Enovis Corporation Wells Fargo 21st Annual Healthcare Conference

Ross. This afternoon, we are joined by Enovis. We have the company's CEO, Damien McDonald, and CFO, Ben Berry. Thanks for being here. You are welcome.

Thanks for having us. Of course.

Before we dive into your recent acquisition, maybe we will start with an overview of the market, how you guys are seeing the ortho space since you last reported earnings.

Six weeks ago. Yeah. Look, nothing's changed for us.

Again, we recently reported six weeks ago, the way we're seeing the U.S. normal seasonality, it's sort of back to a pre-COVID normal. We always see a bit of slowdown in the summer, which we've seen, but it's bouncing. Friday, I think, was one of our best Fridays that we've had in months, so that's great news. We've been saying international. By the way, we skew Europe when we talk international. We've been saying that the market, since Q1, that the European markets have been slowing. We've been demonstrably taking share in those markets and growing above the market. So nothing's changed for us. I know there's a bit of swirl today about that, but for us, nothing's changed in terms of the way we've seen the market and our normal seasonality.

Great. Any signs of an impact from ACA? We've heard mixed reviews there.

Not for us. Again, we hear that there's noise around clinic to surgical. We hear noise around prior auth delays. Maybe that's affecting other people's mix because of the way they have community hospitals in their numbers. But, for us, the way our markets are structured and the way our customers are structured, we're not seeing that.

Okay. Maybe it's impacting you guys less, but in terms of strikes, government budgets going towards defense versus healthcare, are you seeing anything in Europe to call out there?

Well, that's where we talk about Europe. When we've talked about what's been going on, again, since Q1, we've had visibility to that. We, for sure, have seen the impact of strikes, for sure, the impact of, let's call it financing policy decision making. But nothing's changed for us in our numbers, and we just talked about those recently as we did the acquisition.

Assuming those headlines continue into next year, what's a good normalized growth rate to think about for the ortho business?

Well, I would refer everyone to the presentation that we did the other day about where we think Recon and P&R are growing. Again, we laid it out pretty clearly in terms of the mid to high single digit for Recon and mid single digit for the P&R business.

Great. I'll just add, Ross.

I think the market dynamics in terms of procedural volume and thinking about the health of the macro with regards to the aging population and the need for surgery is going to continue. So for the long-term durability of ortho, we still see a large runway of a population that's going to need these products. And while there might be some iteration from quarter to quarter, we think the market will continue to grow at the rate that it's been growing, and continue from now into the future.

Okay, perfect. As I alluded to earlier, you guys recently announced an acquisition. Why was now the right time? What attracted you to Amplitude?