Q2 2025 LivaNova PLC Earnings Call

Earnings Conference call.

If you'd like to register your questions today's events. Please press star one on your telephone keypad.

Mind you This conference call is being recorded.

I would now like to introduce your host for today's call.

Ms Breanna Courtland, even know if it's vice president of Investor Relations. Please go ahead.

Thank you and welcome back Hunter.

<unk> call and webcast.

Financial results for the second quarter of 2020.

Joining me on today's call of Latino market area, our Chief Executive Officer, and member of the board of directors.

Alex Schwartz, our Chief Financial Officer.

Amit <unk>, our Chief Innovation Officer, Stefanie, Bolton President of global epilepsy, and Zach Glaser director of Investor Relations.

Before we begin I would like to remind you that the discussions during this call will include forward looking statements.

Factors that could cause actual results to differ materially are discussed in the company's most recent filings and documents furnished with the SEC, including today's press release that is available on our website.

We do not undertake to update any forward looking statements.

Also the discussions will include certain non-GAAP financial measures with respect to our performance, including but not limited to revenue result, which will be stated on a constant currency and organic basis.

Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release, which is available on our website. We have also posted a presentation to our website that summarize disappoints of today's call. This presentation is complementary to the other call materials and should be used as an enhanced communication tool.

Can find the presentation and press release in the investors section of our website under news events and presentation at Investor that even though the dot com with that I'll turn the call over to Vlad.

Thank you Brenda and thank you everyone for joining us today welcome to <unk> conference call for the second quarter point to point before it.

In the quarter, leaving over delivered 7% organic revenue growth versus the prior year driven by continued momentum in our cardiopulmonary business.

And solid Neuromodulation performance across all regions.

Our ability to sustain strong organic growth.

It's not only a robust demand, but also disciplined execution across our portfolio.

This execution also contributed a meaningful operating margin expansion and strong cash generation.

Terrible. GAAP financial measures can be found in today's press release, which is available on our website.

Before turning to segment results.

I'd like to highlight how important clinical and regulatory milestones from the quarter.

We have also posted a presentation to our website that summarizes the points of today's call. This presentation is complimentary to the other call materials, and should be used as an enhanced communication tool.

In epilepsy, we announced long term results from the core VNS study the largest real world evidence study of VNS therapy to date.

You can find the presentation and press release in the investor section of our website under news events and presentations at investor.van with that. I'll turn the call over to Black.

The data showed clinically meaningful and durable results demonstrating the effectiveness of VNS therapy in both children and adults with drug resistant epilepsy or vre.

Thank you Brianna. And thank you everyone for joining us today.

Welcome to leave a novice conference call for the second quarter of 2025.

The outcome further validate early and sustained reduction in seizure frequency across multiple seizure types.

In the quarter, leave an over delivered, 10% organic Revenue growth versus the prior year, driven by continued momentum in our cardio pulmonary business.

Including the most severe and disabling season.

And solid neuromodulation performance across all regions.

For example, the <unk>.

36 month data analysis.

The median seizure reduction of 80% in patients with focal.

Our ability to sustain strong organic growth, reflects not only robots demand, but also discipline execution across our portfolio.

Onset seizures with impaired awareness and 95% in those with Oracle to bilateral corn next year.

This execution also contributed to meaningful operating margin extension and strong cash generation.

Before turning to segment results.

These results have been well received by the clinical community.

And I expect it to strengthen the foundation of our epilepsy franchise, while supporting our commercial and educational initiatives going forward.

I'd like to highlight how important clinical and Regulatory Milestones from the quarter.

In difficult to treat depression or DTD.

In epilepsy, we announced long-term results from the corvian study, the largest real world evidence study of VNS therapy to date.

We initiated the process with CMS.

Seek national Medicare coverage for VNS therapy, and unit Paula patients with treatment resistant depression.

The first step in the process with CMS reconsideration was the.

The data shows clinically meaningful and durable results demonstrating. The effectiveness of VNS therapy in both children and adults with drug resistant, epilepsy or Dr.

Submission of a draft formal request.

This request is supported by five peer reviewed publication from the recover study and strong 24 months' outcome demonstrating the durability of VNS therapy in this severely ill patient population and in obstructive sleep apnea or OSA.

The outcomes further validate early and sustained reductions in seizures frequency across multiple seizure types.

Including the most severe and disabling features.

We're advancing the program continues to represent a significant long term growth opportunity fully bundle.

For example, the 36 months data analysis showed a median, seizure reduction of 80% in patients with focal onset. Seizures with impaired, awareness and 95% in those with focal to bilateral, Sonic clonix here.

Our submission with the FDA is progressing.

And we remain confident in the ability of our differentiated.

Stimulation modality called proximal hypoglossal nerve stimulation or P. H GNL.

These results have been well received by the clinical community and I expected to strengthen the foundation of our epilepsy franchise while supporting our commercial and educational initiatives going forward.

This is a new therapeutic modality with the potential to treat a wide range of challenging patients, including those with high apnea Hypopnea Index Hi.

In difficult-to-treat depression, or DTD.

Hi body mass index.

We initiated the process with CMS to seek National Medicare coverage for VNS therapy in unipolar patients with treatment resistant, depression.

And complete concentric collapse.

We're excited for the <unk> to.

We utilized our new therapeutic modality and have a positive impact on patients with sleep apnea.

The first step in the process for CMS reconsideration was the submission of a draft formal request.

These achievements underscore the strength of our team and our ability to execute across clinical regulatory and operational priority.

We remain focused on delivering life changing therapies.

Large patient populations with significant unmet need.

For the remainder of the call I will discuss our second quarter segment results.

This request is supported by 5 peer-reviewed, Publications from the recovery, study and strong, 24 months, outcomes, demonstrating the durability of BNS therapy in the severely ill patient population. And in obstructive sleep, apnea or Osa. Our advancing program continues to represent a significant long-term growth opportunity for Ivanova

our submission with the FDA is progressing.

And updates for our revenue guidance for the full year of 2025.

After my comments, Amit will discuss our recent clinical and regulatory achievements.

And we remain confident in their ability of our differentiated neuro stimulation modality called, proximal hypoglossal nerve stimulation or pH gns.

Alex will then provide additional details on our results and updated 25 guidance.

I will wrap up with closing remarks before moving to Q&A.

This is a new therapeutic modality with the potential to treat a wide range of challenging patients including those with high apnea hypotheses.

Now turning to segment results.

High body mass index and complete concentric collapse.

While the cardiopulmonary segment revenue was $199 million in the quarter, an increase of 13%.

We're excited for the pgms to utilize a new therapeutic modality, and have a positive impact on patients with sleep apnea.

In the second quarter of 2024.

Heart lung machine revenue grew in the low double digits versus the prior year period.

Awesome placements increased on both a year over year and sequential basis and sustained favorable price premium.

These achievements underscore the strength of our team and our ability to execute across clinical, regulatory, and operational priorities.

<unk> revenue grew in the low double digits.

We remain focused on delivering life-changing therapies to large patient, populations with significant unmet needs.

Driven by procedure growth market share gains and price.

For the remainder of the call, I will discuss our second quarter segment result.

Strong demand for oxygen later is outpacing the market the ability to supply.

And updates to our revenue guidance for the full year 2025.

While our manufacturing capacity expansion plans are progressing well and remain on track.

After my comments, Ahmed will discuss our recent clinical and Regulatory achievements.

Third party supply is a limiting factor for even more rapid expansion.

Alex will then provide additional details on our results and updated 2025 guidance.

Our team remains focused on working with suppliers to meet our production.

We now expect cardiopulmonary revenue to grow 12% to 13% for the full year 2025 up from 9% to 10% previously.

Now, turning to segment result.

Our revised forecast assumes continued <unk> growth as we launch in new markets and increased penetration in existing market.

For the cardiopulmonary segment. Revenue was 199 million in the quarter, an increase of 13% versus the second quarter of 2024.

Heart. Lung machine Revenue. Grew in the low double digit versus the prior year period.

Notably, we anticipate launching SM from China in the third quarter, which is our second largest market for HL M. <unk>.

Essence placements. Increased on both a year-over-year and sequential basis and sustained favorable price premium

After the U S.

Oxygenator Revenue grew in the low double digits.

We still expect <unk> to represent approximately 60% of our annual H O M units placements in 2025.

Driven by procedure growth market, share, gains and price.

Up from 40% in 'twenty four.

Strong demand for oxygenators is outpacing. The Market's ability to supply.

Our forecast reflects a robust demand for consumables.

While our manufacturing capacity, extension plans are progressing well, and remain on track.

Turning to epilepsy rare.

Revenue increased 6% versus the second quarter of 2024 with growth across all regions.

Third-party Supply is a limiting factor for even more rapid extension.

Our team remains focused on working with suppliers to meet our production needs.

Apple, what's the revenue Europe and rest of World region.

Inquiries that come by 9% versus the prior year period.

While you asked epilepsy revenue increased 5% year over year.

We now expect cardiopulmonary Revenue to grow 12 to 13% for the full year. 2025 up from 9 to 10 previously.

We are pleased with our strong commercial execution globally.

Specifically in the U S. The field safety notification process was managed very well accompanied by a successful transition will be updated in Cuba January though while also meeting market demand.

our revised forecast assumes continued HLM growth as we launched Essence in new markets and increase penetration in existing markets,

Notably, we anticipate launching Essence in China in the third quarter which is our second largest market for HLM.

After the US.

We fully completed the inventory swap in the U S faster than we anticipated mitigating potential procedure deferrals and recapturing some previously delayed implants.

We expect.

We still expect Essence to represent, approximately 60% of our annual HLM units, placement in 2025 up from 40% in 2024.

David generators to be available for distribution and most other major geographies during the second half of 'twenty five.

Our forecast reflects a robust, demand for consumables.

Regulatory approvals are received for.

For the full year of 2025, we now expect epilepsy revenue growth for the half to five and a half with them.

Turning to epilepsy Revenue. Increased 6% versus the second quarter of 2024 with growth across all regions.

Up from 4% to 5% previously.

Our forecast now incorporate mid single digit growth in the U S.

Epilepsy Revenue in the Europe and rest of world regions. Increase the combined 9% versus the prior year period while us epilepsy Revenue increased, 5% year-over-year

Up from low single digits previously given the faster than expected inventory swap and increased visibility into deferred procedure recapture.

We are pleased with a strong commercial execution globally.

Our outlook assumes the Europe and rest of World region will grow at combined low double digits for the year consistent with our prior guidance.

Specifically in the US the field. Safety identification process was managed very well accompanied by a successful transition to the updated santeva generator. While also meeting market demand.

We continue to see momentum in our global epilepsy business across volume price and mix.

And we feel confident in our ability to achieve mid single digit growth this year.

We fully completed the inventory swap in the U.S. faster than we anticipated, mitigating potential procedure deferrals and recapturing some previously delayed implants.

Looking ahead, we're pleased with the recent CMS recommendation to move end of service or E. O S procedure.

From level, four and for a level five ambulatory payment classification or H D C code.

We expect updated generators to be available for distribution in most other major geographies. During the second half of 2025 as regulatory. Approvals are received

Assigning Eos the level five.

With increased reimbursement support for hospitals, providing VNS therapy to Medicare patients.

for the full year 2025, we now accept epilepsy Revenue growth of 4 and a half, to 5 and a half percent up from 4 to 5 previously,

It was finalized this change would take effect January one 2026.

And provide outpatient facilities with higher reimbursement for VNS therapy, Eos procedures under Medicare.

Our forecasts now incorporates mid single digit growth in the us up from low single digits. Previously, given the faster than expected inventory, Swap and increased visibility into deferred procedure recapture.

The proposed 48% increase in reimbursement for U S procedures would meaningfully improve hospital economics over the lifetime of therapy for <unk>.

Our outlooks assumes the Europe. And rest of world regions will grow a combined, low, double digits for the year consistent with the prior guidance.

Patients with <unk>, leading to a more sustainable financial position for providers.

To establish and maintain a long term VNS therapy practice.

We continue to see momentum in our global epilepsy business, across volume, price, and mix. We feel confident in our ability to achieve mid-single-digit growth this year.

This proposal align with our market access strategy to drive greater VNS therapy adoption, whereas significant clinical unmet need.

Looking ahead, we're pleased with the recent CMS recommendations to move end-of-service (EOS) procedures.

Yeah.

In summary, due to the strong growth was slow in the quarter.

From Level 4 into a level 5, ambulatory payment classification or APC code.

As well as the sustained success for the Athens rollout.

Market share gains in cardiopulmonary consumables.

Commercial execution in epilepsy and pricing strategy.

Assigning EOS to level 5 would increase reimbursement support for hospitals, providing DNS therapy to Medicare patients.

We're raising our overall organic growth.

if finalized, this change would take effect January 1st 2026,

Outlook by 200 basis points to between nine and 10%.

Alex will provide additional details on our 2025 guidance later in the call.

and provide outpatient facilities with higher reimbursements for VNS therapy, EOS procedures on the Medicare,

With that I'll turn the call over to.

To provide an update on our recent clinical and regulatory achievements and epilepsy and D D.

Progress in North Bay, and then opportunities to advance H L M innovation.

The proposed 48% increase in reimbursement for EOS procedures would meaningfully improve hospital economics over the lifetime of therapy for patients with GRE, leading to a more sustainable financial position for providers.

A long-time VNS therapy, practice.

Yeah.

Thanks, a lot as Brad highlighted we recently announced long term data from core Vienna, which is our largest global prospective study Africa inducted.

This proposal aligns with our Market access strategy to drive greater VNS, therapy adoption, where a significant clinical unmet need still exists.

This is the strongest and most compelling data to date showing that VNS therapy delivers durable meaningful seizure reduction.

Core BNS further validated the effectiveness of VNS therapy on severe focal seizures in both children and adults with CRE and demonstrated that VNS therapy is associated with substantial reduction in generalized tonic clonic seizures in people with CRE.

In summary due to the strong growth, we saw in the quarter as well as the sustained success for the essence, roll out, market, share, gains and cardio pulmonary consumables.

Commercial execution in epilepsy and pricing strategy, where raising our overall organic growth.

Outlook by 200 basis points to between 9 and 10%.

This data demonstrates that patients with CRE will have exhausted numerous treatment option and continue to suffer frequency blip hitting seizures benefit from chemotherapy.

Alex will provide additional details on our 2025 guidance later in the call.

We published compelling 24 months data on generalized tonic clonic or GTC seizures in patients who have failed as many as 20 anti seizure medication and had immediate for GTC seizures per month at baseline.

with that, I'll turn the call over to Ahmed to provide an update on our recent clinical and Regulatory achievements in epilepsy and DTD

progress in Osa.

And an opportunity to advance HLM innovation.

At 12 months, the median reduction in GTC seizure frequency was 74% and was sustained through 24 months increasing to 77%.

Thanks a lot as Vlad highlighted, we recently announced long-term data from core VNS.

Which is our largest global prospective study ever conducted.

The core BNS 36 month data analysis, which slide previously discussed also reaffirms the effectiveness of VNS therapy from severe focal seizure in pediatric and adult patients.

This is the strongest and most compelling data to date showing that VNS therapy, delivers durable, meaningful seizure reduction.

The effectiveness was noted as early as three months after implantation followed by further substantial reduction at 12 24 36 months study visit.

CVN has further validated the effectiveness of VNS therapy on severe focal seizures in both children and adults and demonstrated that VNS therapy is associated with substantial reductions in generalized tonic-clonic seizures in people with the area.

This strong data and a very large patient cohort is important for our strategy and will support our efforts to narrow the treatment gap increase access to care and drive awareness of surgical therapies for the significantly Underpenetrated CRE population.

This data demonstrates that patients with Theory who have exhausted, numerous treatment options and continue to suffer frequent debilitating. Seizures benefits from the NS therapy,

Turning to difficult to treat depression in May we initiated the process with CMS to seek national Medicare coverage for being a therapy in unipolar patients with treatment resistant depression or <unk>.

We published compelling 24 months data on generalized, tonic clonic or GTC seizures in patients who have failed as many as 20 antithesis, or medications, and had a median of 4 GTC seizures per month at Baseline.

The application is supported by five peer reviewed publication from the recover study.

At 12 months, the median reduction, in GTCC seizure frequency was 74% and was sustained through 24 months increasing to 77%.

The fifth critical paper, which was recently published in the journal of clinical psychiatry demonstrates that patients with previous electrical monotherapy or transcranial magnetic stimulation treatment.

The core VNS 36-month data analysis, which Vlad previously, discussed also reaffirms, the effectiveness of VNS therapy on severe focal seizures in pediatric and adult patients.

Statistically significant and clinically meaningful benefit with VNS therapy versus the control arm.

The effectiveness was noted as early as 3 months after implantation. Followed by further substantial reduction at the 1224 and 36 month study visits.

Notably VNS therapy, as the only treatment and as demonstrated therapeutic effect in patients that previously failed electrical months of therapy.

In addition, the strong 24 month outcome demonstrated significant durability of VNS therapy over time.

This strong data in a very large patient, cohort is important for our strategy and will support our efforts to narrow the treatment gaps, increase access to care and dry awareness of surgical therapies for the significantly underpenetrated the area population.

Further validate its impact in the severely ill patient population.

Specifically among the patients who achieved clinically meaningful benefit at 12 months. The median durability of benefit across all of the outcome measures was 81, 3% at 24 months.

Turning to difficult to treat depression in may we initiated the process with CMS to seek National Medicare coverage for VNS therapy in unipolar patients with treatment resistant, depression or TRD.

This demonstrates significant durability for these unit footwear patients who at baseline in the recover study.

Our application is supported by 5 peer-reviewed Publications from the recovery study.

They are more than 13 antidepressant treatments on average.

Observing all VNS therapy patients in the active treatment arm of the recover trial 12.

12 month 24, researchers also found improvements in all outcome measures with the median rate of response or clinically meaningful benefit increasing from 42% at month 12 to 51, 6% at 124.

The sixth critical paper which was recently published in the journal of clinical. Psychiatry demonstrates that patients with previous. Electrical MSA therapy or transcranial magnetic. Stimulation treatment had statistically significant and clinically meaningful benefits with Vienna therapy versus the control arm.

Notably. The internet therapy is the only treatment that has demonstrated therapeutic effects in patients that previously failed Electro, combos of therapy,

Notably we are not ever have any evidence in the literature of any other therapies that can claim this profound level of sustained durability, and increasing benefits, including pharmacotherapy or interventional therapy, such as electrical bulk of therapy or transcranial magnetic stimulation.

In addition, the strong 24-month outcomes, demonstrated significant durability of VNS therapy over time and further validate its impact in this severely ill patient population.

Additionally, we are encouraged by the accomplishments to sky value data, which showed an estimated 43% higher.

Specifically among the patients who achieved clinically meaningful benefit at 12 months, the medium durability of benefits across all the outcome measures was 81.3% at 24 months.

Achieving meaningful improvement in two silos symptom versus the control arm through the first 12 months of the recover study.

Importantly, there was a separation between the active and control on all these metrics as early at month, three and observed separation was consistent throughout the 12 months.

This demonstrates significant durability for these unipolar patients, who have Baseline in the recovery study at failed. More than 13 anti-depressant treatments on average.

The composite <unk> data will be incorporated into our formal CMS submission upon publication in peer reviewed journals.

As we have done throughout the recovery program, we continue to closely partner with CMS through the coverage with evidence development framework as well.

Outcome measures with the median rate of response for clinically meaningful benefits increasing from 40.2% at month, 12 to 51.6% at month 24.

We've progressed through the coverage you spoke to duration.

<unk> is focused on developing clinical evidence.

VNS therapy for patients with PRD we.

We believe that this evidence resonates with ACP treating these vulnerable patients and see VNS therapy as a viable treatment option.

Notably we are not aware of any evidence in the literature of any other therapies that can claim this profound level of sustainability and increasing benefits including pharmacotherapies or Interventional therapies such as electrocom. Also therapy or transcranial magnetic stimulation.

In addition, we believe our growing body of evidence to support coverage and reimbursement for VNS therapy in CRD for.

For example, a high Mark an insurer primarily serving the mid Atlantic is now covering VNS therapy for CRD with specific criteria are met.

Additionally we are encouraged by the composite suicidality data, which showed an estimated 43% higher of of achieving meaningful Improvement in suicidal symptoms versus the control arm through the first 12 months of the recovery study.

We view high marks recent decision as a positive step towards opening access for commercially insured patients.

The importantly there was separation between the active and control arms on this metric, as early as month 3 and The observed separation was consistent throughout the 12 months.

Our next generation <unk> technology utilizes a new therapeutic modality to serve the large and growing patient population.

The composite suicidality data will be incorporated into our formal. CMS submission upon publication in a peer-reviewed journal.

Our modular PMA submission is progressing with the FDA and we look forward to sharing the complete 12 months Oxy data later, this year, which underscores the strength of our differentiated clinical data.

as we have done throughout the recovery program, we continue to closely partner with CMS through the coverage with evidence development framework as we progress through the coverage reconsideration,

Leonova is focused on developing clinical evidence that supports VNS therapy for patients with TRD.

<unk> enables more complete control of the tongue.

Providing the ability to treat a wide range of challenging patients, including those with high IHI high BMI and compete for tantric collapse or triple B and deliver durable holistic clinical responses.

We believe that this evidence resonates with ATPs treating these vulnerable patients, and see Vienna therapy as a viable treatment option.

In addition, we believe our growing body of evidence supports coverage and reimbursement for Vienna therapy in TRD.

Of particular significance.

Studies show that the patient population with a high risk spoke to you we will see a comparable result to the broad patient population further underscoring the clinical potential of proximal hypoglossal nerve stimulation.

For example, hi Mark and ensure primarily serving the Mid-Atlantic. It now covering VNS therapy for TRD when specific criteria are met.

Lastly in cardiopulmonary as we look to maximize recurring revenue stream, including equipment services software. We're upgrading a critical printed circuit Board assembly or piece TBA to enable more advanced software update driving innovation and delivering long term value for our customers across.

We View High marks recent decisions as a positive step towards opening access for commercially insured patients.

In Osa, our next Generation phns technology. Utilizes, a new therapeutic modality to serve the large and growing patient population.

Sweet.

This new PPA provides significant optionality to support ongoing system software update in line with our feature expansion roadmap.

our modular PMA submission is progressing with the FDA and we look forward to sharing the complete 12-month Oxford data set later this year, which underscores the strength of our differentiated clinical evidence,

In summary.

First by the recent clinical and regulatory milestones achieved in epilepsy and depression as well as our progress in the OSA program and near term innovation opportunities in cardiopulmonary, we look forward to sharing future updates.

phns enables more complete control of the tongue and their way, providing the ability to treat a wide range of challenging patients, including those with high Ahi, High BMI and complete. Concentric collapse, or Triple C and delivers durable, holistic, clinical responses.

With that I will turn the call over to Alex.

Thanks, Amit during.

During my portion of the call I'll share a brief recap of the second quarter results and provide commentary on our updated full year 2025 guidance, which reflects our strong first half performance and improving business outlook.

Of particular significance. Our studies show that the patient population with a high risk of Triple C had comparable results to the broad patient population further underscoring. The clinical potential of proximal hypogly nerve stimulation

Turning to results.

Revenue in the quarter was $353 million an increase.

<unk> of 9% on a constant currency basis, and 10% on an organic basis versus the prior year.

lastly, in cardiopulmonary, as we look to maximize recurring Revenue stream, including equipment, service and software where upgrading a critical printed circuit board assembly or pcba to enable more advanced software updates, driving Innovation, and delivering greater long-term value to our customers across the essence Fleet,

As a reminder, we took a $6 million provision for Italian payback measure in the second quarter of 2024.

Excluding the prior year adjustment organic growth was 8%.

This new pcba provides significant optionality to support ongoing. Essence system software updates aligned with our feature expansion road map.

Foreign exchange in the quarter had a favorable year over year impact of approximately $4 million or 1%.

Adjusted gross margin as a percent of net revenue was 69% up from 68% in the second quarter of 2024.

In summary, we're encouraged by the recent clinical and Regulatory Milestones achieved in epilepsy and depression as well as our progress in the Osa program and near-term Innovation opportunities in cardio pulmonary. We look forward to sharing future updates with that. I will turn the call over to Alex.

Thanks Ahmed.

This year over year increase was driven by the provision taken in the second quarter of 2020 for Fergie, Italian payback measure as well as positive pricing and geographic mix.

During the quarter as part of our ongoing audit procedures, we identified that direct labor and overhead costs related to cardiopulmonary service business were misclassified as SG&A expenses instead of cost of goods sold.

during my portion of the call, I'll share a brief recap of the second quarter results and provide commentary on our updated full year 2025 guidance, which reflects our strong first half performance and improving business Outlook,

Turning to results.

As a result, we performed a reclassification of $4 $8 million from SG&A expense to cost of goods sold for the second quarter on a prospective basis.

Revenue in the quarter was 353 million and increase of 9%, on a constant currency basis and 10% on an organic basis versus the prior year.

To be clear this reclassification is restricted to a small portion of operating expenses and there is no impact on historical our expected net income operating profit or cash flows.

As a reminder, we took a $6 million provision for the Italian payback measure in the second quarter of 2024.

Excluding the prior year adjustment, organic growth was 8%.

Foreign Exchange in the quarter, had a favorable year-over-year impact of approximately 4 million dollars or 1%.

For additional information, including the historical reclassification. Please refer to the supplemental tables provided in the earnings release issued earlier today.

Margin as a percent of net revenue was 69% up from 68% in the second quarter of 2024.

Adjusted SG&A expense for the second quarter was $121 million compared to $109 million in the second quarter of 2024.

This year-over-year increase was driven by the provision taken in the second quarter of 2024 for the Italian payback measure, as well as positive pricing and Geographic mix.

SG&A as a percent of net revenue was 34% in line with the second quarter of 2024.

The year over year increase on a dollar basis was driven by variable costs associated with increased sales.

During the quarter as part of our ongoing audit procedures, we identified that direct labor and overhead costs related to cardiopulmonary service business were misclassified as sgna expenses instead of cost of goods sold.

Commercial investments to support growth as well as system infrastructure modernization to drive long term efficiencies and scalability adjust.

Adjusted R&D expense in the second quarter was $44 million compared to $41 million in the second quarter of 2024.

As a result, We performed a reclassification of 4.8 million from sgna expense to cost of goods. Sold for the second quarter on a prospective basis,

R&D as a percent of net revenue was 13% in line with the second quarter of 2020 for the.

To be clear, this reclassification is restricted to a small portion of operating expenses, and there is no impact on historical or expected net income, operating profits, or cash flows.

The year over year increase on a dollar basis was driven by increased investment in cardiopulmonary and OSA to support new product development.

For additional information, including the historical reclassification, please refer to the supplemental table provided in the earnings release issued earlier today.

This expenditure was partially offset by cost optimization of the DTD program as we pursue CMS coverage.

Adjusted operating income was $77 million compared to $67 million in the second quarter of 2024.

Adjusted SG&A expense for the second quarter was $121 million, compared to $109 million in the second quarter of 2024.

As a percent of net revenue was 34% in line with the second quarter of 2024.

Adjusted operating income margin was 22% compared to 21% in the second quarter of 2024.

The year-over-year increase on a dollar basis was driven by variable costs associated with increased sales.

This increase was primarily driven by higher revenue and optimization of DTD program spend.

The adjusted effective tax rate in the quarter was 22% compared to 21% in the second quarter of 2024.

Commercial Investments to support growth as well as system information to drive long-term efficiencies and scalability.

The increase was related to changes in geographic mix and a roll off of certain tax attributes that have contributed to our historically low effective tax rate.

Adjusted R&D expense in the second quarter was $44 million compared to $41 million in the second quarter of 2024.

R&D. As a percent of net revenue was 13% in line with the second quarter of 2024.

Adjusted diluted earnings per share was $1 five.

Compared to 93 in the second quarter of 2024.

The increase was primarily driven by adjusted operating income growth.

The year-over-year increase on a dollar basis. Was driven by increased investment in cardiopulmonary and Osa to support new product development.

Our cash balance at June 30th was $594 million up from $429 million at year end 2020 for.

This expenditure was partially offset by cost optimization of the DTD program as we pursue s coverage.

This increase primarily reflects the reclassification of $295 million of restricted cash due to the termination of the collateral cash deposit associated with its Neil litigation guarantee.

Adjusted operating income was 77 million compared to 67 million dollars in the second quarter of 2024.

Adjusted operating income margin was 22% compared to 21% in the second quarter of 2024.

Total debt at June 30 was $431 million compared to $628 million at year end 2020 for.

This increase was primarily driven by higher revenue and optimization of DTD program spent

The reduction in total debt was.

adjusted effective tax rate in the quarter was 22% compared to 21% in the second quarter of 2024.

It was a result of the $200 million early repayment of the term facilities.

Adjusted free cash flow in the first half was $68 million up from $53 million in the prior year period.

The increase was related to changes in Geographic, mix in a rolloff of certain tax attributes that have contributed to our historically low effective tax rate.

The year over year increase was primarily driven by stronger operating results and disciplined working capital management.

Capital spend in the first half was $26 million compared to $19 million in the prior year period.

Adjusted diluted earnings per share was 1.5 compared to 93 cents in the second quarter of 2024. The increase was primarily driven by adjusted operating income growth.

The year over year increase was driven by it investments and cardiopulmonary capacity expansion initiatives.

Our cash balance at June 30th was $594 million, up from $429 million at year-end 2024.

Now turning to our updated 2025 guidance.

That's why I'd mentioned.

Based on our performance to date, we are increasing our full year 2025 revenue adjusted earnings per share and adjusted free cash flow guidance.

This increased primarily reflects the reclassification of 295 million of restricted cash due to the termination of the collateral cash deposit associated with the Neo litigation guarantee.

We now forecast 2025 revenue growth between eight and 9% on a constant currency basis and between nine and 10% on an organic basis.

Total debt at June 30th, was 431 million compared to 628 million at year. End 2024

The reduction in total debt.

Was a result of the 200 million early repayments of the term facilities.

The impact of foreign currency is now expected to be a tailwind of approximately 1%.

We have revised our full year adjusted effective tax rate to approximately 23%, which represents an increase of 200 basis points versus 2024.

Adjusted free cash flow in the first half was 68 million up from 53 million in the prior year period?

The year-over-year increase was primarily driven by stronger operating results and disciplined working capital management.

The 100 basis point improvement versus our prior guidance is reflective of our ongoing tax optimization efforts.

Capital spend in the first half was 26 million compared to 19 million in the prior year period.

To reflect the stronger operational performance in our business. We now project adjusted diluted earnings per share in the range of $3 70.

The year-over-year increase was driven by it Investments and cardiopulmonary capacity expansion initiatives.

To $3 80.

Now, turning to our updated 2025 guidance,

With adjusted diluted weighted average shares outstanding to be approximately $55 million for the full year.

As Vlad mentioned.

This higher range is primarily driven by increased revenue expectations and favorable net interest expense due to the timing of the snia liability payments.

Based on our performance to date, we're increasing our full year 2025 Revenue, adjusted earnings per share and adjusted free cash flow guidance.

This 10% increase includes an investment in the essence, PCB, a conversion, which we expect to impact cost of goods in the fourth quarter of this year.

8 and 9%. On a constant currency basis and between 9 and 10% on an organic basis.

The impact of foreign currency is now expected to be a Tailwind of approximately 1%.

As Amit mentioned, the PCA investment will support future advance essence software updates.

Please refer to the adjusted diluted EPS guidance bridge on slide 17 in the Investor presentation.

We have revised our full year. Adjusted effective tax rate to approximately 23% which represents an increase of 200 basis points versus 2024.

Just had free cash flow is now expected to be in the range of $140 million to $160 million, which is $5 million higher compared to our prior guidance due to higher income expectations as well as working capital improvements.

The 100 basis point Improvement versus our prior guidance is reflective of our ongoing tax optimization efforts.

This range includes approximately $95 million of capital spend.

From $90 million in the prior guide.

To reflect the stronger operational performance in our business. We now project, adjusted diluted earnings per share in the range of $3.70 to $3.80 with adjusted diluted weighted. Average shares outstanding to be approximately 55 million for the full year.

Driven by critical investments in it infrastructure innovation and growth, including the cardiopulmonary capacity expansion initiatives.

I'd also like to call out.

This higher range is primarily driven by increased Revenue expectations and favorable, net interest expense due to the timing of the steel liability payment.

The guidance ranges shared today incorporate our best estimate of the potential.

Will impact currently applicable tariffs.

As previously discussed we have a tariff mitigation plan in place that includes both holistic assessment of our supply chain as well as potential pricing actions.

This 10-cent increase includes an investment in the essence pcba conversion, which we expect to impact cost of goods in the fourth quarter of this year.

Ahmed mentioned the ptba investment will support future Advanced, Essence software updates.

Based on the assessment, leaving over remains well positioned to manage the impact of tariffs.

Please refer to the adjusted diluted EPS guidance bridge on slide 17 in the investor presentation.

We continue to estimate a tariff net impact of less than $5 million on adjusted operating income for the full year.

The 2025 guidance range shared today fully incorporates the impact from currently applicable tariffs so.

Adjusted free cash flow is now expected to be in the range of 140 to 160 million, which is 5 million higher compared to our prior guidance, due to higher income expectations as well as working Capital Improvements.

So we acknowledge the environment remains uncertain.

In summary, we had another quarter of strong execution.

This range includes approximately $95 million of capital, spending up from $90 million in the prior guide.

By double digit organic revenue growth, which drove 90 basis points of operating margin expansion.

13% increase in adjusted diluted earnings per share.

Driven by critical investments in it infrastructure, Innovation and growth, including the cardiopulmonary capacity expansion initiatives.

I'd also like to call out.

An improvement in cash generation.

Our updated 2025 guidance reflects the strength of our underlying performance and continued investment in our core business and the innovation pipeline.

That the guidance ranges shared today, incorporate our best estimate.

Of the potential impact of currently applicable tariffs.

With that.

I'll turn the call back over to Vlad.

Thank you Alex.

As previously discussed, we have a tariff mitigation plan in place that includes both a holistic assessment of our supply chain as well as potential pricing actions.

In conclusion, we're pleased with the strength and durability of growth in our cardiopulmonary and applebee's businesses.

Based on the assessment, leave an over remains. Well, positioned to manage the impact of tariffs

Which delivered 10% organic growth and 160 basis points of operating margin expansion.

We continue to estimate a tariff. Net impact of less than 5 million on adjusted. Operating income for the full year.

First half of the year.

We're building on this strong foundation by investing behind our core businesses.

The 2025 guidance range shared today, fully incorporates the impact from currently applicable tariffs.

Sustain our market leadership and clinical excellence.

Though, we acknowledge the environment remains uncertain.

We're excited about our advancing OSA program, which represents a significant long term opportunity for live on Nova.

In summary, we had another quarter of strong execution.

We're making important progress towards CMS reimbursement for consideration and difficult to treat depression.

marked by double digit, organic Revenue growth, which drove 90 basis points of operating margin expansion, a 13% increase in adjusted diluted earnings per share,

Consistent with our strategy to expand the portfolio into high growth market and address large patient populations with significant unmet needs.

And Improvement in cash generation.

OSA in DTD, each provides meaningful and distinctive.

our updated 2025 guidance, reflects the underlying performance and continued investments in our Core Business and Innovation pipeline,

With that.

The two entities to accomplish this goal.

I'll turn the call back over to Vlad.

With our strong team and critical milestone achievements.

Thank you, Alex.

Well positioned.

Sustained momentum and capitalize on the opportunities that lie ahead to drive long term value creation.

We look forward to discussing each of these opportunities.

The detail.

In conclusion, we are pleased with the strength and durability of growth in our cardiopulmonary and epilepsy businesses, which delivered 10% organic growth and 160 basis points of operating margin extension. So, the first half of the year.

At our Investor Day later this year.

With that we're ready to open the poll for questions.

We're building on the strong Foundation by investing behind our core businesses.

Okay.

To sustain our Market leadership and clinical excellence.

Thank you.

You have a question at this time. Please press the Star then the number one key on your Touchtone telephone.

If your question has been answered or you wish to remove yourself from the queue. Please press Star then two.

We're excited about our advancements. Our SAFE program, which represents a significant long-term opportunity for LivaNova.

As we enter the Q&A session. Please limit yourself to one question and one follow up question.

when making an important progress toward CMS reimbursement, reconsideration in difficult to treat, depression,

And then return to the queue. If you have any additional follow ups.

First question comes from Rick Wise with Stifel. Your line is open. Please go ahead.

Consistent with our strategy to extend the portfolio into high growth markets and address large patient populations with significant unmet needs.

Good morning, everybody good to see the strong quarter of deposit.

Osa and DTD each provide meaningful and distinct opportunities to accomplish this goal.

Positive execution.

The good news.

With our strong team and critical Milestone achievement.

Lots of talk about I guess I'll start with.

The epilepsy business, maybe talk us through maybe in a little more detail.

We are well positioned to sustain our momentum and capitalize on the opportunities that lie ahead to drive long-term value creation.

The positive data that.

Amit walked us through.

And maybe help us better understand how you.

We look forward to discussing each of these opportunities in Greater detail at our investor day later this year.

How we should.

To open the call for questions.

Imagine you leveraging the data.

Thank you.

The implications for.

Core growth for act patient access et cetera, et cetera, just help us understand how we translate that into to the outlook.

If you have a question at this time, please press the star, then the number 1 key on your touchtone telephone.

if you, if your question has been answered, or you wish to remove yourself from the queue, please press star, then to

Good morning.

So maybe I'll stop there.

As we enter the Q&A session, please let me yourself to 1 question and 1. Follow-up question.

That's you're talking about the impact it will have.

And then return to the queue if you have any additional follow-ups.

So this was a very large study over 800 patients.

It allows us to look at subgroups as well.

First question comes from Rick Wise with Steve, for your line is open. Please go ahead.

We obviously knew the impact that has on patients, but this is the largest study to demonstrate it in a very broad population, we were particularly pleased with the three year data focal epilepsy, showing a 1% reduction in seizures.

We also have 24 month data on generalize, which also shows.

A reduction of 77% now we have 36 months' data as well, which also was very strong, but we haven't published yet.

Uh good morning everybody. Uh good to see the strong quarter of exit positive execution and all the all the those um lot to talk about. I guess I'll start with uh the epilepsy business. Maybe talk us through maybe in a little more detail. Uh uh uh the positive data uh that uh I'm at walked us through and and and maybe help us better understand how you how we should.

That's why when we talk about 24 months.

The impact is going to be broad.

Can utilize this RBC.

For publications and we can utilize it with regulatory agencies.

Imagine you leveraging the data uh the implications for uh for growth for a patient access etc. Etc. Just just help us understand how we translate that into to the Outlook.

We can utilize it to broaden our label working with regulatory agencies. So it's a large study that has a major impact we're very pleased with the results, but I'll ask Seth to comments around the impact and the feedback she's hearing from our position.

Hi, good state team and that is to say and I'm going to give you senses on incentive fee feedback feedback from the field.

<unk> been extremely well received.

Our investigation.

<unk> opinion leaders and our clinical community and there's nothing that's expected to strengthen the foundation of our franchise.

We are at the very beginning.

Activity.

Feedback early on is really encouraging and finish kols, telling the street.

Hey, good morning Greg. This is Ahmed. Um so maybe I'll start and then asked uh Steph to talk about the impact. It will have. So this this was a very large study over 800 patients that allows us to look at subgroups as well. Uh we we obviously knew uh, the impact that VNS has on patients but this is the largest study to demonstrate it in a very broad population. We were particularly pleased with the 3 year data on focal epilepsy showing 81% reduction in seizures. Uh we also have 24 month data on generalized, which also showed uh a reduction of 77%. Now we have 36 amount data as well, which also is very strong but we haven't published yet. Uh, but we're that, that's why we're only talking about 24 months.

At this stage.

We are challenged from a consultation it's about being therapy and will likely mean 19 students earlier in their treatment algorithm.

And when you say drive penetration or is there.

Well, if it's literally the children who come in.

The more precisely a wound.

At this time, we see the clinical evidence in Q2.

E <unk> strategy.

Very well received.

That's great I'm, just going to stick with a couple of high level questions here and stick with sort of the same related topics, but.

Um, the impact is going to be broad. Uh, we can utilize this obviously uh, for Publications. We can utilize it with regulatory agencies. Uh, we can utilize it to broaden our label uh working with regulatory agencies. So it's a large study that has a Major Impact. We're very pleased with the results. Uh but I'll ask Steph to comment around the impact and the feedback she's doing from our position. Exactly. Thanks for it and how it could speak to you. Um first to say I'm going to give you some some anecdotal feed feel back uh feedback rather than from the field that

On the CMS boosting or proposal to boost.

And a service procedures to to level five from level four tons meaningful sound significant.

So on the good side again talk to us.

How quickly assuming that their proposal holds.

Talk about.

How you would take action and what that could mean for the outlook.

For the business in 2006.

How quickly it could be impactful and and I apologize if I'm misremembering is this the same proposal that was made last year and didn't go through or am I just totally confusing the topic. Thank you.

Thanks, Rick.

Some background.

These results have been extremely well received so far by our investigators and also our key opinion leaders in our clinical community. And they're very much expected to strengthen the foundation of our epilepsy franchise. Um, we are at the very beginning of our rollout activities but the feedback early on is really encouraging. Um, some carols telling us that the strength and the size of this data set will change how they cancel patients about being as therapy and will likely mean they consider VNS earlier in their treatment algorithm. Um, and we're also Drive penetration of the therapy. So whilst it's a little bit premature to comment. Um, the more precisely on the impact of the business at this time, we see the clinical evidence of a key component to our Collective strategy. And so far has been very well received

That is to say that we are really pleased with the C&I channel invention to news understand these procedures.

Proceed to level five east.

<unk> mean that.

Our combined would have a meaningful increase in linzess.

<unk> for that is close to tools that provide VNS therapy to Medicare patients.

On the proposal.

Hum.

Fortunately from an increase in reimbursement.

And then they remind that comes.

Compromise in Skokie crisis, rather than 17%.

In the U S.

Um, that's that's great. I'm I'm just going to stick with a couple of high-level questions here and stick with sort of the same related topic but um the uh CMS boosting or proposal to boost um uh end of service procedures to to level 5 from Level 4, sounds meaningful, that sounds significant. Um, so on the good side again, talk to us about how quickly assuming that the proposal holds uh, talk about.

Unfortunately these.

These patients are under a Medicare plan says.

If somebody lives change will take effect from January 26.

Now in terms of.

I. Thank you for the competitors. It was nevertheless, any meaningful change to alleviate cost pressure is the perfect posting spec pools.

She is creating a more sustainable financial condition provides instead, all supporting the lifestyle and the cat.

How you would take action and what that could mean for the Outlook, uh, uh, for the business in 26. Uh, how quickly it, it could be impactful and and I apologize if I'm misremembering, is this the same proposal that was made last year and didn't go through or am I just totally confusing. Uh, the topic thank you.

Patients with CRE.

While it's premature to comment on the exact impact we believe if finalized it's gone up a very positive impact on procedure penetration.

And when the team remains highly confident and optimistic that the comparison will be fine lines.

that our providers would have a meaningful increase um, in reimbursement support for those hospitals that provide DNS therapy, Medicare patients,

If we think can they put in about six about Wisconsin strategy, we intend to be out of it when we look at out of the investment activities.

We still believe that at its core and central to our mission around NPI and we're going to continue to work with CMS and other stakeholders.

Um, the proposal will give our centers about a 48% increase in reimbursement for Eos, and there's a reminder: EOS comprises 70% of our implants in the U.S. Um, and 40% of the patients are under our Medicare plans.

In order to prioritize fix in accounting discussions.

So, if finalized, the change will take effect from Jan 1:26,

Yeah.

Thank you for the detailed response.

Yeah.

We now turn to David Roman with Goldman Sachs. Your line is open. Please go ahead.

Thank you and good morning, everybody I wanted just to start with the oxygenate her business and maybe you could break down a few of the different moving pieces here into what you're seeing from underlying demand standpoint and I.

And then secondly, what's happening for me, leaving Nova and industry capacity standpoint. They believe it was about at this point in time. When you were expected to have additional capacity come on but are we at a point such that.

Um, now in terms of impact, this is still a proposal, it's nevertheless any meaningful change to alleviate cost pressure is a positive positive step forward, um to creating a more sustainable financial position. For our providers that are supporting the lifetime of care for that patient with CRA. So while it's premature to comment on the exact impact we believe is finalized. This will have a very positive impact on procedures penetration, um, and we and the team remain, highly confident and optimistic that the proposal will be finalized

That the capacity continues to chase the demand and what are the factors influencing that.

So if we think a little bit about level 6, so that was part of our strategy and it really is the tip of the Arrow. When we look at our reimbursement activities,

Okay.

David Good morning.

Thank you for the question.

So first of all.

Let me start by saying that we see.

Very healthy procedure growth levels elevated from historical rates.

Um, we still believe that that is core and Central to our mission around MPI and we're going to continue to work with CMS and other stakeholders um, in order to prioritize level 6, uh, in the coming discussions.

We are in mid single digit growth, we estimate the procedure growth of at mid single digit growth.

Thank you for the details response.

And we see that trend continue.

If you look at our performance over the last couple of years, we have been gaining market share and we estimate that we have kind of moved our market share from.

We now turn to David Roman with Goldman Sachs, your line is open. Please go ahead.

<unk> is still not very high <unk> in terms of percentage and we estimate that we benefited from.

<unk>.

Our market share gains came from both market growth and gaining.

Gaining some share from the competitor so.

That's that's number two we.

We see that strong momentum continue moving forward now if I move into the kind of the supply from the market. So the supply is not catching up with demand.

Uh, thank you. Good morning, everybody. Uh, I wanted just to start with the oxygenator business and and maybe you could break down a few of the different moving pieces here into what you're seeing from an underlying demand standpoint and I believe the set and then secondly what's happening from a leave a Nova and Industry capacity standpoint because I believe it was about at this point in time when you were expected to have additional capacity, come on. But are we at a point such a, the demand that the capacity continues to chase the demand and what are the factors influencing that?

Uh David good morning. Uh, thank you for the question. Um,

I think the market was a couple of years ago was caught by surprise a little bit on the procedure growth elevation.

And we have been working hard to improve our capacity and output.

So last year, we have increased our output by 10% that was driven by improved processes and improved Nunn Bush increased number of shifts.

So, uh, first of all, uh, let me start by saying that we see, uh, very healthy, uh, procedure growth levels elevated from historical rates. So we are in in mid single digit growth, we estimate. The procedure goes to business, single digit growth.

Uh, and we see that Trend continue.

This year, we continue to improve our processes and shifts at the same time miles suppliers have invested in expansion of their capacity.

And so we estimate that.

This year will be somewhere in the high single digits.

Um, if you look at our performance over the last couple of years, we have been gaining market, share, and we estimate that. We are kind of moved our market share from, um, low 30s to now very high 30s in terms of percentage and we estimate that we benefited from, uh, you know,

Our fourth growth versus last year.

The next year, we are adding another manufacturing line that is tracking well.

All market share against came from both market growth and um you know, gaining some of the share from the competitor. So that's that's number 2.

And so we anticipate.

We see that fundamental continue moving forward.

Other significant improvement.

Our next year.

I'll comment in the remarks.

Regarding.

Now, if I move into the kind of the supply from the market, so the supply is not catching up with demand.

Third party suppliers and our capacity.

That we have kind of we've built capacity.

Um, I think the market was couple years ago, was caught by surprise a little bit on the procedure growth, um, elevation

Uh huh.

Of our kind of a third.

We have been working hard to improve our capacity and output.

Third party suppliers' ability to provide us with some of the components in other words.

The more components, we get today.

We can.

Uh, so last year we've increased our output by 10% that was driven by improved processes and improved, number of increased number of shifts.

We can increase output further this year as well.

But net net as we continue to gain.

Sure and we don't see.

Uh, this year, we continue to improve our processes and shifts. At the same time, our suppliers have invested in extension of their capacity.

Too much differentiated activity from our competitors in this case.

And so we estimate that um you know, this year will be somewhere in the high single digit. Um,

Very helpful. Very helpful. And then maybe just a follow up on Neuromodulation, yet I think our year to date, you're running roughly already at the midpoint of your guidance and that does include the headwinds associated with some of the generator supply dynamics that you've talked about I also think you're facing.

Output growth versus last year.

Replacement.

Wins in the U S. So as you contextualize the year to date performance and the 2025 guidance.

Um, the next year, we are adding another manufacturing line that is tracking. Well um and so we anticipate another significant Improvement in the in output next year. Um, I'll comment in the remarks uh regarding

On the Neuromodulation business should we how should we think about this in context of a longer term view and does that 5% type number.

Third-party suppliers. And our capacity means that we have kind of we've built capacity. Um,

Represent more of a transition Terry.

The level of performance such that we can see an acceleration on the go forward.

Uh, ahead of of, of our, uh, kind of, uh, third-party suppliers ability to provide us with some of the components. In other words,

Hi, David It's Alex.

they um, you know, we we can

I would say look we're very pleased with our performance in the first half of the year, considering the fact that we've been dealing with the field safety notice.

we can increase our output further this year as well.

Our team has done a really good job of executing against.

The conversion.

Um but net, net is what we continue to gain um, share. And we don't see um, too much differentiated activity from our competitors in this case.

The same team of generators and so we see positive momentum there.

We as we talked about in the first quarter. We had we estimated our deferred procedures to be approximately less than $2 million. We have recaptured some of that and now we feel bullish about our ability to recapture the balance of that this year. So we feel like this.

Uh, very helpful, very helpful that maybe just to follow up on a neural modulation. You I think uh year to date you're running roughly already at the midpoint of your guidance and that does include the headwinds associated with with some of the generator Supply dynamics that you've talked about. I also think you're facing some replacement, uh, headwinds in the US. So as you can textualize the year to date performance and the 2025 guidance,

As a.

Solid mid single digit growth business.

<unk>.

That's that's how we're forecasting it.

On the neuromodulation business. Should we, how should we think about this in context of of a longer term View and and and is the 5% type number?

<unk> said all along we believe that this is a durable mid single digit growth business for <unk>.

Represent more of a transitionary uh level of performance, such that we can see an acceleration on the go forward.

Great well look to the next update at the analyst meeting.

Our next question comes from Michael Pollack with Wolfe Research. Your line is open. Please go ahead.

Hi, Good morning, I have one on essence, and then I'm going to follow up on the epilepsy reimbursement update so in essence, China launch expected in the third quarter.

Hi, David. It's uh, Alex. I, I would say look, we're very pleased with our performance in the first half of the Year, considering the fact that we've been dealing with the field safety notice. Um, our team's done a really good job of executing against, um, the conversion of the santeva generators. And so we see positive momentum there. Uh, we as we talked about in the first

I know you've described it as the second largest market for your <unk> products can you be more precise what portion of the S. Five space is China.

Then the other China question is.

Global.

Tariff landscape trade landscape shifting there was news I think early July.

China launching some restrictions on medical device imports.

Europe.

I have no edge on this so can you help me understand if this is an impact for for your essence, China launch or.

Order we had uh, we estimated our deferred procedures to be approximately less than 2 million dollars. We have recaptured, some of that. And now we feel bullish about our ability to recapture the balance of that this year. So we feel like this is a um you know solid mids single digit uh growth business and uh that's that's how we're forecasting it, you know, as we settle along we believe that this is a durable, mid single digit growth business for leonova.

No influence whatsoever. Thank you.

Hi, Good morning. Thank you for the question. So let me start with the second part of your question.

I agree. We'll look to to the next update to the analyst meeting.

On trade.

Trade restrictions, we're monitoring closely and we are very capable commercial team in China, and they're executing strong versus goals.

Oh, next question comes from Michael Pollock. With wolf research, your line is open. Please go ahead.

And so we don't see any meaningful negative impact.

And we're very confident in our ability to continue to grow.

In China.

As for your second part of the question regarding <unk>.

China launch overall so.

First of all we're very excited that essence was approved in China six months, they have of our internal expectations and that doesn't indicate high demand on this product from health care system.

You mentioned that China is our second largest market and although we don't.

Hey, good morning. Uh I have 1 on Essence and then I'm going to follow up uh on the epilepsy reimbursement update. So on Essence uh China launch expected in the third quarter. Um, I know you've described it as the second largest market for your HLM products. Can you be more precise? What portion of the S5? Space is China. Uh, and then the other China question is um, in the global, uh, tariff landscape trade, landscape shifting, their there was news. I think early July, uh, China, launching some restrictions on medical device Imports

Comment on exact number of units.

I will tell you that we are kind of a significant market leader.

From Europe. Uh, I have no Edge on this. So can you help me understand if this is an impact for for your essence, China launch or or uh, no influence whatsoever. Thank you.

<unk> in China.

Hum.

I spent six years worth of living and working in Asia, a lot of that.

Of that time was focused on China, and so from my experience Chinese market rewards differentiations.

<unk> and we believe that outcome is.

Innovative products and differentiate us from that point of view so.

We believe that China is going to be.

Very strong.

Hi, good morning, thank you for the question. So let me start with the second part of your question, uh, on on uh trade restrictions. You know, we're monitoring closely. We have very capable commercial team in China and they're executing strong versus goals. Um, and so we we don't see any meaningful negative impact. Um, and and we're very confident in our ability to continue grow um in China. So this is as for your second part of the question, well, regarding China launch overall. So,

Opportunity for us to continue to drive upgrade our vessels technology.

Helpful. And then my follow up on the APC upgrade the level five for Medicare end of service patients in epilepsy. So.

First of all, we're very excited that Essence was approved in China, 6 months, they had of our internal expectations and and that doesn't indicate high demand on this product from Healthcare System.

Um,

I get the point that higher is better for this I guess I'm interested.

To what extent.

Do you think this can positively influence providers.

you know, like you mentioned and I said China is is our second largest market and although we don't, um, comment on on exact number of units, uh, I will tell you that we are

Interest in doing new patients and so I guess the way to ask the question is.

That kind of a, a significant market leader um, in hlms in China.

From an NPI through all of the replacements that might happen how many total.

Um, you know, I, I spent 6 years working, living, and working in Asia, a lot of that.

Events are there.

How many.

Any replacements as an average epilepsy patient have I think that's the number I'm interested in today to kind of better refrain lifetime economics for provider for this therapy. Thank you.

Yeah, Great question so.

We estimate that question.

Of that time was focused on China. And so from my experience Chinese market rewards differentiations, uh, differentiation and we believe that Essence is an Innovative product and its differentiated uh, from that point of view. So um, we believe that China is going to be uh very strong um opportunity for us to to continue to drive upgrade of essence technology.

70% of patients having stuff okay.

And that means presentation rate continues to get higher.

A lot of time as a patient coupons.

um and then my follow-up on the the APC upgrade to level 5 for uh Medicare end of service patients in epilepsy so

608.

This is a really meaningful to what will happen.

I get the point that, you know, higher is better for this, um, I guess I'm interested.

To what extent?

Okay.

T.

You think this can positively influence providers?

And look.

We look at that sort of clinical service costs across the continent.

And as I said to make it carries approximately 40%.

Uh, interest in doing new patients. And so I guess the way to ask the question is,

Not for us.

I do want to thank Lee.

um, from an NPI through all of The Replacements that might happen. How many total

This will change the dynamic sitting out.

And that in itself will help.

The penetrate into.

As well.

Thank you.

We now turn to David <unk> with Baird. Your line is open. Please go ahead.

Uh, events are there? Uh, mainly? How many how many Replacements does an average epilepsy patient? Have I think that's the number I'm interested in today to kind of better reframe lifetime economics. Uh, for a provider for this, this therapy. Thank you.

Oh, great. Thanks for taking the questions.

I had a follow up on that.

The APC code then.

Follow up on the EPS guide.

But I guess first on this new APC code I I recall last year.

When there was the potential in the.

Advisory panel with a hospital outpatient program to potentially have a left I believe at the at the time was the NPI side of the implants.

Yeah, great question. Um, so we estimate that patients um about 70% of patients. Having the first implants will go on to have a second and that reimplantation rate, it continues to get higher up to that point. So a lifetime of a patient could have anywhere up to 678 Replacements. So this is a really meaningful step towards having a sustainable service to be in this therapy. Um for a provider and centers often look at the sort of total service costs across the Communist Spectrum. Um and as I said the medication

There was an argument that the average time that cranial nerve procedure.

That's a comparable code had gone up.

Over a certain period of time relative to the kind of unchanged reimbursement levels that you've seen.

For this code under the <unk> five and I think a lot of those devices that do have the higher reimbursement do you have a higher ASP I believe then and what you sell BNS force. So is there an argument beyond.

Approximately 40% of that for us. Um, I do honestly believe that this will change the Dynamics within our senses. And that in itself will help further penetrate certainly into new patients as well.

Thank you.

We now turn to David reskit with bed. Your line is open. Please go ahead.

Perhaps the uptake that you could see based on favorable reimbursement to leverage maybe more of a premium price.

Here with the product and then I don't believe that the new advisory panel for the hospital outpatient program that we saw last year has been updated yet, but I am curious if youre expecting to maybe re apply to try to push that that original level of $5 six.

Hi, David It's Doug.

Maybe just to go faster.

So government proposed rule gives us is it both NPL and <unk> would be in Apple pie. It just it doesn't change our strategy and that we will continue to locally for local.

And mental state Street will be well covered.

Procedure.

As we look ahead and certainly as we look ahead towards.

Asia half way through and put it to the other than pricing, that's where we'll be looking to ensure that we are maximizing price I guess two questions.

Oh, great Pam. Thanks for taking the, the questions. Um, you know, I I a follow up on, um, the, the, the APC code. And then, then a follow-up and, and your EPS guide, um, but I guess first and this new APC code, I I recall last year, um, when there was the potential and the, um, uh, advisory panel for the hospital, outpatient, uh, programmed to potentially have a lift, I believe at the, at the time, was the NPI, uh, side of of the implant. Um, you know, there was an argument that the, the average kind of cranial nerve procedure, um, that's a comparable code, uh, had gone up. Um, you know, over a certain period of time relative to the kind of unchanged reimbursement levels, that that you've seen, um, for, for this code under the APC 5. And, and I, I, I think a lot of those devices, uh, that do have the higher reimbursement. Um, do have a higher ASP, I believe, than than what you sell the

Yeah, that's great. Thank you.

And then on me.

The updated EPS guide for the year I know, there's a bunch of moving parts in there, but when we look at.

Glen.

Math on our end I think you raised the EPS guide by <unk> 10 cents or so you had a <unk> b.

For so is there an argument Beyond? Um, you know, perhaps the uptake that you could see based on federal reimbursement to, to leverage, maybe more of a premium price, um, here with the product. And then I, I don't believe that the new advisor panel for the, the hospital outpatient program. Uh, that that we saw last year has been updated yet. But I'm, I'm curious if you're expecting to maybe reapply to, to try to push that add, that original level 5 code to the level 6,

In the quarter I believe this knee payout.

Payout is now about 12 cents lower than what was the expectation in the prior quarter. So maybe that implies that the either tariff headwind or something else is maybe 15 to 20 or so can you help kind of quantify just the moving pieces around the beat relative to the raise.

Hi David, it's Steph here. So, um, maybe just to go back a step. So so what the proposed rule gives us with EOS is that both NPI and EOS will be in level 5. It just doesn't change our strategy in that we will continue to Lobby the level 6.

And the EPS guide for the year. Thank you.

Hi, David.

I will refer you to the bridge that we provided in our presentation, but.

At the highest level.

The components that you described are the right ones.

Um, a level 6 essentially will be what covers our NPI, uh, procedure um, as we look ahead and certainly as we look ahead towards uh Innovation pathway through our product development process, that's where we'll be looking to ensure that we are maximizing price. I hope that gets to your question.

I want to call out the fact that.

Given the strength of our first half performance.

We have decided to make an investment in a PPA upgrade conversion.

Yeah. Yeah, that's great. Thank you. Um and then on the um the updated EPS guide for the year, I know there's a a bunch of moving Parts in there. But when we look at

Which Amit described briefly in his remarks.

This is a great opportunity.

Opportunity for us too.

Enhance our software to handle.

Yes.

Call it future revenue streams for our essence business, it's core to our strategy to drive growth beyond the replacement cycle and we felt like this year, we had an opportunity to invest behind that.

Thank you.

Piece of innovation I'm going to turn it over to Amit and he can probably describe this in a much more safe way sure.

So as you know perfusion today is.

A little bit of hard flares and perfusion is.

Guiding the machine.

Hi, David, uh I I will refer you to the the bridge that we provided in our uh presentation. But at the highest level, um, the components that you described are the right ones. Um, I want to call out the fact that um,

As the leader in this market, we believe we need to change that whereas the machine itself is providing assistance and guidance to the perfusion is.

Given the strength of our first half performance.

To be able to do that you need a lot more processing power in the system. So that you can add algorithms.

This was a planned innovation for <unk>.

We have, uh, decided to make an investment in a uh pcba upgrade uh conversion uh which uh Ahmed described, briefly in his uh, remarks. Uh, this is a uh, a great opportunity for us to

But due to the strength of our business, we accelerated both due to financial strength, but also our R&D capabilities improved where we can do things much faster now that enabled us to accelerate the development and upgrade excellence.

We believe these future is that we're going to add software futures also going to drive growth because it's going to add more capability to the system and it's going to improve outcomes and thats going to ensure that we can also monetize some of these investments because of added new capabilities to the system.

Enhance our uh software to handle uh you know, call it uh future revenue streams for our Essence business. It's core to our strategy to drive growth beyond the the replacement cycle. And, uh, we felt like this year. We had an opportunity to invest behind that uh, uh, piece of innovation. I'm going to turn it over to amen. And he can probably describe this, uh, in, in a much more succinct way. Sure. Uh, so, as you know, for Fusion today is

A little bit of heart where the perfusionist is.

We now turn to anthem NATO with Piper Sandler Your line is open. Please go ahead.

Hey, good morning, congratulations on the nice quarter and thank you for taking the questions.

Guiding the machine, um, as the leader in this uh Market. We believe, we need to change that where the machine itself is providing assistance. And guidance to the professionist and to be able to do that, you need a lot more processing power in the system so that you can add algorithms

Two for me bolt on some of the pipeline initiatives I wanted to start on.

And um, this was a planned innovation.

TRT and the high Mark coverage decision, just hoping you could maybe double click on that for us talked about some of the requirements for coverage.

When did that go into effect and anything you can kind of share at this point regarding commercial implants in the.

The last part of that question would just be do you have any visibility.

Or.

Our ongoing discussions with other commercial payers that you can talk about at this point and then I had one follow up thanks.

Yes, I mean today.

In United States.

We have a process, where you have to go through an approval with their private coverage to be implanted with BNS and what hi, Mark has told us is that.

For uh Essence but due to the strength of our business, we accelerated it both due to financial strength but also our our lead capabilities improved where we can do things much faster. Now that enabled us to accelerate the development and upgrade Essence and we believe these features that we're going to add software features is also going to drive growth because it's going to add more capability to the system and it's going to improve outcomes. And that's going to ensure that we can also monetize some of these Investments because of adding new capabilities to the system,

Based on the benefits they are seeing and based on the economics.

We now send to Adam Mater with Piper Sandler. Your line is open. Please go ahead.

They prefer that bought it and exceptions that it would be covered directly for the patient population, So hi, Mark.

Leave it all work together.

Hi, good morning. Uh, congratulations on the next quarter and thank you for taking the questions. Um, 2 2 for me, both on some of the pipeline initiatives, you know, I wanted to start on

Move the exception process. So that it will be covered now we are very excited about because highmark blue ship Blue Cross is.

Uh TRD and the high Mark coverage decision just hoping you could, maybe double click on that for us talked about some of the requirements for coverage.

A group that other Blue Cross Blue Shield grew fluke as well and they are more on the kind of front end of things.

um when did that go into a a fact and anything you can kind of share with this point regarding commercial implants and

But we are generally working obviously together with private coverage private insurance.

the last part of that question would just be do you have any visibility? Um,

Groups to ensure that we have more broad coverage with VNS, but at this point I don't think I can comment.

Or ongoing discussions with other commercial payers that you can talk about at this point. And then I'd follow up. Thank you.

yeah, I mean today, um, in in United States,

It would be next and what will be next that's what we're working very closely with all of them.

And we're working closely with them because of this exception process that we use today to get coverage for patients.

We have a process where you have to go through an approval with a private, uh, coverage to be implanted with BNS. And what Primark has told us is that

Patients.

Okay understood that's helpful color on it thanks for that and.

The other question that I wanted to.

To ask was regarding the.

Based on the benefits, they're seeing and based on the economic, uh, they prefer that rather than an exception that it would be covered directly for the patient population. So high mark and um,

The obstructive sleep apnea program.

And just wondering if the company as updated thoughts around path forward, there, whether it's going at it alone with a direct sales force and commercializing or potentially.

Levono work together to remove that exception process, so that it will be covered. Now we are very excited about because hi Mark blue should Google cross is um,

Yeah.

Using a commercial partner and.

Yes, just would love any color around the market strategy for DSA initiatives. Thank you.

Adam. Thank you. So first of all I'm going to talk about we're confident in our ability to commercialize this.

Portfolio internally.

But at the same time, we're still open the possibility of partnership if we believe that the arrangement can be beneficial.

Both parties.

Now Where's my confidence coming from and our ability.

A group that other Blue Cross Blue Shield uh, groups look as well. They're more on the kind of front end of things, uh, but we are generally working obviously together with, uh, private coverage, private insurance. Um, groups to ensure that we have more broad coverage with vs. But at this point, I I don't think I can comment uh, which group would be next and what would be next steps. But we're working very closely with all of them. Um and we're working closely with them because of this exception process that we use today to get coverage for the select patients.

Towards that kept us launch first of all I.

I would say this is we believe that this is a clinically differentiated product and it allows us to treat broader population, including the most difficult Triple C patients.

Okay. Understood, that's helpful color on it. Thanks for that. And um, the other question that I wanted to

This is a technology that utilizes a differentiated modalities and new therapeutic modality with.

EHS proximately CNS that gives us kind of a strong foundation that also use us.

um, and just wondering if the company has updated dots around path forward there, whether it's, you know, going at it alone with the direct sales, force in commercializing or potentially

Sixth solid drove.

Which is again, which is differentiation so that by itself. We believe gives us enough differentiation opportunity for our commercial model and then finally.

You know, uh using a, a commercial partner and um yeah just would love any color around the the market strategy for uh, the Osa initiative. Thank you.

We will build on our expertise in Neuromodulation, we will leverage our expertise in manufacturing and R&D and clinical regulatory reimbursement capabilities that we already have in house.

Adam, thank you. So first of all, let me start that we're confident in our ability to commercialize this through our portfolio in internally.

And again.

So there is differentiation and our current capabilities give us confidence.

Uh but at the same time, we're still open to possibility of of Partnership if we believe that the arrangement can be beneficial uh to to both parties.

Two.

And in the ability to commercialize this internally we will.

Dave.

A more precise update on our plans during the Investor day.

Okay nonsense to Matt Taylor with Jefferies. Your line is open. Please go ahead.

Now, where is my confidence coming from in our ability. Um, towards the just as much, first of all. Um, I would say this is we believe that this is a clinically differentiated product and it allows us to treat broader population including the most difficult, um, Triple C patients. Um, this is a technology that utilizes the differentiated modalities and new therapeutic modality with

Hi, Good morning. This is.

Matthew on for Matt Taylor, Thanks for taking our question.

I just had a quick one and hoping you can help walk us through some of your latest expectations for the launch in China.

Particularly.

What extent is the upward revision in your guide driven by stronger than anticipated commercialization.

Uh, dhms approximately GMS that gives us kind of, you know, strong Foundation that also uses um, 6, electrodes, uh, which is again, which is differentiation. So that by itself, We Believe gives us enough. Differentiation opportunity for our commercial model. And then finally, you know, we will build on our expert.

Or is there anything else you'd call out in CPE that led to the rates.

This in your own modulation, you know, we will leverage our expertise in manufacturing and R&D and clinical regulatory reimbursement capabilities that we already have in house.

Yes, so on the CPE business, we're guiding to double digit growth in the second half of the year, which is consistent with our double digit growth in the first half of the year.

Uh, and again.

That. So this differentiation and our current capabilities give us confidence

um, to

We're looking at kind of two <unk>.

Significant factors to watch out the first one and we talked about both of them. The first one.

you know, in in the ability to commercialize this internally, we will

Give uh, a more precise update on our plans during the investigation.

It is.

The rollout and the launch of <unk>.

Essence in China, specifically, our ability to maintain the premium.

Matt Taylor with Jeffrey's, your line is open. Please go ahead.

And I think what the team is progressing really a price premium and the team is progressing very well and then on the consumable side. This is unrelated. So this will be filmed oxygenate our.

Although supply we are executing well and we are monitoring all continued share gain.

Hi, good morning. This is, uh, Matthew on for Matt Taylor. Thanks for taking our question. Um, I just had a quick 1 and hoping you can help walk us through some of your latest expectations for the launch in China.

Particularly.

Journey.

And also working very closely with third party suppliers to make sure that we can continue to increase our sport. So those two factors I think other wants to watch as kind of opportunities for us.

What extent is the upward Revision in your guide, driven by like a stronger than anticipated. Commercialization

Um, or is there anything else you'd call out in CP that led to the race?

Additional growth in.

Second half of the year.

Our final question today comes from Matt <unk> with Barclays. Your line is open. Please go ahead.

Yeah. So on the CT business regarding to double digit growth in the second half of the year which is consistent with our double digit growth. In the first half of the year, you know, we are looking at kind of 2, you know, significant factors uh to watch out, you know, the first 1 and we we

Hey, Thanks, so much for taking my question covered a lot here, but.

I thought it might be helpful. Just did maybe.

Talk about sort of the growth model for them.

We talked about both of them, you know, the first 1 uh is is um the roll out and the launch of uh um Essence in China. Specifically our ability to maintain uh, the premium

Cardiopulmonary.

As you are.

We're obviously punching way above the level that most folks.

Uh and I think with the team of progressing really price premium and the team is progressing very well.

Yeah.

I suggest you think about for sure.

For this category.

Procedures can you talk a little bit about maybe.

The mix or the or the system placement.

Consumable placement or something that will help us understand.

The shape of this growth is this like a two or three quarter.

Phase and then we annualize or or are you leaning into system placements.

And then uh, on the consumable side, this is unrelated to this obviously on oxygenator uh also Supply. You know, we are executing well uh and we are monitoring our continued share gain, uh, Journey, um and also working very closely with third-party suppliers to make sure that we can continue to increase our output. So, those 2 factors, I think are the ones to watch as kind of opportunities for for, uh, additional growth in uh, second half of the year.

Placements and market position in such a way that you know.

As utilization goes up we're going to see a kind of a longer wave of growth that might go two or three years to get.

Our final question. Today, comes from Matt mcic with Barclays. Your line is open. Please go ahead.

We're ahead of ourselves with that kind of color I think it would be super helpful. Congrats on.

Hey thanks. Uh thanks so much for taking my questions covered a lot here but um I thought it might be helpful, just did maybe

Great results in all the great data and coverage announcements. Thanks.

uh, talk about sort of the growth model for um,

Okay.

Good morning, good to hear from you look great.

Great question I will start by the fact that <unk>.

Versus a year ago, my confidence and durability of growth in those business has increased.

And if I say, if I kind of pinpoint on.

Why are we are now guiding significantly higher than our original forecast is due to the fact.

Uh, for cardio pulmonary just, uh, because you're, you know, you're obviously punching, you know, way above the, the level that most folks, I think would would, you know, suggest or think about, or for for, for for this category of of procedures. Can you talk a little bit about maybe, um, write down the mix or the or the system placement in

All the growth cylinders are firing very strongly.

First is market growing proceed in terms of procedures continues.

Perform.

Healthy.

Our <unk>.

Great on the essence is going as planned.

We're able to maintain price premium.

At a consistent level as we did last year.

So to remind you we will be 60% of all units placed this year will be next.

Next year, we're planning for 80% and then the year after 100% so that gives us kind of outside of this year additional three euros or just growth momentum in essence driven by.

Are you leaning into the systems and and placements and and Market position and such a way that, you know? It's utilization goes up. We're going to see a kind of a longer way of approach that might go 2 or 3 years on not to get, you know, too far ahead of ourselves but that kind of color I think would be uh, would be super helpful, congrats on, on the great results and all the the great data and coverage advancements. Thanks.

The upgrade rollout.

Beyond that like on the talks about global start monetizing our software and service.

Um Matt, good morning, good to hear from you. Look I I would great question. I I would start by the fact that, you know, versus a year ago. My confidence in durability of growth in this business has increased

And then we will continue to drive our growth.

and if I say, if I kind of pinpoint on

So that.

The first one the second growth driver has been share gains and oxygenate errors.

why I will now guiding significantly higher than our original forecast, is due to the fact that

And short term goals.

all the growth cylinders are firing very strongly.

As I said, we haven't included brand market share from around 30 to around 40%.

Uh, first is Market growing proceed, in terms of procedures continues to to to perform um in healthy.

We see this momentum continue we'll continue to invest in our output.

We continue.

Continue to see <unk>.

Lack of competitive activity in this in this area.

Um, our upgrade on Essence is going as planned, and we're able to maintain price premium.

And then beyond.

Kind of the next couple of years, we are looking at adding huge new generation launch and oxygenate us that is clinically differentiate us and that whole kind of trigger growth.

Mid and long term.

And then the <unk>.

<unk> significant growth opportunity for us this year has been.

At a consistent level as we did last year. Um, so to remind, you, we will be 60% of all units. Placed this year will be Essence. Next year, we plan for 80%, and then a year after 100%. So that gives us kind of outside of this year additional 2 years of just growth momentum in essence driven by um the the upgrade roll out.

Execution of our pricing strategies.

And like I've said before I think Weibo, Nova has really benchmark.

Um, beyond that, like I'm going to talk about, we will start monetizing uh our software and Service. Uh and that will continue uh to drive our growth.

Pricing capabilities, and we're continuing to execute it well.

so that's, um,

And it kind of remains another growth driver so.

The first 1, the second growth driver has been. I'll share gains in oxygenators.

And.

In summary, the full growth drive results strong procedure growth.

Essence upgrades market share gain in cardiopulmonary consumables and pricing strategies.

um and short-term, you know, like I said, we have increased our market share from around 30 to around 40%

Give us.

Confidence of durability of our growth in cardiopulmonary business moving forward.

Um, we see this momentum continued, right? We continue to invest in our output. We we, uh, continue to see um lack of competitive activity in the in this, in this area.

Yeah.

uh, and then beyond

That's all the time, we have for questions I'll now hand back to Atlantic Sunrise and final remarks.

All right everybody. Thank you. Thank you very much for foothold question. Thank you very much for joining us today and for your interest in with Lenovo and on behalf of the entire team. We appreciate your support.

Kind of the next couple of years. We are looking at a new new generation launched in oxygenators, that is clinically differentiated and that both kind of trigger growth, um uh, mid and long term.

And interestingly on all of them have a great day. Thank you.

Ladies and gentlemen, today's call is now concluded. Thank you for your participation you may now disconnect your lines.

Um, and then, then the last significant growth of potential Frost. This year has been execution of all pricing strategies. And and like I've said before, I think levanova has really Benchmark, um, pricing capabilities and will continue to execute it. Well, um, and and it, it kind of remains another growth driver. So, in in, um, in summary, the full growth drivers of strong procedure growth, uh, Essence upgrades market, share gain and cardio pulmonary, consumables, and pricing strategies.

Um, give us that confidence of durability in our growth, in cardiopulmonary business, moving forward.

That's all the time we have for questions, and I'll hand back to Vladimir M. Katsara for any final remarks.

All right, everybody. Thank you. Thank you very much for, uh, thoughtful questions. Thank you very much for, uh, joining us today and for your interest in living Nova, and on behalf of the entire team, we appreciate your support. Um, and interestingly, leave a Nova and have a great day ahead. Thank you.

Ladies and gentlemen, today's call is now concluded. We like to thank you for your participation. You may now disconnect your lines.