Penumbra Inc at Piper Sandler Healthcare Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : <_ALACRA_META_ABSTRACT>So maybe, Adam, just to start off with some of these new products, I don't know how much you want to share, but I'm really compelled. We've done a lot of work. Dan was on the team as well. It's done a lot of work on all these new products which you have come in, maybe starting with 2.0, what are you seeing? I know it's we're several quarters in now, but what are you seeing in terms of adoption interest level? Is it building? Is it plateauing? Where are we at with 2.0?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : I kind of want to ask a little bit more about that, and we'll get to that later. So on the blood loss side, what are you seeing in 2.0? And then what kind of progress are you making on the pulmonary (inaudible) side? Because I think 1.0 did really well in DBT like kind of this more greenfield area for you what you're seeing there?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Got it. Okay. Appreciate that. What about just the growth in the market, generally speaking. I mean do we -- are your new technologies enough to accelerate the market? Or do we need all this clinical data from Peerless 1 and 2 and in store, et cetera, from you guys to accelerate this, I can't get over the fact that we leave all these clots in all the time or we use lytic, whatever it will be. What do we need to really see acceleration?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : And the infrastructure is in place with these patients once they're there to go ahead and intervene on was (inaudible) . REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 1:00PM, PEN.N - Penumbra Inc at Piper Sandler Healthcare Conference

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Yes. Got it. What about longer-term penetrate in BVT and PE and we're -- they're still lightly penetrated. Mr. Clean was obviously on the neuro side, a massive accelerant in terms of penetration. Where do you think these penetration rates in BVT and PE can go over time with these studies and with your technology.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Interesting. Okay. Okay.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Yes. That makes sense. What about the competitive side of things is here -- it seems to me there's a lot of differentiation in what a number of cells to the marketplace, but some people will say, "Oh, you just need a more simplistic aspiration product. It does it need to be all that differentiated -- how do you -- what resonates with clinicians where they're not going to switch over to the next thing that comes along? And then how do you keep pricing stable in that type of a dynamic environment?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : We don't go typically backwards in technology.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Okay. All right. So let's flip over to the arterial side and Jason, we've been covering this space -- having watched as a movie credit count for 20 years on the below-the-knee side, clear clinical need, no question. Nothing's really worked, be it stents or drug-coated balloons or sorry, just traditional balloons. What have you guys gotten right to where it's going to work this time?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Got it. How is 6x different than 7x? Is it just the pace of the procedures. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 1:00PM, PEN.N - Penumbra Inc at Piper Sandler Healthcare Conference

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Isn't this a -- do you think this will be a meaningful contributor to growth next year? I know to get ahead of yourself too much, but I mean, we're pretty bold up on it. Is that a fair assessment?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Okay. Understood. Do you get a pricing benefit as you roll out new products? So next generation below-the-knee, that is it going to be higher ASP product?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Okay. All right. Good to hear. Thunderbolts. How are we doing on the progression of getting that product approved where we ask?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Got it. What should we think about in terms of timing, the middle of the year, second half of next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 1:00PM, PEN.N - Penumbra Inc at Piper Sandler Healthcare Conference

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Got it. And not to push too much, but you've been going back and forth with FDA through this whole process. So you've had pretty good conversations with them. So you should have a pretty good sense of what they're looking for? And then hopefully, it will be the 90-day period, maybe a little bit longer for the review cycle.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Okay. What do you think Thunderball is going to do to the market? What is the market? I mean whenever it comes something in '26. I mean it was kind of plateaued, I think in about 30% penetration in there. I mean do you think you can accelerate growth.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Got it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 1:00PM, PEN.N - Penumbra Inc at Piper Sandler Healthcare Conference

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Last product question, what inning are we in, in terms of some of the iterations that you've made to your technologies? And where can these things go over the next several years?

Question: Matt O'Brien - Piper Sandler Companies - Analyst : Okay. And last real quick question. Operating margin is going to outpace gross margin expansion, and I know gross margin is supposed to expand nicely. Where is that leverage coming from? on the operating margin side.

Question: Matt O'Brien - Piper Sandler Companies - Analyst : That good. Okay, so there's that much stimulate. Okay. Got it. Got it. All right. Well, I think we're all out of time, so have to wrap up there. thanks so much. Really appreciate it.