Teleflex Incorporated (NYSE:TFX) Q4 2022 Earnings Call Transcript

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I think that the DTC does make sense, to answer the other part of your question. If you go back to 2022, based on our expectations, the number of impressions were up by 27%. The number of responses were up double — very strong double digits. So we feel that that is an encouraging factor. And every time I talk to urologists. And the same was true last week, when I was out on the road, patients are coming into them asking them for UroLift based on the ad campaigns that they see. So I think we will continue with the DTC campaign. And we believe that 8% to 11% is very achievable for us as a company.

Matthew O’Brien: Okay. Appreciate that, Liam. And then, as far as the high-growth portfolio goes as well, coming down a little bit from — I think, it was 14% to 15% before and now its 12% to 13%, still implies the rest of the portfolio outside of UL is strong. Can you talk about some of those components, what you’re seeing from MANTA, EZ-IO, PICCs, et cetera, that are giving you the confidence to reiterate the strength in that segment of the business over the next several years? Thank you.

Liam Kelly: Yes. So the high growth is doing really well. In the fourth quarter, it grew approximately 14%. The full year it grew approximately 14%, ex the contributions of UroLift. So, obviously, there are elements within the high growth that are above the average that we expect and there are elements of the high growth that will be slightly below it. Obviously, now the Titan, which comes from Standard Bariatrics, will be the fastest-growing. Then you have MANTA which will grow above the average. So we feel really good about the high-growth portfolio. We feel really good about being able to deliver the high growth of 12% to 13% over the LRP and we feel really good about being able to deliver 8% to 11% from the high growth in 2023.

And the performance of all other aspects of the high growth, except for one, have been right in line, if not, ahead of our expectations for the entirety of 2022. And there’s nothing better than momentum, as you know Matt as you head into 2023, 2024 and 2025 as you continue to build that out. And I know we talk a lot about international expansion with UroLift, but it is also the same for the rest of the high growth. There is international expansion as well as domestic sales growth as we tap into that market. And the encouraging thing is as I said earlier all of this high growth is growing into a massive market TAM where we’re very underpenetrated, but significant opportunities for growth.

Operator: Our next question comes from Anthony Petrone with Mizuho. Please go ahead, Anthony.

Anthony Petrone: Thanks. Hope everyone is doing well. Maybe just in the LRP Standard Bariatrics just to kind of clean that up a bit in terms of the top-line contribution, it rolls into organic I would assume sometime later this year or early next year. So maybe the contribution from Standard Bariatrics within the LRP and can that actually be margin accretive by the end of the LRP? And I’ll have a couple of follow-ups.

Liam Kelly: Yes. And well done Anthony. Thanks for asking. So I’ll answer the last part of your question first. Yes it will be margin-accretive by the end of the LRP. We expect it to become margin-accretive as we exit 2024. What you should expect from Standard Bariatrics is that it will deliver between $30 million and $35 million this year as we stated in our prepared remarks. And then as we said previously it should add approximately 50 basis points of growth to Teleflex year-over-year thereafter from an organic perspective. So that’s what you should expect from Standard Bariatrics. Rough math should be around $60 million by the end of 2025.

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