Kestra Medical Technologies (KMTS) 44th Annual J.P. Morgan Healthcare Conference summary

Market opportunity and growth

• Addressing a $10 billion U.S. market with significant underpenetration; only 1 in 7 eligible patients currently served.

• Market growth has accelerated to low double digits, with 80% of Kestra's gains from market share capture and 20% from expansion.

• Entry revitalized the category, prompting competitors to focus on market development.

• Market expansion is expected to accelerate further with potential guideline changes.

• Ongoing market development and medical education events are increasing awareness.

Product innovation and clinical results

• The Assure wearable cardioverter-defibrillator (WCD) offers rapid cardiac arrest intervention, with a 100% conversion rate in a 21,000-patient post-approval study.

• Clinical data shows high patient compliance, with median wear time over 23 hours daily.

• Extremely low false alarm rates and additional diagnostic utility for arrhythmias and comorbidities.

• Platform is extensible, with 380+ patent assets and new features planned.

• Strategic partnership with Biobeat to integrate cuffless blood pressure monitoring, addressing 72% of patients who are hypertensive.

Commercial execution and business model

• Commercial launch began in August 2022; IPO completed in March, followed by a successful secondary offering.

• Over 290 million covered lives and 90% insurance coverage achieved.

• Sales force doubled to 100 reps, targeting 130 by April; reps reach productivity in about six months.

• Rental model enables device reuse, supporting attractive unit economics and gross margin expansion.

• Eight consecutive quarters of gross margin growth, with a long-term target above 70%.