TransMedics at Goldman Sachs Conference: Strategic Growth and Challenges

On Monday, 09 June 2025, TransMedics Group Inc (NASDAQ:TMDX) presented at the Goldman Sachs 46th Annual Global Healthcare Conference, highlighting its innovative approach in organ transplantation. The company emphasized both its strategic advancements and challenges, focusing on its Organ Care System (OCS) and National OCS Program (NOP), which are pivotal to its market leadership.

Key Takeaways

• TransMedics aims for $1.2 billion in revenue and a 30% operating margin by 2028.
• The National OCS Program accounts for nearly all of its current business.
• DCD (Donors after Circulatory Death) hearts now make up nearly 50% of the donor population.
• Introduction of new heart and lung platforms is planned for this year, with a kidney platform expected by 2027.
• The company is focusing on international expansion and improving reimbursement processes outside the U.S.

Financial Results

• Revenue target set at $1.2 billion by 2028, with a goal of achieving 10,000 transplants annually.
• Operating margin is projected to reach 30% by 2028, supported by increased gross profit despite lower service margins.
• R&D spending is expected to grow faster than sales, while SG&A expenses will grow slower than sales.

Operational Updates

• The National OCS Program is the backbone of TransMedics’ operations, accounting for 98-99% of business.
• Nearly half of the U.S. transplant donor population now consists of DCD donors.
• Upcoming introduction of Gen 2 heart and lung platforms is set to boost adoption rates.
• A Gen 3 platform, designed to be highly portable and cloud-connected, is scheduled for late 2028/early 2029.
• A kidney platform is anticipated to enter clinical trials in the first half of 2027.

Future Outlook

• TransMedics aims to achieve 10,000 transplants annually by 2028, capturing a 50-55% market share in heart, lung, and liver transplants.
• The company plans to expand internationally, focusing on Europe, the Middle East, and Australia.
• With the introduction of the kidney platform, TransMedics aspires to reach 20,000-30,000 transplants in the following 3-5 years.

Q&A Highlights

• TransMedics’ differentiation is attributed to its clinical data and the creation of the DCD donor category.
• The NOP is valued for its economic benefits to hospitals, including increased transplant volumes and improved outcomes.
• U.S. reimbursement is supported by a dedicated organ acquisition cost center, though international reimbursement requires more effort.

For a more detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - Goldman Sachs 46th Annual Global Healthcare Conference:

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: morning, and welcome to the twenty twenty five Goldman Sachs Global Healthcare Conference. My name is Phil Cooper. I’m part of David Roman’s U. S. Med tech and health care IT team.

We’re pleased to be joined by TransMedics this morning. We have the founder, president, and CEO, Waleed Hassanein, and CFO, Gerardo Hernandez. Before we begin, I have some disclosures that I’m gonna try and read really quickly. We are required to make certain disclosures in public appearances about Goldman Sachs’ relationships with companies that we discussed. The disclosures relate to investment banking relationships, compensation received, or one percent or more ownership.

We are prepared to read aloud disclosures for any issuer upon request. However, these disclosures are available in our most recent reports available to you as clients on our firm portals. I should also note that we do not cover TransMedics. Alright. With that, I’m gonna start with an opening question for those less familiar with the story.

Waleed, can you start by sort of framing the problem that TransMedics attempts to address, what you’re doing for patients, and maybe touch on legacy cold storage and how you’re trying to differentiate.

Waleed Hassanein, Founder, President, and CEO, TransMedics: Great. So thank you for for the invite to be here. You know, to remind everyone, TransMedics is this operates in this very unique field of organ transplantation. It’s a very unique therapy in medicine that is the gold standard for treating very complex end of life chronic disease state called end stage organ failure. It’s the gold standard because it affords patient the best quality of life, the longest life expectancy, and it’s the gold standard because it is the most cost effective or cost efficient therapy of treating these very, very complex, very expensive disease conditions.

So if it’s the gold standard, why many of you never heard anything about organ transplant until until TransMedics became a real company? It’s because there this area of medicine has been plagued for four and a half decades of limitations of the historical way we the way we used to store organs from donors to recipients, which was limited at the time to cold storage. Literally, we used to take donated organs, which are very precious thing, and put it in a ziplock bag filled with preservative solution and put on an igloo cooler filled with ice to move it from donors to recipients. That subjects the organs to two to three major limitations. One, once you take the organ out of the healthy oxygenated environment of being in the donor body, you subject these organs to a decay curve, the slope of which is unknown.

So it’s time dependent. The longer you spend the time on ice, the higher the probability that these organs will never function. Two, because the organs are not metabolically active, and they’re not functioning, you you cannot resuscitate or optimize or assess the organ viability for transplant. These three limitations of cold storage resulted in, severe underutilization of available donor pool. We’re literally wasting on an annualized basis 70 to 80% of heart and lung donated, 45 to 50% of liver donated, and about forty percent of the kidney donated for organ transplant.

Number two, it results in significant severe complications after the organ is transplanted that could increase significantly the morbidity to the patient but also the cost of delivering the therapy up to doubling the cost of organ transplant. So these are the historical limitations that TransMedics was created to overcome. TransMedics developed three things that got us to where we First, we developed the first and best in in in its class technology called the Organ Care System to overcome the three limitations of cold storage comprehensively. In our Organ Care System or OCS technology, the organ is never ischemic.

The organ is never starved of oxygen because we perfuse it with warm oxygenated nutrient rich blood. Number two, the organ is metabolically active and functionally active. The heart is beating. The lung is breathing. The liver is producing bile, the kidney is making urine.

So we can optimize the organ condition and assess its viability for transplant up to the minute it’s ready to be transplanted. These two benefits or these three benefits result in significantly improved utilization of donated organs. We single handedly over the last two years delivered double digit growth in the national transplant volume in The US for heart and liver. Hasn’t happened in the history of organ transplant for the last three decades. The second thing we did, we didn’t stop at the technology.

Three years ago, we said for this technology to really make a big impact nationally, we need to integrate a service component we call the National OCS Program or NOP, where we are responsible. It’s an end to end service. We’re responsible for delivering the organs from donors to recipient including managing these organs on our technology. And for the last eighteen months, we added a third element which we vertically integrated logistics into our network to create a comprehensive solution that has air and ground transportation that’s fully dedicated to organ transplantation. That three areas, that three components that call the network effect of the NOP is really what’s driving the success of TransMedics today.

Today, 98%, ninety nine % of our business is through the NOP model.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: That’s a that’s a fantastic overview. Touched on a lot of the things I was hoping to hit on. So maybe we can go to how your differentiation expresses itself in the clinical literature and maybe touch on competitors, which I know is something of a hot button issue.

Waleed Hassanein, Founder, President, and CEO, TransMedics: Sure. So because of all these benefits that we just described, our data, we build a significant body of clinical evidence throughout the pre FDA approval pathway. We are a PMA device, so we had to build significant clinical evidence in randomized controlled trials that hundreds of patients strong. We demonstrated two simple things. They were simple to when we had the results, they were extremely difficult to in the path to to get these results.

We delivered evidence pre approval that the OCS is the only technology that can improve utilization of organs that historically have been turned down for transplantation due to limitations of cold storage by demonstrating 8085% utilization of heart and lung from organs that are currently not accepted for transplant due to limitations of cold storage. Number two, we delivered these results with the best clinical outcomes in the history of organ transplant from measuring patient graft survival as well as post transplant complications. So we delivered in simple terms, the highest rate of utilization of solid organs ever recorded in the history of organ transplant and the best clinical outcomes post transplant from these organs. The third thing we delivered, which was very, unique to TransMedics, is we developed a whole new transplant category from donors called DCD donors or donors after circulatory death. Seven years ago, there was no such thing as a heart that stopped beating in the body of the donor used for organ transplant.

It never existed in The United States. Today, it’s the fastest growing segment of heart transplant globally because of OCS. So this is how we’re highly differentiated from a clinical perspective. Now let’s let’s talk about this facade called competitors. None of of the the companies or technologies or groups that are out there claiming to be competitors to TransMedics has anything resembling the dataset that I just described to you.

In fact, the most active one doesn’t even have clinical data. That’s that’s why we shrug our shoulders when we hear about competitors because we don’t see them as competitors because they’ve delivered nothing. They’ve delivered no value. They’ve demonstrated no value to improving outcomes or increasing the supply of organs, and hence, they’re not delivering the same value that the OCS is delivering. And by definition, they need to be priced differently than the OCS.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: So that’s our view on competitors. Yeah. A couple of, I think, follow ups to that. First, do you have real world evidence that also supports and validates what what you did preclinically?

Waleed Hassanein, Founder, President, and CEO, TransMedics: Absolutely. Pre the pre pre FDA approval, our data was measured in few hundreds of transplants based on the clinical trial. Today, we we have a repository of more than 10,000 transplants, 7,000 of which are are liver transplants. There are two two thousand hearts and 1,000 lungs. The outcomes that I just shared with you, the utilization rate pre approval was in the mid eighties.

Today is in the high nineties. It’s ninety seven point five percent. So we are demonstrating improved outcomes in the real world setting. And the post transplant complications have even dropped from ten or fifteen percent down to single digit numbers today. And we attribute that to two things.

One, to the NOP, because now all the use of OCS is is done by expert users that are trained and are following these models to the teeth. And and that adds significant improvement in management of the organ in OCS, and that’s why we’re we’re experiencing improved outcome even in

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: the real world study. Okay. Wonderful. And then you you touched on the DCD category that you’re essentially originating. Mhmm.

Can you give a bit of framing on the size of what that represents in relation to the historic DVD population? Sure.

Waleed Hassanein, Founder, President, and CEO, TransMedics: So I was actually reviewing this data last night when I saw Phil’s question. On the day of our IPO in in in May of twenty nineteen, we had a slide showing that DCD could potentially be bigger than DVD donors. At that time, we had about 9,000 DVD donors I’m sorry, 8,000 DVD donors and 4,000 DCD donors. Today, we have about 11,000 DVD donors and 7,000 DCD donors. And sure enough, it is becoming nearly fifty percent of our US Transplant donor population.

It’s approaching fifty percent, and we might actually hit that percentage mix by the end of this year. There’s only one reason for that. It’s TransMedics got approved, and the NOP is is really succeeding in demonstrating that those DCD donors could be utilized for organ transplant. So and this is something that we’re extremely proud of because that that really something that no other competitor in the field could even aspire to to to do. It’s related to the uniqueness of our technology.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: And and the growth in that population, it it has to be attributable to awareness. Right? And and TransMedics Yes. Well, based on the results. The population.

Exactly. And so And theoretically, that DCD population could be even larger than what we’re seeing today.

Waleed Hassanein, Founder, President, and CEO, TransMedics: We believe the DCD population is much larger than what we’re seeing today. We still believe, as I’ve said numerous times, we’re in the early innings. Mhmm. And, with more awareness, with more, publication of the data coming out of the DCD, we actually think there might be a day where the DCD population will overshadow the DVD population because there’s many more DCD that happen every year than the DVD donor. Okay.

Great. We we’re still we’re still early in the journey. Wonderful.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: I think that’s a good segue. So you you had an analyst day last year, laid out some longer term goals. The the 10,000 was a pretty amazing and interesting number. Maybe just frame up what’s sort of embedded in that expectation. What does the market look like for you to be able to get the 10,000 in terms of share, in terms of maybe CBD versus DCD at that point in time?

How did you think about sort of build to that 10,000 number?

Waleed Hassanein, Founder, President, and CEO, TransMedics: Very simply, we’re a very conservative team. So we looked at our volume in the first year of NOP launch Mhmm. In The US, And we said in five years, we want to be at least at 50 to 55% of the current heart, lung, and liver markets. That’s where the 10,000 came from. We rounded it up to to make sure, you know, it’s a round number, easy to use.

But we believe that if the market dynamic continues as it is today, no change or no uplift or anything, And and that’s a conservative assumption because we’re seeing the market conditions or market dynamic change dramatically as we continue to grow our NOP platform. We we wanted to be conservative. And if we if we keep the same market dynamic as is, I. E, the donor population, etcetera, we will be approximately between 5055% of heart, lung, and liver Okay. On 2028 to achieve the eight 10,000 transplants.

But today, and we’ve talked about this last week in Chicago at the William Blair conference, we’re not stopping here. Our goal is to go from ten thousand transplants to somewhere between twenty and thirty thousand transplants in the following three to five years by introducing our kidney platform. Kidney adds 30,000 deceased donor procedures a year in The US alone and another 40,000 deceased procedures for US. So kidney could be huge not could be, will be, a huge catalyst to the growth of OCS beyond 10,000. And we still have another 50% of heart, lung, and liver market that we we fully plan to capitalize on after 2020.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. And what’s the status of kidney, if you could remind us?

Waleed Hassanein, Founder, President, and CEO, TransMedics: Kidney will be introduced to the market in

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: the first half of twenty twenty seven in the form of a large clinical trial. Okay. Wonderful. And and you also talked about a next gen platform for, I believe, heart and lung. Could you touch on that and what

Waleed Hassanein, Founder, President, and CEO, TransMedics: it Yes. We have two next gen programs ongoing. One that is being introduced this year, which is gen two of heart and lung platforms. The concept there is to accelerate the adoption of heart and lung to match the liver adoption that we currently have. The idea is to we’ve revamped everything.

We’ve revamped the perfusion solution. We’ve we’ve we’ve made some modifications to our technology to ensure that heart and lung will be transplanted routinely and safely and reproducibly in the morning hours with better clinical outcomes than the ones we’re experiencing today. So we believe this is gonna hopefully take the market by storm once the community sees this value of this new technology. The second next gen or gen three, which is a complete redesign of our platform to make it high highly, highly portable, highly communicable to the cloud, smaller, lighter weight, so we can fit more than two devices in our logistics network and provide even more cost efficiency in the system. And that’s gonna be introduced to take us from 10,000 to 20 or 30 or or more transplants.

Okay. So the that gen three is designed for that next scale beyond 10,000. And did you provide timelines on on gen three? We we we said probably end of twenty twenty eight, beginning of ’20 ’9 is what gen three will be will be introducing. Okay.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: So gen two, kidney, gen three. Okay.

Waleed Hassanein, Founder, President, and CEO, TransMedics: So multiple catalysts for growth in front of us.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. Great. And and we haven’t touched on international yet. It’s a relatively small component of the still today, but it seems like a meaningful opportunity kind of intermediate to longer term. Can you frame it for us and

Waleed Hassanein, Founder, President, and CEO, TransMedics: Yeah. That’s true, Phil. Today, it’s a it’s a nominal amount, but OUS is is relatively speaking double the amount of organ transplants in The United States. The reason why it’s a it’s a little bit behind is is we’re behind in the reimbursement process, for US. So that will that will come over the next three years.

We’re already investing heavily in Europe, in Middle East, in Australia, and we think over the next two to three years that will start bearing proof of securing reimbursement and launching all three programs for U. S. It’s very small amount, and it’s coming primarily from our heart franchise.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. And and lung even in The U. S. Is still a relatively small proportion of your business. What’s sort of the catalyst pathway or what what needs to be worked on to be able to unlock that opportunity?

Waleed Hassanein, Founder, President, and CEO, TransMedics: We think that the best way to unlock the lung is to reintroduce the market to the value of OCS and NOP with Gen two product, which is what we’re doing. We think if the market doesn’t react to that, I think the lung machine perfusion will not be relevant to the lung, but we we think that’s that’s not the case at all. We think once the market gets reintroduced from the ground up to the value, not just of OCS, but NOP, and they see the value of the new solutions to enable lungs to safely be preserved overnight, and they can do morning hour transplant with great outcomes. This is gonna be a huge catalyst for the lung market, and the lung will contribute to our growth similar to the liver and heart.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: K. Great. That’s, I think, a fantastic overview. Maybe we can bring Gerardo in. I wanted to start with, you know, you’ve been in the role for about a half a year now.

Maybe what attracted you to the opportunity and then some of your major prerogatives since you’ve been in there, things you’re focused on and and potentially able to to help improve.

Gerardo Hernandez, CFO, TransMedics: Sure, Bill. Thank you. I mean, it it’s been an amazing first six months. My focus has been mostly on learning about the business, getting familiar with the different finance processes and process in general. And I’m really, really amazed by the strongest execution and level of commitment from the team.

Right? And and one of the things that really stand up and since I was evaluating the option of joining Mhmm. Really attracted me is the impressive opportunity to expand, to grow not only top line but also, operating margin. It’s a I just confirmed that once I’m here. So I’m really, really excited, really energized to to with the opportunity that we have in front of

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: us. Fantastic. And and you walked into an Analyst Day LRP, and so, maybe starting with the top line and connecting this this aspiration for 10,000 to the financials. So on the sales side, you also put out a financial objective behind that 10,000. Can you sort of walk us through what that looks like to bridge to the sales number that you provided?

Gerardo Hernandez, CFO, TransMedics: Yeah. We we we’re expecting that when we reach the 10,000 transplant goal, we’ll be around $11,200,000,000.0, in the top line. And probably most important, at operating margin level, we should be getting to a 30%

Waleed Hassanein, Founder, President, and CEO, TransMedics: Okay.

Gerardo Hernandez, CFO, TransMedics: Operating margin by 2028.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. That’s fantastic. And the business with the NOP has become more capital intensive with the fleet that you put together. Can you sort of walk us on the gross margin line? What does that depreciation flowing through look like over time?

Or the additional investments being internationally? What’s sort of the gross margin walk that that bridges us to that 30%? Right.

Gerardo Hernandez, CFO, TransMedics: So we know that the service business operates with a lower margin, but at the same time, it brings incremental gross profit. Right? And we are we’re happy with that trade off. We’re happy with that trade off because, as Walid mentioned before, between logistics, the NOP, and OCS are the three key pillars that make TransMedics what it is today and will enable to get to the 10,000 transplants and beyond. The margin in the long term, I’m expecting to be around the 60%.

We’ll have slight improvements, within the product side, within the margin, the service side, but the increase in service will temper down the overall growth. Mhmm. Long story short, I believe that our margin will stay around the 60%, and the big levers will gonna come in operating expenses to get to the 30% operating margin and beyond.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. And so the right formula to think about is you have a relative mix headwind as service becomes a bigger part of the business. But whatever gross margin level kind of modulates, you still think you have enough leverage through the rest of the operating model to kind of get to that aspiration on the operating Okay. All right.

That’s fantastic. I think maybe better understand the leverage element in there. Can you talk more about R and D and these significant investments you’re making in growth? What’s the outlook for R and D on the forward maybe as a percentage of sales or in gross dollar standpoint?

Gerardo Hernandez, CFO, TransMedics: Yes. Directionally speaking, we absolutely are committed to, continue to drive our long term growth, and that means basically continue to invest in R and D. That’s we’re gonna be investing in our next generation OCS that we just talked about. We’re gonna continue to invest in our in advancing our kidney program. We’re going to continue to invest in our prod strengthening our product development capabilities that we are, developing in Mirandola, Italy.

Those are the big side of of investment. So r and d will grow faster than sales. SG and A will be lower than sales, and the combination of that will allow us to continue to improve consistently operating margin year over year.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. And and so that’s, I think, the framework for your capital allocation philosophy. The other elements beside beyond organic growth, what how do you think about that, and how have you framed it for investors?

Gerardo Hernandez, CFO, TransMedics: Yeah. Capital allocation is is really a simple a simple approach. Right? We invest where we see that we’re gonna get the strongest returns. And in the case of Transmedic, that’s basically investing in driving growth and driving efficiency.

So whether it’s on our fleet, whether it’s, you know, NOP or logistic next network, we will continue to invest in in that to to drive long term value and and growth.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. Wonderful. We still have a good amount of time, so maybe we can circle back to the business with Vallit again. You know, I’m a bit less familiar with the business, so maybe you touched on economics and reimbursement a couple of times. Can you give kind of a framework for what the economics are for you maybe in comparison to peers?

And then also talk about the reimbursement landscape. Are are there any catalysts beyond the international side of reimbursement that could be meaningful in

Waleed Hassanein, Founder, President, and CEO, TransMedics: the future? Sure. As as I stated in the beginning of the presentation, that was the transplant field is a very very unique field where, as I said, it’s the the most cost effective treatment for a very very important and very expensive disease condition called end stage organ failure. So payers to promote organ transplant, they want to do more organ transplant. They designed the reimbursement mechanisms for organ transplantation in The US, and for the most part around the world to be very similar, where organ utilization is reimbursed from a separate budget than the standard surgical procedure.

This was designed back in ’84 by CMS and all commercial payers that cover organ transplant in The US follow suit. Basically, to promote more organs to be utilized, the organ acquisition cost center is a dedicated budget that’s a fee for service that sits beside the regular DRG for the surgical procedure. That’s where the the organ acquisition cost center is where the OCS costs are, including logistics because these are the costs that meet the statutory definition of organ acquisition costs in The US. So that’s why we’ve been extremely privileged of of being operating in that in that system. Even though other international systems are very close to this by dedicating a separate budget for the organ acquisition or organ utilization, you need to go and increase that bucket.

It’s not a pass through like The US, which in The US, we we titrate that budget annually by looking backwards on the spend of the previous year. In Europe, you have to define that, and you have to it gets frozen, and then you have to negotiate a new budget if you have a new expense. That’s what’s taking the time. So for us, reimbursement has never been an issue. It’s always been an issue of the clinical acceptance and clinical adoption, in The U.

S, and that’s why we’re leading with The U. S, and we’re working on, securing additional budget, OUS income to support our growth there.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: That’s great. And we’ve talked a ton about the the infrastructure you put in place with the NOP, but maybe you can touch on the commercial organization a bit more and Sure. What the motivations are there.

Waleed Hassanein, Founder, President, and CEO, TransMedics: It’s, we’re very again, this is another unique aspect of our story is our commercial team is our NLP team. We we don’t exist without our NLP team. So we have a it’s what what I’m saying is this is a a clinical sale. This is not a standard commercial, you know, million dollar salesperson per territory. That doesn’t work that way in organ transplants.

So our infrastructure in our clinical specialist group and our aviation is this is our this is our calling card. This is our repeat business, how our repeat business come from. However, we have commercial leaders under each region who just manage that group and have an extension of our leaders at local institutions. So it’s fairly, fairly small, literally. There are four commercial leaders across the geography, and we’re adding maybe three or four more later this year.

But that’s it. The the rest of the commercial uptake is all happening through the NOP team, the clinical team.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Okay. And as we think about your your customer, the the hospital, what do the economics look like for them? Are there pressures we you know, there’s a broader mosaic of of potential pressures from underutilization on hospitals and operating budgets. And so what what do the economics look like to your end user and anything that you can do to help or improve, and how does an OP fit into them?

Waleed Hassanein, Founder, President, and CEO, TransMedics: Yep. So every major transplant program in the country, they’re they’re measured by two things, by the number of transplants they can do per year and their post transplant clinical outcomes. If these two go in the opposite direction, they get decommissioned by CMS. It’s very simple. It’s highly, highly transparent process.

Mhmm. So organ transplantation happens to be one of the biggest revenue generator for transplant institution and also a margin contributor at approximately forty percent. Here comes the OCS and NOP. We can deliver two major values, economic values or financial values, to the transplant program. We’re the only technology and service that can ensure they can do more organ transplant year over year, and we can deliver that with the best clinical outcomes.

And we can deliver that now by vertically integrating our logistics using the most cost efficient way possible because we do not sell any technology to transplant program. In fact, we do not charge the transplant program a dime if the organ is not transplanted. So no other technology can afford to give that value to the transplant center. But the second piece that we do, because we vertically integrate it in our logistics, In DCD donation, 50% of time you go out and the donor doesn’t, the heart doesn’t stop, they come back empty handed. Routinely, transplant program will be liable for a round trip ticket going to the donor and coming back.

Because we are leveraging our NOP network across the country and we are leveraging our own logistics. We waive 50% of the charge of the transportation cost if the donor doesn’t progress. So this is how we deliver the most cost efficient transplants to transplant programs. So we improve their top line revenue generation, we improve their bottom line by reducing their post transplant complication, and we offer them two black and white cost efficiency and no cost for technology or service if the organ is not transplanted and waiving 50% of the DCD. So sharing in some

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: of the risk that they’re also taking. So a a relative good guy for the hospital in an environment that’s increasingly focused on that. How how about for the physician?

Waleed Hassanein, Founder, President, and CEO, TransMedics: It’s for the physician, it’s the same thing. Physicians or the leaders of the program, they wanna do three things. They wanna they wanna grow their transplant volume because their annual bonus, you know, depend on that. They wanna have good quality outcomes because they are this is their scorecard among the among the their peers that CMS publishes every year. Mhmm.

And then the third thing, and this is new with NOP, they wanna have a life work life balance. And NOP has enabled that by shifting organ transplant and liver transplant from middle of the night case to a morning hour transplant, which is a very, very unique capability that the NOP enabled liver transplant to do, which resulted in significant adoption. This is what we’re trying to move the heart and lung to do the same. So again, we want to be a responsible citizen within the ecosystem of organ transplantation. I think we’re delivering that both economically and also being partners to transplant surgeons to allow them to do more transplant, but also not burn Mhmm.

Burn out from working in the middle of the night.

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: Yeah. That’s great. We’re just about a minute left. Maybe leave it to you for closing remarks. Any comments you wanna make in response?

No. I think

Waleed Hassanein, Founder, President, and CEO, TransMedics: I think this has been very comprehensive. I’m very, very impressed with the with the thorough of the questions given that you guys don’t cover us. And, again, thank you so

Phil Cooper, Part of David Roman’s U. S. Med tech and health care IT team, Goldman Sachs: much for the opportunity. Yeah. It was very nice to meet you. Yeah. Thank you.

Thanks, Roberto. Thank you. Pleasure. K. Thanks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.