How Does Avanos Company Work?

Avanos distinguishes itself through a focus on clinically advanced solutions that improve patient outcomes and address key healthcare trends, such as reducing opioid dependency. This strategic approach offers significant benefits to customers by providing safer, more effective alternatives in critical care areas.

• The COOLIEF Cooled Radiofrequency system offers long-term relief for chronic pain without addictive medications.
• ON-Q and ambIT infusion pumps are recognized as the only non-opioid solutions eligible for expanded reimbursement under the NOPAIN Act.
• This alignment with healthcare trends enhances the company's competitive position in the medical device market.
• Understanding the Marketing Strategy of Avanos is key to appreciating its market penetration.

A significant strategic move impacting revenue streams was the divestiture of its Hyaluronic Acid (HA) product line, completed on July 31, 2025. While this will reduce HA revenue, management anticipates a minimal effect on the overall financial results due to prior pricing challenges in that area. Additionally, the company is enhancing its direct operations for MIC-KEY enteral feeding products in the United Kingdom, effective July 25, 2025, to improve product accessibility and customer service, which could influence future regional revenue contributions. This strategic approach aligns with the broader Growth Strategy of Avanos.

• Focus on value-based pricing for differentiated products.
• Divestiture of HA product line to streamline portfolio.
• Expansion of direct operations for key product lines in international markets.
• Emphasis on clinical superiority in product development and marketing.

Avanos Medical's competitive edge is built on strong brand recognition for key products and a commitment to clinical differentiation in non-opioid pain management. The company's strategy involves significant R&D investment, global market presence, and vertically integrated manufacturing.

• Strong brand recognition for products such as MIC-KEY, ON-Q, and COOLIEF.
• Clinical differentiation through a focus on non-opioid pain solutions.
• Significant investments in research and development, totaling $72.3 million in 2023.
• Global reach across more than 90 countries and vertically integrated manufacturing capabilities.
• Ongoing portfolio optimization to drive consistent growth in strategic segments.

Despite facing headwinds such as pricing pressures and tariff impacts, Avanos Medical is strategically focused on growth and margin improvement. The company's commitment to innovation and operational efficiency underpins its future outlook.

• A non-cash goodwill impairment charge of $77.0 million was recorded in Q2 2025 for the Pain Management & Recovery segment.
• For 2025, revenue guidance is maintained between $665 million and $685 million.
• Adjusted diluted earnings per share guidance for 2025 has been revised to $0.75 to $0.95 due to tariff impacts.
• The Specialty Nutrition Systems segment is expected to achieve mid-single-digit organic revenue growth.
• Avanos aims to enhance its margin profile and accelerate growth through its ongoing transformation plan, with margin improvements anticipated in 2026.
• The company's strategy involves continued investment in R&D to deliver innovative healthcare solutions, aligning with the Target Market of Avanos.