Merit Medical Systems Inc Wells Fargo 21st Annual Healthcare Conference
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Eagleson, the med tech analyst at Wells Fargo, and it's my pleasure to host this fireside chat with the management team from Merit Medical. With us, we have Martha Aronson, the President and CEO, and Raul Parra, the CFO. Martha and Raul, thanks for being here.
Thanks for having us, Larry.
Yeah. Thank you. I think this is your first one with us.
It is with you. With Merit.
Yes. Okay. Excited to be here.
Yep. We are excited to have you. Martha, let's start with a couple of big-picture questions. You are almost a year into the CEO role. What has gone well during your tenure, and what areas would you like to improve going forward?
Well, I think what has gone well is, as most of you know who have been following the Merit Medical story, we were founder-led for 38 years, and now we are in what we call our founder-inspired phase, with our founder having retired. I think what is gone well is that through the transition, the team has continued to deliver, and Merit has a history of delivering quarter after quarter, and the team stayed very focused on that despite the leadership transition. Very pleased about that. As you know, delivered a nice Q2 with about 9% growth, so very pleased about that. The story going forward is really what I call one of evolution, not revolution. Right? It is just we are evolving as we grow to be even more global and as we work to scale.
The things to work on are really what I put in the maturation category. They are just some systems and processes that need to mature as we move forward. I would say those are the areas we are kind of working on.
That is helpful. You have been going through a strategic planning process at Merit. I know you are going to disclose the results today. No. Where are you in the process, and when will you share the results?
Yeah. I would probably say we are about, maybe we are at the seventh-inning stretch, so we are getting close. The teams have been doing a lot of work. I have really asked for a pretty rigorous review of trying to. As you know, we have a lot of products. We call on a lot of different medical specialties. I think it is really asking each platform to dig in and understand globally, right, where do we have the right to win? Where are the gaps in our product lines? Where might there be places that we have products that no longer make sense for us to have those products? Those are all the big questions we are really asking our teams to try to go out and answer. There has been a ton of work going on over the last several months.
We are nearing the end of that, and then we will spend some time with our board of directors, reviewing that strategy with all of them. Then we will bring out a new long-range plan to our shareholders. The timing of that exactly, we do not know for sure. At the latest, certainly our Q4 call in February. Possibly sooner. Stay tuned on that.
Okay. Possibly sooner. Possibly. 2026 is a possibility, or it is probably going to bleed into 2027?
Probably bleed into 2027. Okay.
Merit participates in, I think, eight different segments, which seems like a lot for a company of your size. You talked about a lot of different call points. Would you agree, and could we see changes to the segments?
Well, again, yeah. The way we're currently organized is by these eight platforms as we talk about them. We're excited because again, we're now reporting that, right, very consistently with how we're managing the business. I think that actually drives increased ownership by our platform leaders. I'm very excited about that. Again, a little premature for us to say where each one is headed as we go into next year. But suffice it to say, as we said, every platform, I think it's fair to say sort of everything's on the table. There are no sacred cows. What I'm excited about is that the organization is really having, I'd say, a great amount of, I call it healthy debate.
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