Electromed (ELMD) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Company overview and market positioning

• Specializes in airway clearance technology for respiratory care, with all manufacturing in Minnesota and a direct-to-patient model.

• Profitable, growing, and debt-free, with $50M in revenue and a strong financial profile.

• Operates mainly in the home care market, bypassing traditional distributors to engage directly with providers and patients.

• Targets bronchiectasis, a chronic, irreversible disease, with significant underdiagnosis and undertreatment.

• Sees a large, expanding market opportunity, especially among patients over 65.

Technology and clinical impact

• Offers High Frequency Chest Wall Oscillation (HFCWO) devices, notably the SmartVest Clearway, which is lighter and easier to use than competitors.

• Device is used daily, typically twice a day for 30 minutes, for the lifetime of the patient.

• Clinical evidence shows 57% reduction in antibiotic use, 59% decrease in hospitalizations, and 75% fewer emergency visits.

• 95% of patients would recommend the device to others.

• Provides comprehensive patient support, including in-home delivery, training, and follow-up assessments.

Market opportunity and growth strategy

• 824,000 diagnosed bronchiectasis patients in the US, but only 127,000 on HFCWO therapy; 4.1 million estimated undiagnosed cases.

• Unlocking the untreated and undiagnosed market could represent a $2.3B revenue opportunity.

• Focused on increasing awareness among providers and leveraging direct-to-consumer marketing.

• Investing in market development, provider education, and e-prescribing tools to streamline patient onboarding.

• Hospital market is a new growth frontier, with current focus on clinics but plans to expand hospital presence.