LivaNova expects OSA business to be break-even by 2029

The company has established a pathway to achieve this growth by maximizing its core businesses, scaling Obstructive Sleep Apnea, and preserving upside in Difficult-to-Treat Depression. At today’s event, LivaNova (LIVN) highlighted the following: Market-leading Cardiopulmonary business operating in a $2 billion global market: LivaNova will capitalize on the market opportunity by pursuing a growth strategy driven by the continued replacement cycle of Essenz, ongoing market-share gains in consumables enhanced by its next-generation oxygenator (estimated launch 2028), and recurring revenue streams via software and service attachments. These efforts are expected to generate mid-to-high single-digit revenue CAGR as well as adjusted operating margin expansion of more than 300 basis points in Cardiopulmonary. Global leadership in Drug-Resistant Epilepsy treatment: In Epilepsy, where the market is significantly underpenetrated, the Company expects continued profitable growth. This will be supported by real-world evidence from the CORE-VNS clinical study, a connected care platform (estimated launch 2026) followed by a Bluetooth-enabled implantable pulse generator (estimated launch 2027), and expanded global access and reimbursement. The company is targeting mid-single-digit revenue CAGR and adjusted operating income margin expansion of approximately 200 basis points by 2030 in Epilepsy. Entrance into a large, underpenetrated OSA market with its differentiated proximal hypoglossal nerve stimulation technology: The company’s robust clinical evidence, including newly released data from its PolySync Algorithm, and a differentiated technology from alternative therapies to treat more challenging patients, such as those with high body mass index and complete concentric collapse, give LivaNova confidence in its capacity to address these needs in this market. PolySync is an advanced multi-contact titration algorithm that utilizes the technology’s six-electrode design to provide a more targeted nerve activation and enable an even greater patient response. Following approval by the U.S. Food and Drug Administration, the company intends to commercialize its OSA product independently in 2027. By doing so, it will retain full control over pricing, positioning, and customer relationships to maximize long-term value creation. The Company will leverage its proven Neuromodulation infrastructure to scale efficiently with a disciplined, milestone-based investment approach. OSA is projected to generate $200 million to $400 million in revenue by 2030 and adjusted operating income margin of greater than 25%. The company expects the OSA business to be break-even by 2029. DTD coverage reconsideration with U.S. Centers for Medicare & Medicaid Services: While DTD is not included in the company’s long-range financial projections given the pending CMS coverage reconsideration, it represents significant upside optionality. DTD is a strategic extension of its Neuromodulation platform and will create meaningful value if CMS coverage is secured.