LivaNova outlines plans for future growth at investor day event

 LivaNova (Nasdaq: LIVN)

 today announced its new strategic roadmap and long-range financial plan at its 2025 Investor Day.

The company unveiled its financial targets for 2030 as part of the event today. Those include high-single-digit-plus revenue compound annual growth rate (CAGR) and an adjusted annual operating margin above 20% over the next three years, targeting the high twenties by 2030.

LivaNova expects earnings per share (EPS) CAGR in the low double digits to mid-teens and adjusted free cash flow conversion above 80%.

The company said it plans to achieve this growth by maximizing its core businesses. It aims to scale its obstructive sleep apnea (OSA) therapies and preserve its upside in difficult-to-treat depression (DTD).

“We are confident in our ability to deliver on the targets we outlined today. LivaNova’s talented team is focused on a revitalized innovation strategy and operational excellence,” said Vladimir Makatsaria, CEO of LivaNova. “The leadership positions we hold in our Epilepsy and Cardiopulmonary businesses give us a strong foundation that provides predictable growth, margin expansion, and consistent cash generation, allowing us to invest in our future.”

LivaNova expects continued success in existing markets

The company highlighted the continued success of its Cardiopulmonary business within a $2 billion global market. LivaNova’s recent third-quarter earnings demonstrated that, as Essenz perfusion system sales drove 18% sales growth in the quarter. The company expects to gain more share in consumables and bring a next-generation oxygenator to the market, with eyes on a 2028 launch.

LivaNova expects mid-to-high single-digit revenue CAGR in Cardiopulmonary.

In Epilepsy, the company expects more growth, with real-world evidence set to come from the CORE-VNS clinical study. LivaNova also plans to launch a connected care platform (estimated for 2026), followed by a Bluetooth-enabled implantable pulse generator (2027) and expand global access and reimbursement.

The company is targeting mid-single-digit revenue CAGR in this space.

New markets could drive growth, too

The company plans to enter the large OSA market with its differentiated proximal hypoglossal nerve stimulation (p-HGNS) technology, too. aura6000 is an investigational implantable p-HGNS system that could rival Inspire Medical’s neurostimulator as an alternative to traditional CPAP sleep respiratory systems. LivaNova submitted the technology to the FDA earlier this year.

Now, the company also offers the PolySync Algorithm, an advanced multi-contact titration algorithm. It utilizes a six-electrode design to deliver more targeted nerve activation and enable a greater patient response. Following FDA approval, the company hopes to commercialize the product independently in 2027. This would give it full control over pricing, positioning and customer relationships.

LivaNova plans to leverage its proven Neuromodulation infrastructure to scale this offering. It anticipates $200 million to $400 million in revenue from OSA by 2030.

Finally, the company expects CMS to reconsider coverage for difficult-to-treat depression after submitting a request earlier this year. It doesn’t include this in its long-range financial projections, given pending coverage reconsideration, but considers it an upside area.

“This enables us to grow our leadership positions in our core markets,” said Makatsaria. “It also allows us to invest in a transformational pipeline and enter higher-growth markets with attractive margin profiles. This includes obstructive sleep apnea, where we have differentiated technology and compelling clinical data. In addition, difficult-to-treat depression remains an upside option as we continue to pursue coverage with the U.S. Centers for Medicare & Medicaid Services. We believe that LivaNova is well-positioned for transformative growth and to deliver long-term value — for patients, customers, colleagues, and shareholders.”

https://www.massdevice.com/livanova-outlines-plans-for-future-growth-at-investor-day-event/