorable revenue mix, and operational efficiencies, supporting steady profitability.

WRAPSODY FDA Status
Q: What is the WRAPSODY FDA timeline?
A: The PMA for WRAPSODY has been submitted and the approval timeline now rests with the FDA, with management affirming that they are prepared for the next steps once feedback is received.

Stent Graft Competition
Q: How will you contend with stent graft rivals?
A: Relying on superior technology and consistent product uptake, management is confident in outcompeting peers like Gore and BD despite pricing pressures in this segment.

Transitional Pass-Through Payment
Q: Will TPT affect breakthrough product pricing?
A: Though the product has breakthrough status that may qualify for TPT, management indicated that detailed pricing strategies will be clarified later, leaving current expectations unchanged.

WAVE Study Presentation
Q: What about upcoming WAVE study data?
A: The six‐month follow-up data from the randomized WAVE study will be presented by physicians at CIRSE, offering external validation; however, specifics remain forthcoming.

Sales Team Impact
Q: How did the acquisition affect the sales force?
A: The EndoGastric acquisition increased the sales team by 50%, bolstering cross-selling potential across the existing customer base, which reinforces integration efforts.

China VBP Impact
Q: How are VBP headwinds impacting China?
A: Despite expected VBP challenges, unit sales growth in China has offset some pricing headwinds, keeping overall growth on track as originally planned.

Renal Therapy Sales Infrastructure
Q: How is WRAPSODY’s sales team set up?
A: A dedicated renal therapy group, already proving effective with complementary products, has been trained extensively on WRAPSODY to ensure a smooth market launch once approved.

International EGS Opportunity
Q: Is international EGS a focus?
A: Although the EndoGastric strategy is primarily U.S.-driven, management is exploring international opportunities in Europe and the Middle East to further expand revenue channels.

Cardiac Ablation Impact
Q: Has PFA ablation affected the cardiac segment?
A: Management noted that the introduction of PFA ablation has not adversely affected the cardiac business, as existing tools support both RF and PFA procedures effectively.

Customer Overlap in EGS
Q: Are EndoGastric customers new or existing?
A: All accounts for the EndoGastric products are existing customers, ensuring familiarity and smoother integration into the current sales framework.