Pulmonx (LUNG) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Disease background and treatment landscape

• Emphysema is a severe form of COPD causing progressive lung destruction, leading to breathlessness and high mortality risk.

• Standard treatments include medical management and pulmonary rehab, but these are ineffective for severe cases.

• Surgical options like lung volume reduction and transplant are highly invasive and rare, with only about 500 procedures annually.

• Zephyr valves offer a minimally invasive alternative, allowing air to escape from diseased lung areas and improving patient outcomes.

• Four randomized controlled trials show significant improvements in lung function, exercise capacity, and quality of life compared to medical management.

Market opportunity and commercial strategy

• The target market includes 1.2 million patients globally, with a $12 billion opportunity at $10,000 per case.

• The company operates in 25 countries, with 56 US and 35 international sales reps, and is direct in 95% of sales regions.

• Commercial strategy focuses on onboarding high-potential accounts, automating workflow, and increasing awareness among physicians and patients.

• Only 30% of COPD physicians and 20% of patients are aware of valve qualifications, highlighting an education gap.

• Workflow automation, including the new LungTrax Connect product, is key to scaling patient throughput and improving experience.

Product innovation and clinical pipeline

• LungTrax Connect automates CT scanning and patient workflow, improving efficiency and patient management.

• The Chartis system assesses collateral ventilation, determining patient eligibility for valve placement.

• AeriSeal, a polymeric foam for patients with collateral ventilation, is in a 200-patient IDE trial and has shown promising early results.

• The company envisions future growth through expanded screening and workflow programs, and potential new procedures.

• Over 40,000 patients have been treated to date, with 7,000-8,000 expected this year.