Penumbra (NYSE:PEN) FY Conference Transcript

Summary of Penumbra FY Conference Call (January 12, 2026) Company Overview - Company: Penumbra (NYSE:PEN) - Founded: 2004 - Headquarters: Alameda, California - Employees: Over 4,500 worldwide - Manufacturing: All products currently manufactured in California, with plans for expansion in Costa Rica by mid to late 2027 [2][4] Manufacturing and Expansion - Current Facilities: Nine buildings in Alameda, with 260,000 sq ft dedicated to manufacturing [3] - New Facilities: - Roseville facility: 300,000 sq ft, successful expansion [4] - Costa Rica facility: 330,000 sq ft, expected to open in mid to late 2027 [4] Business Segments - Thrombectomy: Focused on growth, with significant market share in mechanical thrombectomy [5][7] - Embolization: Both peripheral and neuro embolization segments are growing significantly [5] Market Insights - Thrombectomy Market: - Estimated 250,000 patients in the U.S. for arterial thrombectomy [6] - DVT (Deep Vein Thrombosis) represents the largest opportunity with a focus on iliofemoral DVTs [8] - Stroke market has about 200,000 patients, with over 30% penetration [10] - Emerging Technologies: Introduction of CAVT (computer-assisted vacuum thrombectomy) is expected to enhance treatment outcomes [11] Clinical Trials and Product Development - STORM-PE Trial: - Landmark trial for pulmonary embolism, showing significant safety and efficacy [12][13] - Procedure time was notably low at 25 minutes, with significant improvements in patient outcomes [13][14] - Regulatory Updates: Ongoing communication with the FDA regarding product submissions, with no major concerns reported [25] Growth Drivers and Challenges - Growth Drivers: - Anticipated recovery in the Chinese market, which had been a headwind [29] - Increased focus on embolization and thrombectomy as separate business units [29] - Challenges: - Need to convert physicians from traditional methods to newer technologies [41] - Structural issues in stroke care delivery remain a challenge [62] Financial Performance and Projections - Margins: Commitment to achieving 70%+ gross margins, with expectations for continued improvement [64] - Growth Outlook: Anticipated mid-teens growth with over 30% growth on the bottom line [26] Conclusion - Innovation Commitment: Penumbra emphasizes ongoing innovation and product development to enhance treatment options and patient outcomes [22] - Market Position: The company is positioned as a leader in mechanical thrombectomy, with a strong focus on expanding its market share in both thrombectomy and embolization [41][43]