Growth Guidance and Outlook
Q: What accelerates growth profile from here?
A: Liam highlighted that despite midpoint guidance of 4.25% growth, underlying organic growth is 4.75% to 5.75% after adjusting for a 1% headwind from MSA and Palette acquisitions. He expressed bullishness about the company's prospects, pointing to strong performances in OEM, Interventional Access, and Surgical, and double-digit growth in EMEA (9.7%) and APAC.

Margin Expansion Opportunities
Q: How can margins expand in 2025?
A: Liam emphasized that margin expansion starts with gross margins, aiming for a 100 basis point expansion at the midpoint this year. Catalysts include continuous improvement programs, positive pricing, Palette ramping up, and the MSA headwind ending in 2025. He is confident in driving both growth and operating leverage, targeting 10% EPS growth.

Gross Margin Expectations
Q: What pressures gross margin over next quarters?
A: Tom noted that aside from inflationary pressures and some FX effects, there's nothing necessarily pressuring gross margins. They had a solid start and feel good about achieving the full-year guidance.

Interventional Business Growth
Q: Is Interventional growth sustainable and a focus for M&A?
A: Liam stated that Interventional can maintain growth above Teleflex's average, highlighting products like MANTA and upcoming launches like Wattson. The cath lab is a key area of focus for M&A, and they've invested heavily in R&D.

M&A Strategy
Q: What's your M&A strategy and deal sizes?
A: Liam said they focus on tuck-in and scale transactions, ranging from tens to hundreds of millions in revenue. They have financial firepower with 1.7x leverage. Multiples have tempered, indicating a healthy environment for disciplined M&A.

Americas Performance Factors
Q: Why was Americas revenue down?
A: The decline was due to the MSA, which was all booked in the Americas. Excluding MSA, growth would have been around 3.5%. The Endurance recall also impacted results; both factors will anniversary as the year progresses.

Full-Year Guidance Decision
Q: Why not raise full-year guide despite Q1 beat?
A: Liam mentioned it's only Q1, and some OEM orders were pulled into Q1 from Q2. They updated for FX and will monitor the situation but feel bullish about performance.

Urology Segment Performance
Q: Is UroLift performance aligned with plans?
A: Liam expects Interventional Urology to deliver 7.5% growth in 2024, including Palette revenue of $66–$68 million, offsetting declines in UroLift. UroLift was impacted by declines in office procedures and sales force cross-training, with improvement expected as training completes.

OEM Performance and Outlook
Q: Should we expect OEM growth to normalize?
A: Liam anticipates double-digit OEM growth for the year but expects a slight step back in Q2 due to order phasing. Demand is robust, with strong order banks, especially in microcatheters and catheter extrusions.

Palette Growth Drivers
Q: What drives Palette's growth?
A: Growth is mainly from market expansion, not share shift. The product is well-received, and additional reps will be trained and active by Q3. An expanded indications study for Barrigel is underway.

Q2 Guidance Explanation
Q: What explains lower Q2 guidance?
A: The $760–$765 million guidance is impacted by about $6 million of FX and OEM orders pulled into Q1. The MSA was slightly higher in Q2 last year, affecting comparisons.

Vascular Access Performance
Q: Comment on Vascular Access performance and outlook.
A: The Endurance recall impacted Vascular Access in Q1; they will anniversary that in Q2. Expect improvement through the year, with solid PICC and CVC growth.

Titan Bariatric Device Growth
Q: Outlook for Titan's contribution to growth?
A: The addition of buttress, used by 60% of surgeons, has been well received. Despite gastric sleeve procedures down 10–15%, Titan met expectations and will contribute to growth.

Upcoming Clinical Data Impact
Q: Impact of upcoming CLEAR trial data?
A: Liam expects the CLEAR trial comparing UroLift to Rezum to aid providers and patients in understanding postoperative experiences. Additional studies on retreatment rates and complications will strengthen their position.

Earnings Guidance Approach
Q: Why the conservative earnings guidance?
A: Tom explained they raised the lower end by $0.09, with $0.04 offset by FX. They feel good about the results and full-year guidance but will monitor the situation.

Urology Training and Integration
Q: How is Urology sales force training going?
A: Training is progressing well; about 40% trained, to be completed by end of Q2. The organization will be fully integrated by year-end. There was zero impact on Palette and some impact on UroLift.

Vascular Business Details
Q: Why did Vascular Access come in lighter?
A: The Endurance recall affected Vascular Access in Q1. PICC growth was solid and expected to improve; underlying CVC growth is strong. Improvement is expected as they anniversary the recall.