TransMedics at Morgan Stanley Conference: Ambitious Growth Plans

On Monday, 08 September 2025, TransMedics Group Inc. (NASDAQ:TMDX) presented at the Morgan Stanley 23rd Annual Global Healthcare Conference. The company outlined its strategic plans to significantly increase the number of organ transplants by 2030. Despite potential seasonal challenges, TransMedics remains optimistic about its growth trajectory and financial health.

Key Takeaways

• TransMedics aims to increase organ transplants to 20,000-30,000 by 2030.
• The company is expanding its aviation and logistics network, with a shift towards more ground transportation.
• The acquisition of OrganOx by Terumo highlights the growing global organ transplantation market.
• TransMedics’ liver franchise shows high utilization and low complication rates compared to competitors.
• Future growth is anticipated from ongoing heart and lung trials, with significant contributions expected by 2026.

Financial Results

• TransMedics has surpassed its internal target of 10,000 organs.
• The company remains confident in meeting its annual guidance.
• No price increases have been made in the last seven years; the NOP service is priced nominally.
• Plans to opportunistically purchase additional fleet to support transplant goals.

Operational Updates

• Nearly 40% of missions now use ground transportation, up from 20%.
• The aviation logistics network is being optimized for better asset utilization.
• The kidney program aims to address high delayed graft function rates and improve utilization.
• The liver franchise captures a significant share of the U.S. market, especially in DCD organs.

Future Outlook

• Strategic goals include managing 20,000-30,000 organs in the U.S. and doubling that worldwide.
• Focus on innovation and expanding transplant capabilities, particularly in Europe, the Middle East, and Australia.
• Heart and lung trials are expected to drive growth from 2026 onwards.
• Challenges include seasonal variability and adapting to the European donor environment.

Q&A Highlights

• Addressed the transient nature of Q3 seasonality.
• Discussed the impact of the Terumo acquisition on the organ transplantation market.
• Emphasized the importance of long-term focus for investors, despite short-term variability.

Readers interested in more detailed insights can refer to the full transcript below.

Full transcript - Morgan Stanley 23rd Annual Global Healthcare Conference:

Pat, Analyst, Morgan Stanley: Welcome, and thanks for joining. Welcome to the first day of the Morgan Stanley Global Healthcare Conference. For important disclosures, MorganStanley.com/research disclosures. That’s very exciting. Very excited today to have TransMedics, who’ve got Waleed, who’s Founder and CEO, and Gerardo is CFO here. Really appreciate the time. Thanks for coming back.

Waleed, Founder and CEO, TransMedics: Thank you, Pat. Thank you.

Pat, Analyst, Morgan Stanley: We were just saying how thematically appropriate having "Staying Alive" on the soundtrack was for an organ transplant company. It kind of works, kind of works well. I guess, maybe starting kind of big picture, it’s been a strong year. There’s a lot on the pipeline. Sitting here today, you had that original target of 10,000 organs. How are you feeling about that as you view the world and where the business is today, just big picture?

Waleed, Founder and CEO, TransMedics: We feel great. As Gerardo said a few weeks back, we are already past the 10,000 target internally. We’re already setting our eyes at 20,000 to 30,000 transplants by 2030. We feel great, and we’re looking forward to just continuing to execute.

Pat, Analyst, Morgan Stanley: If you think of the journey that you guys have been on, getting to where you are now, is there anything that’s sort of surprised you? I mean, relative strength of liver versus heart, or you know, how the aviation logistics network integration is going versus how you originally envisaged the business? Does it look today like you thought it would?

Waleed, Founder and CEO, TransMedics: It’s a very interesting question. From where we are as a leader in the market, from a market share, from an impact on organ transplant, it could not be more exactly the same as we envisioned. However, the paths to get there, we accelerated the NOP five years compared to what we originally planned. The vertical integration of aviation and logistics, again, we accelerated that quite a bit. From an impact, it’s exactly what we envisioned. How we got there, we got there a lot quicker with NOP and vertical integration than we originally planned.

Pat, Analyst, Morgan Stanley: Yeah, makes sense. Q3 always has some seasonality associated with it. That’s just always how it is. I’ll ask a sort of slightly mean question. As you know, people sometimes track the flights, and that’s a dangerous thing to do. There’s an argument out there that that’s been fairly soft. On the other hand, it hasn’t escaped people’s notice that you made a fairly sizable investment in TransMedics stock yourself fairly recently. How should we think about Q3 seasonality in the context of those things?

Waleed, Founder and CEO, TransMedics: That’s an excellent question. We’ve always said Q3 is transiently choppy. Underscore the word transiently. We’re not concerned about it. Obviously, the data is clear. Yes, quarter to quarter, it appears that the national transplant volume is down. When you look at the first half of the year this year versus the first half of the year last year, we’re actually doing great nationally. As we stated publicly, we expect seasonality in Q3. We expect that TransMedics will be impacted by that. We think this is a transient impact and that we will finish the year strong. We’re still focusing on executing the plan and the guidance as we outlined it, at least as of today. We’ll see where the quarter ends. There’s still several weeks to execute.

Pat, Analyst, Morgan Stanley: do you see kidney at some stage, right?

Waleed, Founder and CEO, TransMedics: Exactly. As far as tracking the tails, it’s an interesting way for someone who doesn’t have much to do. We are moving as more and more people are getting comfortable with how long organs could stay in OCS. We shifted ground transportation from 20% or lower to now approaching 40% of the total National OCS Program mission. Yes, it’s a secondary measure, but it doesn’t tell the full story. We still have 20% of the aviation requirement done by third party. I’m not saying Q3 is not going to be impacted. I’m just saying that it is not the be-all, end-all. It’s not the gold standard indication of how the business is doing. We still are a transplant company, and cases are the number one priority for us, not necessarily the logistics piece of it.

Pat, Analyst, Morgan Stanley: How do you think about the, it’s obviously very different from organs in totality, but the existing, let’s say, waitlist backlog, how do you want to, can we get to a point where we make really meaningful progress pulling that back with DCD organs and DBD organs and just the whole infrastructure getting a lot better?

Waleed, Founder and CEO, TransMedics: Yeah, Patrick, we’re doing that today. We’ve been doing that for the last two years. We’ve seen many, many big institutions that wipe down the waitlist and they rebuild it again. As we’ve always said, it will happen. When we deliver more organs, the waitlist is a dynamic picture that gets replenished because the demand for organ transplant is not slowing down. It’s growing. The waitlist is, you do not want to give false hope to patients in need. That waitlist gets replenished as it gets depleted with additional organs. We’re still early in the journey of really flexing the capabilities of OCS to deliver more organ transplants in the U.S., and we’re now beginning to expand outside of the U.S. to do the same thing.

Pat, Analyst, Morgan Stanley: To your point, how many of the missions end up being, the NOP missions end up being sort of longer dated versus, however you want to define it, sort of shorter distance in that way proportionally?

Waleed, Founder and CEO, TransMedics: I need to refresh my memory with the exact numbers, but we do both missions because it’s not just about how far the donor is anymore. It’s about how the OCS has transformed the timing of the surgical procedure. We get called for missions where the donor is an hour away, and we get called for missions like this week. We got called for donors in Hawaii and Alaska for recipients on the East Coast. I would say it’s 50-50. The thing that is so transparent and so obvious is that the OCS now is transforming the timing of the surgical procedure from being a middle-of-the-night emergent procedure to a more semi-scheduled procedure in the morning hours. It’s early innings and it’s going to continue to grow.

We’re hoping that we can bring that success that we’re experiencing in liver for heart and lung as well with our next generation clinical programs.

Pat, Analyst, Morgan Stanley: This might be a sort of off-the-wall question, but the ability to have the surgeries just functionally be a little bit more planned. Are there other efficiencies for the hospital side that that enables, like faster OR turnaround time, that kind of thing? You know what I mean?

Waleed, Founder and CEO, TransMedics: Of course, there’s several. The shifting organ transplantation to a morning procedure has a huge impact on hospital financial resource management. Rather than paying double time or more in the middle of the night, they pay regular time. Two, it gives the hospital the ability to do more than one transplant a day, which used to be something unheard of because you’re doing it in the middle of the night. You can’t have the team working around the clock. Today, we’re seeing our centers doing two, three, sometimes four for a large volume center and doing them between 7:00 A.M. and 7:00 P.M. That is huge, huge value. That the hospital administrators are recognizing. It’s not just about work-life balance of the clinical staff. It’s really about the better quality of the surgical procedure and better financial management to the hospital.

Pat, Analyst, Morgan Stanley: I mean, on the topic of financial management for you guys, as the ground missions proportionately have gone up a little bit because you’ve got more flexibility on the organ transplantation time, how should we think about that capital investment spend, the aviation logistics network, and the spend on that side?

Gerardo, CFO, TransMedics: Yeah, to get to our 10,000 transplant goal and beyond, we certainly will need an additional fleet. We are running our double shifting program, which is going to help us to really right-size the fleet. Based on that, we’ll be opportunistic, right? I mean, if we see jets that are at the right price, we’ll move forward. Otherwise, we’ll hold on when we find the right opportunity. We will need to get more jets to get to the 10,000 and beyond.

Waleed, Founder and CEO, TransMedics: To build on what Gerardo said, I don’t want the community to misunderstand what we’re saying. There will always be, the majority of the organs will always be flying, especially with the OCS because we can go further distance. We just saw that interesting shift from 20% to 40% or near 40%. We wanted to highlight that, but the majority still is flying. The more the OCS will take more of the lion’s share of the market, we will fly more as we continue to expand the outreach, the reach of transplant programs to reach donors and organs across the country and across the world.

Pat, Analyst, Morgan Stanley: are some areas of healthcare that I’ve seen over the years get maybe unfair, undue amounts of, how to put it, emotional or political attention, like nursing homes, dialysis, and to some degree, organ transplants, right? It just gets that extra focus because there’s an emotive quality associated with it. There have been a few articles in the press not connected to you, but to the DCD area in general. How do you feel about that? Do you think that has any impact at all? What should we think about when we read some of those articles?

Waleed, Founder and CEO, TransMedics: Sure. Again, what we’re seeing in the press is really a poor reflection of what really happened in the field. These cases happened two years ago in the early days of implementing DCD donations. There’s a lot that we can talk about to improve, but these two cases are not really the be-all, end-all. We think that DCD donation is here to stay. The community is sophisticated enough to understand that these were in the early days when these OPOs were just trying to implement DCD programs. With anything new, there’s always some missteps. We’re not seeing a significant negative impact as we were afraid that it might result in because it’s old and now DCD is here to stay and it’s growing. You can see it in the national numbers. DCD is nearly 50% of the donors in the U.S., and we hope that doesn’t change.

Pat, Analyst, Morgan Stanley: Do you think there’s an adequate understanding in the system and the administration that those organs which ended up mostly saving people’s lives wouldn’t just not have been useful for? Is that well understood?

Waleed, Founder and CEO, TransMedics: I think it’s very well understood. I think specifically on the HRSA and CMS side, they definitely understand that. What they’re trying to do is just to bring a higher level of accountability that didn’t exist in the transplant system in the U.S. It’s something to be applauded, but we got to be careful not to throw the baby with the bathwater and make sure that, yes, there are some areas of improvement, but the transplant system in the U.S. is one of the best in the world, and that remains to be a fact.

Pat, Analyst, Morgan Stanley: When you’re thinking about the industry, the transplant industry as a whole, obviously there was a fairly big bit of news flow recently with Terumo coming in and buying one of your peers. What did you think when you first saw that news flow? What was the instinctive feeling on your end?

Waleed, Founder and CEO, TransMedics: As I stated before, first, congratulations to the team from OrganOx and the team from Terumo in this great deal. The three points that we thought about are, great, this proves that that space that was not well understood in the early days of TransMedics now is, we created a multi-billion dollar global opportunity that Terumo and others are focusing on. Two, it proves how undervalued TransMedics stock is today and justifies the investments I made personally in the TransMedics stock. Three, it shows that transplant is living a period of renaissance. Again, it proves that we’re in the early innings of this. This is really going to continue to grow, and we are fully committed to continue to innovate and be on the front end of this and drive the field forward as the pioneers that invented that field from whole cloth. We were very excited to see this.

Again, we welcome Terumo to the field, and you know, it keeps us honest from a competitive dynamic standpoint. It will invest innovations into this field that we love.

Pat, Analyst, Morgan Stanley: Still, a lot of DCD organs end up not getting used. Does it help having another player actively pushing? People always focus on the catalytic nature of the reputation, but there’s also a lot of growing the market. How do you think about that interplay?

Waleed, Founder and CEO, TransMedics: Yes, there are a lot of DCDs that are not being used, but we’re not waiting for anybody to come in and allow them to be used. We’re not stopping that. We are investing a lot to continue to innovate, and we are going to be the company that delivers innovations to continue to grow organ transplants. We’re not waiting for Terumo or anybody else to tell us how to do the things we developed to make them be interested in the field. Obviously, competition keeps us always on our toes, and it’s a healthy competition, and we love it. We’re not waiting for another company to show us how to do it. We’re investing in our own programs to deliver more organ transplants, more DBD, better outcomes, more DCD organs, and continue to innovate on that front.

Pat, Analyst, Morgan Stanley: If I think about one of the things that distinguishes you, one of the things is the aviation logistics network. It’s been, what, 18 months, two years since you really started that post?

Waleed, Founder and CEO, TransMedics: Two years, yeah.

Pat, Analyst, Morgan Stanley: Yeah, I remember the first one. How’s that gone versus your expectations? Where are we on the journey? There’s definitely this scale network effect of number of aircraft and number of missions and the liquidity of the capacity that you have. Where are we at on that journey?

Waleed, Founder and CEO, TransMedics: I would say we’re in the early phases of that journey. We’re very excited that we finally have critical mass to be able to operate with a network effect in the U.S. As Gerardo said, we are experimenting with double shifting the planes or a portion of our planes to really maximize the utilization of our fixed assets before we invest in more fixed assets or more aircraft, which we know we have to do. The question is, do we buy 10 more or 5 more? The double shifting will give us the answer to that. What’s exciting about this is the success of the NOP logistics and NOP clinical services in the U.S. Now it’s catalyzing a lot of international interest that was dormant for a long time, thinking that TransMedics is only selling medical technology. Today, when we see the success that TransMedics is achieving in the U.S.

and the ability to manage a turnkey service, we’re getting a lot of interest from international markets that are wanting us to replicate that in their local geographies.

Pat, Analyst, Morgan Stanley: I definitely want to touch on the U.S. in a second. When we think of missions, and I think you’re always thinking about the surgeon and how difficult that is, how easy is it to find and hire pilots? Because again, they’re also having to do, on the one hand, they’re saving lives, rather than flying billionaires around, which is kind of cool. It might also be the middle of the night. How hard is that?

Waleed, Founder and CEO, TransMedics: Listen, our pilots, we love our pilots. They’re very proud of their mission and mission of TransMedics. You can see them on LinkedIn. We were concerned about that dynamic. Today, we’re approaching close to 150 pilots and growing rapidly. They’re very, very motivated by the mission. We can’t speak highly enough of our pilots. We know it’s not for everybody. We’ve been very transparent with our crew from day one when we made the acquisition of Summit that this is different than flying high net worth individuals. To our pleasant surprise, the mission is resonating well with our pilots, and we are not having, knock on wood, we’re not having any issues retaining them. Also, we’re very competitive in our compensation package.

I promise our crew that they will be one of the top, because of the demand, they’re going to be one of the top compensated crew in the industry, and we’re delivering on that promise.

Pat, Analyst, Morgan Stanley: Where are we, because obviously NOP got rolled out, it’s basically full coverage now. Where are we at in terms of the concept of pricing? I don’t mean the absolute price level. I mean the distinguishing between service and product, actually just becoming an end-to-end thing where the customers are really thinking about it as just, I need an organ, this is just the price rather than distinguishing between OCS and NOP.

Waleed, Founder and CEO, TransMedics: I want to remind everyone that TransMedics is very unique in the fact that we have not increased our prices for the last seven years, really, since before the FDA approval. We intentionally price NOP service at a nominal price to what the value we’re delivering because we did not want that to be an impediment for adoption. We have to charge fairly, and actually, we are the most efficient pricing on logistics. The total combination now, we feel very strongly, to my original statement, recalls back that we are delivering, we believe wholeheartedly that we’re delivering the most cost-effective transplants in the world because the technology cost has not grown by a dime. We’re delivering high, high value for fair pricing. The clinical service is appropriately priced, and the logistics is the most competitive pricing that we can do because we’re managing the network.

I feel now it’s not an issue for the centers that are adopting NOP, and it’s just they’re ordering the service across all three levels. There’s no distinguishing between, oh, I only want the clinical service but not the logistics, or not the logistics about the clinical service. Obviously, that won’t fly.

Pat, Analyst, Morgan Stanley: Yeah, it’s basically all combined in a way. Okay, that makes sense. You know, we obviously, we can all see how Medicare works. We understand how the mechanics are there and the coverage, but the bit that we will get much less visibility on is the commercial side. How are most of those contracts typically structured mechanistically, and where is the pricing relative today for the newer contracts versus Medicare?

Waleed, Founder and CEO, TransMedics: Yeah, I think for anyone who’s tracking organ transplant, as you know, you may know that transplant contract is one of the most coveted secrets in every major transplant institution. Every institution thinks that they have the most generous, most competitive contracts on the planet. That’s a fact that they think that way. From our side, the only comforting comment that we can offer is we wouldn’t be here. We wouldn’t show the success and the adoption rates and the revenue growth that we have if the commercial payers don’t understand the value of OCS. We started with this, if you remember, from the early days of the NOP. We reach out to every commercial payer in the U.S. to make sure they understand what we’re doing, why we’re doing, and the potential economic impact on their network. They all get it, including CMS, by the way.

CMS gets the value in space. In every interaction we have with the CMS team, they bring up, when are you coming with the kidney? Kidney is very important for us. There’s hundreds of billions of dollars being spent that we need to make sure that we get similar outcomes from OCS than the kidney that could change to transform the financial profile of kidney transplants in the U.S. That gives us comfort and gives us confidence in what we’re doing. We’re continuing to keep open dialogue, not just with payers, but also hospital administrators to make sure they understand the economic value. They’re clearly doing a great job reaching out to their third-party commercial payers, and the contracts are being appropriately scaled. Otherwise, we wouldn’t see the adoption and the scale of adoption that we’re seeing.

Pat, Analyst, Morgan Stanley: I’d love to pivot actually to some of the individual organs. Maybe starting with kidney. Kidney is obviously a little bit different because there’s a known donor component to kidney relative to, you know, things you can deliver to one. How much of that market do you think is just site to site, known donor versus like it’s going to have to be transported somewhere? Connected to kidney as well, you know, President Trump had previously been a big supporter of increasing kidney donations on the record in his first term. I covered the dialysis last time over that. Does that play into an effect of how successful you think it’ll be to get more donor registry?

Waleed, Founder and CEO, TransMedics: Yeah. Kidney is a huge giant in organ transplant. It’s the largest transplant organ by volume. The living donor kidney program, which you’re focusing on, only represents about 20% of the total volume. In the U.S., there’s approximately 23,000 to 25,000 deceased donor kidneys being transplanted every year. Those are the ones that we’re targeting. That’s what gives us the focus on our kidney program to focus on those 20,000 to 25,000 deceased donors. Why are we doing a kidney program with OCS today? Because today kidneys have two major problems that are at an all-time high. The post-transplant clinical outcomes are now approaching 50% to 55% delayed graft function rate, which means the kidneys that are transplanted are not functioning well, and the patient is back on dialysis. It’s costing a significant amount of dollars and, frankly, comorbidities to the patients.

Two, the kidney utilization is at an all-time low. We’re only utilizing kidneys at a rate of about 60%. When I started TransMedics, the kidney utilization was 90%. We need newer technologies that can better protect kidneys to maximize the utilization of kidneys and reduce the post-transplant delayed graft function. If we can achieve these two, there’s no doubt in my mind that we will be a gold standard for preserving kidneys in the U.S. and around the world. That’s the target for the OCS kidney program.

Pat, Analyst, Morgan Stanley: Yeah, I guess dialysis is like $90,000 to $100,000 a year for a Medicare patient. They take a lot of money and pay back on having better transplants on that side. That makes a ton of sense. When you’re thinking about kidney and the rollout, would there be incremental investment? Is there anything different about that market that you would then have to do to activate it relative to what you’ve already done in lung and liver?

Waleed, Founder and CEO, TransMedics: Yes, it’s a much bigger market. Yes, the technology will be completely different. In fact, we always said the kidney device will be the front edge of Gen 3 OCS technology. I’ll leave it at that because we haven’t talked about it publicly yet. We’re working very hard right now to finalize the design and get that kidney device ready for clinical implementation by early 2027. 2026 is going to be a very busy year for our kidney team in TransMedics from a development standpoint.

Pat, Analyst, Morgan Stanley: Maybe then pivoting in towards liver, obviously a critical organ for you guys. How are you finding things? Have you seen anything from incremental competition? How’s the base market looking? How do you feel about the liver franchise?

Waleed, Founder and CEO, TransMedics: We feel very good about the liver franchise. I think the market perceives anything that moves and does anything in the kidney as the kiss of death for TransMedics’ franchise. Guys, we are the lion’s share of the kidney of the liver market in the U.S., especially on DCD. The DBD segment is growing. Competition is competition. You need to remember that this competition existed in the market from day one when we started. The reason why we’re taking market share and maintaining market share is the outcomes. If we don’t have better outcomes, we wouldn’t be here. Our rate of utilization is the highest reported in the entire history of liver transplant compared to the known competitors out there. Our rate is 97.6%. Their rate is somewhere between 50% and 65%. Our rate of the most complicated, the most costly post-liver transplant complication is 2.1%.

Their rate is just announced at the WTC at 13%, anywhere between 10% and 13%, depending on the way they cut the data. There are competitors, but they’re much inferior to the OCS with inferior outcomes. That’s why they’re priced at a lower price. We’re not concerned about competition. We welcome competition. Our results speak for themselves. We’re not threatened by any competitor. Sometimes we actually encourage centers that they bring up the price and say, "If I buy this X device, it’s $5,000 or $10,000 cheaper than OCS." We say, "Go, try it. Experience the outcome. You will come back." That’s exactly what happens. We need to be patient. We need to remember that we’re early in this. We’re only at 40%, 45% penetrated in the liver market. We still have a long way to go. We’re growing the top line in that market.

We just need to be patient and stick to our knitting and continue to support our technology and continue to invest in innovation in that field. As you said earlier, Patrick, we’re still losing 50% of the DCD livers today. We want to be the company and the technology that can improve that rate of DCD donation. That will add significant top-line growth to the liver transplant market as well. Do you see a difference?

Gerardo, CFO, TransMedics: Absolutely the same.

Pat, Analyst, Morgan Stanley: I guess with transplants as well, the negative outcomes are much more visible for the surgeon than, I don’t know, like you’re putting a TAVR valve in and 15 years later it degrades. It’s more immediately discernible. To a point around switching, they’re a little bit more sensitive maybe. Yeah, that’s interesting. You did also mention earlier OUS. I know it’s a lesson of priority for practically all of us for many reasons, at least for your market. I’d love to hear which markets you feel would be particularly suited and the national systems that have reached out for you to help.

Waleed, Founder and CEO, TransMedics: I will keep it high level. I think Europe is very important for us. The Middle East is very important for us. Australia is very important for us. I’ll leave it at that. Stay tuned. We want OUS to be a meaningful enough revenue that this group here focuses on, but we still have some work to do.

Pat, Analyst, Morgan Stanley: How much does geography matter? I can’t imagine the politics of taking a liver from Switzerland to Germany. Do you see what I mean? The national borders. Is it just like large landmass? Are we just coming in at the wrong way and actually all these countries have DCD organs that need to be used and they’re not getting used?

Waleed, Founder and CEO, TransMedics: All of the above. Many of the countries, except Germany, have DCD organs, but we need to remember one important fact. European donors are a lot more challenging than U.S. donors. The average donor age in Europe is at least 10 years older. The complication of the donor dynamic with the high rate of smoking and high rate of hypertension, it’s a much more challenging donor environment. Utilization rate is lower. The post-transplant outcomes are a lot worse than the United States. The management of transplant logistics is a lot more complicated because they don’t have the critical mass to manage this. I was just in Italy and meeting with the head of the equivalent of UNOS, and he’s telling me, "Waleed, every organ for me is a national allocation. I need planes.

I need a logistics network like the NOP you have in the United States because I’m losing organs every day because I don’t have access to transportation." TransMedics and NOP can help many of the European geographies. One point you mentioned, Patrick, which is the sharing of organs among member states or non-member states, is actually something that’s happening today. If the OCS and NOP were to be active in Europe, that would increase sharing of organs across member states or non-member states in Europe. It’s something that’s already happening because they want to maximize every organ to be transplanted because just the utilization rate is much lower than the U.S.

Pat, Analyst, Morgan Stanley: I’ve got a slightly hedge funded question for you guys, including on the guide, which is basically, you know, you’ve obviously got the heart and lung trials that are ongoing. The numbers aren’t small in terms of the number of patients. How do we think about those volumes relative to your existing outlook and guide? Are they incremental? Would they have been patients that you would have, to your mind, collected anyway? Do you see what I mean? It’s not a small number of.

Waleed, Founder and CEO, TransMedics: Yeah, they’re not impacting the guide for this year. They’re impacting the growth for next year for sure. The timing is not going to really make any meaningful impact in 2025. Yeah, the numbers are large, and they should impact the growth for 2026. No, we’re not cannibalizing our existing market because if you look at the two trials, the lung is a complete, it’s literally, we’re resurrecting the lung completely. Every organ is an incremental organ. On the heart, the bulk of the heart trial is an indication that we currently do not have in the U.S. These are incremental organs.

Pat, Analyst, Morgan Stanley: I’m just wondering on paper. You know, I always ask everybody this, but I feel like especially for your company, like the market focuses on very specific areas and very specific topics. I won’t ask what you think people focus on too much because I think I already know all the answers to that. Instead, it’ll be like, what do you focus on and you’re surprised that other people don’t bring up? Do you know, like what doesn’t get the attention that you think is worth it?

Waleed, Founder and CEO, TransMedics: I think, listen, if you’re going to focus on every month-to-month variability, quarter-to-quarter variability in organ transplant, you should really, you should not hold TransMedics stock. Seriously, it’s about looking at the long term. Look at TransMedics at 20,000 or 30,000 organs under our wing in the U.S. alone and doubling that worldwide. That’s what we’re building in TransMedics. Yes, there will be seasonalities. There will be variabilities. There’s a reason why TransMedics doesn’t announce the full penetration except at year-end because we know there’s variability. We’ve said that from day one. That’s number one. Number two, we are still early. Yes, we’ve achieved significant success in a short period of time, but it’s still early. We got to allow the time for the health, the transplant market to digest the level of innovation that TransMedics have injected into it in the U.S.

and watch what the potential is for OUS. We’re very, very excited about where we are. This is not just word of mouth. My personal action in this quarter speaks for itself. Somebody asked me earlier today, "Waleed, why now?" Guys, I wanted to buy stock a lot earlier than now, but I was prohibited by corporate counsel because I made a 10B51 transaction last October, and I had to wait six months. Otherwise, I would trigger some bad things.

Pat, Analyst, Morgan Stanley: Perfect corner, actually. Thank you so much.

Waleed, Founder and CEO, TransMedics: Thank you, Patrick. Appreciate it.

Pat, Analyst, Morgan Stanley: Thank you.

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