ICU Medical (ICUI) Morgan Stanley 24th Annual Global Healthcare Conference summary

Macro environment and business outlook

• Hospital admissions and census remain stable, supporting positive but not spectacular growth in line with guidance assumptions.

• No significant swings expected for the remainder of the year; demand and utilization trends are consistent.

• Portfolio strategy focuses on building a coherent offering of pumps, consumables, and IV solutions, not just growth rates.

• Tariffs are the most significant macroeconomic concern, with FX and oil prices less impactful.

• Revenue growth and margin improvement are expected to continue, driven by pump replacement cycles and niche market creation.

IV systems and pump business

• IV systems saw robust organic growth, mainly from competitive wins and some installation pull-forwards.

• Growth drivers include competitive wins, upgrading the install base, and refreshing syringe pumps.

• The pump upgrade cycle is just beginning and will start in earnest next year, with a 7-10 year device life.

• Consumables growth from pump upgrades is limited; most incremental consumables come from new competitive wins.

• FDA review for new syringe pumps is on track, with a six to nine-month review cycle expected after submission this year.

Competitive landscape and innovation

• The competitive environment for LVPs and syringe pumps remains active, with opportunities from aging equipment.

• Integration of syringe and LVP platforms aims to simplify customer experience and address historical deficiencies.

• Software platform LifeShield offers enterprise-wide, cloud-based management and is positioned as a value driver.

• Software is a charged offering, with efforts to demonstrate value and re-profitize the install base.