Penumbra Inc at Truist Securities MedTech Conference Transcript

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

Question: Rich Newitter - Truist Securities - Analyst : Lots to talk about today. But Jason, I thought maybe we'd start a little higher level.

Question: Rich Newitter - Truist Securities - Analyst : Flash and Bolt, two signature launches for you over the last several years or two years now. And the launches seem to be going well. They have been accelerating the venous growth rate for the company. Maybe tell us a little bit about where you are in each of those adoption curves and the evolution of those markets and where you see this CAVT category going, that you're effectively creating over the next several years.

Question: Rich Newitter - Truist Securities - Analyst : You've been pretty prescriptive on kind of the top-line guidance for '24, especially for the US thrombectomy piece of business. That's the growth engine. The three main components -- you've got VTE, as you said, that's going above the 27% to 30% range for the US thrombectomy growth guide. You've got US neurothrombectomy. You've said that's lower than the average there, right?

Question: Rich Newitter - Truist Securities - Analyst : I was going to say that in a second -- that was above trend. But I think the algorithm for the year was that would be a little lower. And maybe correct me if I'm wrong. And then you've got coronary which is well below the average kind of there. Is that --

Question: Rich Newitter - Truist Securities - Analyst : US neurothrombectomy, we model a teen's growth rate for the year. We model US venous well above 40%, 50% range.

Question: Rich Newitter - Truist Securities - Analyst : Smaller base too, right? Smaller base, too. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:05PM, PEN.N - Penumbra Inc at Truist Securities MedTech Conference

Question: Rich Newitter - Truist Securities - Analyst : So I guess, the question there is, should we be thinking about those growth components fairly linearly throughout the year in 2024? Are there going to be puts and takes -- maybe venous is going to be way, way higher, and US thrombectomy comes down for quarter. You did 27% last quarter.

Question: Rich Newitter - Truist Securities - Analyst : That doesn't -- you have a tougher comp in 2Q.

Question: Rich Newitter - Truist Securities - Analyst : Then maybe just thinking about the components of growth to get to the 27% to 30%, it's going to differ by each one of those sub-segments. But help us think through kind of the unit contribution versus price and then also mix. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:05PM, PEN.N - Penumbra Inc at Truist Securities MedTech Conference Because I think people are confused over -- you're going to be anniversarying the first year of launch, right? And you have some tough comps coming in 2Q, 3Q, 4Q.

Question: Rich Newitter - Truist Securities - Analyst : So how much price mix was in there that you have to overcome as we move through the rest of '24 to get people confident that this isn't just about a one-time launch?

Question: Rich Newitter - Truist Securities - Analyst : And I guess -- so that kind of go -- what's your estimate in VTE? What's your estimate of the underlying US market growth rate?

Question: Rich Newitter - Truist Securities - Analyst : So just to be clear, what you're referring to as organic in that sense is what the market does without you (multiple speakers) --

Question: Rich Newitter - Truist Securities - Analyst : (multiple speakers) to do it.

Question: Rich Newitter - Truist Securities - Analyst : Okay.

Question: Rich Newitter - Truist Securities - Analyst : So let me just go back. You said that you expect unit growth for venous to actually accelerate in 2024 versus '23. Did I hear that correctly?

Question: Rich Newitter - Truist Securities - Analyst : So what was the -- you were saying that the growth will be more unit dependent than it was last year because you had maybe more mix (multiple speakers) last year.

Question: Rich Newitter - Truist Securities - Analyst : And what's the -- if the market is sustaining 20%, maybe something a little less, how do you sustain a non-price-mix reliant growth algorithm for that business unless the market is accelerating or you're, I guess, accelerating your share gain?

Question: Rich Newitter - Truist Securities - Analyst : I just want to maybe get a better sense for that comment. So you're mentioning the competitive response because it's generating the feedback you would have expected because it's been so successful. Or you're potentially seeing a competitive response that you now need to pivot around in order to drive the share gains you would have hoped to have gotten?

Question: Rich Newitter - Truist Securities - Analyst : Got it. So did you see a step-up since the launch of 2.0 in those competitive sales practices?

Question: Rich Newitter - Truist Securities - Analyst : Got it. And I'm just curious, as you contemplated your growth algorithm for venous, knowing the launches you had and knowing all of the competitive response permutations that could have been out there, are things kind of moving along as you would have expected? Or are there competitive responses or things that weren't baked in to your view that (multiple speakers) --?

Question: Rich Newitter - Truist Securities - Analyst : Yeah. Maybe help us think through that longer-term growth trajectory, both at a total company level and how venous fits in within that. What's the -- we're all wondering what the sustainable top-line growth profile is. Is it 15%-plus, 10%, 25%, 50%? Whatever it might be, can you help us think through the end markets that you're going -- moving new products into, what they have to grow at to get to some what sounds like 15%, 20% just to take where your '24 guide is within that range? How do you sustain that level of growth? You have increasing competition to consider in both US neurothrombectomy and venous as we move '25, '26. How do we think through that algorithm? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:05PM, PEN.N - Penumbra Inc at Truist Securities MedTech Conference

Question: Rich Newitter - Truist Securities - Analyst : Yeah.

Question: Rich Newitter - Truist Securities - Analyst : Slower than '24 levels.

Question: Rich Newitter - Truist Securities - Analyst : Today.

Question: Rich Newitter - Truist Securities - Analyst : That's the bridge.

Question: Rich Newitter - Truist Securities - Analyst : Nothing else, just the implied math between --

Question: Rich Newitter - Truist Securities - Analyst : Right, on a unit basis.

Question: Rich Newitter - Truist Securities - Analyst : I want to make sure I have the components there. What you were describing was, A, if you assume no share increases between '23 and '28, just the market supporting that growth, you're participating in them with your position now. And then you would layer on the mix benefit --

Question: Rich Newitter - Truist Securities - Analyst : And share gains on top of that, you bridge from call it 10% to the 15%.

Question: Rich Newitter - Truist Securities - Analyst : It will be even higher than 15%.

Question: Rich Newitter - Truist Securities - Analyst : Got it.

Question: Rich Newitter - Truist Securities - Analyst : That wasn't including international CAVT launch.

Question: Rich Newitter - Truist Securities - Analyst : Held those constant. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:05PM, PEN.N - Penumbra Inc at Truist Securities MedTech Conference

Question: Rich Newitter - Truist Securities - Analyst : Right.

Question: Rich Newitter - Truist Securities - Analyst : But there could be an opportunity for that to be higher if (multiple speakers) --

Question: Rich Newitter - Truist Securities - Analyst : Yes. Got it. I think we're at the time marker here, but a really interesting discussion.

Question: Rich Newitter - Truist Securities - Analyst : You did not. I have two more pages, but that's okay. Thank you very much to both of you for participating, and it was great. Thank you.