44 annotations
For example, post-transplant bleeding, post-transplant take down to the OR, re-transplantation, post-transplant procedures like ECP is growing down significantly. And that's what's causing the payers to say we're seeing the benefits of -- it's really driven by more organs. With more organs, you're really driving the cost efficiency or the health economics of an organ transplant significantly to a transplant payer, and that's what we're seeing and what we're hearing.We are in constant communication and dialogue with some of the major payers in the United States.
Push for NOP adoption from payers?
Transcript
2023 Q3
3 Dec 23
With NOP, as you know, I mean, every quarter, we get a handful of centers that never use the OCS in their life -- in our life, and they jump in into the NOP. Most of those continue on growth, but some of them may -- they slip 1 month and then come back again, some continues every month. It's -- All I'm trying to say is it's becoming noisy to be looking at the center-to-center -- quarter-to-quarter center growth.The other thing is, and that's the most important is for liver and heart, we're already at a critical massive centers. We're already north of 40 centers for heart and liver.
Key metric justification
Transcript
2023 Q3
3 Dec 23
With NOP, as you know, I mean, every quarter, we get a handful of centers that never use the OCS in their life -- in our life, and they jump in into the NOP. Most of those continue on growth, but some of them may -- they slip 1 month and then come back again, some continues every month. It's -- All I'm trying to say is it's becoming noisy to be looking at the center-to-center -- quarter-to-quarter center growth.The other thing is, and that's the most important is for liver and heart, we're already at a critical massive centers. We're already north of 40 centers for heart and liver.
Key metric justification
Transcript
2023 Q3
3 Dec 23
With NOP, as you know, I mean, every quarter, we get a handful of centers that never use the OCS in their life -- in our life, and they jump in into the NOP. Most of those continue on growth, but some of them may -- they slip 1 month and then come back again, some continues every month. It's -- All I'm trying to say is it's becoming noisy to be looking at the center-to-center -- quarter-to-quarter center growth.The other thing is, and that's the most important is for liver and heart, we're already at a critical massive centers. We're already north of 40 centers for heart and liver.
Key metric justification
Transcript
2023 Q3
3 Dec 23
With NOP, as you know, I mean, every quarter, we get a handful of centers that never use the OCS in their life -- in our life, and they jump in into the NOP. Most of those continue on growth, but some of them may -- they slip 1 month and then come back again, some continues every month. It's -- All I'm trying to say is it's becoming noisy to be looking at the center-to-center -- quarter-to-quarter center growth.The other thing is, and that's the most important is for liver and heart, we're already at a critical massive centers. We're already north of 40 centers for heart and liver.
Key metric justification
Transcript
2023 Q3
3 Dec 23
So I'm not concerned at all. NRP, it's going to be limited in nature.We have -- Our results is pointing to that. And we have a couple of abstracts at the upcoming ISHLT that will address this point directly and clearly show the importance of OCS and capabilities of OCS, including cost comparison between OCS and NRP. Because for a while, there was a misunderstanding and misnomer that OCS might be more expensive than NRP. The opposite is true.
Not concerned about NRP competition
Transcript
2023 Q3
3 Dec 23
How big is this market, how big CAN it be?
Transcript
2023 Q3
3 Dec 23
TransMedics continue to do the lion's share of DCD Heart donation in the United States.
(No comment added)
Transcript
2023 Q3
3 Dec 23
think there's been [ 8 case ], you've acquired 8 planes. And if my memory serves me correct, you were looking to acquire 8 more, which -- $427 million, if it's $12 million a plane, that will leave you with over $300 million in cash. And I think not to take words out of Stephen's mouth, but your core business, stripping everything out was actually profitable by almost $1 million. Am I missing something here? Does that math add up?
Modeling note
Transcript
2023 Q3
3 Dec 23
If you're flying shorter distances, the average is somewhere between $25,000 to $30,000.
If you're flying longer distances, it could go as high as $100,000.
Range of revenue per flight: $25k to $100k
Transcript
2023 Q3
3 Dec 23
If you're flying shorter distances, the average is somewhere between $25,000 to $30,000.
If you're flying longer distances, it could go as high as $100,000.
Range of revenue per flight: $25k to $100k
Transcript
2023 Q3
3 Dec 23
Our most indicative metric to track is growth in revenue and improvement in the service margin.
WEIRD
Transcript
2023 Q3
3 Dec 23
Exactly. That's exactly what we're saying, Josh.
Dropped quarterly users in addition to OCS centers...
Transcript
2023 Q3
3 Dec 23
We are depreciating these jets over 10 years with a 50% residual value
5% depreciation per year seems to be normal
Transcript
2023 Q3
3 Dec 23
In the quarter, we spent $42.1 million on the 2 business acquisitions as well as approximately $103 million on 8 jets that were added to our transplant logistics fleet.
$12.9M per plane
Transcript
2023 Q3
3 Dec 23
aking into consideration the 2 transaction specific expense items I mentioned earlier, our operating income would have been just above breakeven for the quarter, about $900,000
Operating income
Transcript
2023 Q3
3 Dec 23
Given the higher mix of service in our business, we believe a mid to upper 60s gross margin is a reasonable steady state
Steady state gross margins
Transcript
2023 Q3
3 Dec 23
our product margin this quarter was 77%, and we expect this to improve into the 80% range over the next few quarters. And the service margin was 21% in Q3.
We also expect this to improve over the next few quarters to the low to mid-30% range
Gross margins for model
Transcript
2023 Q3
3 Dec 23
We fully expect both our product and service margins to improve over the next several quarters as we gain more operational leverage and efficiency
Gross margin improvement
Transcript
2023 Q3
3 Dec 23
As of today, we have acquired 8 planes. We plan to expand our fleet to around 15 to 20 operational planes by the second half of 2024
Additional CAPEX
Transcript
2023 Q3
3 Dec 23