Summary of AngioDynamics Conference Call Company Overview - **Company**: AngioDynamics (NasdaqGS: ANGO) - **Fiscal Year**: The company operates on a unique fiscal year starting June 1, currently nearing the end of Q2 for FY 2026 - **Transformation**: AngioDynamics is undergoing a transformation from a diversified medical device company to a focused MedTech company targeting large addressable markets with high gross margins [4][6][8] Key Points on Transformation and Financial Performance - **Revenue Shift**: The MedTech business has grown from less than 17% of total revenue to approximately 45%, with expectations to surpass 50% soon [8][10] - **EBITDA Positive**: The company achieved adjusted EBITDA positivity last fiscal year and expects to maintain this going forward [8][10] - **Cash Flow**: AngioDynamics anticipates being cash flow positive for the fiscal year ending May 31 [9][10] - **Growth Rate**: The MedTech segment has experienced a compound annual growth rate (CAGR) of about 25% over the last five years [12] MedTech Business Insights - **Market Focus**: The MedTech portfolio includes two cardiovascular areas and one interventional oncology area, with significant growth potential in each [14][15] - **Key Products**: - **NanoKnife**: Recently approved for treating intermediate-risk prostate cancer, with a market potential of over $2 billion globally [14][15][75] - **Arion System**: Launched in 2020, it has grown to over $60 million in revenue, focusing on peripheral arterial disease (PAD) [6][43] - **AlphaVac System**: Competing in the venous thromboembolism (VTE) market, showing a 40% growth in Q1 [20][21] Market Dynamics and Growth Drivers - **Interventional Oncology**: The NanoKnife product addresses a significant market need, with a focus on preserving quality of life for patients [78][80] - **Cardiovascular Market**: The company is expanding into coronary interventions, which represent a larger market opportunity [15][46] - **VTE Market**: The mechanical thrombectomy market is expected to grow, with AngioDynamics taking market share from competitors [20][23] Challenges and Opportunities - **Macro Environment**: The healthcare sector faces pressures from Medicare and Medicaid changes, but AngioDynamics believes its product mix positions it well to navigate these challenges [17][18] - **Clinical Evidence**: Ongoing studies and clinical data generation are crucial for market adoption and confidence in mechanical thrombectomy and other products [25][41][58] Financial Outlook - **Sales Growth Guidance**: For FY 2026, AngioDynamics projects overall sales growth of 5-7%, with double-digit growth expected in the MedTech segment [94][98] - **Capital Allocation**: The company plans to focus on innovation within its existing MedTech business rather than pursuing external M&A in the near term [91][93] Conclusion - AngioDynamics is strategically positioned for growth in the MedTech sector, with a strong focus on innovation, clinical evidence, and market expansion. The company is optimistic about its financial trajectory and the potential for its products to capture significant market share in the coming years [84][88][90]