Executive Summary / Key Takeaways

• TriSalus Life Sciences is an oncology-focused medical technology company driving significant revenue growth through its differentiated Pressure Enabled Drug Delivery (PEDD) technology, primarily the TriNav system.
• The company is strategically expanding the application of its PEDD technology beyond liver embolization into new, large markets like thyroid nodules and potentially others, leveraging existing technology and reimbursement pathways.
• Recent financial performance shows robust top-line growth (42% YoY in Q1 2025, 59% in FY 2024), strong gross margins (83.7% in Q1 2025), and decreasing R&D expenses following the strategic pivot on its nelitolimod therapeutic program.
• TriSalus has secured recent financing (OrbiMed debt draw, private placement) to strengthen its balance sheet and fund investments in commercial expansion and new PEDD applications, which has shifted the timeline for achieving profitability to early 2026.
• Key factors to watch include continued TriNav adoption and utilization, successful expansion into new clinical applications, progress in remediating material weaknesses in internal controls, and potential partnerships for the nelitolimod program.

Setting the Scene: A Novel Approach to Overcoming Delivery Barriers

TriSalus Life Sciences is carving out a unique position in the oncology landscape by tackling a fundamental challenge in solid tumor treatment: effective drug delivery. Many promising therapies, whether traditional chemotherapeutics, embolics, or novel immunotherapies, struggle to reach their target within the tumor microenvironment due to physiological barriers like high intratumoral pressure and collapsed vasculature. This often leads to suboptimal drug concentrations within the tumor and increased exposure to healthy tissue, limiting efficacy and increasing side effects.

Founded on the principle of overcoming these delivery challenges, TriSalus has developed its proprietary Pressure Enabled Drug Delivery (PEDD) technology. This technology forms the cornerstone of the company's strategy, aiming to transform outcomes for patients with difficult-to-treat solid tumors. While the company also possesses an investigational immunotherapeutic, nelitolimod, its recent strategic focus has firmly centered on maximizing the potential of the PEDD platform, leveraging its demonstrated capabilities and expanding its reach across multiple clinical applications. The company's journey, marked by the commercial launch of the TriNav system in 2020 and its public listing in 2023, reflects a deliberate evolution towards becoming a leader in targeted, pressure-enabled therapy delivery.

The Heart of the Innovation: Pressure Enabled Drug Delivery (PEDD)

At the core of TriSalus' offering is the PEDD technology, embodied in its TriNav Infusion Systems. Unlike conventional catheters that rely solely on passive flow, the TriNav system with SmartValve technology is engineered to actively manage pressure and flow dynamics. It is designed to work in synchrony with the cardiac cycle, creating a transient seal that helps overcome the elevated pressure within tumors and opens collapsed arterial vessels. This mechanism facilitates deeper and more uniform perfusion of therapeutic agents directly into the tumor bed.

The tangible benefits of this technology are supported by preclinical models and clinical studies. The PEDD approach has been shown to improve therapy uptake and tumor response. Quantifiable advantages cited in company materials include potentially achieving 20-30% greater drug penetration efficiency compared to alternative delivery methods, leading to estimated 15% lower per-unit operating costs by reducing drug waste. Clinical experience suggests benefits such as potentially 25% faster treatment times, 30% lower side effects in trials, 40% better tumor penetration than some historical methods like SIRT, and 15-20% more efficient delivery compared to certain competitor devices.

The TriNav product portfolio is expanding to address a broader range of patient anatomies and procedural needs. The original TriNav system is complemented by the TriNav LV Infusion System, launched in 2024, specifically designed for larger vessels (3.5mm to 5.0mm). The upcoming TriNav Flex (formerly TriNav 2.0), expected in the first half of 2025, aims to offer improved trackability for navigating torturous vascular anatomy. This expanding suite provides interventional radiologists with a full range of tools for various embolization procedures.

For investors, the PEDD technology represents a significant competitive moat. Its unique mechanism and demonstrated benefits support premium pricing for the TriNav system compared to conventional catheters. This technological differentiation is a key driver of market adoption and provides a foundation for sustained revenue growth and potentially higher gross margins over time.

Expanding Horizons: New Applications & Market Opportunity

Recognizing the potential of its PEDD technology beyond its initial focus on liver embolization (TACE and TARE), TriSalus is strategically investing in expanding into new clinical applications. This initiative, framed under the DELIVER program, involves a series of investigator-initiated clinical trials and registry studies aimed at generating real-world evidence for TriNav in various complex patient types and disease states.

A particularly promising new area is the use of TriNav for the treatment of multinodular goiters. Initiated with the PROTECT Registry study in Q1 2025, this program is evaluating the benefits of PEDD-based thyroid artery embolization (PED-TAE) for patients who are not candidates for surgery or other traditional treatments. This application leverages the core PEDD capability to deliver embolics precisely while potentially reducing risks associated with traditional approaches, such as stroke risk by targeting inferior thyroid arteries. The market for multinodular goiters is estimated at approximately 50,000 annual procedures in the U.S., representing a significant incremental market opportunity of $400 million for TriNav. Crucially, this procedure is eligible for the existing HCPCS reimbursement code, facilitating seamless integration into current billing structures.

The DELIVER program also includes exploration of other potential applications, such as genicular artery embolization (GAE) and uterine fibroid embolization (UFE). By demonstrating the value of PEDD technology in these diverse areas, TriSalus aims to significantly expand its total addressable market beyond the initial liver and pancreatic focus, which is already estimated to be over $1 billion. This strategic expansion leverages the company's core technological strength and existing commercial infrastructure to unlock substantial new growth avenues.

Commercial Momentum & Financial Performance

TriSalus has demonstrated impressive commercial execution since the launch of the TriNav system. The company has consistently achieved robust top-line growth, positioning itself as one of the fastest-growing medtech companies in the interventional oncology space. In the first quarter of 2025, revenue reached $9.2 million, a 42% increase compared to Q1 2024 and an 11% sequential gain over Q4 2024. This builds on a strong full year 2024 performance, where revenue grew 59% over 2023 to $29.4 million, contributing to a compound annualized growth rate of approximately 50% since the 2020 product launch.

This growth is driven by several factors: increasing the number of unique ordering accounts (adding 32 new accounts in Q1 2025 and 103 in FY 2024), improving utilization within existing accounts, and expanding the sales force. A key enabler has been securing permanent reimbursement codes from CMS. Following the expiration of the transitional pass-through payments (TPT) at the end of 2023, TriSalus obtained HCPCS code C9797 (effective Jan 1, 2024) for therapeutic procedures and, significantly, HCPCS code C8004 (effective April 1, 2025) for mapping procedures using TriNav prior to TARE. This second code provides full reimbursement clarity for Y90 procedures, removing a barrier for Medicare patients and is expected to drive broader adoption.

The company maintains strong gross margins, reflecting the value and proprietary nature of its technology. Gross margin was 83.7% in Q1 2025, slightly down from 85% in Q1 2024, attributed to decreased manufacturing efficiencies during a planned clean room expansion shutdown. Management expects margins to recover and trend back up to the upper 80s, potentially reaching 90%.

Operating expenses reflect the company's stage of development and strategic priorities. Research and development expenses decreased significantly by 43.6% in Q1 2025 compared to Q1 2024, and by 41% in FY 2024 compared to 2023. This reduction is primarily due to the winding down of nelitolimod clinical trials. Sales and marketing expenses increased by 52% in FY 2024, reflecting investment in sales force expansion, and were relatively flat in Q1 2025. General and administrative expenses decreased by 24% in FY 2024 but saw a slight increase in Q1 2025 due to professional services related to public company filings and audits.

Operating losses decreased in Q1 2025 ($7.3 million) compared to Q1 2024 ($11.7 million), and adjusted EBITDA losses also narrowed ($5.5 million in Q1 2025 vs. $10.4 million in Q1 2024), driven by increased sales and reduced R&D expenses.

Competitive Landscape

TriSalus operates within the competitive interventional oncology market, facing both direct and indirect rivals. Direct competitors include companies offering localized therapies and drug delivery systems for liver and pancreatic tumors, such as Delcath Systems (DCTH), Sirtex Medical, Boston Scientific (BSX) with its oncology devices, Medtronic (MDT) in related device segments, and Immunocore (IMCR) in the immunotherapy space.

While precise, directly comparable market share figures for all niche competitors are not publicly detailed, TLSI holds an estimated 5-10% aggregate market share in liver and pancreatic tumor therapies. This is smaller than some established players like Delcath (estimated 10-15% in hepatic arterial infusion), Sirtex (~20% historical in SIRT), Boston Scientific (~25% in interventional oncology devices), and Medtronic (~15% in related segments).

TLSI's primary competitive advantage lies in its proprietary PEDD technology. As discussed, PEDD offers quantifiable benefits in drug delivery efficiency and penetration compared to conventional catheters and potentially other localized methods. This technological edge is a key differentiator against competitors whose systems may not actively manage pressure and flow in the same way. For instance, while Delcath has FDA-approved therapies and an established market presence, TLSI's PEDD is designed to achieve superior drug penetration. Similarly, compared to Sirtex's radiation-based approach or Boston Scientific's ablation devices, TLSI offers a platform for enhanced drug delivery, including the potential for integrating with immunotherapies.

Financially, TLSI's gross margins (85.6% TTM) are competitive, even potentially higher than some rivals like Delcath (83% FY 2024) or Medtronic (66% FY 2025 est.), reflecting the value of its proprietary technology. However, TLSI lags significantly in overall profitability (negative operating and net margins) and scale compared to larger, diversified players like Boston Scientific and Medtronic, which benefit from established revenue streams and operational efficiencies. Even against more focused competitors like Delcath or Immunocore (which also have negative margins), TLSI's historical cash burn and negative operating cash flow (-$40.84M TTM) highlight the challenges of its earlier stage of commercialization and significant R&D investment.

TriSalus strategically positions itself by emphasizing the unique benefits of its PEDD technology in overcoming delivery barriers, particularly in complex patients and underserved areas like pancreatic cancer and new applications like thyroid. Its focus on generating real-world evidence and pursuing new indications aims to build a strong clinical and economic case for TriNav adoption, differentiating it from competitors who may offer broader but less specialized device portfolios or different therapeutic modalities. The company also holds IP around its pressure and flow modulation technology, which management views as a "toll booth" against potential new entrants.

Nelitolimod: A Strategic Pivot

Alongside its PEDD technology, TriSalus has been developing nelitolimod, an investigational class C TLR9 agonist immunotherapy. The drug is designed to modulate the tumor microenvironment by reducing immunosuppressive cells and activating immune responses, potentially enhancing the effectiveness of other therapies like checkpoint inhibitors.

Nelitolimod has been evaluated in Phase 1 clinical trials delivered via PEDD technology across various indications. The PERIO-01 study in uveal melanoma liver metastases showed a tolerable safety profile and encouraging signals, including MDSC depletion, ctDNA responses, 65% disease control rate, and a median overall survival of 20.6 months in heavily pretreated patients. The PERIO-03 study in locally advanced pancreatic adenocarcinoma, utilizing a novel pancreatic retrograde venous PEDD approach, demonstrated strong delivery performance and a favorable safety profile, with early signs of immune activation. Enrollment in PERIO-03 is complete (13 patients), with final data expected in the second half of 2025. The PERIO-02 study in HCC and cholangiocarcinoma showed consistent safety and immune effects, and some encouraging outcomes with a checkpoint doublet combination (42% disease control rate in 12 patients), but the data was deemed too limited to proceed to Phase 2 with that specific regimen alone.

Based on these results and a strategic decision to focus internal resources on the high-growth PEDD platform, TriSalus is shifting to a partnership-focused strategy for nelitolimod. The goal is to eliminate internal development expense on the program by the end of 2025, with no further spend anticipated in 2026, while preserving the long-term value of the asset through potential collaborations. The company is actively seeking strategic partners, particularly for the uveal melanoma liver metastases program, and will determine next steps for the pancreatic program once the final PERIO-03 data is available. This pivot is expected to significantly reduce R&D costs and contribute to the company's path towards profitability.

Liquidity & Funding the Future

As of March 31, 2025, TriSalus held $13.4 million in cash, cash equivalents, and restricted cash. The company has a history of operating losses, with an accumulated deficit of $289.9 million as of the same date. Management has indicated that existing cash and cash equivalents are insufficient to fund projected liquidity requirements for the next 12 months without additional financing, raising substantial doubt about the company's ability to continue as a going concern.

To address its funding needs and support its growth strategy, TriSalus has pursued various financing avenues. These include a Standby Equity Purchase Agreement (SEPA) with Yorkville, providing the right to sell up to $30 million in common stock (though no shares were sold under SEPA in Q1 2025). More significantly, the company entered into a Credit Agreement with OrbiMed in April 2024 for up to $50 million. An initial $25 million was drawn at closing, and a subsequent $10 million tranche was drawn on February 18, 2025, upon achieving a specified revenue target. An additional $15 million remains available subject to further revenue milestones. Recent amendments to the OrbiMed agreement included waivers related to Series A Preferred Stock conversions and an extension for filing audited financials.

Subsequent to the first quarter, on May 2, 2025, TriSalus closed a private placement, raising approximately $22 million in gross proceeds through the issuance of 5.5 million shares of common stock at $4.00 per share. This capital infusion strengthens the balance sheet and provides resources to fund planned investments.

The company's funding requirements are driven by operating expenses, particularly sales and marketing to support TriNav growth and investments in new PEDD applications, as well as remaining R&D costs for nelitolimod trials and potential commercialization expenses if product candidates are approved. While the recent financing provides a stronger cash position, the company's ability to fund future operations and execute its long-term plan depends on generating sufficient cash flow from operations and/or obtaining additional capital, including potentially drawing the remaining OrbiMed tranche or securing nelitolimod partnerships.

Risks and Challenges

Despite the positive momentum and strategic initiatives, TriSalus faces significant risks and challenges. The substantial doubt regarding its ability to continue as a going concern highlights the critical need for successful execution of its funding strategy and achieving profitability. The company must successfully raise additional capital on favorable terms, which is not guaranteed, or risk curtailing operations.

Commercialization success for TriNav is paramount and depends on continued physician adoption, favorable reimbursement (despite recent positive developments, future changes are possible), and competition. The ability to grow market share against larger, more established competitors with diversified portfolios is a continuous challenge.

While the strategic pivot on nelitolimod reduces internal R&D spend, the success of this program now hinges on securing pharmaceutical partnerships, which are complex and uncertain. The terms of any potential partnership may not be favorable.

Operational risks include managing manufacturing capacity to support growth and addressing identified material weaknesses in internal control over financial reporting. These weaknesses, related to areas like financial reporting processes, accounting for complex transactions (Business Combination, debt, derivatives), valuations, stock-based compensation, and IT controls, could adversely affect the ability to accurately and timely report financial results if not effectively remediated. The delay in filing the 2024 10-K due to identified errors underscores the importance of these remediation efforts.

Macroeconomic conditions, including inflation, rising interest rates, and global instability, could also impact product demand, access to capital, and overall business operations.

Conclusion

TriSalus Life Sciences presents a compelling investment story centered around its differentiated Pressure Enabled Drug Delivery technology. The TriNav system is demonstrating strong commercial momentum, driving robust revenue growth in the liver embolization market by effectively addressing critical delivery barriers. The strategic decision to focus internal resources on expanding the PEDD platform into new, large clinical applications like thyroid nodules, leveraging existing technology and reimbursement, unlocks significant potential for future growth and market expansion.

While the company continues to incur operating losses and faces a going concern risk, recent financing efforts, including the OrbiMed debt draw and the private placement, have strengthened its liquidity position. The strategic pivot on the nelitolimod program is expected to significantly reduce R&D expenses, contributing to the path towards profitability, albeit with a revised timeline now targeting cash flow positivity in early 2026 as investments in commercial expansion and new applications are prioritized.

Key to the investment thesis is the continued successful execution of the growth strategy for TriNav, the ability to generate compelling data and drive adoption in new clinical areas, and effective management of liquidity and operational risks, including the remediation of material weaknesses in internal controls. TriSalus' innovative technology provides a strong foundation and competitive edge, positioning the company to potentially transform outcomes for patients and create long-term value for shareholders if it can successfully navigate the challenges inherent in scaling a high-growth medical technology business.