Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Xvivo Perfusion AB (XVIPF, Financial) reported a 41% organic growth in sales for Q3 2024, with sales reaching 191 million SEK.
- The company achieved a significant improvement in EBITA, demonstrating scalability in their revenue model.
- The US R trial showed high interest and activity, indicating strong potential for future growth.
- Xvivo Perfusion AB's heart and lung technologies are gaining acceptance, with promising clinical trial results.
- The company has a solid cash position of 450 million SEK, providing a strong financial foundation for future investments.
Negative Points
- Sales from services are lagging behind product sales, despite having a strong service offering.
- The abdominal business area experienced a slowdown in growth, attributed to a slow summer in Southern Europe.
- The company faces challenges in scaling up kidney transport sales in the US due to the need for additional clinical data.
- Reimbursement processes for the heart device in Europe are expected to take time, with variations across different countries.
- The services segment has underperformed, with a decline in volumes and the loss of two high-volume customers in 2023.
Q & A Highlights
Q: How much of the growth in lung and EVLP in the US is attributed to the new allocation system?
A: The new allocation system is a factor, but the growth is also due to increased acceptance of EVLP as a tool to increase transplants. The US Congress's pressure on the transplant system has positively impacted us. We are at an inflection point with high interest and standardized data reading, leading to increased EVLP penetration in the US. Currently, EVLP penetration is around 20% based on available data.
Q: What are the plans for commercial activities in the US and Canada?
A: We are investing heavily in the US and Canada, hiring a skilled marketing team and expanding our presence. We are preparing for market approval in Canada and have seen high interest in our products there. The focus is on building commercial capabilities and capturing market opportunities.
Q: Are there any further adaptations needed for kidney transport to expand in the US?
A: There are no major differences between the US and Europe for kidney transport, but US clinicians want US-specific data. We are building this data and making minor tweaks to fit the US system. Scaling up commercial capabilities and acquiring clinical data are key steps for successful expansion.
Q: What is the timeline for heart device reimbursement in Europe?
A: Reimbursement timelines vary by country. France is typically quick, with an estimated one-year process. We will focus on a few European countries initially, targeting those with available healthcare funds for new technology.
Q: Has there been any notable slowdown in volumes due to recent hurricanes in the US?
A: There have been some cancellations due to hurricanes, but no significant impact on overall transplant numbers in the US.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
