Haemonetics Corporation (NYSE:HAE) Q2 2024 Earnings Call Transcript

So we intend to lean in. Let’s to talk about that specifically to help make that product everything it can be. There’s a third piece, which is their OEM business, which we’re typically not an OEM manufacturer. But in this case, when you’re talking about the blue chip companies that make up their customer base we’re excited to lean in. We’re going to secure those relationships and build upon them where we can. We think it’s a really attractive market. And the underlying economics of that business do not look like your traditional OEM business, they look much more like the core portfolio. So candidly, all three aspects of OpSens and what they’ve been able to achieve on a stand-alone basis are exciting to us, and we think we can add real leverage too.

Stu?

Stewart Strong: Yes, Mike, thanks for the question. It’s Stu. I would just add that what this really does for us is that it really expands our portfolio in interventional cardiology, complements the success that we’re already having with the Vascular Closure portfolio. So there’s some really nice call point synergies there. And you’ve heard us talk about it before. We’ve targeted the top 600 centers across the U.S. that drive about almost 90% of all EP procedures. It’s equally concentrated in procedures like TAVR, where that top 600 also drives over 80% of all TAVR procedures. So we think there’s really nice synergies there and the acquisition of OpSens gives us that sort of reach and relevance to leverage the sales force that we also have, but also complement the team that they have as well. So we’re really excited about it and really starts to underscore the commitments that we have to this space and the growth that we’re looking forward to in it.

Mike Matson: Okay, got it. Thank you. And then just in the Plasma business with Express Plus, can you just remind me, are you getting a price premium for that technology?

Chris Simon: So Mike, we haven’t broken out specific expectations there. What I would say in general, and I think we’re living into this quite specifically, we have superior technology. We aspire to compete on innovation. And we, of course, would expect a premium for that innovation. But in all cases, we translate it to a specific benefit, not the features and attributes, but an economic or a donor satisfaction benefit that manifests for our centers. Express Plus is certainly part of that, but we haven’t broken out any specific expectations there.

Mike Matson: Okay, got it. Thank you.

Operator: Thank you so much. And your next question comes from the line of Michael Petusky of Barrington Research. Please go ahead.

Michael Petusky: A couple of questions. I guess, first, starting with the expected acceleration in hospital is, I guess, first, anything you can share in terms of traction in terms of the Vascular Closure in Europe? And is sort of a pickup there a material part of the acceleration you expect in the second half?

Chris Simon: I’ll let Stu take that directly. Thanks, Mike.

Michael Petusky: Sure.

Stewart Strong: I would say, Mike, thanks for the question. Most of the material growth that we’re going to see is going to continue to come out of the U.S. We’ve launched, as I said in my prepared remarks, we’ve launched in Germany and Italy, and we’re starting to see accounts coming on board in those two countries. And we also just had a launch that started in Japan. On September 28, we did our first cases in Japan. We got reimbursement in Japan starting at the end of September. So we’re really excited about what we’re doing in Japan. But I would say for the year, the material growth that’s going to come from that portfolio is still driven disproportionately by the U.S.

Michael Petusky: And then switching over to Plasma. Chris, I’m just wondering, so I think roughly a couple of quarters ago, you said, hey, we think we have a minimum order commitment from CSL of slightly above $100 million for fiscal 2024. And then I think you termed it a meaningful commitment for fiscal 2025. And I guess my question is, is the expectation you guys had a couple of quarters ago, is that still the case? Or is that in any way shifted? Thanks.