PROCEPT BioRobotics (PRCT) 46th Annual William Blair Growth Stock Conference summary

Market opportunity and clinical landscape

• BPH is significantly undertreated, with only 10% penetration into the 400,000 annual procedures and millions more on drug therapy or untreated.

• Delays in seeking therapy for BPH can lead to long-term complications, including bladder health issues and incontinence.

• Aquablation offers a unique position by combining the durability of resective procedures with the quality-of-life benefits of non-resective options.

• Patient priorities include minimizing bladder control issues, avoiding repeat procedures, and preserving sexual and urinary function.

• Clinician treatment pathways often differ from patient priorities, emphasizing the need for better patient education and advocacy.

Strategic initiatives and operational improvements

• Organizational realignment has integrated sales, clinical, and capital teams under regional directors to drive procedure growth and clinical excellence.

• Compensation plans have been simplified and now focus on procedure growth, aligning all team members toward shared goals.

• Launch teams were created to accelerate system utilization, reducing time from purchase order to productive use by 50%.

• By year-end, all new system launches will use the launch team model, ensuring strong program starts and sustained utilization.

• Greenfield placements remain the primary growth strategy, with Q1 seeing higher-than-expected system sales and record average selling prices.

Product development and market expansion

• Trade-in programs for legacy systems encourage upgrades to the HYDROS platform, increasing utilization and enabling system relaunches.

• Leasing alternatives are being explored to provide access for hospitals less likely to purchase capital equipment.

• Prostate cancer is a key adjacency, leveraging the same technology and customer base, with the WATER IV trial comparing Aquablation to radical prostatectomy.

• A new trial will compare Aquablation to active surveillance, aiming to demonstrate benefits over watchful waiting for prostate cancer patients.

• Combined data from these trials are expected to provide a definitive picture for both immediate and watchful-waiting prostate cancer patients.