Well, good morning everyone, and thank you for joining us today in person and virtually. I'm Olga Guyette, Senior Director of Investor Relations and Treasury, and it's my pleasure to welcome you to Haemonetics' 2022 Investor Day. Before we begin the presentations, I would like to remind you that statements made today may contain forward-looking information, so typical safe harbor and risk factors apply. The slide you see now provides details about risks to those forward-looking statements and where to obtain additional information about risk factors, and they are in our latest SEC filings. Consistent with our best practices, we may refer to non-GAAP financial measures. Please know that these measures exclude certain charges and income items. Please refer to Appendix A in this presentation for a full list of excluded items and reconciliations to our GAAP results.
Additionally, in order to protect customer confidentiality, we will not be able to discuss any customer-specific detail except as disclosed previously. We have a full agenda for today. In a moment, you'll hear from Chris Simon, President and Chief Executive Officer, about key pillars that underpin our growth strategy, including key updates about our portfolio, drivers of our past and future success, and our commitment to corporate responsibility. Next, you'll hear about our business units, commercial strategy, and how we plan to maintain our leadership position in the attractive markets we serve. Jake Bonner, Vice President of Plasma and Blood Center North America, will discuss how the strength of our plasma technology and the robust underlying growth of the plasma collections market will fuel the growth of our plasma business.
Thomas Lenzen, Vice President, Plasma and Blood Center OUS, will discuss how we plan to utilize our global footprint to capitalize on the emerging opportunities in blood center. Then we'll take a short break. Our second session will begin with Stewart Strong, President of our Global Hospital business, who will discuss significant market opportunities and reinforce the role of this business as a growth engine for Haemonetics. Following Stew's presentation, Anila Lingamneni, our Chief Technology Officer, will discuss what makes us stand out with our technology and how our innovation roadmaps will continue to drive sustainable revenue growth and market leadership. Lastly, James D'Arecca, our Chief Financial Officer, will discuss our recent financial performance, capital allocation strategy, and how it all comes together in our long-range plan. At the end of our speaker presentations and closing remarks, we will have a live question-and-answer session.
All of the materials we'll present today, including speaker video presentations and accompanying slides, will be available on our website shortly after the event. Now let's get started. It's my pleasure to introduce you to Haemonetics.
For over 50 years, Haemonetics' experience and expertise in plasma and blood collection and management has led to breakthrough healthcare solutions that have allowed greater possibilities for our customers and the donors and patients they serve. We are dedicated to delivering products and technologies that enable safe, fast, cost-efficient, and effective care. Haemonetics has been an industry leader, bringing unique solutions to plasma collection centers, blood centers, and hospitals that help improve patient outcomes and healthcare economics. Being a leader means changing the game. We've created the first donor-tailored plasma collection technology, which safely harnesses the benefits of a personalized collection for higher average yields. We pioneered the market for viscoelastic testing with cutting-edge solutions, providing rapid, comprehensive, and actionable results that help reduce patient risk, complications, and costs. We're the only manufacturer of a vascular closure device with FDA approval for same-day discharge following atrial fibrillation ablation.
Our comprehensive solutions optimize plasma center operations, advance patient care at hospitals, and drive efficiency for blood centers. Together, they provide new and meaningful benefits that are meeting the needs of collectors and caregivers throughout the world. We're more than 50 years strong and inspired as ever by our purpose of meaningfully advancing healthcare. Our commitment to continuous improvement and growth drives our innovation and collaboration with customers to keep raising the standards of care. We've established a culture where Haemonetics colleagues are empowered to think big and take bold steps. We've created a workplace environment where we can learn, grow, and win together. We remain energized and excited to make a difference every day by creating new and exciting possibilities so our customers continue to make it matter.
Now, please welcome to the stage Chris Simon, President and Chief Executive Officer.
Thank you, Olga, and good morning, everyone. I am delighted to talk with you about Haemonetics' strategy and goals, our value drivers, and our long-range plan to maximize value for our customers, employees, and shareholders. I wanna walk you through a three-phase journey that began when I joined Haemonetics six years ago to help initiate a bold company turnaround, followed by a period where we successfully navigated disruptive forces from the global pandemic to our current transition to transformational growth. I am more enthusiastic about Haemonetics' prospects today than I have ever been. We've taken important steps to strengthen our portfolio and our organization. We've demonstrated tremendous agility and resiliency. We have the financial health and resources to deliver powerful innovations to expand our market leadership to serve our customers well and achieve long-term profitable growth. We are taking evolutionary steps to deliver revolutionary results. Evolutionary steps, revolutionary results.
Before unfolding our transformational growth roadmap, I'd like to set the stage by taking you back six years when we launched an ambitious turnaround program focused on products, processes, and people. Let's start with products and achieving leading market share in attractive high growth segments. We invested in meaningful innovation to redesign and re-engineer our leading product platforms to best meet customers' evolving needs. This included the introduction of our NexSys PCS plasma collection system with our yield-enhancing solution and upgrades of US customers to the NexLynk DMS. In hemostasis management, we strengthened our clinical expertise and expanded indications for TEG 6s in trauma and cardiovascular surgery. We put increased emphasis on software and launched value-adding software applications. Through targeted investments, we allocated a disproportionate share of our resources to support growth. We focused and evolved our portfolio by divesting underperforming non-strategic assets.
We reorganized and improved processes across the company. We created customer-centered business units, enabling us to be more flexible and responsive to customer needs. Through the complexity reduction initiative, we delivered more than $80 million in gross savings as we redeployed resources for a leaner and more agile organization. We redesigned core processes with a focus on quality and customer centricity. On the heels of the successful complexity reduction initiative, we launched our operational excellence program, targeting $80 million-$90 million in gross savings, mostly in COGS. We invested heavily to improve our global manufacturing and supply capabilities. The revamped OEP continues to play a critical role in improving quality and freeing resources to invest in growth. In parallel, we focused on our people. We refreshed our executive leadership team and our board of directors.
We invested in recruiting and developing talent, and we fostered a performance-based culture built on engagement, collaboration, and commitment to results. A key milestone was relocating our corporate headquarters to state-of-the-art office and labs in downtown Boston, putting Haemonetics in a hub of technology and innovation. Our results through this initial phases were evidence of the turnaround success and our improved strategic decision-making and capital allocations. From fiscal 2016 through fiscal 2020, we meaningfully strengthened our operating and financial leverage. We increased adjusted operating margins nearly 900 basis points. We improved free cash flow before restructuring and VCC initiatives from $58 million to $139 million, and we grew adjusted diluted EPS 19%. All this despite modest 2% revenue growth.
The timely completion of our turnaround was disrupted in early 2020 by the COVID-19 global pandemic and the related challenges that confronted us and our customers over the next two years. Lockdowns, safety and public health concerns, government subsidies, and customer staffing shortages contributed to a dramatic decline in source plasma collections. Additionally, we encountered unprecedented blood shortages, decreased hospital procedures and supply disruptions, inflationary pressures, and more. In early fiscal 2022, we were informed by CSL, our largest customer, representing approximately 12% of total revenue, that they would not be renewing their US disposables agreement when it expires in June 2022. The end date for the supply agreement has subsequently been extended to December 2023 on a non-exclusive basis. Our team's response to these challenges was nothing short of exemplary.
We kept our employees safe and our plants operational, ensuring business continuity and maintaining the level of support our customers require. We preserved cash and delivered solid earnings despite drastically reduced collections and procedure volumes. We expanded our operational excellence program, identifying $35 million in additional gross savings for a total projected gross savings of $115 million-$125 million. Perhaps most importantly, we embraced a through-cycle mindset, staying resolute to advance our innovation agenda, evolve our portfolio, and invest in growth. We achieved breakthrough milestones during this period, highlighted by the launch of Haemonetics' game-changing Persona technology. The acquisitions of Enicor and Cardiva, and soon thereafter, the distinction of the first and only closure device to receive FDA indication for same-day discharge following atrial fibrillation ablation. These actions helped more than double our addressable market.
We more than doubled our addressable market from $2.7 billion-$6.2 billion during this period. Big part of our success can be attributed to our work in building a hardy manufacturing and supply chain network so that we could consistently serve all those depending on our products and services. Even before the pandemic, we focused on resiliency through lean daily management with cross-functional data-driven planning for demand, supply, and inventory. A flexible network of world-class manufacturing sites and reasonably focused and optimized distribution network ensuring inventories closer to customers with two new locations added since 2021. We focused continuous improvements efforts on quality, strategic sourcing, network optimization, regionalization, and business continuity. We persevered, and we used this time to fortify our operating performance and our financial health to build an even stronger company.
With hospital procedures now growing rapidly, plasma collection volumes recovering, and our resilient supply chain enabling us to deliver for customers regardless of circumstances, we have reached an inflection point. The conditions are right for us to deliver breakout results. Breakout results. Our long-range plan is rooted in the strategy upon which our industry leadership has been built. We will continue to focus on winning markets, investing in areas that can support outsized growth and profitability. We will also leverage our deep industry knowledge and commitment to customer-centered innovation to achieve leading positions, advanced positions in the markets that we serve. Lastly, we remain committed to delivering superior short- and long-term results. We have three overarching goals for our transformation. The first goal is growth in all forms, but especially revenue growth.
We anticipate high single-digit revenue CAGR and high teens in adjusted operating income CAGR, and we anticipate revenue and earnings growth each year of our long-range plan. Our second goal is diversification, to make our business even more robust and resilient and to provide more stability moving forward. Through purpose-driven portfolio evolution, we will continue to diversify our customers, our markets, our geographic footprint, and our business models. We will continue to scale and rebalance our portfolio by investing in attractive markets. Finally, for sustainability, taking the necessary steps across all parts of our business to ensure the long-term health and success of our company, our colleagues, and the communities that we serve. From an economic standpoint, we will continue to prioritize resilient and flexible supply, proactively managing risk to ensure our ability to serve our customers without interruption.
Our global workforce participates in an annual employee engagement survey, and we take great pride in the sentiment expressed by our colleagues for being a part of this company. We will continue to invest in our people to sustain our leadership in the markets we serve and to distinguish Haemonetics as a company that attracts and retains the very best talent. We will maintain our commitment to a diverse workforce and an inclusive culture in which all employees are empowered to bring their best ideas to help solve problems and fuel innovation. Guided by our purpose and mission, we are proactively identifying and managing the environmental, social, and governance risks and opportunities most relevant to our business. We look forward to sharing details in the corporate responsibility report that we will publish later this fiscal year. We will achieve our transformational growth goals through our six value drivers.
The first two, plasma and hospital, are our largest and most powerful, contributing disproportionately to revenue growth and margin expansion. In plasma, NexSys PCS is the industry's most advanced collection system and the only solution meeting all of customers' most pressing needs, yield, safety, door-to-door time, and donor satisfaction. Plasma collections represent an $800 million total addressable market, growing 8%-10% long term, and even faster over our planning horizon as collectors replenish their depleted inventories. Haemonetics is enabling and disproportionately benefiting from heightened collections demand. Our dual value proposition of increased donor satisfaction and lower cost to collect is distinctive and will fuel our growth in market share and gross margin expansion. Hospital is now a third of our revenue, and with its soon-to-be $500 billion TAM, will play an outsized role in our growth and diversification.
It is our fastest growing and will become our largest business, driven by hemostasis management and vascular closure. Two leading platforms poised to increase market share through accelerated adoption and greater utilization due to improved standards of care and lower health economic costs. Haemonetics' innovation agenda will continue to play a vital role in our growth. Our R&D spending is highly focused on our market-leading platforms with the greatest opportunity for continued growth and differentiation, plasma apheresis, hemostasis management, and vascular closure. Our innovation is guided by a deep understanding of how to bring meaningful value to our customers. We are committed to further differentiating our products through clinical, regulatory, and software development. We expect newly developed products will contribute approximately 25% of our revenue by the completion of our long-range plan. In parallel, we will continue to pursue inorganic growth by building our capabilities for programmatic M&A.
Over the last two years, we have completed four acquisitions, each exceeding their expected impact in terms of additional growth and return on investment. We are committed to continued portfolio evolution, and we will seek additional opportunities to align our portfolio to the strategy of winning markets, leading positions, and superior returns. We will remain disciplined with our M&A approach and will look for the confluence of adjacent markets, unique value-adding products, and superior return on investment. Operational excellence is a critical component of our transformational growth, improving product quality, service, and the way we source, make, and deliver products. The results of this program have been impressive, enabling us to be a more agile and productive company that can respond quickly to market disruptions and changing operating environments while freeing up resources to fund additional growth.
Finally, we will remain purposeful and disciplined in our resource allocation, prioritizing organic and inorganic growth investments. As our EBITDA and free cash flow grow, our capital capacity grows with it, providing additional flexibility for high-return growth opportunities. Achieving our transformational growth goals over our long range plan will lead to the following. Revenue growth each year and a high single-digits% CAGR over the next four years. Expanded leadership and a mid-teens% CAGR in CSL, excluding CSL. Adjusted therapeutic, accelerated therapeutic uptake and a mid-teens% CAGR for hospital. Adjusted gross margins will improve from mid-50s% to the high 50s% to low 60s%. Adjusted operating income margins will expand into the high 20s%. Further augmenting and sustaining growth through meaningful innovation, portfolio evolution, and operational excellence.
Lastly, a five-fold increase in capacity from 400 million at the end of fiscal 2022 to more than 2 billion in fiscal 2026, enabling us to fund additional organic and inorganic growth and return cash to stakeholders via share buybacks as appropriate. As I said, our plan entails taking evolutionary steps to drive revolutionary results. It advances our customer value propositions and provides strong reason to believe that we will deliver the revenue growth, profitability, and expansion opportunities to which we aspire. Haemonetics has the right team, the right technology, and the right plan to ensure we build on our successful turnaround, realize transformational growth, and advance our industry leadership. At this point, it is my distinct pleasure to turn things over to Jake Bonner for a look at how our plasma business plays a key role in our long-term success. Jake?
Thank you, Chris. Good morning, everyone. I'm excited to be here with you today. Haemonetics is the established leader in the solutions for plasma collection and donor management. With more than 40 years of experience, specifically focused on plasma collection and real-world at-scale data from over 400 million sourced plasma collections, we're a trusted partner to our customers with a unique understanding of what drives value in the industry that we serve. Through our cutting-edge products, we are improving center efficiency and reducing cost per liter. As we support volume resurgence in the industry and ensure plasma-derived therapy providers have a safe and reliable supply of plasma to produce patient treatments. Today, we offer the only single source, fully integrated hardware, software, and services plasma collection solution. Specifically designed to streamline plasma collection and maximize collection center output.
Our innovative technologies deliver on collectors' most critical needs, including improved yield, door-to-door time for donors, donor satisfaction, and safety. Our plasma business is focused on delivering comprehensive solutions to source plasma collectors, usually biopharmaceutical companies, to support the growing global demand for plasma-derived therapies. We have an attractive razor-razor blade business model with more than 90% of our revenue coming from disposables. Additionally, we support our customers with best-in-class global supply chain scale, reliability, quality, while providing the vital assurance of business continuity. We participate in an $800 million total addressable market for sourced plasma collections that is growing 8%-10% on average. This market supports the approximately $27 billion market of plasma-derived therapies. Proteins found in human plasma are used in the manufacturing of plasma-derived therapies critical to treating numerous life-threatening diseases or conditions.
However, most therapies require a significant amount of human plasma, sometimes requiring several sourced plasma donations for a single treatment. While there are several proteins that help many serious conditions, the biggest driver of the plasma therapies market are immunoglobulins, or IG, used to treat a variety of autoimmune and immunodeficiency disorders. Once patients are diagnosed with any of these disease states, they frequently require IG infusions for the rest of their lives, creating a sustainable growth in the demand for these therapies. Historically, growth in the IG market has been in the mid to high single digits, and we believe this growth rate will continue in the near to mid-future, continuing to fuel demand for sourced plasma collections. Today, about 73% of the sourced plasma is collected in the United States, highlighting the important role this market plays in the supply of plasma products.
Compared to other countries that currently participate in commercial sourced plasma, the US has a more favorable regulatory environment, enabling more frequent and higher volume plasma collections. The COVID-19 pandemic affected the supply of plasma-derived therapies, and we're seeing emerging international efforts to establish self-sufficiency of this critical resource. In the near term, however, we expect the US will remain the primary market for sourced plasma collections, so I will focus on the underlying dynamics in the US sourced plasma market and how we will continue to strengthen our leadership and our market share. We see three key drivers of success in the US market, all of which offer opportunities for Haemonetics to drive growth as a company and to provide value for our customers. First, we see robust growth in the underlying demand for IG therapies, which will continue to fuel growth of the source collections market.
Second, collectors will seek to replenish depleted plasma inventories, creating a temporary spike in plasma collections, resulting in total volume growth and above-market growth in the short term. Third, as our customers strive to fulfill the unmet needs of critical drugs, they will continue to seek technologies that can maximize efficiency and productivity, and partners who can provide the required manufacturing capabilities and supply chain reliability, which Haemonetics is known for. Let's take a closer look at these opportunities and how and why Haemonetics is poised to drive growth and margin expansion while delivering meaningful disproportionate value for our customers. During the six years prior to the pandemic, the US source market experienced robust growth driven by increasing demand for immunoglobulins, particularly for patients with primary immunodeficiency and autoimmune conditions. This growth was further enhanced with the continuous clinical work around the benefits of IG.
With more than 8,000 ongoing clinical trials further expanding the innovation pipeline for IG-based therapies. Growth and volume was also supported by significant capital investments among our customers and a 12% average growth rate in new plasma center openings as they look to expand plasma manufacturing capabilities and collection volume on the market. This strong underlying demand for IG increased the base of plasma centers and continued reliance on the United States for plasma creates strong fundamentals for collections. Both the plasma collection and plasma therapy markets have been affected dramatically by the pandemic. We saw a 20% year-over-year decline in sourced plasma collections in the US as a result of economic circumstances, staffing shortages affecting the entire healthcare system, and other pandemic and macroeconomic related factors.
Because of the reduction in collection volumes, fractionators turned to their raw plasma inventory safety stocks, excuse me, significantly depleting those reserves. In the plasma therapies market, the reduction in plasma collections resulted in the rationing of IG supply, leaving many patients untreated and an increase in the time between treatments and reducing overall treatment effectiveness. We are analyzing emerging trends among alternative therapies, including FcRn inhibitors. While we do believe that some of these treatment therapies are promising, most are early stage or address a very small share of the overall IG market, resulting in minimal impact to the source plasma collection market over our long-range plan. Our customers have been doing everything they can to recover plasma collections, including investing in aggressive marketing strategies and increased donor fees. As society has reopened, we have seen consistent confirmation of volume resurgence in the market.
While the collections market works towards the necessary recovery and collectors are faced with an increase of 27% in the cost to collect one liter of plasma, the need has never been greater for solutions that can maximize collection output, attract and retain donors, and lower cost per liter. This is where Haemonetics stands apart with a clear, unique value proposition of raising donor satisfaction while lowering the cost to collect. Our advanced technology was designed in partnership with our customers to streamline the entire donation process and provide an optimal experience for collectors and the donors that they serve. Through our completely integrated end-to-end system, we can offer the total solution that effectively and consistently meets our collectors' needs to maximize productivity. Increased yield remains a key value driver in the plasma collection process, and Haemonetics is the leader in plasma yield optimization.
Beginning with a 3% increase with YES Technology, the introduction of Persona technology now enables an additional 9% yield improvement for a unique solution that delivers a 12% on average more plasma per collection. The cost per liter improvement available through Haemonetics' integrated platform is unrivaled within the industry. The value creation delivered from our Persona yield alone exceeds a collector's total cost of goods supplied by Haemonetics. I'd like to repeat that. The value creation delivered by our Persona yield alone more than exceeds a collector's total cost of goods supplied by Haemonetics. Based on some of the feedback we have received, our customers that are collecting with Persona on an integrated NexLynk DMS platform are collecting more volume than they have ever collected, even prior to the pandemic.
Through a bi-directionally connected system, including the NexSys PCS device and NexLynk DMS software, we are now delivering a 16-minute reduction in door-to-door time on average, improving plasma center efficiency, and providing the opportunity for additional throughput. Safety and compliance is of critical importance to plasma collectors, and our integrated platform with simple step-by-step workflow support is enabling our customers to experience a 91% reduction in key quality events and a 98% elimination of documentation errors. This allows their staff to focus on what's important to them, their donors. Shorter donation times and remote donor check-ins are contributing toward improved donor satisfaction. Our in-market surveys are showing a 93% affinity for the NexSys PCS system compared with our prior PCS2 device.
Let's now take a look at how the breadth of our technology touches every step of the plasma collection process for more personalized, efficient, safe, and effective donor experience.
The Haemonetics Plasma Collection Solution is the industry's most advanced, completely integrated end-to-end system. Powered by our NexSys PCS platform and Persona yield-enhancing technology, it is designed to engage donors, streamline the plasma collection process, and help safely and compliantly maximize collection center output. It starts with software which manages the entire donation process for donors. The system engages donors prior to donation and facilitates their in-center experience by automating standard operating procedures and providing personalized information to staff, ultimately strengthening donor relationships and enhancing affinity. Seamless bidirectional data transfer with NexSys PCS occurs throughout the donation process, providing real-time compliance assurance and workflow support for staff. The NexSys PCS provides a user-friendly interface with complete prompted procedure support to boost operator attentiveness and productivity.
The Haemonetics integrated solution streamlines and supports the entire center workflow from pre-screening through procedure disconnect, optimizing efficiency and shortening the duration of the donor visit. The legacy Haemonetics PCS2 platform has been a long time gold standard for global plasma collections. With the enhancements delivered through Haemonetics' fully integrated plasma collection system powered by our NexSys PCS platform and newly launched Persona yield-enhancing technology, we have improved upon this standard by providing our customers the demonstrated benefit of, on average, an additional 9%-12% more plasma per collection, a reduction in donor door-to-door time of 16 minutes, a 98% elimination of documentation errors, and donor affinity from a 93% donor preference for NexSys PCS. The Haemonetics plasma collection solution reflects our deep commitment to meaningfully advance healthcare by enabling higher yields, improving productivity and quality, and enhancing the donor and collection experience.
Haemonetics, we make it possible, you make it matter.
With over 30 million collections on the NexSys PCS, and already with over 5 million collections on Persona, our customers are confirming the value of our newest technology. We have heard direct feedback that they are achieving a nearly 10% reduction in cost per liter attributable to the throughput and yield benefits of the Haemonetics NexSys with Persona and NexLynk DMS platform. With highly attractive end-market demand driving growth in collections, we expect continued adoption of our solutions to sustain our market leadership and expand our margins over the long-range plan. Through our commitment to innovation, we see substantial opportunities to further leverage our solutions to grow our market share and deliver even greater value for our customers.
In just a few months, all of our customers in the United States will be on our NexSys PCS platform, enabled by bidirectional work streams and paperless environment, helping our customers win their donors and support their patients. As the industry continues to resurge from the pandemic, we estimate average volume growth to be in the low teens, including a temporary spike in volume as our customers strive to replenish depleted plasma inventories. Our industry knowledge, experience, and customer focus will continue to inform our innovation agenda. As part of our long-range plan, we will continue to create winning solutions focused on advancing plasma yield, improving the donor experience, and lowering the cost to collect plasma. We are confident in our ability to continue to deliver robust growth of this business in the mid-single digits% and growth in the mid-teens% when excluding CSL.
Our plan assumes we will retain our global market share with additional opportunity to grow our share, both in the US and internationally, as we advance our technology and capitalize on the opportunities ahead. Our value proposition is clear. We raise donor satisfaction while decreasing cost per liter. Our team looks forward to continuing to deliver best-in-class solutions that set the standard for plasma collection to support our customers and the donors that they serve. Thank you for your time, and I will now turn it over to Thomas Lenzen to discuss our Global Blood Center business.
Thank you, Jake, and good morning, everyone. Haemonetics' foundation was built upon a commitment to meet blood collectors' needs with innovative breakthrough products. Today, that commitment continues to drive our blood center business as our solutions help blood centers across the globe to manage collections safely, to collect the blood components in the greatest demand, and to attract and retain the right donors. Blood center is Haemonetics' legacy business, and its geographic span provides a significant portion of our international footprint. Blood center, like our plasma business, is a collections-based business distinguished for providing the right technology for meeting customers' most important needs. We offer a broad selection of products for safe, reliable, and efficient blood collection, featuring kits for manual whole blood collection, as well as apheresis solutions for automated collections, including our state-of-the-art devices and disposable kits.
We have an attractive business model with approximately 95% of revenue derived from disposables. Our comprehensive portfolio of apheresis devices includes the proven Multi-Component System, MCS Plus, that lives up to its name by supporting all types of apheresis collections, including platelets, plasma, and red cells. For the collection of plasma, we offer Haemonetics' groundbreaking NexSys PCS, which Jake reviewed earlier. Approximately 73% of blood center revenue is concentrated in high-margin apheresis business, with plasma and platelet collections representing the vast majority of revenue. Over the last few years, we have fully stabilized this business and refocused our portfolio on the most attractive markets and enabling technologies. About 74% of our business is located outside of North America, with direct footprint across most of our key markets and strong distributor footprint in others.
The geographical span of Blood Center plays an important role in supporting growth in other parts of our company, including emerging opportunities in Plasma and international expansion in Hospital. Today, the total addressable market for Blood Center is about $1.4 billion, split between apheresis and manual whole blood collection. While there's significant need for blood products across the globe, manual blood collections market remains challenging. Advancements in pharmaceutical products, a shift towards minimally invasive surgery, and overall improvements in hospital blood management are reducing the need for whole blood-derived red cell products. Additionally, given the commoditized and tender-driven nature of this business, there is continued pricing pressure.
The apheresis market, however, is attractive, and we see significant opportunities for market development and growth. For example, we see a growing need for platelet transfusion that is driven by the improving access to diagnosis and treatment of oncology patients in emerging markets. As blood centers seek to increase and optimize their platelet collections, Haemonetics solutions play a critical role in enabling more efficient collections. Another example is plasma, which represents the largest commercial opportunity for us within our apheresis portfolio. Anyone attending industry conferences in recent years has likely heard over and over again that the world needs more plasma. High dependence on commercial plasma and the US donor pool has put significant pressure on healthcare systems globally. Growing demand for IG and increasing dependency on commercial source plasma poses a high risk to IG access.
The pandemic's impact on collection volumes has had a considerable effect on the availability and cost of plasma-derived therapies, in some cases, leaving patients untreated and with limited access to these life-saving therapies. Yet, changes are often born from challenges, and we now see a strong emerging trend towards increasing self-sufficiency in plasma. Countries around the world and their blood organizations have realized the need for greater contributions to the collection of plasma in order to secure an adequate and affordable supply of IG for their patients. Established blood centers are ramping up and enhancing their already existing programs by upgrading plasma collection technology to improve efficiency and by increasing collection capacity and opening new centers. Other countries are initiating new government-funded programs and building the infrastructure for plasma collection and, in some cases, plasma fractionation.
Interestingly, we are observing the emergence of new models of public-private partnership, where the experience and process knowledge of commercial collectors is combined with the access to donors and local relationships of blood organizations. Examples of such models are the plasma programs in Egypt and in Turkey. Our apheresis strategy is based on bespoke approaches for platelets and for plasma. This will allow us to capitalize on the emerging market trends and to protect our market share while preserving the attractive margin profile of this business. The flexibility of the MCS+ provides our customers with the ability to respond to volatility in market requirements. We will continue to selectively improve our portfolio in alignment with our customers' priorities. Over the last few years, we have enhanced our product offerings through a combination of software and device upgrades, making collections more efficient.
For example, we have recently completed the vast majority of customer conversions to our price premium universal platelet protocol, which provides greater efficiency and improved yield in platelet collections. We are in a strong position to seize the market opportunity that emerges in non-commercial plasma collections across the globe. Our NexSys PCS technology is the gold standard in plasma collection and will play a critical role driving our success in this market. The improved efficiency, unsurpassed safety profile, and ease of use, and the bidirectional connectivity make our plasma collection system the platform of choice in blood center settings around the world. We will leverage our global expertise and experience that includes over 30 million collections on our NexSys PCS device to best serve this customer base. Blood centers today are looking for further optimization opportunities through device connectivity and digitalization.
The goal is a paperless donor floor and seamless integration between devices and blood center software. This improves donor safety, donor satisfaction, center compliance, and it reduces the door-to-door time. Our product portfolio includes all of the necessary connectivity tools and software applications to make this possible. Finally, I would like to stress the unique benefits of the shared foundation that makes our business unit's value proposition even more powerful. With the combined expertise and experience in plasma and blood center, we can best support our customers no matter where they operate. Our regional technical teams and our distributors work hard to ensure we deliver superior service to all of our customers worldwide. I would like to conclude with a few key takeaways that support our long-range plan for blood center. We feel confident in our ability to further stabilize this business.
We expect to deliver a compounded average organic revenue decline in the low single digits through FY 2026. We will capitalize on the opportunities in plasma and platelets, and we will seek additional opportunities to optimize this business through portfolio rationalization. Growing demand for plasma creates new business opportunities and is an important driver of our strategy. We plan to use the experience we have built with our commercial plasma customers in the US and our state-of-the-art NexSys PCS technology to increase our share in the global non-commercial source plasma market. We remain committed to our customers around the globe, and we will continue to make targeted high-impact investments to ensure efficient blood center operations.
Lastly, we remain laser-focused on the most attractive markets, and we will ensure that our portfolio mix is aligned with higher margin categories, enabling our blood center business to remain a significant source of cash flow. Thank you for your time.
All right, ladies and gentlemen, we're gonna take a very short break here. Once the countdown is over, we'll proceed with presentations with Stewart Strong being the first presenter in the second session, who will talk about our global hospital business. Just as a reminder, we do have snacks and coffee available for you outside. We'll be back shortly.
Good morning, everyone. Welcome back from the break. I hope everybody got their coffee and is ready to go for the H2 of our meeting. I'm really excited to talk to you about the significant growth opportunities we have in the hospital business unit and the role that this business plays in the accelerated growth for Haemonetics, with our focus on market-leading positions and in growing in underdeveloped areas. When I joined Haemonetics three years ago, our business was about $190 million in revenue and growing in the mid-single digits%. At the end of our fiscal 2022, we had expanded the business to $323 million and more than doubled our revenue growth rate through our laser focus on providing winning technologies and improving patient care through hospital economics.
Today, I'll cover the four product platforms that make up our hospital business, each with leading positions across the markets that we serve. We have an attractive business model, with 90% of our revenue concentrated in high-margin products such as disposables and software. Growth in Haemonetics is anchored in large, growing, and significantly under-penetrated areas, enabling us to expand the market and our market share. We invest heavily in education, driving increased clinical awareness to fuel the continued adoption of our devices and disposables across the world. We've built a strong global commercial infrastructure to implement our go-to-market strategies and to drive robust growth. As our product portfolio evolves, we're going to strengthen it through both organic innovation as well as inorganic opportunities.
With a combined global market of over $4 billion and our unique customer-focused value proposition, we're confident in our ability to strengthen our leadership and improve scale in markets that grow to a size of almost $5 billion by the end of 2026. All of our products are focused in addressing critical customer needs and important value drivers, such as reducing complications, improving workflow efficiencies, eliminating manual processes, and improving hospital economics. Our commercial team is scaled to support the continued robust growth of our business and additional international expansion as well. We have an outstanding supply chain capability that enables us to withstand near-term macroeconomic challenges and offers us the flexibility as we continue to grow and reach scale over time. Lastly, we've got a dedicated clinical and R&D team focused on continuously driving awareness, building clinical evidence, and filling our innovation pipeline.
First, let's turn to our hemostasis management portfolio. Led by the TEG System, our flagship product, our mission is to make viscoelastic diagnostic testing the standard of care across the globe. Our diagnostic platforms provide quicker, more detailed, and actionable information to physicians compared to conventional coagulation tests. This information empowers the clinician with complete picture about the patient's ability to coagulate and their associated risk of either bleeding or thrombosis. This enables the clinician to make better decisions regarding treatment and therapy. Let me show you a quick video on how the TEG System works.
The reality of conventional coagulation testing is that it's both slow and incomplete, providing only a fragmented picture of a patient's ability to form clots. Haemonetics pioneered the market on clinical applications for viscoelastic testing. We continue to invest in clinical research and technology to advance the science of hemostasis management with solutions like the TEG 6s, the first cartridge-based system indicated for use in adult trauma settings.
The TEG 6s analyzer is small, robust, and easy to operate with minimal training. In as little as 10 minutes, the TEG 6s system securely delivers actionable test results where and when needed, providing key information for clinicians to determine which blood products or therapies are required to define the right course of treatment for individualized patient care. TEG technology is designed to help hospitals achieve a more efficient and appropriate use of blood products, which can result in a reduction of patient care costs, and the system is bolstered by a comprehensive suite of programs and services to support every need, including system implementation, operational training, technical support, and clinical education. Haemonetics delivers the most comprehensive range of hemostasis systems and assays to meet our customers' needs. Our portfolio provides rapid, actionable results to help clinicians reduce risk, complications, and costs because confident care starts with the complete picture.
The introduction of the TEG 6s has been a real game changer for us in this space. As you saw in the video, this portable cartridge-based technology has fueled increased adoption of our diagnostic platform through better access, better utility, as well as better ease of use. TEG 6s has accelerated our penetration into areas like trauma, into cardiac surgery, and also unlocked for us additional opportunities in interventional cardiology as well as electrophysiology. Anila, during her presentation, will provide more detail about the clinical value TEG brings to us in these areas. We have also enhanced our hemostasis management portfolio to address regional nuances and other customer needs.
Our acquisition of ClotPro, a testing system that provides higher throughput, ease of use, and more assay choices than our competition, has helped us to secure a key leadership position in the category and take significant share from competitors in key markets in Europe. In China, which is our second-largest market for viscoelastic testing, we've launched our in-country manufactured and developed viscoelastic testing system to enable us to compete for national and for regional tenders. We'll continue to leverage our clinical expertise in China and our commercial footprint there to drive adoption of our technologies in that key market. Overall, our commercial teams play a critical role in driving the growth of this technology. To support our growth and our innovation agenda, in the last two years alone, we've doubled our clinical support and sales teams in North America and in markets that are key to us across the globe.
Now let's dig a little deeper into the market opportunity. We calculate the total addressable market for global viscoelastic testing to be approximately $700 million today, and it's growing in the mid-single digits%. This market is made up of clinical segments such as cardiology, cardiac surgery, trauma, liver transplant, and other areas that we're beginning to explore, like standalone laboratory services. Viscoelastic testing is rapidly gaining momentum across the globe. However, the market remains significantly under-penetrated at the moment, with only about 25% of all addressable procedures actually using viscoelastic testing, of which we have about 70% market share. With a lot of room for expansion and the potential to accelerate our growth with additional investments that are not included in our long-range plan, we plan to remain confident in the ability to deliver robust results in this business.
Our continuous penetration into core clinical segments and the increased use of our tests will be fueled by our commitment to clinical education and by the ongoing expansion of our sales and clinical teams. We'll continue to invest in and strengthen our platforms and develop our product portfolio to unlock additional opportunities for growth and for value creation. As a result, we will continue to increase penetration of viscoelastic testing and, by extension, our market share from approximately 18% to over 30% by the end of our fiscal 2026, and potentially more as we allocate additional resources to capitalize on the support and growth of this product line. Now, moving over to vascular closure, our newest product addition. We're delighted with the acquisition of Cardiva and the integration of their team. We're delighted with the Vascade family of vascular closure devices.
This was an important milestone for us in the hospital business and for Haemonetics in general, as it presented an opportunity to expand our total addressable market while strengthening our position in the portfolio with attractive and growing interventional cardiology and electrophysiology markets. There are two products in the portfolio, Vascade and Vascade MVP. Our Vascade device is the only marketed device for closure proven to significantly reduce access site complications compared with manual compression. The key advantage of our Vascade MVP device is that it's the only closure device FDA approved for use following cardiac ablation procedures requiring two or more access sites within the same vessel. It's the only device with the FDA indication for same-day discharge following an atrial fibrillation ablation procedure. One year since acquiring this asset, we have significantly exceeded all of our deal model milestones.
This business has delivered an impressive $94 million in revenue, compared with our original expectations of $65 million-$75 million in our deal model. It was accretive in year one, compared with the estimated $0.15-$0.20 of dilution that we originally projected for this business. We also expect that this business will deliver a 10% return on invested capital in four years or less. Moving to the market, vascular closure represents actually the largest market opportunity that we have in our hospital business portfolio, equaling about $2.8 billion. About $1.5 billion of this market is in the US. This will remain our primary strategic market in the midterm, but we'll have additional expansion opportunities internationally that we plan to pursue in the coming years.
In the US, the market is divided into electrophysiology, which represents about $400 million in total addressable market, and it's growing in the high single digits. This is comprised of procedures that address arrhythmias, such as atrial fibrillation, ventricular tachycardia, flutter ablation, as well as left atrial appendage exclusion. The coronary and peripheral market represents about $1.1 billion in total addressable market, and that's growing in the low to single digits. This market is comprised of procedures like coronary diagnostic procedures, PCI, or percutaneous coronary interventions, as well as angioplasty and stenting. It also represents an opportunity in peripheral vascular. Despite the technological advances for catheter-based technologies, manual compression is still the primary procedure used for closure in these procedures.
In the US alone, 67% of coronary and peripheral procedures require femoral access, and only about 54% of those actually use vascular closure devices. The use of vascular closure devices in electrophysiology is also minimal. It's only about 10%, and this represents a real first-mover advantage for us and for Vascade as we continue to develop this market. We also see significant market opportunity internationally. We've initiated clearances for Japan and for Europe, with plans to commercialize both Vascade and Vascade MVP in those markets in the coming years. Furthermore, we're collaborating with our R&D teams to ensure that we meet the ongoing closure needs of physicians across different procedures and for new and emerging technologies that we know are on the horizon.
Our focus in the United States, which is going to remain the largest revenue growth area for vascular closure for us, is on the top 600 centers for electrophysiology procedures. This makes up about 90% of the total EP procedure volume across the country. It also makes up about 57% of the total addressable US market for coronary and peripheral vascular procedures. We plan to penetrate the majority of these accounts by the end of fiscal 2026, strengthening our presence both in EP and in interventional cardiology, and providing sustainable revenue growth as we work to increase utilization of these products in these procedures. As we leverage the significant value proposition that we deliver in the EP lab and gain entry into those top 600 accounts, we are then able to expand into other areas, driving utilization in other departments across the hospital.
Now let's take a quick look at Vascade, a Vascade video that talks about the procedure as well as some information about patients that use the products.
The Vascade MVP venous closure system is going to change forever the way we manage our patients post-procedure, increasing the satisfaction to patients, physicians, and lab staff. Those are things that are rarely possible in electrophysiology.
With this, Cardiva product, our new workflow is that the patients can recover for two hours, not six, and they can go home.
The worst part of the ablation before this last one, they used the plug, was the pressure that I had to endure on my groin area.
When I deploy the Vascade, patients typically don't move at all. They don't realize we're doing anything. Often, they don't even feel the deployment at all. Some of the patients don't even know we even entered them, 'cause they don't see any visible sign of entry. There's no wound, there's no scarring, there's no anything. They often don't know why there's a Band-Aid on there. They can't see anything underneath. The best feedback I get is no feedback.
There is not a slit where the incision might have been. There's no knot. There's no pain, there's no burning, there's no itching, there's no scarring, there's nothing. You would not know that you've had the incision there and the procedure done through your groin. You wouldn't know.
There are actually benefits to all stakeholders. Of course, first and foremost is always the patient. Being able to get a patient ambulating within two hours, eliminate or reduce the need for opioids, make their total experience comfortable is a benefit in itself. When we look at the other benefits for the physician, there's less downtime to the lab, which means our day is more efficient. For the staff, there's less downtime for them, and more rapid turnover, and more so they're doing things for which they're skilled, they're nursing and more complex things, not just holding pressure to stop bleeding.
I didn't wanna alert my staff 'cause I wanted them to see if they could tell there was any difference, and they actually could. In fact, one of my nurses came up to me and said the patients weren't having any issue with kind of irritation at the puncture site that some of them can get, and wondered if I was doing anything technically different in deploying our closure device. That was very eye-opening.
There's benefits for the anesthesiologist, whose time is so valuable, and we don't wanna waste that while labs can't be turned over. Of course, there's benefits to the healthcare system because we now have a point where we can start to think about same-day discharges of patients and improve the economics to the healthcare system. I think the fact that there are many stakeholders all benefiting, starting with the patient, really separates this out from other technologies that we routinely deal with.
It was awesome. It's a great experience.
Okay. As you heard in the video, the Vascade system is great for all stakeholders. It's great for the patient, it's great for the staff, it's great for the physician and for the hospital. I think you can see now why we're so excited about the opportunity that we have in that space. Turning to the other products in the hospital portfolio, we also have products in transfusion management as well as the cell salvage markets. Let's talk about those. In transfusion management, we provide software solutions to hospital blood banks that enable hospitals to manage their blood supply more effectively, excuse me, with less risk of human error through our two core products, SafeTrace and BloodTrack. The blood bank and blood management information systems market is largely underdeveloped.
With an estimated near-term addressable market of about $300 million and relatively few competitors in the space. Over the last few years, we've seen double-digit growth in this market. By leveraging our investments that we've already made in our commercial channel in the US as well as in Europe, we'll be able to maintain a similar growth trajectory going forward. Moving to our CellSaver technology. This technology provides physicians with an easy-to-use, reliable way to recover a patient's own blood from the surgical field during surgical procedures, wash it, and then deliver it back to the patient. Therefore, reducing the need for donor blood transfusion while improving tissue conditions and preventing transfusion-transmitted or related diseases. CellSaver is used primarily in medium to high blood loss surgical procedures such as cardiac, orthopedic, trauma, transplant, vascular, and OBGYN surgery.
Our Cell Saver technology today competes in a $200 million market where we have about 30% market share. This market is relatively mature with an average growth rate that's in the low single digits%, and it's driven by an increase in patient population and by expanding adoption to underutilized procedures. Our focus for Cell Saver is on upgrading our existing customer base to our newest platform to ensure that customer retention exists while taking market share by investing in additional products. Now let's talk about M&A. In hospital, we view M&A as an important lever for our growth strategy. Although our long range plan does not include any additional mergers and acquisitions, we believe there's ample room to accelerate growth through additional organic opportunities.
Our selection criteria are focused on products that strengthen our technology and our leadership role in our core clinical segments or enable us to establish a strategic position in adjacent areas. Over the past few years, we've executed on several acquisitions. We secured the intellectual property for TEG 6s, which has expanded our market opportunity in this area. We acquired enicor, the German company, the German-based company that developed ClotPro, which significantly strengthened our technology and our leadership role in Europe. In 2021, we made the acquisition of Cardiva Medical. This has established our presence in the attractive clinical areas of electrophysiology and interventional cardiology and will enable us to leverage our commercial footprint, the clinical knowledge and technical expertise of the cardiac, Cardiva team, and to introduce other procedure-enabled technologies through this group in these attractive areas.
As I mentioned at the start of my presentation, we're excited about what we've done to expand the hospital business and to accelerate its growth into the future. Looking ahead, we project this business to deliver a compounded annual growth rate in the mid-teens% through fiscal 2026, reinforcing our role as the growth engine for Haemonetics and significantly outpacing the average growth rate of our core hospital markets. Our tailored go-to-market strategies are working and will continue to strengthen our leadership role and increase our market share across all of our product portfolio with a specific focus on the two key growth areas of hemostasis management and vascular closure. We have established a strong global commercial organization focused on driving revenue and market expansion. Our commercial organization plays a critical role in the growth of this business, and we'll continue to invest in strengthening our infrastructure as appropriate.
Finally, our new product roadmap is robust, and we're well-positioned to drive growth in the areas of current segments and in other areas of adjacencies. Thank you for your time and for allowing me to share this exciting plan for the opportunities for the hospital business. Now I'd like to turn it over to Anila to talk about how we plan to create value through innovation. Anila?
Good morning. Thank you, Stew. Innovation and finding exciting new ways to meet the needs of our customers are at the very core of Haemonetics' mission. I'm delighted to share how we plan to maintain our market leadership and help achieve our growth aspirations through customer-centered innovation. Our company's rich history began more than 50 years ago with the revolutionary Latham Bowl that established the fields of automated apheresis and autologous transfusion. Since then, our track record of successful in-house innovation has included industry-leading solutions across all our businesses. It has been complemented with a series of strategic acquisitions that have allowed us to expand our markets and clinical areas and further strengthen our portfolio. These acquisitions have included our TEG portfolio, which has become the market-leading viscoelastic testing platform for hemostasis management, and more recently, Cardiva Medical and its winning Vascade vascular closure platform.
Over the past five years, we have accelerated our technology agenda with a focus on meaningful innovation grounded in deep understanding of our customers' day-to-day operations, health economics, and unmet patient needs. We have collaborated with our customers to design and develop new and better products with robust clinical evidence to support their safety and effectiveness. Our innovation is made possible by the breadth of capabilities we have in R&D in core areas of value creation, including hardware, disposables, software, and digital, all playing a critical role in addressing our customer needs and providing integrated holistic solutions. These capabilities are supported by our strong clinical, medical, and regulatory teams, driving new indication and market development initiatives across our growth platforms. Today, our innovation roadmaps are focused on the highest impact opportunities. These include plasma, hemostasis management, and vascular closure.
These markets represent the majority of our total addressable market, and our experience and domain expertise continues to provide us with a competitive edge. Our R&D spend is significantly weighted towards these platforms, enabling our expectation of doubling our Vitality Index by the end of fiscal 2026. Let's take a closer look at how we are driving value with each of these platforms. Starting with plasma. What matters most to our plasma customers? Maximizing yield and quality of plasma collected, improving center productivity, ensuring donor safety, and enhancing the donor experience. As the industry leader with decades of experience with plasma and blood collection, we have leveraged our expertise to build a full suite of unique, fully integrated solutions. We are best in class in yield innovation, offering safe yield enhancement solutions for more than a decade, and most recently with our Persona technology.
This proprietary integrated plasma collection protocol creates the first and only donor-tailored solution, clinically shown to yield an additional 9% of plasma on average over our AS technology. We reimagined and re-engineered our plasmapheresis device to create our flagship NexSys platform, featuring a highly intuitive user interface and real-time user feedback that has really set the industry standard in workflow efficiency. This device is directly connected to our NexLynk donor management software, designed in collaboration with our customers to improve plasma center operations efficiency. Our device is also equipped with our proprietary Plasma Bowl that's designed to ensure donor safety by optimizing the efficiency of plasma collection while preventing red blood cell damage during the plasmapheresis process.
We're proud of our long history of processing donors' blood in a system that has been time-tested to provide an industry-best donation experience, keeping donor safety at the forefront of our engineering design. Our newly released donor mobile application expands our value proposition beyond the walls of the plasma center directly into the hands of our donor. We are providing customers with mobile applications that support donor recruitment and retention. We have rapidly deployed this solution by leveraging cloud-based technologies and SaaS delivery model to accelerate value for our customers, especially during this critical time of plasma shortage in the industry. Given the increased importance of plasma volume output to collectors, the high cost of donor recruitment and retention, and the need to meet the growing demand for plasma, we're actively pursuing additional innovations to further increase plasma yield while maintaining donor safety.
We are also advancing our innovative plasma separation bowl technology. We are redesigning the bowl to further optimize whole blood separation and fluid management to make the process even more efficient. When paired with our enhanced device software, we are targeting a significantly shortened procedure time by 20% on average, which will further increase collection efficiency. We will leverage our SaaS technology platform to drive additional innovations for donor engagement and retention with an increased focus on donor-specific targeting. We realize that plasma collectors compete for donors, and we are committed to providing our customers with the tools necessary to win in this competitive market. Next, let's talk about our impact in hemostasis management with viscoelastic testing. Hemostasis management is about confidently diagnosing a patient's coagulation status, resulting in better and more timely therapeutic decisions and clinical and health economic outcomes.
Conventional coagulation tests are slow and run in platelet-poor plasma, and as a result, they're missing critical physiological components. Viscoelastic testing is a methodology of whole blood testing that provides faster and more comprehensive insights of the coagulation process. This enables timely clinical decisions about surgical interventions and the targeted use of drugs, such as blood thinners and clotting factors, and blood products, such as blood and plasma transfusions in the emergency room or the operating room. TEG is the market leading brand and trusted technology for viscoelastic testing. Our latest platform, TEG 6s, is a revolutionary step in making this test more accessible in the hospital. It offers greater speed and precision with a simple, easy-to-use multi-assay cartridge system. The global hemostasis cartridge has four channels that combined provide a comprehensive, timely, and specific assessment of the patient's coagulation status.
The platelet mapping assay analyzes the impact of platelet-inhibiting drugs and can also help inform when to schedule surgery for patients previously on blood thinners. Our devices are also supported by TEG Manager software that allows remote viewing of results in real-time throughout the hospital. TEG Manager is supported also by the interpretation guidance module that enables the institution to standardize their treatment algorithms. Let me give you a few specific examples of how TEG adds value in different clinical areas today. In liver surgery, TEG has dramatically improved bleeding and transfusion management by providing surgeons and anesthesiologists with meaningful, real-time, actionable information about the complex coagulation status of their patients, where standard coagulation tests often fail them. In trauma, randomized controlled trials have shown that TEG guided resuscitation improved survival when compared with protocols that rely on standard coagulation assays.
In 2019, we gained FDA clearance for the use of the TEG 6s diagnostic cartridge in trauma settings. To this date, we're the only cartridge-based viscoelastic testing platform FDA cleared for this indication. TEG has also been gaining adoption in cardiac surgery, where clinical evidence has demonstrated the reduction in blood product utilization and the ability to optimize timing of cardiac surgeries, particularly for patients on blood thinners associated with higher bleeding risk. To date, TEG analysis has been described in over 10,000 publications. Clinically, it has been widely adopted in liver surgery, cardiac surgery, trauma care, and has been included in key clinical practice guidelines by many organizations. Finding the right balance between anticoagulation or platelet inhibition and the associated bleeding risk is a crucial clinical question, not just in critical care medicine, but in other medical and interventional fields as well.
Interventional cardiology is an emerging area of focus for us, where we feel that TEG, and especially platelet mapping, can really play a critical role. The COVID pandemic has also highlighted importance of coagulation and hemostasis management in the critically ill. In 2021, FDA allowed the use of TEG and other cleared viscoelastic tests as adjunct testing in COVID patients. This has opened up a whole new field in critical care around thrombosis prevention and management that we are actively exploring. We continue to expand our portfolio with new assays to assess the effects of established and new anticoagulants, and we continue to innovate on our TEG Manager platform to further enable ease of clinical interpretation and standardization in the hospital. We have a rich pipeline in hemostasis management with significant opportunity to build upon our technology and indications and expand into other critical areas of care.
Moving to vascular closure. As Stuart discussed, we are excited about our newly acquired vascular closure technology. It is centered in cardiac, peripheral, and electrophysiology procedures that require percutaneous access and specifically targeted at addressing the high complication rates associated with the access sites post-procedure. Both Vascade and Vascade MVP platforms derive their safety and effectiveness from a completely extravascular design. It leaves nothing behind in the lumen of the vessel and delivers a bioabsorbable thrombogenic collagen plug to the procedural access site that facilitates rapid hemostasis. The device in all use cases is delivered via the existing procedural sheath and has a best-in-class ease of use. Vascade is the only closure device proven to be statistically safer than manual compression in an FDA-approved pivotal randomized controlled trial that demonstrated zero major complications after use.
Vascade MVP is the only FDA-approved and marketed closure device specifically designed, targeted, and indicated for electrophysiology procedures, including cardiac ablations. The device is approved for closure of multiple access sites within the same vessel. Strong market growth, combined with the advancement in cardiac ablation technologies and evolving new venous and arterial catheter-based procedures, provides us with a significant opportunity to fill our R&D pipeline. With advancements in our technology, clinical data, and additional M&A, we plan to expand our line of vascular closure products to address new technologies and new procedures, as well as strengthen our portfolio with larger femoral closure devices. We are very excited about the long-term potential of this innovative technology and our ability to have a meaningful impact by reducing complications, increasing ease of use for our clinicians, increasing patient satisfaction, and generating economic benefit for the entire healthcare system.
In closing, I would like to reiterate that we are hyper-focused on our three leading growth platforms: plasma, hemostasis management, and vascular closure. Innovation is a critical driver of our growth, and we expect contributions from newly developed products to double our Vitality Index for plasma and hospital by fiscal 2026. We have a motivated and energized team to drive meaningful innovation across our growth platforms through product, software, and market development. We will continue to explore inorganic opportunities to strengthen our core technology and augment our portfolio and growth objectives. Thank you for your time today. Now James will provide more details about our long-term financials. James?
Thanks, Anila. Hello, everyone. It's a real pleasure to be with you this morning. Before I take you through the financials of our long-range plan, I would like to take a moment to share with you why I joined Haemonetics nearly three months ago as the newest member of the company's executive leadership team. Having spent 30 years in finance and strategy, with much of that in life sciences, I know well how Haemonetics is recognized and respected for its long history of innovation and industry leadership. I was attracted to the company's clear mission to improve standards of care and its strong intrinsic value to deliver on that goal. Today, our team has highlighted the significant work accomplished over the last six years, and the exciting opportunities we see in our businesses over the next several years.
I would like to reinforce and expand upon the key messages that our leadership has discussed, and help translate those messages into our expected financial performance. I will focus on the financials covering periods from fiscal 2022 through fiscal 2026, with our year-end results for fiscal 2022 serving as the base year for our long-range plan. Haemonetics is not the same company it was six years ago. We have methodically transformed Haemonetics, rationalizing our portfolio to focus on growing attractive markets, adding additional growth drivers through organic and inorganic investments, expanding our geographic footprint and building our commercial and clinical capabilities. We accelerated the organic growth of our business from what used to be low single digits up to mid to high single digits in just four years through portfolio rationalization.
We refocused our portfolio on high-margin products and strengthened our technological capabilities, enabling us to improve leverage from our business. This, combined with certain business optimization initiatives, such as the complexity reduction initiative and the operational excellence program, contributed to a 550 basis points expansion of adjusted gross margin and a nearly 900 basis points expansion of adjusted operating income margin. Our revenue growth and operating margin expansion led to a 19% compounded annual growth rate for adjusted earnings per diluted share as we grew from $1.63 in fiscal 2016 to $3.31 in fiscal 2020. Our capital allocation priorities have remained squarely focused on delivering high ROI investments, improving our return on invested capital by approximately five times when compared with fiscal 2016.
Clearly, the COVID-19 pandemic has been a challenge over the last two years, with global disruptions to patient care and supply chains. Our business was affected, but what matters most is that the core building blocks for Haemonetics remain in place, providing a strong foundation for all financial objectives included within our long-range plan. Our plasma collections are recovering, creating momentum for robust growth enabled by the strong underlying demand for plasma-derived therapies. Our US customers are recognizing the significant value of our technology, and we expect to have all of them on our fully integrated NexSys platform this fall. Our hospital business is fully back on track as it continues to establish its role as a growth engine for Haemonetics.
Our blood center business has shown a lot of resilience, and with help from our supply chain teams, has created opportunities to step up and help our customers when other suppliers couldn't. Lastly, changes in portfolio mix and our operational excellence program help us offset macroeconomic headwinds while making us more agile and efficient. Before I discuss our long-range plan, I would like to remind everyone about our fiscal 2023 guidance and affirm our confidence to achieve it. Looking to our financial outlook from fiscal 2022 through fiscal 2026, we have our sights set on four key financial objectives that we believe are capable of driving attractive financial returns and value creation for our shareholders. The first objective is to drive sustainable organic revenue growth.
From our presentations this morning, you have a clear picture of how our plasma and hospital businesses are expected to generate sustainable above-market revenue growth rates. Our second objective is continued market expansion. In fact, we expect growth in our adjusted operating income and adjusted EPS to be more than double the organic compounded average growth rate for revenue. Our third objective is growth in free cash flow. As our businesses continues to gain strength, we expect to generate significant operating cash flow, strengthening our balance sheet and fueling our fourth objective, which is a robust capital allocation plan enabled by up to $2.1 billion in capital capacity. As shown on this slide, there are a number of key assumptions included in our long-range plan.
Among them are foreign currency exchange rates, the trajectory of the US economy. Stability in the regulatory and macroeconomic environment, new product launches, and the success of our commercial initiatives. We understand that in the face of continued macroeconomic uncertainty, being transparent with our assumptions will enable you to understand our long-range plan and evaluate additional risks and opportunities. We believe that focus on high growth, market-leading products is the right strategy and will continue to guide our investments in new product development as well as our commercial strategies and inform our M&A agenda. Looking at revenue in our long-range plan, we project a healthy, high single-digit organic revenue CAGR. Underpinning our growth outlook is continued strength in our high-growth portfolio, which includes our plasma and hospital businesses.
This product portfolio will continue to drive growth through market leadership and innovation, and we expect it to contribute about 77% of total revenue in fiscal 2026. Our blood center products are utilized every day across the world, serving the needs of patients and care providers. Given a strong market position and geographic footprint, we expect this business to continue to stabilize as we capitalize on emerging international opportunities in plasma. We expect additional improvements in our margins, fueled by high teens growth and adjusted operating income. This expansion in adjusted operating income margins will be driven by highly leveraged plasma revenue growth, the improving leverage of our high-growth hospital business, and our operational excellence program, net of continued investments into enablers of sustaining organic growth, such as sales force expansion and innovation.
The expansion in adjusted operating income margin will be disproportionately driven by the improvement in adjusted gross margin. Building on past successes, we're confident in our ability to drive this margin expansion through continued portfolio evolution, where with each year, a greater proportion of revenue will be coming from high growth and high margin products. We also expect additional contribution from our operational excellence program and modest pricing benefits. Considering the combined financial outlook that we have provided today, we expect to deliver mid-teens adjusted EPS CAGR over the long range plan. Our adjusted EPS growth target assumes no changes to the existing US or global income tax environment, no significant changes in interest expense, and normal share dilution driven by our performance-based culture. The operational excellence program is a product of our collaborative, performance-driven culture and is critical to value creation over the long range plan.
The program focuses on improving quality and productivity, revamping our supply chain and strategic sourcing, and streamlining our SG&A. This program was initiated in fiscal 2020 and is anticipated to be completed by the end of fiscal 2025. Over the course of this program, we expect to generate $115 million-$125 million in gross savings, with about 30% of these savings benefiting our bottom line. The 30% net savings rate includes additional investments and macroeconomic headwinds. By the end of fiscal 2022, we delivered $71 million of gross savings under the program, with the remaining targeted savings in the $44 million-$54 million range before fiscal 2025, including $22 million of expected savings in fiscal 2023.
In our fiscal 2023 guidance, we assume that the net savings from this program will be largely offset by inflation, similar to fiscal 2022. However, as macroeconomic headwinds stabilize, we will continue to see additional financial benefits from this program reflected in our margins. Before we move on to discuss our capital allocation, I'd like to address the transition of CSL and provide you with an estimated impact on our financials before additional cost savings included within our long-range plan. As you can see, we feel very confident in our ability to grow our business without CSL, including our ability to deliver a low double-digit average compounded revenue growth rate and a mid-twenties growth rate in adjusted earnings per diluted share. It's premature to talk about our fiscal 2024 guidance in detail today.
However, we know enough to feel very confident in our ability to grow revenue, adjusted operating income, and adjusted EPS in every year included within our long-range plan. We believe we have enough leverage in our base business to more than offset the impact of the CSL transition in fiscal 2024 and deliver robust transformational growth across our adjusted P&L thereafter. Moving on to free cash flow and capital allocation. Over the last six years, we've significantly strengthened our balance sheet, supporting our ability to purchase Cardiva Medical at the end of fiscal 2021.
We have a history of continuously generating strong cash flow through the implementation of a number of initiatives focused on driving financial performance, efficiently using working capital, and effectively deploying capital. In fiscal 2022, despite the macroeconomic and geopolitical headwinds, we generated $172 million in operating cash flow and $78 million of free cash flow. We expect to generate at least $600 million-$700 million in cumulative free cash flow through fiscal 2026. The key drivers of cash flow generation are growth in adjusted operating income and operating cash flow net of organic investments included within our long-range plan. Capital investments to support the execution of our operational excellence program and other organic business needs and restructuring costs. We expect our capital expenditures to be in the range of $250 million-$300 million.
As we approach the completion of our capital replacement cycle in plasma and finalize the operational excellence program, we expect a step up in free cash flow. We anticipate that we'll increase our available capital capacity from about $400 million at the end of fiscal 2022 to a range of $1.7 billion to $2.1 billion by the end of fiscal 2026 through a combination of strong cash generation, adjusted operating income growth, and the additional opportunity to increase our leverage ratio. Our gross leverage ratio at the end of fiscal 2022 was 3.15 and is expected to decline to 1.1 to 1.6 by the end of fiscal 2026.
Our debt covenants allow us to generally maintain a gross leverage ratio of up to 3.5 times EBITDA and permit us to exceed 3.5 EBITDA for the right opportunity. Improvements in free cash flow and flexibility within our credit facility will provide ample room to fund additional growth investments. Let's move on to our capital allocation priorities, which remain unchanged and have served us well. We are focused on three key priorities for capital allocation, all of which are centered around enhancing returns and retaining flexibility. We will continue to invest in the business. These investments have proven to generate attractive returns and propel our growth. We've invested hundreds of millions of dollars over the last six years in manufacturing capacity, capital equipment for our customers, research and development, and expansion of our sales and marketing organizations.
Our long-range plan includes hundreds of millions of dollars to fund organic growth of our business, and we will look for additional opportunities to accelerate some of these investments to further strengthen our leadership. As portfolio evolution remains a priority in the midterm, we will increase our focus on M&A. We have a strong balance sheet, and we've demonstrated patience and financial discipline to acquire the best assets to help us expand into areas that we believe have strong growth potential and deliver appropriate returns on invested capital. We will continue to be opportunistic with returning cash flow to stakeholders, including share repurchases and paying down debt. In closing, I believe there is a bright future ahead of us.
We feel confident in our ability to win in the markets we serve, deliver attractive financial returns, and generate robust cumulative free cash flow, enabling us to execute on our capital allocation priorities beyond what's included in our long-range plan. I thank you for listening, and now we'll turn it back over to Chris for some closing remarks.
Thank you, James, and thank you to Jake and Thomas and Stu and Anila for sharing the information you shared and your own personal perspectives on our prospects. Before we turn to your questions, I'd like to offer a few personal reflections and a couple closing thoughts. James spoke about why he wanted to become part of our team. I've been thinking a lot about that lately for myself as well, and why I was so excited to join Haemonetics six years ago. The history and the heritage of innovation in this company, whether it was blood collection, plasma apheresis, or patient blood management, the mission and the noble purpose to help customers and advance standards of care, and the company's commitment and potential for making an even bigger impact for collectors and caregivers throughout the world.
Six years later, my enthusiasm for Haemonetics has only increased. Our foundation is incredibly solid. We turned around the company and empowered a purpose-driven organization. That purpose guides everything that we do, from designing and making products that better serve our customer needs to being socially responsible and driving strong, sustainable financial results. We've overcome daunting challenges. Staying steadfast in our mission, we are listening to customers and other key stakeholders and taking action to meet their changing needs. We are advancing our product value propositions and providing a compelling reason to believe through our evolving portfolio of market-leading solutions. Our team has the expertise and the resources and is committed to sustainable growth. We see tremendous opportunities in our core markets, and we have created unprecedented momentum. I am more convinced than ever that the best is yet to come for our company.
To put it all together, as we were completing the turnaround just prior to the pandemic, our management team and our board began discussing a bold aspirational goal of sustainable high single-digit revenue growth, double that growth on the bottom line. We now expect to deliver at least that going forward over our long-range plan, with the potential to further improve financial performance through portfolio evolution and additional investments as appropriate. Our strategy and our value drivers are enduring. They position us for sustained growth and success. We remain focused on defending and advancing our leadership in Plasma and in Hospital through meaningful innovation and continuous portfolio evolution. Both businesses will deliver breakout growth. We're also committed to additional margin expansion.
With the benefit of our operational excellence program and growth in our high-margin products, we expect to deliver high teens CAGR and adjusted operating income and a mid-teens CAGR in adjusted earnings per share. Success with our long-range plan creates over $2 billion in capacity for additional growth and investment not included in our long-range plan today. I'm excited to lead us into our next chapter with a focused and holistic plan to achieve our aspirations. Lastly, on behalf of our leadership team, wanna offer our heartfelt gratitude and appreciation to our employees. World-class teams throughout the globe are helping our customers make it matter every day. Their hard work and dedication to our company and to our customers is what truly distinguishes Haemonetics. Thank you for listening today. I'll now turn things back over to Olga to begin our Q&A session.
All right, just a quick update here. As we're getting ready for the Q&A, I would like to ask our audience to please remain seated, and I'd like to ask our speakers to please start making their way back on the stage. This should take less than a minute. We'll be right back with you. All right. Thanks everybody for waiting. We're now beginning our live Q&A session. For everyone in the audience, please raise your hand if you'd like to ask a question. Please state your name, your company, and please limit questions only to one question to begin with. If you have additional questions, please raise your hand again. For our virtual audience, there's an option to submit your questions online. I'll be alternating asking questions from our audience and virtual audiences to make sure that we get to as many questions as possible.
Just as a reminder, we do plan to end our Q&A session at 1:00 P.M. Eastern Time. All right, let's get started. Anyone like to go first? Microphone.
Hi, Mike Matson, Needham & Company. I guess I wanted to start with the Plasma business. I don't know if you're willing to comment at all about the kinda current conditions you're seeing in that market, but it does seem like there's potentially some macro tailwinds there with the inflation rates we're seeing and, you know, the economy potentially slowing down. As sort of the follow-up, maybe if you could just comment, it seems to be sort of a counter-cyclical business, but can you maybe speak to the performance you've seen in prior recessions in Plasma? Thanks.
Sure. Maybe Chris?
Yeah.
Jake.
Why don't you start, and I'll.
Sure.
I'll weigh in.
I'm happy to start. Thanks for the question. My team and I work with our customers every day, and we're absolutely seeing a resurgence in donors coming back to the centers. We're seeing it, you know, it's too early to speak about specifically to Q1 results, but I can tell you that, we're seeing resurgence across all market types with centers and specifically seeing improvement around mature centers, where over the last eight quarters we really hadn't seen that recovery from the pandemic.
You know, to speak to your other points around inflation or potential around even, you know, recession. There's no doubt about it, with, you know, if anybody here has filled up a gas tank recently or purchased groceries, you know, cost of everything have gone up, and donors that come into the centers are often impacted by that significantly. The form of compensation received from those donations is often necessary income. You know, I think in working with the customers that we're working with, we're seeing this happen in real time. You know, we anticipate that, you know, there are some continued challenges ahead, so we would expect that to continue.
You know, I'll let Chris kind of jump in on prior, you know, impact or I should say, performance for the business as a result of recession. You know, our customers are certainly starting to see it and I would say from that perspective, you know, right now we're in the midst of continued improvement and resurgence in collections. We're pretty bullish about what that means to our business right now.
Yeah. Mike, thanks for the question. I fully concur and emphasize what Jake's described in terms of the momentum in the business. If you look at prior recessions, the reality is all three of our businesses, blood center, hospital, and plasma do well in recessionary periods. There's a strong resiliency there. For plasma, in particular, you know, this is an opportunity for donors to augment their disposable income. Whether it's hyperinflation as we're seeing right now or you know, unfortunately, if we wind up going into full recession, we feel quite good about the prospects to enable our customers to continue to grow their collections. That's certainly what we've seen throughout the pandemic. It caused us to really focus on household disposable income levels, real income and savings rates as well.
If you track those, you know, heading into this period, we've approached the levels that existed pre-pandemic, and if there's further inflation or broader reflation and recessionary pressures, that'll only tilt more favorably towards collection volume.
Thank you. Let's take another question from the audience.
Hi, good morning. Thank you for hosting this. Joanne Wuensch from Citi. I actually have two questions. One has to do with the pricing in the plasma market. What are you seeing there, and how should we think about it in a recessionary market or just in general, post-pandemic? Then the second question I have has to do with operating margins. Your guidance for fiscal year 2023 is for margins to be 18% to 19% and then to get into the high 20s by FY 2026. Could you help us build a bridge? 'Cause that's a significant move over the next three years. Thank you.
Yeah. Maybe James and Chris.
Specifically to the question around pricing you're asking about, are you talking about compensation related to the donors or I just wanna make sure I understand that aspect of your question.
Compensation to the donors, but also pricing as it relates to what you're collecting and the price that you're
Why don't you talk about remuneration?
Yeah, sure. Sure. Ultimately, we're seeing significant increase in what donors are being compensated, and that was something that started during the pandemic. Those prices, or the compensation for donation, have certainly increased in that period of time and impacted the overall cost to collect. You know, in talking with our customers, I don't think there's any expectation that that is going down anytime soon either. They're very focused on making sure that the continued effort around collection in the centers continues to be strong. You know, the compensation that donors are seeing is anticipated that it would stay strong for the future.
Yeah. If I think about how that affects our relationship with our customers, right? What we've guided to overall in this plan, we anticipate taking. You know, when I joined the company six years ago, our gross margins were in the low 40s, 42 or 43%. Today, they are in the mid-50s. As you heard from James and I, we expect to achieve high 50s to low 60s over the next four-year period. Certainly, plasma will participate in that, and it's driven by the NexSys technology. You heard Jake walk through what this means, whether it's the 9%-12% yield enhancement or the increased door-to-door speed or the connectivity or the donor sat, they all contribute.
If you look at what was pre-pandemic, $125-$150 to collect a liter of plasma is now well north of $200. If we're able to drive 10, 12, 15% improvements in productivity, the pass-through in terms of our ability to reduce cost per liter is quite profound. Again, as Jake said, we, you know, we don't charge anything near that in terms of the actual disposable kits that we sell to our customers. We're very confident in our ability to continue to drive gross margins, and price and mix are important components of that journey. James, maybe you should talk about the operating margin bridge.
Yeah. Sure. Maybe I can get you round that out and get you to the how do you improve the operating margins by so much over the projection period? Well, first part was said here, improving gross margins gonna trickle down. It's really, I would say, that the secret is really the operating leverage that we're getting. We're increasing revenues far more quickly than we're increasing some of the other costs, and that's really what drives it. It's both in hospital and in plasma that probably drives it, you know, the most. Then what I mentioned in my remarks too, actually helps as well is the operational excellence program. We're not quite done there yet, but to a lesser extent, that also propels it.
By the time you get all the way out to 2026, it really does make a significant impact, you know, with the years of improving margins combined with taking the cost out of the business.
Thank you. Just a reminder to our virtual audience, there is an option to submit your questions online. Our first question is actually the first two, and it's about investments in Hospital. The question reads: Can you give us a sense of investments needed to set up your vascular closure business internationally? More generally, how to think about overall investments into this business to support the LRP growth.
Yeah. Internationally, one thing that's great about our business is we're already set up globally. We're direct in most of the major markets that you would think of in Asia-Pacific as well as in Europe. We've got distribution, we've got a commercial team, we've got a full-scale marketing team in the major countries that we go after. As far as what it would take to set up internationally, we're already quite far along there, and we're ready to go there. You heard in my prepared remarks me talk about us going after approvals in Japan as well as in Europe, so we're moving forward on that pathway. What was the second part of the question, Anila?
Generally, how to think about investments into your business to support the LRP growth?
Yeah. The expansion that we've executed on in the business is really going to fuel that growth. I also mentioned earlier today that we almost doubled our sales force, both for the TEG business as well as the Vascade business, both in the US and internationally. What we have in the budget moving forward and in the LRP is leveraging what we've already done from a commercial expansion perspective to grow that. By the way, what we're seeing is a lot of headroom for growth in both of those markets. You heard me talk about the fact that we're only about 25% penetrated in viscoelastic testing across the globe versus what could be done. We own 70% of that market, but it's still under-penetrated.
A big part of what we're doing is leveraging the investments we've already made to grow the business and grow into that expanded TAM that we have. It's a similar approach for us with regard to the Vascade business, where you heard me talk about the 10% penetration in electrophysiology. A lot of headroom for growth there for us in executing on what we've already invested in from a commercial perspective to drive into that market that we see as a growth opportunity for us.
Thank you, Stew. I'm gonna take another question from our virtual audience before returning back to our in-person audience. The next question is for Anila, and it's about innovation in plasma. How should we think about additional yield improvements in plasma? How much additional yield are you targeting, and what would be the process and timeline to get it approved?
Thank you for the question. We have the best-in-class in the industry with regards to yield with our Persona technology. It's a time-tested alternative to the 30-year-old standard nomogram we've had in the industry. It's donor-tailored and calculates a personalized plasma collection target based on the donor's hematocrit and BMI. We ran a clinical trial with about 23,000 collections, over 3,400 donors, and showed a pretty healthy safety profile and an increase of 9% in yield on top of the 3% we get with Persona today. We know yield enhancements are very important for our customers, and we continue with enhancements with our personalized nomogram approach to drive further yield enhancement.
Cannot share actual values today, but we feel very confident in our ability to provide more yield per plasma donation for our customers with our continued innovation.
Thank you, Anila. Let's come back to the audience. Can we have a microphone please for Drew?
Hi, Drew Ranieri, Morgan Stanley. Just a question on the LRP and kind of the progression. I know you don't necessarily wanna get into fiscal 2024, but can you at least give us a sense of how we should be thinking about the progression? Is it linear, or are you comfortable with low single digit top-line growth and the ability to drive 2x on your EPS growth for next fiscal year? Just on plasma, the mid-teens plasma growth that you're talking about ex CSL, can you give us a little bit more detail on what you're thinking about in terms of market share gains and, really, some of the new center expansion that's kinda coming online as your customers are replenishing the inventory? Thank you.
You want to split it between James and I? Is that,
Yeah, I think that's a good way to do it.
Drew, thanks for the question. When you think about top-line growth, it'll progress, you know, as the market opportunities present themselves. I think there are certain aspects of it, particularly perhaps in Stu's hospital business, that will be linear in as much as, you know, we've got the two big workhorse products in that hospital business that are tearing it up and will continue to do so. With plasma, we currently don't forecast any revenue from CSL in FY 2024, so that'll be a step back off the $88 million that we communicated previously. However, the remainder, the other $300 million of that business, is gonna grow meaningfully. If the trends that we're observing and that we forecast continue, that's a pretty healthy offset.
A lot of questions have come back in previously when we talked about growth each year. If you think about that just as forecast, and obviously a lot can change between now and FY 2024, for example, but if you look at that offset on plasma, we got a $300 million plasma business that is gonna be growing in the mid-teens post CSL. Simple math, we're talking about something between $40 million and $50 million a year of incremental revenue there.
Stu's business is gonna be closer to $400 million revenue next year. That business also growing mid-teens or better is just that much more robust. The combination there, it won't be linear, but it's not one of these situations where you're gonna have to wait around for FY 2026 for things to contribute. We're pretty excited about what we can do organically, and we haven't even talked about the additional inorganic overlays. Maybe you should talk about the EPS.
Yeah, I think with regard to that I agree, you know, it's gonna follow in the non-linear fashion. I would say it's more a back-end weighted rough rule of thumb, more I would say 40-60 towards the back end. The business becomes more profitable as we move on through the projection period. You'll see that happening as we build upon the leverage that I was speaking about earlier. You know, when it drops down to the EPS line.
One thing that we don't assume is that we don't have any buybacks in there, so that's what kind of makes the EPS trail a little bit with regard to that level of dilution.
I just have a quick clarification question from our virtual audience, that I think would work well with this, with Stewart's answer. Does your LRP assume any CSL revenue contribution in fiscal 2024?
The short answer is no. I wanna be crystal clear because I think Jake touched upon this. Last year, we converted CSL's European centers in their entirety to NexSys, and that's an existing long-term contract. We obviously will honor that contract as we will with all of our customers. Based on what was communicated previously, we assume no additional volume from CSL in FY 2024, which is why the $88 million, we assume, goes to zero. Obviously, we stand ready to serve CSL and all of our customers as they need and as they see fit, and look forward to the opportunity to do that should it present itself.
Thank you. Let's go back to our audience. Can we have a microphone there, please?
Michael Petusky, Barrington Research. Earlier, you all said that M&A would be important in hospital, and obviously you guys took a big swing with the Cardiva assets. I guess I'm just wondering, in terms of pipeline, are there assets you're looking at? In terms of the backdrop of interest rates, inflation, and all the rest of it, you know, how deep. I know you said for the right opportunity beyond 3.5 times, but how deep are you willing to go if you see another Cardiva type deal out there? Thanks.
Yeah. It's probably good for James first.
You wanna take the hospital piece first and then turn it over to Chris for the second part?
That's great.
We're excited about the Cardiva acquisition, of course. It's performed well for us. It's also importantly opened the aperture for us of what we can do with looking at other procedure-enabling technologies, particularly in the EP and interventional cardiology spaces. Now we have a footprint there. We've got a great sales team here in the US, and we're gonna start building out over time our international force. We're set up well to bring in other assets into those areas, and that was one of the big reasons that we actually acquired Cardiva in the first place, was the commercial footprint that it gave us, but also the ability to open that aperture up to other adjacencies that we could step into that quite frankly, we couldn't have done two years ago. We couldn't have done something like that two years ago.
Now we have a presence in that space, and we have a leadership presence in that space that's going to allow us to do more. I'll let James or Chris talk about what that means from a financial perspective and how we fund that, but that's really what we're looking at, is procedure-enabling technologies in those two spaces in particular.
Yeah. Maybe I can jump in on the leverage ratio. I mean, look, we're not gonna be, or we don't intend on being a highly leveraged company. You know, just like with Cardiva, you know, I think we're comfortable taking it up past four-four and a quarter, in that area, depending on the opportunity that we're looking at. But just like what we've done in terms of our behavior afterward, we're gonna take that back down, and we're certainly, you know, comfortable where we are today in three and maybe even taking it down a little bit beyond that more long term.
No sights set anyway on being a highly leveraged company at all.
Thank you. Any more questions from the audience? Okay, can we have the microphone?
Andrew Cooper from Raymond James. Thanks for the question. Maybe just on the hospital segment and viscoelastic testing penetration, you mentioned a bunch of different clinical segments. Can you just sort of lay out when you think about that growth, where's the lower hanging fruit nearer term? Where's, you know, new market generation longer term and how that glide path shapes up?
I'll take that, and maybe Anila can talk about the pipeline for us. We've done a really nice job historically of driving into particularly the spaces of cardiac surgery as well as trauma, right? We're doing a great job there. Still overall under-penetrated. We think there's more headroom for growth there. Our focus in viscoelastic testing to really succeed in this LRP is, number one, expanding the number of accounts that are actually using the product. 85% of our revenue comes from disposables in that product category. We need to have the capital in the hospital present in order to get the disposables. We've built out the clinical team to drive adoption in these hospitals, and we've also added sites that are actually using them.
That space is very great opportunity for us. What we think about is in that market, that $700 million TAM that I talked about today, that's going to $800 million, interventional cardiology is a big part of that. We've started to shift the conversation to historically what has been a lot about using TEG and viscoelastic testing for bleeding risk to more of a conversation around thrombosis, right? We're looking at that balance between bleeding and thrombosis for a patient. Now we're seeing more and more of the dialogue about that thrombosis risk, and that actually lends well to moving into the interventional cardiology space, and by extension, other spaces like electrophysiology or structural heart. Anila, you wanna talk a little bit about what we're doing from an innovation perspective?
Yep. As Stew said, you know, our TEG is our market-leading viscoelastic platform, and we have shown application in liver surgery, in cardiac surgery, and in trauma care, where we have demonstrated actually a reduction in mortality, a better utilization of blood products, as well as, you know, better root causing of bleeding complications. As we think about our pipeline, you know, interventional cardiology, as Stu said, is really an area of interest for us. You know, finding the right balance between anticoagulation or platelet inhibition and the associated bleeding risk, with that, right, is a pretty critical question to answer for interventional cardiology. We feel that TEG and especially platelet mapping assay that we have can really play a critical role.
The other clinical areas that we're interested in is, you know, COVID-19 pandemic with thrombosis management, as Stew said, right, is an area of interest. Managing postpartum bleeding in obstetrics is another area. In stroke, specifically with ischemic stroke, understanding the impact of tPA therapy. A lot of opportunities in terms of clinical area expansion and application of viscoelastic testing.
Thank you. Just coming back to our virtual audience, we actually have a question for Blood Center this time. The question is for Thomas, and it's about, you mentioned the emergence of new partnership models in blood centers as a result of IG supply rationing. Can you give us a little more color? Is the regulatory environment changing?
Yeah. Thanks for the question. As we go to these industry conferences, we not only hear that IG demand and plasma demand is increasing, but all the countries out there and the blood centers understand that they need to do more to collect plasma. At the same time, they also realize that they don't have the knowledge and the experience today to do that. They reach out to commercial collectors to form partnerships. It depends really country by country. We've seen a couple of those partnerships. Normally, the commercial collector will provide process knowledge, SOP, quality procedures, technology, and the local partner will provide workforce, access to donors, but also access to the regulatory bodies in the country.
That was the second part of the question about that regulatory environment. That is really different from country to country as soon as you go outside of the US. We've seen those partnerships, and Egypt is a great example of that. They presented at the last IPFA, and that could be a blueprint for other companies and countries how to go forward and really increase and ramp up fast.
Thank you, Thomas. Do we have any more questions in the audience? Can we have a microphone, please?
Hi, a couple for Anila on the pipeline, some of the stuff you talked about. You know, large bore opportunity for Vascade. I mean, is that? Do you have a feel right now as whether or not that's something you can do with the existing platform or something you'd have to look outside for? Just the timing on this 20% reduction in terms of the plasma collection times that you're working on. Will that be? I assume that's an upgrade to NexSys, and you know, just if you can give us any kind of timing on when you'd expect to launch that.
I'll start with vascular closure. Our base technology today, where it's applied, our Vascade is in small-bore arterial. Our Vascade MVP platform is in venous mid-bore. We think that the current technology can expand to really address larger bore requirements in that mid-bore category. For example, when we think of venous procedures and percutaneous ablation coming up, right, which requires about 14 French, we think our technology can expand to support that. When we think of larger French closure devices, it's definitely of interest. You know, when you look at the emerging procedures we have today with the transcatheter mitral valve repair, with aortic valve replacement, with leadless pacemakers, with ventricular assist devices, all of these require, you know, closure of around 18-24, 27 French sizes.
There's not really a great option in the industry today. We are very interested in pursuing that both from an organic and inorganic perspective. We don't believe our base technology platform as is can support that, right? We'll need to develop a new platform based on the technology we have, but we're also actively pursuing inorganic opportunities. Coming back to the question on plasma. From a procedure time perspective, right? What matters to the donor. The door-to-door time for a donor is really critical as when they come into the plasma center, right? They get registration, they go through registration, they go through screening, the actual plasma collection process, and then donor payment before they leave. Our solution is really optimizing every step of that plasma collection process to reduce door-to-door time for the donor.
The latest enhancement that we are working on is really innovation with our Plasma Bowl technology, which when combined with our device software enhancements, we are exploring a 20% reduction in our procedure time on an average per collection. We are in active development, and we are expecting our FDA submission in this fiscal year.
All right. Now we have another question over there.
Thank you very much. Joanne Wuensch. You mentioned getting some of the Cardiva products into Japan and in Europe, and you also mentioned that a lot of the infrastructure is already in place for those. Do you have a timing on when we can expect that and when we can expect that revenue contribution?
Yeah. I'll take that one. We're pursuing both regulatory approvals right now. Just to be clear, in our LRP, we don't have anything in FY 2024 for international sales of Vascade. We have it over the LRP horizon, but it's very small. Most of the growth that we'll see for Vascade will be in the US. However, we can layer on additional revenue from international sales as we get those approvals and launch commercially. We expect that sometime in late FY 2024, we get approval in Japan, and sometime in late FY 2023, we would get CE mark, and that's fiscal 2023, we would get CE mark for Europe and then begin to commercialize after that.
Thank you.
All right. Do we have any more questions from the audience? Can we have a microphone, please?
Drew Ranieri, Morgan Stanley again. Just in terms of thinking about the M&A strategy, I mean, you have Vascade MVP, which is a great EP product. You highlighted some other areas, line extensions that you're moving into. I mean, should we be thinking that your M&A strategy is building closure around Vascade MVP, or do you see Vascade MVP as being kind of a beachhead foothold in getting out and broadening your EP portfolio over time?
I'll take that. Anila, if you wanna jump in at the end. I would say it's really twofold. It's number one, building out our closure portfolio, okay? She talked about us already having small bore, both venous and arterial covered. In our organic pipeline, mid-bore venous and arterial, we feel very confident that we'll be able to cover. Large bore is going to be more difficult from the existing product portfolio, so we've got to look at that either through redesign or through M&A. We wanna round that out and make sure that we can provide products to serve all those needs. Beyond that, we look at this as a beachhead for us to enter into those spaces that we're already in, particularly electrophysiology.
We see that as a great growth market for us. We see that it's growing at around 10% right now in that market, so we feel like there's an opportunity for us to do more in that space. What I'll caveat that by saying is we don't necessarily think that we're going to try to get into the therapeutic areas of electrophysiology. I mentioned earlier, what we're really focused on is procedure-enabling technology, so other adjacent products that will allow the procedure to go well, but isn't necessarily the therapy for that particular procedure. Okay.
Okay, let's take a few questions from our virtual audience, and the next question is actually for Anila and James, and it's about R&D spend. How should we think about the R&D spend over the course of the LRP to support the doubling of the Vitality Index?
Our R&D spend is really focused on the growth platforms that we talked about today, plasma hemostasis management and vascular closure. You know, these markets are a major part of our total addressable market, right? We have market-leading products here and experience and domain expertise that really provides us, as we talked about, a competitive edge. Our R&D spend is significantly weighted towards these platforms, and the commitments that the business leaders have talked about in the LRP today are really all funded projects in the R&D plan. As Chris mentioned, right, we have not included M&A in our LRP, but you know, given the dollars that James said are available, we have significant opportunity from an M&A perspective and the opportunity to drive inorganic growth.
Maybe I could just follow up with some of the quantitatives on that. We spend roughly 5% a year on R&D, 5% of revenue. I think that number is a bit understated because of the accounting for software development. Software development has to be capitalized and amortized, so it doesn't really fall into the 5% metric. If you were to adjust for that, and it would, we'd be closer to about 7% of revenue on a cash flow basis. A fairly significant investment by us to you know work on the technologies and the platforms that Anila spoke about.
Thank you. Let's do another question from the virtual audience. The next question is for Stew. What can be done to accelerate growth in hospital?
What can be done to accelerate growth in hospital? Well, we're already growing in mid-teens, which is actually pretty good, I think. We're really excited about that growth and about what we've done to build out the force. Our two growth pillars, as you heard from me, are really hemostasis management and vascular closure. Those two, the growth in our LRP, 70% of our growth is coming from those two categories alone, okay? 70% of our growth is also coming from North America, and the fact that we've built out our commercial force for those two categories in North America means it's more weighted toward our growth in North America by about 70%.
If we look beyond that, if we look at other things that we could do to accelerate growth over and above the 14% to 16% or so growth that we're going to be getting, it's really all about two things. It would be expanding internationally more, as the question you asked, and starting to pull some of that forward internationally with Vascade, building out our commercial force there. Number two would be accelerating our R&D pipeline and starting to bring forward some of the projects that we've discussed. That would help us. We've seen a real strong correlation, of course, between our expansion of our commercial force with our improved revenue trajectory.
We would potentially pull forward our investments in the commercial force, both in the US as well as internationally, to drive accelerated growth in both of those areas. Those would be the things that I'd probably look at, probably those three all up, to drive more growth than what we've already projected.
Thank you, Stewart. Let's take another question for Jake, and this question is about plasma collection volumes. How are plasma collection volumes tracking so far, and what gives you confidence in the low teens volume growth in the US?
As I mentioned before, we're seeing significant resurgence as a result of some of the challenges that are occurring in the economic environment and as a result of coming out of COVID. The fact that inflation is challenging and surpassing the real wage growth benefits that have occurred for folks during this COVID period is significantly a part of it. The nice part about it for the customers that have already moved to NexSys and are taking advantage of it is they're collecting 12% more plasma than they were collecting when they were collecting on the PCS2. We're seeing continued growth with the centers.
The customers that we work with, you know, are continuing to build in fractionation capacity three, four, five years out. We've had 250 new centers that have opened up during the pandemic, so, there's no doubt that the focus around sustained collection ability and commitment to continuing to grow the market, lines up strongly with what we're doing to serve our customers.
Thank you, Jake. Let's come back to our audience. Can we have a microphone, please?
Thanks. Mike Petusky, Barrington Research again. For Chris, I guess sort of two parts. In terms of forecasting, you guys, outside of global pandemics, have been very good historically since you've been in the chair, and I'm just wondering, has there been any change with James coming in in terms of methodology you guys use in terms of coming up with your forecast? Then I have a second part.
Yeah, Mike. I, you know, I think we get a benefit of having, you know, the business unit structure and some really smart folks looking carefully at their markets in constant dialogue with their customers. We feel quite good on a bottom-up basis. Obviously, the last eight quarters through plasma volumes in particular have been difficult and, you know, you know, it's good to be humble about these things, right? We've learned some lessons. I do believe we're in the nature of the dialogue that whether it's the collection side of the operations or the procedure side of the operation, I think we feel quite good about what we've put into this LRP. It's risk-adjusted. There's meaningful upsides. There's exposure as well.
We don't control for the macroeconomic factors, but when I think about demand and what we're doing, whether it's in those core hospital franchises or plasma and apheresis more broadly, I think we feel quite good about what we've put out there in this plan, and I think it'll be more of what you experience from the company over the first four years.
Second part. You sort of made a big statement, I feel like a big statement early when you said, "I'm more excited today than I've ever been." Because when you came into the company, with all due respect, you had an easy comp relative to your predecessor. There was a lot of inefficiencies in the business. There were a lot of opportunities I think you probably saw fairly early that, hey, I can do a lot of things with the pieces that I have in place here. You, you know, earlier you said you're more excited today, and I'm just wondering, you know, what are the two or three big reasons that you made that statement? Thanks.
Yeah. Thanks. I tried to frame this up front as three distinct eras, right? There was that first four years where we were running hard against a five-year plan. We saw meaningful margin expansion, 900+ basis points. We saw operating income growth and a lot of flow-through on that. We didn't achieve a lot of top-line revenue growth, right? We focused on you know, evolving the portfolio, better resource allocation, better decision making, and that drove everything. The pandemic was clearly a setback to us and to our customers, but from where we sit now, I think it'll be everything that had us excited during the first four years, admittedly, we've taken care of a lot of that basic hygiene, et cetera, but now we're gonna see top-line growth, right?
The first point I'd make to your question, we're talking about high single-digit growth or better as we put our capital to work.
That creates leverage to the point James made earlier. Whether it's, you know, mid-teens% net CSL in plasma collections or mid-teens% straight up on the hospital business, that's a rising tide that we have not benefited from historically. It's gonna be very exciting. Candidly, it's already underway across all businesses. We're not backing away from margin expansion. Whether it's the operational excellence program or just being really thoughtful about how we manage these external challenges, we see great opportunity, both gross and operating margin, for further expansion by just being intelligent and good stewards about how we manage the day-to-day. The combination of those two things, $2 billion-plus in capacity will go only further to making those investments. Yeah, that's what has me excited.
There's perspective that I'm happy to share further about that, but to your question, it's really the trifecta of top line, bottom line, and the capacity that we can go get after some of these programmatic opportunities that we see.
Okay. Do you have another question?
Thanks for taking my follow-up on my follow-up. I know I'm gonna get this question, so let's just get it out there. You talked about taking share in plasma, and there's a new competitor in the market with Terumo and the new contract it has with CSL. How do you think of that positioning it on the landscape? Do you think other contracts are at risk, and do you have an opinion on their product? Thank you.
You wanna divvy this one up, or you just want me to just jump in?
Sure. Go ahead. Let me see what I could add.
When we build the plasma forecast, there are three assumptions that drive it. First and foremost is volume, right? We are very confident in long term, almost as a perpetuity growth rate, 8%-10% for all the reasons that Jake highlighted in his presentation. That is the single biggest variable, not just in plasma, but in our plan overall. We're very confident that what we are experiencing will only accelerate and it's a good baseline forecast. The second two parts of that are share and our gross margins, 'cause I don't really wanna talk about pricing given the close oligopoly and new entrant and all that. We're gonna assume share holds constant post the loss of CSL.
Now, we're gonna work very hard to do better than that, but our base assumption and everything we've communicated today in this LRP assumes constant share post the loss of CSL's US disposables business. There will, of course, be puts and takes, and I think these guys are gonna work pretty hard to make sure we do better than that, but that's the baseline assumption. The gross margin expansion is mix and some pricing for the new technology where we've already largely secured it. We obviously have things in the pipeline, so if we miss on something, there's other things we can bring forward. You know, from that plasma forecast, feel quite good about it. I'll let Jake provide commentary.
In terms of the competitor, you know, for those of us who've been in the industry a bit, it was a question of when, not if Terumo would enter the market, right? Source Plasma is the single largest apheresis market. The fact that they weren't in. We compete with Terumo in every other market around the world. They're not, you know, a foreign entity to us. We're more than happy with our ability to be able to compete. In terms of the Rika device, I haven't seen one, and I would venture to say none of you in the room have either. The data they've posted, but required to post to the .gov website described a trial of 124 completed donations.
To be clear, Joanne, we've done more than 124 donations in the time it takes me to answer your question. We do about 100 donations a minute on the average collection day. I don't know where they are. We have not had a single center convert yet. You know, we'll see them when they're in the market. You heard the team. We think about the four dimensions of our value proposition. We believe we're superior on all four, and we're gonna work hard to make sure we advance that superiority. It's very hard to hit a moving target. As Anila described, we intend to be a fast-moving target and continue to advance that portfolio, that pipeline, that product.
Yeah. I guess all that I would add to that is, you know, we're the market leader in global plasma today. When the last truck rolls out to CSL and delivers product, whatever day that is, we will still be the global market leader. We're committed to innovation and, you know, we feel very strongly that the platform that we have today as a fully integrated solution is the best on the market, bar none.
When the new competitor comes to market, we understand that's new competition, but we still feel very strongly that the value creation that we have with our system, with the additional yield that we're providing beyond, the entire platform and what it does from a door-to-door perspective and how it helps our customers, you know, we're gonna keep pushing on innovation, as you heard from Anila, and we're committed to remaining as the market leader. I'll add to that, right?
We've talked about this a lot today, what matters to our plasma customers, right? We talked about the four value propositions, which is maximizing yield and quality of plasma collected, you know, center productivity, improving that, ensuring donor safety, and enhancing the donor experience. We really have the only integrated, fully integrated solution that addresses all of those value drivers, right? When you think about our NexSys PCS system integrated with our NexLynk donor management software, right, which is bidirectionally integrated, really drives center productivity. When you think of Persona technology really drives that yield enhancement, 12% with YES included. When you think about the donor mobile applications that we talked about really enhances donor experience. Our continued innovations are really focused on addressing every value driver that matters to the customers.
We talked about taking our Persona technology and the personalized nomogram to that next step. We talked about procedure enhancements with our next-generation Bowl to further reduce door-to-door time and procedure time. We continue to leverage our SaaS technology to work on our donor software applications to really drive that donor-enhanced experience. We feel very good about the integrated offering we have, that we are uniquely positioned in terms of how we compete.
Thank you. Let's go back to our virtual audience just for a few questions here. We're getting a lot of questions. The next question is probably for James and Chris, and it's about geopolitical risk and macroeconomic factors. The question reads: how should we think about geopolitical risk included with your guidance and the macroeconomic headwinds?
As you heard us in our earnings call, we risk-adjusted our 2023 guidance for what I'll call, you know, the geopolitical risk. Over the projection period, if we just look at geopolitical risk, we are assuming that at some point, you know, the war ends, and hopefully we get back to more of a normal, you know, set of operations in Eastern Europe. On the inflation side of it, you know, we had 250 basis points impact in 2022. We have 300 basis points impact in 2023. Most of it comes from, I would say, labor and freight.
Now we don't assume though that keeps going forever. We kind of have that plateau, and then towards the end of the projection period, we have it come down by about 10% a year. You know, we never end up on the cost side to anything that was, what I'll call, just pre-pandemic. By the same token, we're not, we're also not assuming that the highest peak, where we're plateauing here, exists into the future as well. I hope that's clarifying.
Yeah. When I talk to other med tech CEOs and their teams about this, they are highlighting four things. They talk a lot about foreign exchange risk. James has highlighted that a bit in the presentation, and I think we feel quite good about, you know, relatively modest exposure and the ability to hedge against that exposure. I'll take that out to the extent you can. The other three, global supply disruptions, hyperinflation, where it exists, and then the geopolitical point that was highlighted. Again, we're not immune to any of that, but this team's response, particularly on global supply, has been nothing short of extraordinary, right? We've kept our plants fully operational, and there's been challenges. We live in the real world, everybody else. There's been disruption.
There's been things that we've had to do that are quite costly, but ultimately, we haven't disappointed even a single customer through the process, and I'm confident that with this team, we'll continue to do so in terms of our ability to serve. Inflation, inflation's a real challenge, but as I described earlier, there's also positives, ironically enough in our business. We're managing. The geopolitical for us, as James said, really it's China and Russia, and we're observing both of them closely. We're seeing some positive trends now in China later in the quarter, so that's a good thing. We'll have to watch carefully going forward. It's a large market for us, particularly in hospital and in blood center, and so, you know, we obviously need that to contribute.
Russia and Ukraine and the broader market there, we've taken a hedged approach, and we've kind of factored that into our long-range plan going forward. We certainly wanna see a, you know, resolution of the hostilities and, you know, our ability to continue to serve those markets exquisitely well.
Thank you, Chris. Let's take another question for Anila here from our virtual audience. The next question is about procedure time in plasma. Anila, you mentioned additional reduction in procedure time by 20%. How should we think about these improvements, and what is your target collection speed and door-to-door time savings?
Yeah. I think I'll answer again, since I had the question before. I think when we think about you know what matters in a plasma center for the donor, it's really you know all of the time we talked about for the entire plasma collection process. You know we are focused on not just procedure time, right? I'll talk about door-to-door time because that really matters to the donor and eventually matters from a center productivity to our customer as well. Our current enhancements are you know. Actually, before I talk about our current enhancements, you know with our NexSys PCS platform and our NexLynk donor management software and the bidirectional integration, you know we have demonstrated, and I think Jake talked about this, a 16-minute reduction in door-to-door time with our latest platform in comparison to PCS2.
You know, our next innovation focused on the bowl enhancements that I talked about, combined with our device software enhancements. You know, we are targeting a 20% reduction in procedure time, right, which has a, you know, per collection, which will have a significant impact also from reducing the door-to-door time.
Thank you for reiterating that, Anila. Let's go back to our audience if we have any more questions here.
Thank you. Maybe just, one on-
On the plasma market, in terms of, you know, you don't wanna get into price specifically, but we heard from you what the adoption pace is for NexSys. Maybe a little bit of flavor for what's baked into the plan for Persona. Obviously, on the back end for the fractionator, there's a little bit of work they have to do. Just curious sort of the pace and timing you're assuming in the LRP, to the degree you're willing to share.
Probably Chris and Jake.
You want me to take that?
Sure.
Sure. You know, Persona adoption is, you know, NexSys is the ticket to entry, right? We will have all of our customers in North America on NexSys here by mid-fiscal year. That gives us the ability for other upgrades and innovation, and Persona obviously being one of the most impactful available today, given the yield improvement and what that means with an already, you know, significantly increased total cost to collect. Each customer goes at this at a different rate. You know, we have some customers that have not put the same amount of analysis around all of the things that we did in our clinical study to, you know, to prove the plasma and yield benefits are really there.
They're going at their own pace on that. You know, ultimately, you know, we've got things that we're working on. We can't speak to those specifics, but we're very optimistic that all of our customers will be on Persona in the future, in part and during the long range plan. You know, can't really speak to any other specifics on that, but you know, the platform is delivering value to the customers that have already gone early on it, that is absolutely significant, especially in the time where plasma collections have been down. They're seeing huge improvements in being able to pick up that extra yield while they have had the challenge getting donors into the centers over the last two years.
They're ahead of the game compared to the folks that haven't yet put it in place.
Okay. Do we have any more questions from the audience? Do I have a microphone for Mike, please?
It's the last one for me, I promise. On plasma, obviously, the productivity, the donor throughput and all the rest is great. I may have missed this, but are you guys doing anything in terms of, and I'm not discounting the 9%-12% incremental yield, but is there a way to move the needle on that, say, over the period of time that we're talking about, fiscal 2026? Thanks.
Yeah. Why don't I address it? Because I think you guys have touched a lot on. You know, we started down the path of Persona based on some really good data and analytics that our R&D and our clinical teams put together. We were just looking at a nomogram that was instituted in the early 1990s, candidly based on data from a clinical trial that was done in the late 1960s. A lot of things are quite different than 1968 today, including the demographics and the biologics of our donor population. Some smart folks in our clinical and medical teams got together and started thinking about, is there a safer and better way to apply personalized medicine to the donor population? Why can't we get at a true percentage of plasma available?
Is there a tighter range of what is medically appropriate and safe? Then when we looked at the existing nomogram that has these rather arbitrary cutoffs of weight and a stairstep, you know, program, we said, "Yeah, we can smooth that curve." We actually take less plasma from certain donors in the population, which we believe over time will be proved to be safer, right? Then, you know, where there's more plasma available, collect more equally safely. That's the whole premise. So we ran with an algorithm and a fairly sophisticated means that has now been well-patented of being able to do so. Of course, as the team's describing, we think there are ways to go further. I'm gonna be a bit guarded about that for obvious reasons.
No, we're not done, and we think there's a whole mindset shift that will take place in the industry like you've seen in other therapeutic areas, where personalized medicine drives a different level of engagement with the donor and a different nature of the relationship. The centers that have adopted the integrated NexSys platform with Persona, plus whatever we bring forward from here, will be on the front edge of driving that personalization. It's an exciting time to be in that space, and I think there's a lot more room to run with the science that we're working on.
Okay. At this point, we have about five minutes left in the Q&A. Do we have any more questions in the audience? Okay. We do have quite a few questions from our virtual audience, so I'll try to go through them as many as we can within the five minutes that we have left. The next question is actually for James. James, you mentioned $600 million to $700 million in free cash flow. Can you help us understand how to think about the pacing of free cash flow accumulation over the LRP and how to think about CapEx?
I'll start with the second part first. CapEx, I mentioned during my prepared remarks, $250 million-$300 million over the projection period. With regards... It's roughly about $40 million-$50 million per year is what our maintenance capital is. That, that's a good way to think about CapEx. With regard to the phasing of the $600 million-$700 million in free cash flow, I kinda touched on that earlier. I would say that it follows along with the improvement in operating income so that it was probably more back-end weighted, so I would go more with about a 40-60, so 40% in the first part of it, 60% in the second part.
It really does start to accelerate more towards the back half in terms of phasing of cash flow.
Thank you. There's another question here from a virtual audience. You mentioned adjusted operating income LRP CAGR as high teens, but adjusted EPS is only mid-teens. Is there a difference between EBIT and EPS growth? Are taxes a headwind of LRP? Any additional headwinds you can highlight?
No, I think the main difference there, I alluded to earlier as well, is the dilution on our shares. We don't have an authorization right now, so we couldn't factor in buying back any shares, and I think that's what drives most of that difference between the growth numbers that you see.
Thank you, James. The next question we have is for Jake. Jake, what gives you confidence that the rest of your customers will convert to Persona?
Yeah. As I spoke about in the earlier question, you know, I believe we have the best platform and best solution for our customers available with integrated NexSys and NexLynk and Persona. With the challenges going on in the economy today, the impact that has on donors and the overall benefit that our solution provides with the additional 12% yield versus what was just available a few years ago and what other customers might be using today, I just fully believe it's the best solution for collection.
Thank you, Jake. The next follow-up question is for Thomas. Thomas, you talked about plasma opportunities in blood center. How significant are these opportunities?
Well, thank you very much. In the prepared remarks, I said that the plasma collection in non-commercial markets is the biggest opportunity, and we're really excited about that. There's two reasons for that, the technology platform that we've now talked about a lot, but the second reason is that we have a really great footprint around the world in blood center. Just to give you an example, through the course of the pandemic, we delivered, you know, convalescent plasma sets to more than 26 countries. We have a really deep customer relationship and a broad customer base, and bringing that together, I think is gonna be very strong.
Now, in FY22, plasma was approximately one quarter of the blood center revenues, and we expect that over the long range plan to grow to approximately one-third. It's a significant opportunity.
Thank you. Unfortunately, we're out of time, and this concludes our Q&A session and our virtual event. We truly appreciate the opportunity to share our strategy and our growth plans with you today. If you had a question or you submitted a question we didn't get to during the Q&A, please send a follow-up note, and we'll be happy to answer it for you. For our in-person audience, just a quick reminder, we still have product demonstrations available for you in the other room. Product demonstrations are there until 2:00 P.M. Eastern Time. We also have lunch options for you to grab, right outside of this door, and all of our speakers will start making their way into the product demonstration room as well. In case you have additional questions, feel free to ask them. Thank you for your time today.