PROCEPT BioRobotics (PRCT) Piper Sandler 36th Annual Healthcare Conference summary

Commercial performance and sales strategy

• HYDROS launch has generated strong enthusiasm, with a robust sales pipeline and higher-than-expected interest from both new and existing customers.

• Sales force productivity is expected to increase in 2025, with 40+ capital reps and additional junior reps targeting greenfield opportunities.

• Strategic accounts team is focusing on IDN and government accounts, with growing engagement from large IDNs.

• Most sales are expected to come from greenfield accounts, but a replacement cycle opportunity exists for recent AquaBeam purchasers.

• Multi-system orders are emerging in high-volume centers, though not expected to be a major driver in the next 1-2 years.

Product differentiation and market adoption

• HYDROS offers easier setup, integrated disposable scope, and features like FirstAssist AI, appealing to techs, administrators, and surgeons.

• The platform is designed for long-term innovation, with hospitals seeing it as a 5-10 year investment.

• 70% of accounts are high-volume BPH centers, but penetration remains below 50% of the 860 high-volume U.S. centers.

• HYDROS is accelerating deal flow and interest, including from existing customers.

• The average treated prostate size is 60-80g, aligning with the general patient population.

Pricing, margins, and financial outlook

• HYDROS commands a premium price over AquaBeam, with early indicators showing less price resistance.

• ASP flexibility is maintained to drive adoption, but disposable pricing remains firm.

• Margin expansion in Q3 was driven mainly by internal efficiencies, with HYDROS costs expected to decrease over time.

• Facility payment for procedures increased by 5%, and physician payment changes (Cat I) will be effective January 2026.

• Investments in infrastructure and increased volume are expected to further expand margins.