Financial Data and Key Metrics Changes - Second quarter revenues were $780.9 million, an increase of 4.2% year over year on a GAAP basis and up 1% on an adjusted constant currency basis [5][6] - Adjusted earnings per share were $3.73, a 9.1% increase year over year [6][25] - Adjusted gross margin was 59.7%, a 110 basis point decrease year over year, primarily due to cost inflation and unfavorable product mix [24] - Adjusted operating margin was 26.9%, a 20 basis point year over year increase [24] Business Line Data and Key Metrics Changes - Vascular Access revenue increased 1.4% year over year to $185.5 million, driven by growth in PICCs [9] - Interventional revenue was $170 million, an increase of 19.3% year over year, led by intra aortic balloon pumps and complex catheters [9] - Anesthesia revenues decreased 7.6% year over year to $96.4 million, impacted by tough comps in military orders [10] - Surgical business revenue increased 1.4% year over year to $114 million, with solid underlying trends [10] - Interventional Urology revenue decreased 8.3% year over year to $76.4 million, with pressure on UroLift [11] Market Data and Key Metrics Changes - Americas revenues were $525.7 million, a 2% increase year over year [7] - EMEA revenues decreased 2.1% year over year to $166.2 million, with strength in Interventional business offset by Anesthesia challenges [7] - Asia revenues were $89 million, a 1.2% increase year over year, driven by Southeast Asia, India, and Japan [8] Company Strategy and Development Direction - The company is progressing with the separation announced in February, aiming for focused strategic direction and streamlined operations [12][13] - A potential sale of NewCo is being pursued, with significant interest from potential buyers [13] - The acquisition of BioTronic's vascular intervention business is expected to enhance growth and improve margins, with anticipated annual revenues exceeding $800 million [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational excellence and value creation, with updated financial guidance reflecting strong performance [5][28] - The company expects total constant currency growth for 2025 to be in the range of 7.7% to 8.7% [28] - Management highlighted the positive impact of proposed CMS reimbursement changes on UroLift and Barajel, which could enhance growth prospects [72][73] Other Important Information - The company completed the acquisition of BioTronic for a net initial cash payment of €4 million [15] - The impact from tariffs is now estimated at approximately $29 million for 2025, a reduction from previous estimates [30] - The company plans to initiate a U.S. pivotal study for PRESOLVE technology in the coming months [19] Q&A Session Summary Question: Can you provide more context on the guidance bridge between tariffs, FX, and business outperformance? - Management expects organic growth of the BioTronic business in the second half of the year to be mid single digits, with a long-term growth expectation of 6% or better starting in 2026 [40][41] Question: Can you provide a rough breakout between the growth of remainco and newco? - Remainco is expected to grow in the upper 5% range, while newco's growth is anticipated to be in the mid single digits [45] Question: What is the outlook for the interventional business growth? - The interventional business is expected to grow high single to low double digits for the full year of 2025 [46] Question: Can you provide an update on the timing for the sale versus spin of NewCo? - If a spin proceeds, it is expected to occur in mid-2026, while the timing for a sale remains uncertain [50][81] Question: How will the proposed CMS rule impact UroLift? - The proposed rule is expected to provide a 10% uplift in reimbursement, which could significantly benefit UroLift's growth [72][84] Question: What is the site of service mix for Barajel? - The site of service mix for Barajel is spread across all three service sites, with the proposed uplift expected to encourage more product movement to the office side [87]