Hello, everyone. Thank you for joining today. It's my pleasure to introduce Haemonetics. Today, we'll be joined by Chris Simon, CEO, who will go through a presentation, which will be followed by a short Q&A, which will also be supported by James D'Arecca, CFO, and Olga Guyette, Head of IR and Treasury. Thank you.
Thank you, Zach, and thank you to J.P. Morgan Bank. I was reflecting on my flight out here, this is actually my 20th J.P. Morgan conference, the last seven of which have been with Haemonetics. So outstanding conference, and we see great value in being here, so thank you for the invitation. Good morning, everyone, and we're pleased to be here, clearly, and we appreciate those of you here in the room with us, but also those who have dialed in. I'm gonna give you a brief overview of the company and our goals, and hopefully, you find it as exciting as we do. Importantly, my remarks will include forward-looking statements and non-GAAP numbers, so our usual safe harbor and risk factors apply. You can refer to our SEC filings for more information. Next slide, please. So Haemonetics at a glance.
For those of you new to our story, the company was founded back in 1971. Through most of that 50-plus year history, we were known as The Blood Company. Candidly, we've outgrown that title now, evolving our business to provide innovative med tech focused on improving care across a range of fast-growing procedures, well beyond the original charter. We are currently midway through a four-year long range plan to generate transformational growth. The plan can be summarized for those who follow us, as winning in plasma while accelerating the pivot to higher growth, higher gross margin hospital segments. We're proud that we were able to do over $1 billion in revenue last year for the first time in the company's history. It's a milestone that we think highlights our ability to continue to build scale and accelerate growth. Next slide, please.
Our strategy is rooted in industry leadership. We're focused on winning markets, investing in those areas that we believe support outsized growth and profitability, where we can leverage our deep knowledge and proprietary technology, and our focus on customer-based innovation to achieve leading positions in those attractive markets I referenced earlier. We're committed to accelerating revenue and adjusted EPS growth, generating strong cash flow, and providing additional growth opportunities and sustaining momentum to our businesses. Diversification is essential to make our business more robust and more resilient, and we are growing responsibly towards a more sustainable and inclusive future. Last year, we issued our first corporate responsibility report, highlighting the steps we are taking to ensure the health and success of our company, our colleagues, and the communities we serve.
Among other things, we are pleased to report a 19% reduction in Scope One and Scope Two greenhouse gas emissions since our 2018 baseline year. Back at our Investor Day in June 2022, we presented a value creation model, along with our strategy and goals, that's focused on driving these financial attractive returns and value for our shareholders. It consists of three broad objectives. The first is to drive above-market growth, consisting of high single-digit organic revenue and mid-teens adjusted EPS compound annual growth rates through FY 2026. Growth through the first two years of the plan is tracking well ahead of schedule. The second objective is to increase adjusted operating income to more than double the organic growth rate for revenue and achieve high twenties operating income margin expansion.
We are fully on track here, although, as I'll talk about in a moment, there's been some noteworthy puts and takes as the business has evolved. The third objective is to optimize capital allocation and value creation. With the outperformance we've had on the first two objectives, we are again well ahead of schedule, driving what we anticipate will be a fivefold increase in our capacity to approximately $2 billion. So outperformance is a good thing. It's afforded us the opportunity to pull forward growth investments. Past four years, we've now allocated more than $1.5 billion of our capital capacity to accelerate our growth trajectory and return value to shareholders. We've invested more than $500 million organically in R&D, operational excellence, and commercial expansion, notably in the hospital space.
We've also made several strategic acquisitions that I'll highlight here in just a moment, but we're proud of the pipeline of M&A targets that we've assembled, that we think can drive both higher growth and potentially create additional opportunities beyond the plan going forward. Next slide, please. So we think these three broad value drivers support the transformational growth that we are achieving and aspiring to. Portfolio evolution, right? That's where us being, you know, cognizant of expanding our reach and our relevance in attractive and fast-growing markets through organic and inorganic growth. Operational excellence not only reduces complexity and enhances productivity and efficiency, but importantly, it frees up resources for us to make the investments we need to be both more agile and more resilient going forward. Lastly, resource allocation, the ultimate test of any management team.
We're using this to create a virtuous cycle, where we fuel the portfolio evolution, we strengthen our capabilities, and we improve our overall operating leverage by aligning our capital, our people, and our focus to win where it matters most. Next slide, please. So this is a slide that provides a snapshot of where we are, and I think it actually tells the story quite nicely in terms of our pivot to more transformational growth. By rationalizing parts of our business that don't fit our long-term strategy and reallocating those resources to winning products and winning markets, we have more than doubled our compound annual growth rate, despite the negative disruption from the global pandemic. Our aspirations going forward are to double that compound annual growth rate again over the next several years.
Our growth will continue to be fueled disproportionately by three products, NexSys, TEG, VASCADE, and increasingly, a fourth product, OpSens guidew ire, that I'll talk more about in just a moment. The legacy blood collection business, especially apheresis, durable source of EBITDA and cash. As we announced back in December, we're gonna continue to take additional steps to further rationalize this business, particularly the whole blood inline collection products, where we think we can both preserve margin and minimize the resource consumption. In conclusion on this piece, I would just say that it isn't just a portfolio transformation, it's a company transformation, rooted in a performance-driven mindset and a winning culture. Next slide, please. Talk a little bit more about how we're getting this done, and I'll start first with plasma. From our vantage point, there's three things you should know about our plasma business.
We are the market leader and the company that the industry knows and trusts. We have a robust supply chain, and through the pandemic, and this year's unprecedented increase in demand, we have consistently delivered for all of our customers. Secondly, the unique combination of our NexSys PCS platform and the NexLynk DMS software offers a powerful and truly distinctive value proposition that drives every aspect of collection performance, most notably translating into lower cost per liter and significantly higher and safer donor satisfaction. Thirdly, our customer-driven innovation, both what we've delivered and what we will continue to deliver, is unrivaled. Persona yield stands apart in the market. We're the only ones who have it. We've now done 23 million collections in a commercial setting, and the original premise of 9%-12% yield enhancement has proven to be spot on.
Most recently, we announced the Nexus Express Plus device software and a new proprietary bowl. As scheduled, we're in limited market release, and I'm delighted to say that the expected significant reduction in procedure time is progressing exactly as we had anticipated. Finally, we're focused on reducing door-to-door time. It's been a goal of ours since we introduced Nexus some years ago. We have the bidirectional capabilities with our NexLynk DMS software, and we're able to work closely across the industry with our collectors to ensure that they're able to safely reduce door-to-door time, while they're also reducing errors and allowing their staff to focus on what they care most about, which is serving donors. So we're committed to this position that we have in plasma. We are gonna continue to invest organically and inorganically as appropriate, to build out and advance our leadership.
Next slide, please. If I switch gears now and just talk a little bit about the hospital business. It is our fastest growing business and will increasingly, will soon be our largest business globally. Play an outsized role in our transformation, and really, it's broken down between two broad businesses. The more established blood management technologies, we view that as a $700 million TAM that is significantly under-penetrated, where our hemostasis management portfolio, particularly the flagship TEG 6s, is the industry standard. We will continue to drive double-digit growth here by maintaining our leadership position, driving utilization, and broadening the shoulders of our product offering to cover more and more procedures. Interventional technology is the newest addition to the space. It began with our acquisition of Cardiva Medical three years ago, and has now been bolstered with the most recent acquisition of OpSens.
Particularly within OpSens, I'll just highlight one product, the SavvyWire. It's essentially a three-in-one pacing pressure monitoring guide wire that vastly simplifies TAVR procedures by reducing wire exchanges and the number of devices that need to be used. This product reduces procedure time and enables shorter patient stays. We're delighted to say that we closed the OpSens transaction back in December, meaningfully ahead of schedule. Integration is underway as we speak, and we are increasingly convinced these products are highly synergistic, these are synergistic to what we are doing with the broader VASCADE portfolio. We expect them to be immediately accretive to revenue and profit, and we are projecting a three-year return on invested capital in excess of 10%. Let me say that last part again, 'cause we haven't said that publicly yet. Three-year ROIC in excess of 10% on the OpSens acquisition.
We believe the work that we're doing here and across both parts of the business and hospital strengthen our clinical and commercial capabilities, such that we can do additional interventional opportunities and products either organically or inorganically, to leverage the capability set that we've created. We expect this new interventional business to represent more than $700 million in revenue in approximately four-year time, and to have doubled over that time its adjusted contribution margin, thus accelerating not only the hospital business' growth, but the overall corporate growth. Next slide, please. Talk a moment about R&D. We are very thoughtful and frugal about how we spend on R&D, but we're proud of the pipeline that we've created.
It's focused predominantly on our growth areas, and we are committed, as we said back in June of 2022, to doubling new product revenue generated from this pipeline by the end of FY 2026. We've made meaningful progress towards the goal, and, you know, already at this point, our contribution from new products is in the mid-teens, so we're or mid to high teens, so we're, we're kind of excited about that. We have more than 20 projects in development, 8 products that are on track to launch in the next several years. They're gonna be in the names that we've been talking about. There's gonna be, you know, new assays for TEG 6s. There's gonna be expanding VASCADE to different French size closures, with the idea that Haemonetics will rapidly become a one-stop shop for all closure needs.
Then, you know, as I said earlier with Nexus, you know, we're gonna be unrelenting in our willingness and ability to invest and continue to advance that platform as the standard of care. Already, the Nexus platform has successfully contributed over 70 million collections in commercial settings worldwide. Next slide, please. We're also growing and diversifying our portfolio inorganically through M&A, and it will continue to be an important focus. In the past four years, we've allocated more than $800 million to M&A, including the most recent acquisition I mentioned, of OpSens. We have a disciplined strategy and a high bar for expected returns. Additional tuck-ins in our business, as I've described them, will remain a top near-term priority. Without getting into all the specifics, I just say, think about, you know, three things that should define us going forward.
We are focused on enabling technologies. We wanna find these attractive, high-growth markets, but we wanna be able to grab assets that fit with what we are doing, that make the procedure better, faster, more cost-effective. By doing so, we think we can generate significant financial returns, often in three years or less, as I described with OpSens, and strengthen our leadership across the market. We are essentially selling shovels and pickaxes to miners. The second aspect of our plan for M&A is really this notion that we remain neutral and technology agnostic. Our reps like to describe themselves as Switzerland in the various laboratories that they serve. We don't actually care, beyond physician preference, what therapeutics are being used. Our enabling tech helps them do it better.
And then thirdly, as anybody understands the story of Goldilocks, can understand, we're big enough to resource fully, but we're small enough and focused enough to deliver and out execute, and we found a kind of a sweet spot for us in the deals we're doing there. So, our M&A pipeline, potential targets, are gonna provide both growth and diversification for the company going forward and make us more relevant for the markets that we serve. One example that's on the docket that we have talked about publicly before, is the investments we've made in Vivasure. It's an Irish-based company that has developed an arterial closure technology, advantageous in TAVR procedures.
We think if it, we're successful with the product, that it's gonna expand our closure portfolio along the lines I just mentioned, and help us meaningfully improve, including our guide wire technology, to have a more strategic position in TAVR and EVAR procedures. So it's an exciting time. The combination of R&D investments and inorganic M&A, we expect to have something new and interesting to bring to market literally every quarter for the next two years. Next slide, please. So by doing this, we're improving efficiency and strengthening our business, and we will continue to fund what we've termed historically as our OEP program. This has been invaluable for us, not only in managing cost, but also in improving our resiliency and our agility to respond through the pandemic and through the robust recovery. We are meaningfully ahead of schedule on our OEP program.
We expect to deliver $116 million of target gross savings by the end of this fiscal year, so this coming March 31. About 30% of those savings will pass directly to our bottom line, and as I said, you know, this program has changed the way we think about productivity and resource allocation. Going forward, it will be embedded into the fabric of our company and, you know, drive our ongoing operational improvements as part of our day-to-day work. Beyond the program, we will continue to pursue additional opportunities to reduce our costs, make us more efficient. The portfolio and the manufacturing rationalization that we announced back in December are good examples of that stewardship at work. Next slide, please. So the specifics around the numbers.
What you see here in this first column is the summary information that we put out in June 2022 with regard to our LRP. Simply put, we are delivering. We've exceeded expectations and raised guidance above our own aspirations for each of the past Q8 . When we think about where we are overall, I think we'll talk about a few things. The number one difference from the plan that we put forth back in 2022 was the pace of the plasma collection volume. We were more conservative. We kind of thought it would be a straight line, 8%-10%, which has been forever the historical norm. We grew 43% last year, and we're on track for double-digit growth again this year. We have consistently delivered when others could not.
I think that's built not only goodwill, but it's obviously helped us, you know, pull forward a number of our investments because of the free cash flow that business has generated. In parallel with that, we've retained substantially all of CSL's business for the past two years. And I think our response, more importantly than anything, highlights the agility and the reliability in plasma collections I mentioned just a minute ago, not just for CSL, but for all of our customers. And I can tell you firsthand, these are attributes that are critical to our leadership in this industry. And as I said, the free cash flow is not bad either. The third area where we've had significant outperformance is vascular closure. We are ahead of, or on plan on all dimensions.
We knew we'd be in substantially 80% of the target top 600 accounts by the end of this fiscal year. That's spot on. What we didn't anticipate was the level of utilization that we're experiencing in our most established accounts. We modeled 35%-45% on the original deal model. We're seeing numbers well north of 50% and growing, which I think speaks to both the potential of the product and the execution that our team has put against it. The other part of VASCADE's outperformance is the pace of international expansion.
While international revenues are not a significant part of the near-term performance for us, the fact that we've been able to establish that presence in Europe and in Japan as quickly as we have, speaks very nicely for the long-term growth trajectory of that product, so we're excited about what comes forward. The one area that's been a negative, as I mentioned earlier, puts and takes, is that we've incurred nearly 700 basis points of external headwinds that we did not foresee in our original plan. Some of these headwinds are sticky, like wage increases around the globe. Others are transitory, like freight prices and the amount of freight we've had to consume to get our products out there through the recovery. So, you know, we'll continue to monitor this. We're content.
We're, you know, confident we can get our cost of goods sold and our gross margins back in line. Particularly as CSL transitions, we will rightsize our operations and footprint to better fit the go-forward growth and improve our gross and operating margins as a result. So we remain confident in the LRP. We remain confident in our ability to deliver value while setting a foundation for sustainable growth. I probably don't need to mention it, but, you know, it seems to be in the air, so we don't expect disruptions to our business, either from GLP-1s, where we have very, very negligible exposure, or the anti-FcRn advancements, given the trial readouts over the second half of this year. We remain confident in the long-term growth rates of our business across the board.
One of the things I would just say, given the, you know, mid-year performance that you see highlighted here, I hope it's a glimpse, a glimmer, if you will, of the margin expansion capability of this evolving portfolio. You have volume and mix being multiplied by productivity, scale, and operating leverage to produce very powerful results. Next slide, please. So all this outperformance is coming together in terms of our capital allocation. Absolutely critical, you know, we kind of improved meaningfully our operating cash flow and our balance sheet liquidity, and we are on track to generate what we think will be potentially approximately $2 billion by the end of fiscal 2026. That will help fund additional venues for growth and create value not originally contemplated in the LRP. We are committed to being good stewards.
We will do share buybacks and debt repayment opportunistically, but our primary focus is organic and inorganic growth. Last slide. I'll just summarize by, you know, reiterating kind of the motto that we've put forth for this journey that we are on. We're taking evolutionary steps, some big, some small, to deliver revolutionary results and the value creation that we aspire to. The pivot to high growth, high margin business at Haemonetics is well underway. We're gonna pursue additional opportunities to accelerate it further. So when I look at the company today, as I approach my eighth year anniversary, I'm more confident than I have ever been about the fact that we have the right plan, the right resources, and the right team to get us there. So thank you for your time. And James and Olga, if you join me, we'll move on to Q&A.
Thank you, Chris. That was a great presentation. Sorry. Again, I'll kick it off with a few questions. I know we have a full house, so I'll leave you guys time to ask some questions. But, you know, just to start, you know, I believe that your fiscal year is not the traditional calendar year end, and it goes through first quarter of calendar 2024. Could you just, you know, provide some guidance into what we should expect for the remainder?
Yeah. We're very bullish on the remainder of this year. We have exceeded and raised expectations, as I mentioned earlier, for each of the last eight quarters. Don't expect that streak to stop anytime soon. No pressure, James. But you know, from where we sit, though, the plasma recovery is in full force. And when we talk to our customers, you know, they've been crystal clear: "Keep your foot on the accelerator." They don't see any slowdown anytime soon. You know, the hospital procedures that we're in, predominantly concentrated around cardiovascular and trauma and transplant, are experiencing really robust growth, not only here in the U.S., but throughout Europe and Asia as well. So, you know, we feel really good about that.
You know, we've been cautious about our blood business, but candidly, the blood business has really stepped up, and we expect it to continue to in a way that defines durability and the associated EBIT and cash flow that comes off of that.
Excellent. And then you mentioned that, in I think it was— In June of 2022, you had your Investor Day, and you presented your LRP. So you've been about halfway through that. You know, what has gone well, what hasn't, and how do you expect the remainder of that to shake out?
Yeah, as I said during the prepared remarks, right? The number one positive surprise is the pace of plasma volume recovery. We think about it as an area under the curve story. You know, we had kind of a straight line over the course of the four years, you know, 43% last year, 10%-12% or better this year. But we don't expect that to deteriorate dramatically below the long-term trend. We'll eventually regress to the 8-10. That's the demand longer term for the industry. Whether that happens next year or three years from now remains to be seen, but that's a big source of outperformance. We didn't anticipate retaining substantially all of CSL's business. In fact, we thought that business would transition fairly rapidly over the first half of the plan.
So, you know, from where we sit, as we kind of round the corner of the midpoint, you know, that transition will likely happen in the second half of the plan now. So again, area under the curve, but very powerful in terms of creating additional funding for us to go out and make the investments that we're committed to making. VASCADE's been lights out, and we obviously hope that with the pairing now with OpSens' guidewire technology, that we'll be able to maintain that momentum, but meaningfully ahead of schedule, predominantly because of U.S. utilization. Faster global expansion than we had originally anticipated as well, will be important in the mid to longer term. And then the one negative is the cost base, right? It's 700 basis points of headwind.
James and Olga have spoke a lot about this in our various earnings calls. We are doing everything we can to mitigate it, but given the demand side has been so robust, we've had to do a lot of expediting. We've had to do a lot of spot purchases. As that mitigates, as CSL transitions, as the business regresses back closer to the mean over time, that cost base becomes significantly more addressable. So we remain confident to do that, but it's one of the key questions we get around margin expansion and, you know, how do you get there from here, given your cost base? So, you know, we think it's largely transitory. We think we have the steps in place to address it, and, you know, we'll continue to be vigilant about it, but that's one of the big negative differences.
Understood. Thank you. I have a few more questions, but I'll open up to the audience, if anyone has anything.
Thank you. I think, as investors, we aren't used to hearing companies of your size say you're therapeutic agnostic. You know, with the VASCADE acquisition, the electrophysiology is your call point. With the OpSens, you get some interventional cardiology. How are you able to go to market with such a diverse portfolio and still maintain your cost basis? Is it more of a catalog business or an internet business, or how do you, how do you get the margins off of that?
Yeah. Thank you for that. I appreciate the opportunity to clarify it. So I'll use VASCADE as an example, but I think it tells the story more broadly. So VASCADE is very well adapted for a set of closure procedures, particularly AFib ablation and then some other things on PCI. So, you know, I think one of our analysts got this right when we were describing why we felt we could branch out into a near adjacency like EP and IC. You know, when I say we're agnostic, obviously we care a lot about the therapeutic outcomes, but whether it is Biosense Webster or Boston Scientific or Abbott or Medtronic's product that's being used, that's a physician choice. We're going to make that closure more efficient, more effective, faster, and we're going to get those patients up and ambulatory and home in the same day.
So make your choice, but our reps, and this is very much a, you know, a physician detailing activity, our reps typically aren't relegated to lab days because they work across all of the different procedures. And, you know, we've had the luxury of being able to, to ride the momentum those outstanding companies are helping create to drive procedures like AFib and procedures like TAVR and EVAR going forward. So from our vantage point, you know, to say it crudely, we've now built a pipe. That pipe is, is clinical development. That pipe is clinical market education. It's the commercialization and the follow-through. We now have the ability to take products like OpSens guide wires and put them through that same pipe. They're going either to the interventional suite, in most cases, or EP again, and it becomes virtuous for us. It makes our reps more relevant.
We need to be there for the direct, you know, entirety of the procedure to begin with. So, you know, if we have access, if we have protection, if we have guides, if we have closure, it just makes us more efficient. It is the definition of operating leverage, but from a commercial perspective. And I think what's most powerful about it is the increased reach and relevance for getting in that interventional suite. It's why we think it'll be a $700 million plus business in 3-4 years' time.
Yeah. Anyone else in the audience?
Sorry. I think you mentioned 15% penetra- 50, 50% penetration, those 600 VASCADE accounts. Does that mean sort of you're halfway there of, like, rolling out Cardiva MVP, basically everywhere you want it to have, or, or is that the wrong way to think about it?
Let me clarify the numbers that I put out there, because I want to make sure I didn't misspeak. When we look at the Vascade portfolio, we're very concentrated. Cardiva, before us, was very concentrated on the top 600 hospitals here in the U.S. that define 90% of the procedures that are being done. By the end of March, we will be in 500 of those 600 hospitals. Which is what we anticipated, right? And we'll round the last 100 next year, essentially. The difference in the upside that we're experiencing is because when we assumed an account adopted Vascade, we thought we would see that in a third, maybe to a half of the procedures, the 35%-45% I quoted.
What we are seeing in the top half of our call deck, the more mature accounts, is numbers well in excess of 50%. That's a positive surprise. I think it speaks to the utility of the product and the stickiness of it, but, you know, we didn't have the courage to put that in our deal model. So when we talk about the valuation and the returns that we've gotten from the Cardiva acquisition, that's the single biggest driver of the success there.
So that's 50% at the top, not everywhere?
No, we see accounts that are 80%-90%. What I'm saying is it's meaningfully above, right? If I were going to do the model again or advise the person to do the model, I'd say aim higher, right? Maybe 50%-70% is a better range to work from.
Can I ask about, just the gross margin transition, gross margin transition as you go from the plasma business to the hospital business?
Maybe, James, you want to comment?
Yeah, sure. Thanks for the question. You know, so the plasma business certainly is lower, lower gross margin. It's closer to the overall corporate average. Hospital, on the other hand, is, you know, Vascade. You could see from, you know, the Cardiva IPO, you saw that that's 70%. It's probably better than that now. And then our other hospital products are north of that.
So as we transition from, you know, plasma being the dominant player to, hospital taking over, plasma and blood center, that is, to hospital taking over, we'll see a nice uplift in the corporate gross margin overall, and then that will trickle down to the operating margin, which gets to some of the points that Chris was talking about during his presentation on how those operating margins go higher, as time goes on.
I guess I'll ask another question. So, you know, you kind of touched on and stressed the point of growing organically and inorganically. Do you have any insight or color into maybe, like, the size of the acquisitions that you guys are looking for or anything on that?
Yeah, I—we've talked about this publicly in the past, but, you know, we feel we've created something of increasing stature in the interventional technologies part of our business, so predominantly, you know, electrophysiology and interventional cardiology. And so we look at that, and, you know, building on the success of Cardiva, which was a $500 million plus acquisition, thinking about most recently what we've done with OpSens, which is a $250 million, you know, that probably defines the range. We will go smaller where it's appropriate for a tuck-in. We tend to have a strong bias for real products with real revenue that are substantially de-risked. However, if we feel like we have, you know, proprietary insight onto the technology, and we believe it has a, you know, outsized chance of success, we'll go earlier.
But we think there's meaningful room to run on this interventional technology suite, but it will be a string of pearls, tuck-in acquisitions, whatever, you know, metaphor you wanna use for it. Eventually, not in the near term, not during this our LRP, in all likelihood, but eventually, we will step out to the next near adjacency. But we think it's a target-rich environment, and we've got more room to run, and we have the cash to be able to act on it, but it'll be tuck-ins that will fit and be—have, you know, comparable financials to what I disclosed earlier about OpSens.
You just touched on cash, you know, how should we think about your leverage ratio, as you pursue these acquisitions?
Overall, leverage ratio right now, net debt ratio is below two. In the past, for the right acquisition, like for Cardiva, we were willing to take it up higher to about 4.25. We would only do that, obviously, if the absolute right situation were to arise. We're not interested in being a highly levered company. Where we are today, you know, somewhere between here and 2.5 turns is probably our, you know, the target leverage for us in a steady state.
I guess, you know, going into the organic growth, how do you guys think about R&D and product launches and, you know, do you have any more color into that?
Yeah, it's interesting because we, you know, as measured, as a percentage of sales, we're pretty stingy about R&D, probably, you know, closer to 4% reported. The reality is that doesn't capture things that are amortized or depreciated, which is pretty substantial for us. It doesn't capture some other aspects of R&D reporting. When we think about it internally, it's not 40-50, it's closer to $70+ million. What's interesting about that, the way we've pursued it, is it's almost entirely, almost entirely concentrated on the Nexus platform, on the Vascular Closure platform, the TEG platform, and increasingly, now on what we've acquired for OpSens. We are really trying to do the resource allocation in a hyper-focused way to drive those three or now four growth platforms.
Mm-hmm.
We think we've got the ability to punch above our weight by doing that.
You kind of just touched on OpSens, and you had some remarkable numbers in your presentation, but why sensor guidewire? And I guess if you have more color on that.
Yeah. Again, it's in a winning market. We looked closely at the product. We did a ton of customer key opinion leader diligence. It's a great set of products, and we think the returns in our hands can be superior. So it checks the boxes for our strategy. When I think about enabling tech, and I think about, you know, our ability to, you know, to get behind that technology and drive outsized results, the fact that, you know, again, it's agnostic, right? You know, there are multiple very good therapeutics for a TAVR procedure. Our guide wire can be used on any of them to improve the outcome. So it's technology agnostic.
And, again, I think when we looked at that company, and we looked at the relative size of our commercial efforts and theirs, we just felt we could lean in immediately and get outsized returns. So, you know, we care a lot about the technology, and we are going to ring-fence both manufacturing and R&D at OpSens, so as not to disrupt what they do uniquely well, that's not in our knitting. But when it comes to the commercial effort, when it comes to the regulatory and the next phase of clinicals, we're leaning in heavily to take it to another level.
Awesome. I guess my last question would be, you know, if you have an elevator pitch on reasons why and now to invest, what would it be?
Yeah. Look, I think we are in a very interesting place. I wouldn't trade the success we've had for the last two years, but it did come meaningfully differently than we had anticipated when we wrote the long-range plan. I think the one complex factor around that is the margin expansion piece. But if you look at our business today, you think about what's transitioning out, you think about our ability to rightsize cost against that, you think about the growth that we are achieving across all of these growth venues at a much higher margin rate, this is where the transformation, this is where the evolutionary steps start to drive outsized returns, right? And that's how we take what is today a 21% operating income margin into the high 20s%.
We have line of sight how that will happen literally over the next two years. Obviously, we're planning for the long term. We're thinking about long-term value creation. If the next two years present significant opportunity for us to go and, and drive immediate value, we will, but we remain committed to the goals and what we set forth when we wrote that plan, you know, what is now over two years ago. I think it's a very interesting time. You can obviously read that, that set of statistics in, in very different ways. I think folks are concerned about customer transitions. You know, all, all I would say about that is the situation today is very different than it was in early 2021. Three years in this industry is a very long time. During that time, we have significantly enhanced our overall plasma business.
We've elevated our position as the industry leader, and we are continuing to set the standard for global collections. The NexSys platform is meaningfully better today than it was three years ago, and, you know, during the pandemic, we've been the brand and the company that people know and trust. I think that's created tremendous goodwill that bodes well for our long-term, you know, leadership in plasma. As I said, the value proposition is better. We've got 70 million total collections, 23 million on Persona alone. Real-world evidence, real-world data that no one else can match. So that shores up our base, and then everything we talked about on the hospital side just takes it to another level. So, you know, to say the least, we like our chances.
Awesome. Well, thank you very much for joining us today, and good luck in the future.
Thank you.