Society of Interventional Radiology (SIR) Publishes Practice Guidance on Prostatic Artery Embolization (PAE) Helping to Legitimize PAE as a Treatment Option for BPH: Neutral

Research evidence excerpt

Society of Interventional Radiology (SIR) Publishes Practice Guidance on Prostatic Artery Embolization (PAE) Helping to Legitimize PAE as a Treatment Option for BPH: Neutral

Investment Thesis

Procept BioRobotics (PRCT) is a surgical robotics company that has developed and commercialized a novel clinically compelling

robotic technology, the AquaBeam Robotic System, for the treatment of Benign Prostatic Hyperplasia (BPH). BPH is one of the most

common conditions seen by urologists with >40M men suffering in the US alone as 1 in 4 by the age of 55, and 1 in 2 by the age ofMEDICAL 75 will have symptoms such as frequent urination at night. Only a fraction seek surgical treatment as the clinical risks associated

with conventional surgical treatment remain high. Most men opt for pharmaceuticals despite multiple side effects. AquaBeam's

clinical benefits (i.e., improved accuracy, fewer side effects, and lack of thermal spread) make it an attractive option. For MDs, PRCT

offers a differentiated marketing option (i.e., the allure of robotics) coupled with five-year clinical data. For investors, PRCT's razor/

razor blade business model should yield meaningful leverage over time. Our Neutral thesis is based on multiple factors: mixed

MD feedback, a competitive market environment, applicability into a smaller segment of the market opportunity, mismanaged

expectations, and significant operating spend. All of these dynamics have to be improved over time before we get constructive.TECHNOLOGY

Upcoming Catalysts Price Performance

■ 2Q26 - Enrollment completion for WATER IV $80

■ FY26 - Expansion of commercial initiatives to accelerate utilization $70EQUITY ■ FY26 - Lowered PFS rates - CPT 52597

■ FY26 - Aquabeam replacement cycle becomes more material $60