TransMedics Group, Inc. (NASDAQ:TMDX) Q1 2023 Earnings Call Transcript

Waleed Hassanein: Thank you, Suraj. So let me address the first question. The answer is both. We’re taking a significant portion of the existing market, and we’re growing the overall market. And again, the numbers speak for themselves. We’ve seen heart grew by 9% last year, lung grew by 7%, liver grew by 3%. We expect the overall growth of these organs to be higher in 2022 — I’m sorry, 2023. And we’re taking a meaningful percentage of their current volume. Why? Because we’re streamlining the process through the NOP. And this is what I said earlier to Cecilia’s question. Our strategy is not just to cannibalize the existing market. Our strategy is to do that plus grow the overall market. And I think our — I believe that our results speak for themselves. We have demonstrated our ability to do both in our 2022 results, and we are continuing to see that trajectory in ’23, and we expect that to continue going forward.

Stephen Gordon: And Suraj, let me address the question on the subsidiary. I don’t expect it to be a separate subsidiary reporting separately. I expect it to be part of our overall P&L. And when it comes to — well, I can’t really talk about the investment at this moment, what I can say is, it will include a revenue component added revenue as well as cost. So it’s not going to be a breakeven. It will be added bottom line to TransMedics as well. I hope that makes sense.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Waleed Hassanein for any closing remarks.

Waleed Hassanein: Thank you. We thank you all for your time this evening, and we look forward to having our next call for our Q2 results. Have a wonderful evening.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.