Company overview

TransMedics Group helps transplant centers keep donated hearts, lungs and livers functioning outside the body before transplantation. Its portable OCS platform circulates warm blood and nutrient-enriched solutions through the organs, using a console and sterile disposable supplies. Each transplant using OCS requires a new organ-specific disposable set, so continued use generates repeat purchases rather than just equipment sales.

Product sales provide most revenue. Transplant centers also pay TransMedics to retrieve organs, manage their preservation on OCS and coordinate air and ground transport through its National OCS Program (NOP). Nearly all U.S. customers use this service, which includes company-owned and operated aircraft. The business is overwhelmingly U.S.-based, and liver transplantation accounts for most OCS transplant revenue. A limited number of customers supply a significant share of revenue.

Revenue depends on available donor organs, transplant-center capacity and the NOP's ability to provide qualified clinical staff and timely transport. Hospitals also need reimbursement or other funding to cover OCS costs; many national health systems outside the United States do not reimburse its use. Fresenius is the single-source supplier of solutions for OCS Heart and OCS Lung. The products have FDA approval for heart, lung and liver transplantation, but the company must maintain those approvals and cannot promote unapproved uses.