PROCEPT BioRobotics (PRCT) 2024 Truist Securities MedTech Conference summary

Business visibility and commercial strategy

• Improved business visibility attributed to a shift from capital sales to a consumable model and experience managing the sales funnel.

• Strategic Accounts Team established to manage large IDN relationships, enhancing predictability and facilitating multi-system orders.

• Contracts now in place with most large US IDNs, with the team focused on both bottom-up and top-down sales approaches.

• Bulk buy orders from IDNs are a long-term goal, not yet included in current guidance, but corporate funding for systems is increasing.

• Guidance for 2024 reflects confidence in continued beat-and-raise performance and nearly 60% top-line growth.

Utilization trends and market expansion

• New accounts are ramping up utilization faster than earlier cohorts, with the average account reaching 7 procedures per month and high-volume accounts at 17.

• No natural ceiling observed in utilization, with even older accounts continuing to add surgeons and increase procedures.

• First ambulatory surgery center (ASC) install completed; ASC strategy is a pilot focused on market expansion, not core growth.

• Only 10% of resective procedures are currently done in ASCs, representing about 30,000 cases annually.

• ASC pilot aims to expand the market by reaching patients who avoid hospital-based procedures.

Indication expansion and clinical development

• Two clinical studies (PRCT001 and PRCT002) underway to evaluate Aquablation therapy for prostate cancer, with results expected by AUA 2025.

• Early data show promising safety profiles for cancer patients, similar to BPH outcomes.

• Market opportunity for prostate cancer indication estimated at $500 million+ annually, with about a third of patients overlapping with BPH.

• Over 3 million men with prostate cancer are untreated due to poor safety profiles of current alternatives.

• Existing installed base of 500+ systems in the US could be leveraged for new indications.