EDAP TMS's Q1 2025: Key Contradictions in Payer Trends, Marketing Strategies, and Procedure Growth

Payer Trends and Procedure Approval Challenges, Marketing Plans for Focal One, Procedure Growth Expectations, Endometriosis Market Expansion Strategy, and Payer Landscape Trends are the key contradictions discussed in EDAP TMS's latest 2025Q1 earnings call.



Focal One System Placements and Growth:
- EDAP TMS reported placing 9 Focal One robotic systems in Q1 2025, a record number for any first quarter period.
- The growth in placements was driven by strong demand from major healthcare systems and international markets, reflecting the increasing recognition of Focal One as a necessary treatment option for prostate cancer.

HIFU Revenue and Strategic Focus:
- HIFU revenues reached €6.2 million in Q1 2025, up 6.8% year-over-year.
- The increase in HIFU revenue was attributed to the strategic focus on the high-growth opportunity of focal therapy with the Focal One Robotic HIFU platform, despite a decline in non-core revenue.

Payer Landscape and Procedure Approvals:
- EDAP observed longer and more challenging review and procedure approvals, particularly for Medicare Advantage plans.
- These challenges are industry-wide and not specific to Focal One, affecting approximately 54% of Medicare patients who opt for Medicare Advantage plans.

Endometriosis Market Entry:
- Focal One received CE Mark approval for treating posterior deep infiltrating endometriosis, enabling controlled market entry in CE Mark countries.
- The company is working with thought leaders to expand clinical development efforts, with plans for a broader launch following the completion of ongoing studies.