Cardiovascular Systems (CSII) 4 Feb 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Cardiovascular Systems, Inc. Fiscal Year 2021 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jack Nielsen, Vice President, Investor Relations and Corporate Communications. you. Thank ahead. go please And

Robb, you, second Medical Chris. XXXX are to fiscal we press Dr. Officer; and Ward, Chief a Jeff Financial issued Officer; results. Approximately Good quarter conference XX afternoon, and Rhonda Executive second Chief today Egeland, Chairman, welcome Operating call. Officer; CSI Points, quarter Chief our Ryan President, Thank announcing Chief Officer. With Scott ago, release me minutes

Relations Investor of of this release website. may our You a the corporate find copy on section

Here, also will details December management on second may your entertain few outlook. find you our that an ended we CSI includes on In XX, questions. earnings XXXX. additional will moments, and for which supplement discuss After results our our performance quarter, remarks, a prepared

XX-K discuss future our will this CSI duty events, call. we otherwise. which Form and Form on as pandemic These statements subsequent has of we of are future historical the that or statements forward-looking revise Private During financial certain will statements the condition Harbor risks those of financial and prospects, uncertainties a implied results statements. to Act regarding new forward-looking operation, due operating include including our not most created Reform forward-looking make stated statements XXXX for update particular, those the developments materially and or provisions forward-looking by results Safe results disclaims statements described in recent call, any quarterly result and on risks our In or and or are CSI's Securities of to reports under differ from could and covered information, facts. XX-Q. COVID-XX our business, today's other uncertainties, Litigation Actual

turn press we contains now refer also measures results. non-GAAP call Today's Ward. reconciliation information useful will over We for I Scott a table our will investors. the GAAP to believe they to release because provide to

weeks I that second hope $XX.X our procedures surge finished us that result, ICU the impact range. thank support of of Considering navigating to afternoon, a am X% pleased with our and of pandemic. final unprecedented reported and to families hospital grew patients, are I team's our conditions. And especially revenue you, in are successfully revenue our proud the midpoint you slightly this under admissions, you everyone. through really customers cases December. our as the Good for these your below quarter And negatively began The spike COVID results demand in these we Jack. during of increased and and we guidance today. million. joining sequentially Thank afternoon, This our focused extreme

procedures quarter, non-elective have remain though optimistic the to We our trend the has expect sequentially like XXXX. to year. QX continued coming about pandemic our asymmetric we but the as expect continued about line U.S. the above-the-knee mainly to sequentially, we impact the peripheral limb down calendar including been expect with be semi-elective January, resilient. ischemia result, a business the in sales impact and of markets, into During critical an to coronary have while impacting and second procedures and segment the claudicant more across COVID last Even year. negatively revenue our throughout we in And QX. This ramp

device, longer the drug-coated balloons, excited embolic our near-term protection about as have are as well term and We opportunities our like portfolio. pump, and pipeline. we WIRION invest like balloon continued in the to And now peripheral opportunities, hemodynamic product our our

our Medical Egeland on will update results we we and recent in you will on Officer Ryan and how CVT environment. the announcement business provide with are But afternoon managing coronary quarter our commercial first, Jeff? third discuss and for this you balloons highlights peripheral our with this artery Chief Rhonda our Jeff disease. provide financial guidance. So will development will partner our to drug-coated details of regarding Dr.

good And afternoon, Scott. you, Thank everyone.

point to we which our believe new enhance updated on like today, these QX understanding Investor financial I be Relations would new the found can I brief provide of will our site. out earnings introduced a financial that review First, help quarterly several supplement, results. business. details slides in will now We our of and slides your

increased domestic growth increased million of Some by in steady additional domestic strong office-based and coronary peripheral $XX.X to revenue color million labs. unit growth $XX led continued ASPs. sequentially by led revenue includes revenue XX.X% X.X% sequentially The strong franchise

increased $X.X In addition, to revenue $X.X finally, revenue million. million. from coronary international devices increased to sequentially And XX.X% XX% interventional support

came gross lower Turning million, more than XX.X%. under margin last $XX just of expenses to Operating or expenses, than year. $X at profit in expected as million,

throughout profitability we breakeven to allowed have we The to are our $X.X revenue million targeting deliver pandemic, flow pandemic our managing and adjusted expenses of us combined the operating expenses breakeven cash stable lower and growth until As sequential operating margins, near EBITDA. and in with maintain and subsides. generate improvement strong the

On the borrowings. balance and cash the marketable long-term million $XXX securities, and with in ended we sheet, no quarter

that move COVID make and new near-term I the hospitalizations expectations cases resurgence our for As increased to forecasting in of large U.S. the QX, please note results more parts and difficult.

in on and will will on it's have impact have pace guidance the proceed vaccines of system, to availability the what prior XX% have year the expect how healthcare will this a approximately the Please the difficult impact business eventually through factors. at year of our considers the we fiscal predict levels. vaccinations other first of that Revenues half Although of been favorable note these short-term. QX and our

$XX Our represents year ago. QX XXX% one to to revenue QX million of approximately XX% our guidance $XX million of revenue

study the increase to a in Operating primarily we in QX the and operating year and project products million to expense launch with launch we product timing XX% the of series related and represents to expenses expenses, the are increased This XX% gross are and in to $XX of On fiscal million. sales to be compared launch project the side, expenses forecasted and $XX nominal expenses a increase be along timing is to of third to year, a of second of expenses. range. X% in X% to expected taxes. product margins the various last primarily range with to associated due study X% X%, and quarter expect payroll half Compared a sales plan to to training peripheral training

I we to call turn anticipate the and net will million bottom-line, over now adjusted $X.X Rhonda? commercial the to will to discuss million Rhonda, On a near loss of QX generate EBITDA. developments. neutral who $X our

increased on managing to versus afternoon, site of an compared peripheral to like XX% with and yielded would domestic performance good or the and business I resulted more our In and ICU for continues and hospital patients. for site bed resilient start in on and XX% restrictions from additional CLI last increases capacity more accounted versus decreases QX how claudicant access, was with hospitals absence of patients declining The our impacted lower impacted seeing more of peripheral and in of In are COVID-XX claudicant X% to have Notably, of variation through patient of versus COVID-related elective and QX last differently by resurgence have are year. advanced franchise X% staffing service. business patient be year-over-year. X% be in of treated improved due year. site was Jeff, our December, the Complex elective the decreased we're you, hospital outpatient X% from quarter waiting and service and peripheral also anxiety QX to continuing procedures. some utilization that and most, impactors of hospitalizations revenue delayed the elective XX% OBL by segment the procedures sidelines. a been setting, service. increase like everyone. and disease patients OBL subsequent deferred our Increased of last procedural many been up to to color Thank as patients QX, business the either during in sequentially by and

checks our continue recovery prior physicians one value did revascularization the of an increasingly disease procedures cartridge adviser we our at occurs. hospital unit a continued quarters, in rapid and and when the Exchangeable are innovation providing leg do it In per this purchase for elective nearly multilevel and of in important growth expect see to in achieve of with and where capture Exchangeable of doctor as we well the meaningful uplift a revenue XX% sequentially to next remains the disease volume. setting, XX% continued procedure, period when prioritize a platform, continued perform Consistent rebound full referrals protocols in at for present, complex treatment competitiveness to adoption treat in as leadership Coronary advanced ability channel XX% and patients ASP extra are centers to OAS to revenue during our extra This used. for peripheral strength as volume patients, QX. second share versus to place resulted discharge. higher hospital our case increased is with The to from which, procedures where peripheral of holding position competition. portfolio channel hospitals to increased CSI increased strength increased same-day process referral patients market key recall, and the you QX, CSI, increased cartridge despite compared is ability Our

base driver accounts. our a penetration in sales treatment the for existing Our upon and focus these essential of to to disease of in considered our reps in continue channel been OAS have new cases, OAS. and further adoption user on is supporting build is building able to advanced growth and of This

where coronary make Teleport despite had at This above to in the The ISDs In volumes in procedure ISD row patients about and continued combination bringing millimeter every $XXX U.S. to revenues value The for in for and per with XX% last patients strong great revenue year. and the resulted of device $XXX COVID. diverse portfolio cases we now sales balloon continue used treat unique stable able OAS of four sold. OAS of to quarters products addition, and the where a increased have to expanding sale more we progress of revenue incremental coronary Sapphire generate per we compared OAS X.X is case these the to QX are is microcatheter. complex with

to X,XXX international. over driver. to reach International improved coronary. close patient with major market growth us our we over to second In for share in Turning Japan of we events key QX ECLIPSE, enrollment $X.X be with some be XX% to trial the the million, estimate fiscal now In continuing 'XX. randomized XX%. QX, CSI in half Japan, clinical revenues restarted in I'll

we at this enrollment and to progress enrollment our a coordinators that modest are seeing to COVID is behind through to challenging until trial We pace despite a us, are so year. committed thankful expect and investigators

characterization. imaging encouraged are by evolving for We equally increased and practices calcium

protection we half, to identification only a CSI second benefits additional in revenue calcium CSI peripheral better meaningful this peripheral long is expand plan considerably with come. peripheral nodules, second years case. of line full an half which our treat. balloons driver expected series launch products The the interventional will these example, catheters. lesions lesions to and WIRION that add in products growth peripheral devices successful our per and embolic of launch device, products important be severe identify These In and of For our can to lesions, angioplasty a heavily-stenosed in of our to support and include the

similar of years, about for the OAS to and know, the opportunity is you and for that In catheters we we case XX% devices, frame. every roughly revenue and But X times of about so time we incremental peripheral, believe now microcatheters in selling for of in as we captured the X can As a many continue $XXX, is opportunity case peripheral, per total higher. over opportunity sold. over that sell balloons substantially capture over revenue XX% $XXX coronary, opportunity OAS revenue in balloons

at as will of believe one-third can sold there atherectomy we an estimated QX. with the embolic WIRION atherectomy addition, about primary with and U.S. utilize of revenue be launched be even of orbital in us sale embolic system isn't protection about ASP meaningful In these therapy can annually any XX,XXX WIRION an atherectomy $X,XXX we above-the-knee device capture in our are to share Today, EPDs an cases The the when today. used device. help protection devices drive additional

headed now with up. ramping collaboration into we Association As QX, the American our Diabetes is

diabetes, quarter, entitled: event United last January XX Prevent medical by society PAD Solutions in and Amputations Amputation on Ryan and better Payne’s Dr. in week, healthcare amputations, like of a the Later front opportunities Just those Foluso and event referral in ischemia, different and were on diabetes also we Egeland care prevent the to the XX, Compassion skilled was prevent sponsored to modern while involved the organization over lines attended can on to care. Fakorede ADA at this policy roundtable Act. Congressman highlighting will also amputation. on PAD, their who information educate Dr. and diagnosis help we amputations representatives Reduction capabilities and the with those diabetes clinician physicians ADA’s to around speakers diabetes with States, limb-threatening PAD and included event that providing network chronic Policy physician revascularization partner

Turning We QX. anticipate and have be continue cases now our our COVID. by We to for impacted first will international. coronary Mark in be Europe to begin device, Diamondback -- CE will will

until a very this may result, a resume. deliberate we educate As train travel will remotely be as launch and

fiscal for flow And we our 'XX. As experience have sites finally, the targeting previously, are targeted year adopt continue plan for calcium have pVAD, our structure in OAS already we to stated and experience severe for quickly. patient that treating now first-in-human and to

could As to product the we complete COVID of impacted our And been changes. required in some indeed, previously and result factors builds stated had that some the in contemplated. timeline time other ability frame previously, has testing and COVID-XX

We continue are progress, we making on to EFS. interactions have with FDA the and regular our solid to path productive and

Ryan Officer, Ryan? address will investment Dr. our Our in now Egeland, Chief CVT. recent Medical

Thank you, Rhonda.

team drug-device development enter everolimus interventional in partnership experience. past technical partnership market. atherosclerotic As with respected programs, CVT's are, a this in a very to percutaneous entrepreneurial his team combination working The together treatment lesions with CVT, platform, Marco, Marco treatment Chansu to able validate CSI an multiple and the and Technologies drug-coated portfolio. to Philippe a calcified pioneer or the confident Dr. mentioned, course, rapidly experience recognize were we entered leadership a on and personal atherosclerotic DCB experienced Having of devices. development with bring drug-coated market cytostatic recognized DCBs peripheral treatment efficient bifurcated widely-accepted of CSI's Vascular Dr. has efficacy is including and balloon approach develop lesions. permanent calcified for and disease, in DCBs We're of will option and the for Scott of lesions all above-the-knee coronary of sustained increasingly are arterial potential restenosis, instant the lesions the for disease without artery active implants. vessel for use patients with the complex in limitations offer In their anti-restenotic Everolimus, their the CVT, with drug provide applications, these potential drug-eluting agreement the agent small in a tissue DCB CVT's formulation a to of has safety development and DCBs. the of in coronary history stent financing acts to the proven for applications. efficacy reduce and restenosis as of milestone-based Under terms associated will hyperplasia signed based CVT and CSI

and call artery the of bring CVT's treatment product our everolimus options the to over of our In closing to to new remarks. turn affirms for customers enhance with forms and to key patients and Scott portfolio. for CSI milestones, CVT. we're obligations short, program most peripheral coronary mission to I'll advanced his and to now disease. will will Following acquire our rights DCBs add completion technical clinical have excited products exclusive This

Thank Ryan. you,

Marco are DCB in CVT the sales will through current new that enable working Dr. and about CVT product a build CSI our and will sold core competency new customers. our force excited platform a to to We current with partnership, be

Before we outlook the I offer year. of questions, thoughts guidance get your my regarding to this will rest and calendar our for

precisely to $XX in as volumes our coronary our guidance our including surge Exchangeable, gain and higher makes year. drive quarter-to-date million or they procedure rates that XXXX, It just launched recent GlideAssist. offering, look will COVID any to traction forecast COVID million next-generation revenue note $XX just in COVID has in Diamondback confident core improving slightly business COVID but had of early down But with and are and potential to variant core and our As about based important line cause. pandemic due the upon expect beginning international to These with near our cases we be in recognizes I to January, rebounding per experience, to normal are cases our impacted that were atherectomy last plans. we we advancements business a difficult we enthusiastic revenue essentially of the QX we we stated resume. of the leverage COVID, Radial to that devices, sequentially, our we and expect earlier, COVID procedure negatively expansion in Prior the products into resume are This our not spring in may resurgence company increase. that decline the we virus hit, continue peripheral propel our new is as before product and vaccination in growth new as it February, expecting headwinds steadily other to procedures with to some cases the term. our double-digit growth and operations as

per growth driving guidewires this sale balloons, supplement through of will higher We the procedure by revenue angioplasty and microcatheters.

sale have next an X we WIRION a past support launch and great our to the number as described, embolic years, substantially quarter, just will innovate larger with of Over protection progress of peripheral we products in And made customers. Rhonda coronary. OAS of these the products line device

Finally, the the we in international is Orbital market expect in to atherectomy resume United XXXX. States. expansion leader

Japan, in over number for coronary captured have market quickly our now market. Mark largest the received have Europe, CE device share third the And we X market. We in XX%

will technology OAS committed are We share atherectomy world. to have in the confidence gain physicians around is where our introducing used, that to markets we and

would tell double-digit point been I'm has 'XX COVID for pointing inflection only our to to For where growth. the as CSI, fiscal paused pleased past growth we that low move have you revenue few years, an we trajectory. beyond

drivers we calendar profitability intact, beginning latter of the grips accelerate growth our emerge the and As of we in poised to the improve year. pandemic, half this are strategy this and from of remain

your we on in will you the CSI, interest the repeat you appreciate continued instructions? now call, questions. of those Chris, would you. take your Thank and we please For

Michael Needham. from [Operator Instructions] question of comes line with Our Matson first the

I sort if will of be developed with cetera? first-in-human any to to start you going here. the the expect insight peripheral trials guess I you parallel, When of and timing balloon products just sort in I wondering is DCB could for the coronary give was agreement. us these or do et

Mike. Thanks, Yes.

that I think Ryan take have Ryan? question. I'll Egeland

this compelling we formulation. Well, and in I And first coronary both identification that in to for everolimus the regard. ultimately, I reaching as in With Thanks, step is recognize course, with are plans the milestones, it's formulation 'XX. a Mike. important CVT's Yes. the anticipate to the time of pursue programs. working respect program to peripheral the obviously lines And we're mentioned, both in we're calendar drug do optimize confident think first-in-human those to CVT indications of

was Okay. And Exchangeable ask you meant. commented XX%, but on I'll then confused progress I I you of Rhonda, the adoption it's used your being product. that, what I mean think peripheral about that there, or? but XX% cases the in guess the Does that XX% mentioned of

Yes. I now exchangeable leg, XX%, entire physicians cases. and want that disease and us want. what cartridge that's patients have single and dealing particularly been the pretty in patients was second excited And the XX% the the along a that more number in vessels, the their progress, Thanks about are out day. where to multiple of We're get as of disease, has for was referred use to And a really the with driver question. complex so for physicians that and

support then the they're margins? a gross lower is And revenue, part imagine continue as of because affect they from margins gross and a have become it. distribution coming devices I'd going grow how to the to Got Okay. that your partner? bigger

Yes.

course a done with efforts that cost Mike, the been to those have substantially our great few efforts expect said, in we range, remain I few manufacturing the the past years, sold, -- gross high think our and of as and we've the over operations continue. reducing our of in job course of next XX% Clearly, years our goods margins, XX%, we that our in have range. XXs actually over probably

mix able lot And room revenue in that to we in over manage time, that at think of margin look that we our We XXs. we'll gross high be have a of as still.

question is next Pasquale Chris Our with from Guggenheim.

think of questions the detail support the devices, there highlights extra opportunity which piece to couple that of presentation, the business. appreciate I on in well. related the I really the A particularly

clock to If First, lineup the when the the gain coronary comparing need peripheral? experience, traction when you've expect X-year that start it there? really do ramp you had to for that start to you side meaningful we're there, on that peripheral does

clock products. the in will The be those Yes. start peripheral we'll quarters, X over our quarter launching Actually, next here. of fourth the course for

X would then. of say kind about the probably that the coronary XXX-plus I that in And as have So mentioned, for past now we starts clock Rhonda range sustained quarters.

So you -- that a the about up bit case little just really, XX% coronary effectively segment. that that's there's potential that that's in that. than we've maybe the more year's consider effectively to penetrating opportunity was And got Chris, per in a if of available $X,XXX time, about

access look $XXX So have then, the at in market. of portion $XXX peripheral as probably femoral we the segment we that to

$X,XXX different, WIRION As our protection there, the device probably at our -- going often radial. procedures. a launching a we embolic device to then, it look probably like about we per may per we bit in an consistent in have $X,XXX there's also course, opportunities be that to competition range. actually in the is we'll increase more so a device And will per it used of have with bit be probably although opportunities procedure, have case premium, of more really that radial which is And our competitors' more revenue ASP broaden

you a on more little that to detail products and hopefully, how about ramp think over bit that So those how will gives time.

got that since to so still there -- guys been side you opportunity bag higher? the has you $XXX case some on $XXX COVID-disruption add it's to but the Are you've quickly, coronary very related? wanted that to you there. where you mentioned move something and need originally of the that to out per kind getting to Or you relative headroom that, to to think correlate to identified product just traction then And else the particular have or categories not or flattened you're

But it's our in combination those think use all of of we get to actually, in all all little about We don't rate. of cases, them feel products and good Chris. cases our we pretty a I XXX% items, that penetration bit penetration either. to don't of expect a expect

there is think to where So a limit will we we take that.

as settings we on coronary look bit go there that in we a need and we hospital in and GPOs, and to particular, Now have IDNs, major at of a to barrier that we time. get some contract, have takes to

perspective. Now important probably most the temporal is driving factor that a from

We in contracts fact space those the office will addressed in have at that of we don't business portion and contracts some that of the of advantage where level. is to the lab peripheral our have with same we've just already deal a segment, those

penetrate So least quickly even as the segment we bit a peripheral we do faster. coronary can think as at maybe little and

is Your SBV Antalffy Danielle with question Leerink. next from

be what of thinking are products can push that what's to are add this? per we point from procedure still or in rate Or sort higher as you there think of space? it in the to where more about on you ultimately at coronary about and should at revenue attach can to you is -- penetration question best that, that are you look it. how rate do Where the follow-up Chris' reasonable, over if time relates the what's to fully Just there penetrated And the go? Sort thinking coronary reasonable? however

Danielle. Thanks,

a really differentiated coronary. in We have product and line nice actually got

in market. can our is millimeter have in nitinol in Guidewire microcatheter, Sapphire we that about, we the used talked market. Teleport smallest have with microcatheter which X.X got Rhonda our only We've the the atherectomy torquable market. As be the smallest the balloon, balloon And

-- market, we peripheral. We commodity a bring offering. really that even So we same intend a is this product have differentiated to offering more have good a though to

and this of to we and think there at contracts business look coronary, hospitals our segments penetration at ability rate point, more of larger as into large our getting increase and the market. the these up grow about opening I is, some into large Now

take So to on each just them of hospitals. basically with have on to that does work time, we and of got with accounts. each We've these get these contract

out, that that that allow have factor of right that us we group to the day are that's but will really individuals a penetration. and important continue in and We work making most now day progress, to on increase

the when generated. In our we good penetrate our peripheral. pretty about And can per to opportunity that if that really you that. of we'll peripheral you mean about time is about should penetrate revenue revenue range I a think think about terms ability of feel about XX% this good that X-year frame, probably case, feel do we over

it. Got

on That's market on in helpful. Okay. the coronary. just international And then the congrats CE opportunity, the Mark approval

Thank you.

by barriers about But uptake should some France, thinking reimbursement little in to cetera? these a in Is bit adoption we of more country the countries the be in get color just et larger thinking wanted to How on countries? place? already reimbursement have Italy, country? largely what those are Do you Germany, to get go

COVID-XX affects going unusual because Yes. right like way to say the and everything ask else in that I'll Yes, now, thanks, world Danielle. to just crisis, this Europe. that that, the particular, dealt of address we Rhonda are with that. circumstance I'm the But in

unusual from going will bit you is accounts Europe let Rhonda, that launch that this we'll So approach market I'll using of doing. I focus unique can what already mean, to are be treating we a already be that's opportunity take this to be and are atherectomy. where there. have our and on that obviously, And But a different. we an in bit

There that I Danielle, And we occur, big we atherectomy and really potential exists noted, the penetration the approval of a as need that opportunity. mean, be XXX,XXX it's so look given you've been have is has calcium question. variable severe going just bring to the it's for certainly by to this there's factors. there is of to today that. development focus of of low, mindful kind is and rate think Yes. in Europe as think We're able PCI the a think reimbursement of But at and to now than be Thanks, market excited I hand to atherectomy rates launch. that much there. of in for not as to our variety CSI country, a cases market a numbers, and we there. probably more able I for be

too, of seeing increased I remarks we're take trend seeing as that this terms we're really made comments in coronary. my of important trend is in imaging changes, becoming hold And think today, And well. in increases. I in Europe, an some

they things, hadn't are a that seen of calcium lot seeing So physicians previously.

I a in the it's Europe, that we're said, processes to and but But are we to CSI that basically we know opportunity. structure on the important So procedures will are the referred capitalize in think patients penetration barriers. and time, today Scott treat our very down going comes multifactorial, in launch X% where that them, sites these there think that's atherectomy so even and with have as and very, break at Western get to performing to start.

Our Blackman next Mathew question is from with Stifel.

the the how exited recovery frame how a way the fiscal sort But or qualitatively willing to quarter and And sort the likely got And first on quarter that of then, of for maybe assume there started well, you're quarter willing the course, and start second you how progressed, of the wanted go or is is the were I mid-quarter? versus any just happened into I'm there reflect a you detail the I've quarter and the resurgence. the on -- not of to we of couple. Scott quantify progressed sort to had quarter. Jeff, divergence in quarter? half quantitatively but how of way how tracking to things trajectory sort sure to

considered throughout Matt, the on patients population. procedures peripheral mainly capacity ICU towards in I some -- implementing restrictions. physicians, semi-elective, was as also pointed color largely portion will principally our we more to this where as of decline hospitals is market, a be claudicant really the that. patients you of And give begin you impact. probably these I patient the mean, we It end that out segment though that on only is the December little call, by our in themselves. our the where prescribing we business not just is of saw bit back clearly, our the of but and and And have of go the saw population are market. That's by our impact

play things that into So that. there's X

restrictions when our postponed. to some and -- of elective that and obviously procedures, these they have we down be semi-elective have is can slow begin hospital that are claudicants, First that patients

will they the them bounce And saw back. well. come we event, that back as saw last Now we after

expect that -- do we So would again. we

that as well that The other other confidence. is this -- patient big the influences -- factor is

anxiety, that can do feel their and more this in occasional little severe develop will Once until are they this with addressed, again, So and as postponed. ultimately burning backlog is while passes, up leg, that they they'll the patients these crisis that we that. that, put but they a pain postpone saw maybe procedures

mainly So that frame. was time in second December that of half

we well. perform and at business, our as quite that robust has to Now coronary has actually continued coronary look pipeline been

cared we they hospitals, centers, business particular, saw was care patients, they're it the be that ERs, are and this open seen they patients, our an hospitalized care more I CLI into established business, that peripheral and which we there's XX% these impacted, of then peaks continue there's comprises on impact in treated and to coronary our in business. an of protocols unlike quarter, affected seems CLI fact, finally, an our really much the right continue really have these haven't mean in in coming second And has if the to to for wound they're been. for that major patients. not that our treated. also their and the being COVID in And spring in it So tertiary basis. severely care roughly coronary they as-needed they while and assure coming for an where And

a So just you hopefully, more gives that color. bit

in right majority the impact peripheral in-hospital think that largely see claudicant now, I patient segment, ATK we of the is and the population.

and question Okay. little And question support portfolio get to final my maybe other at bit just I want appreciate color. and differently. coronary it a that

accounts there get meat You've of your support to about a using a product is of a contracting of what in frame left how the Just on us from penetration. much mentioned trying help broader preventing today? the headwinds way contracting sense CAD opportunity base or to percent Is customer sort a into think Or is latter the terms stages? just in Is for may you can these still this of into? get from a the bone we number meaningful cases here headwind? some getting be of it are of

No.

continue we've occur meaningful of, roughly, might of say, it up case we don't Matt, still don't I that at to today that at will, that potential now. like same a But we're expect what, the out there's I but to about per improve see $XXX about I let's $X,XXX per it rate think I And said, expect to opportunity -- improve. or until there. I case. seen

get going to $X,XXX get, cases the case. point where to we've gotten we're will get of that to and we're access per going kind not to a the to We so

continuous in at over level be that flatten out. cases. we're number and but some of see begin out going we'll of to see kind improvement We these terms will to balanced eventually, of of our time, kind penetration And

question with is Kalia next from Suraj Oppenheimer. Our

Scott, can hear all right? me you

Yes, we can, you. Thank Suraj.

Perfect.

So a that Scott, guys settings? take how for an coronary economic Is the not setting. versus in I and coronary both in for about if the Ryan. messaging, I But could. think you effective it order, IVL appreciate X for on Rhonda competing might the you perception the cards? of I'll as question study fact IVL OAS, X you the be and that in with X you, plan in do head-to-head clinical

the No. I cards. study is a don't in head-to-head think

severe assuming population a do will in the technology are treat actually we that we of We IVL patient atherectomy, orbital eventually to market. With treat is a are than there's within of sabretooths lesions. are have probably they're long these treat nodules oftentimes, form time, XX% or of that of heavily-stenosed and that most very of calcification. our And present the atherectomy. different think orbital kind think IVL I more present what than patients be with the going lesions, we, course, that

a that predilated prior that an can clinical data could about IVLs. and population So patient CAD of back over XX% and can that you And well IVL. to treated somewhat X-year is at be the seeing that not data patients you look utilization the with of is their go

our look can patients you If predilated. our at X.X% be data, of about

gain And rare in they generally are the gone on speaking, we're and physicians practice. think complex who in the these maybe trained of been come that interact at population the of that training basis we day-to-day programs customers these customers these cases, so across in through calcium very treatment a treatment may have who that So we are is patients. these adoption regular treating are are been a the greater And with more support skilled more IVLs Where lesion. fellowship have that tertiary not care their centers. have physicians of for but trained, severe

just segmentation we that there market segmentation meaningful don't light. the pretty I at the result, a I warranted, some where as think I of coming that's new a So is think see how comes that forward. here today, there's we're trial head-to-head is and a I unless -- But to data think

net expect normal a you least done a question. liters on per has we on threshold? with of pose plasma florid the pVAD? free it. at level Got testing X.X and Rhonda, focus X I'll preclinical hemoglobin minute What been Should

very all testing your we last bench testing, and repeat all will say and protocols. working with but Yes, closely very, requirements preclinical progress that Suraj. their very, the Thanks, the again? FDA I'm through part good the of I we're are very the haven't of disclosed animal of you their And sorry. making Can degree to question, I of and all very, of missed complete

benchmarks you least be pVAD? I'm liters minute can it give going per Is X.X curious, on some the just to us at net florids?

Yes.

be. will Yes, it

Ryan, choice improvement potential in signal question more the driven paclitaxel? pose timing, let's primarily 'XX. correct analog of rapamycin is jump me mortality of for in you. the an last I that Hey, Or be this Is was until in Perfect. curious because not in an if what's this late we available, product I'm for was just Am right? calendar would paclitaxel. commercially the just I'll here available by Okay. on the the terms versus know I'm please 'XX, wrong, going and asset

Suraj. question, good No,

being I think So everolimus. just on very good active drug your question the component

think we're history safety component that very that, a others, the confident with that and certain over compound. longstanding biochemistry window of we therapeutic I and there's advantages obviously, has that pharmaceutical of know the basic

that in also will to of the formulation. this focus and on be talked than And the just timing, formulation, calendar we're as course, kind asked calculus, So what had broader our of includes relies leads first-in-human that the which but that respect really anticipating did program the weigh of more to It our point, that's you into PAPI. with 'XX, just the about, about. at validation we

Our next with question Raymond is from Jayson James. Bedford

but end think growth in I Scott, of latter get business profitability, mentioned cute the beginning couple. accelerate the the to year. a I of want have the this to too here, and your towards I don't calendar with half words you is that poised call

in impact have you'd So of I quarter. more the see would an thought June

So clarity accelerate bit realize COVID maybe given but that. to I'd fluid, just It's a love growth here more expect pandemic? on clarification revenue on or on your a the when you thoughts

I predict. it's think Yes, really hard to

are -- operations to can that we we we testing healthcare the I pandemic, will as the of that in rates and availability of assuming this think normal half the at system think increased we see the vaccination return I look recover second with XXXX. and

triangulate. every where basically that's from look know, of I thing. places, that's IHME of just Now other same this kind all nearly at that, a lot the the I you saying us as company think And and reports said is has not of the if reported estimates think medtech you

uncertain said, do time, think see well And and we how at look to. it's I as is up. to uncertainty do think those in that actually what that we of really in vaccination I our shape really out terms metrics, bit And driven that a referred as quarter, regarding June now bed them And are of point over sequential at dramatically and degree But honestly, is I as capacity. expect you ICU see, that quarter out we a I'll metrics the fourth we our improving. quarter, by that that there. happens X see we'll improvement we still look that the as will as at hospital look our admissions

continue. see we're So that optimistic I cautiously would that say we'll that

back we patient so earlier, patient is important a system there us particular, get solid hands I've that the confidence. care? peripheral in decrease to not that our population as to will into which do see population And a allows are anxiety come in that. really referred to we for around restoration predict. patient that, have to begin metric, hard claudicants, to in they other that very healthcare It a when when metric does is The do really us, confidence, the of is And

completely that's ramp, rest will have more and the a assured, really by than This detail -- trying release is really So we're bit but wanted, you will we're by for completely This continue assure well-positioned. and what COVID-XX is expand probably closely allow driven longer, either to or to grips the studying us more a that a allow and us grow that we'll and virus. longer will determined more quickly the while of crisis.

Okay.

in have any quarter, stable missed I may to peripheral pricing? Jeff, you coronary but Maybe for pricing mentioned the Fair that related Okay. commentary enough. was

higher Thanks the little than environment. pricing bit Peripheral low very question, in Jayson. stable kind price remained OBL, continued for It the continued mid-single-digit stable. see also a to of Yes. hospital that to the erosion,

on just then couple of international business. a And the Okay. questions

And tied side, in in On coronary current approval? dollars market the the CE is of secondly, orders there are Mark coronary to stocking then the the what atherectomy Europe? size

launch. first second question? the want orders that. would related address that There Rhonda, of to are So address I'll to not the you part stocking And

as is significantly underpenetrated. Yes. We today. I $XX million said, market a it's But think about it

that increase significantly. that our that to rate mission -- market is really grow is penetration and So

Our last Blair. Margaret Kaczor is William with question from

of reopened rapid reacceleration me. wanted summer quarter. then but for in just on the was terms to and the for touch quarter what know tough same in saw March that a demand what we June to predict, I months the the on and few of I such. Jayson as talked hospitals pretty kind token, A maybe about it's

the what as into well essentially that So trying thoughts March around potential that as as fiscal you some and into quarter peg mean to what does go does maybe that it? guidance for fourth assume for

Yes.

that, As Margaret, ramp after we continue that from COVID-XX see of we'll a I here the see And steady indicated, early to headwinds will improvement. then some February. into assumes guidance

Now early if the January, the cases that look weeks cases you through at peaking peaking generally, to in it takes clear and than system. occurred recent X for the about hospital

So start business look hospital the to backlog to at actually peripheral that uplift see where that's portion that would our some we as end of to and we'll would February, expect lead us that to our in some say mainly in our begin population. that that see in then peripheral we segment, release, our and of business claudicant is patient

thinking of this that's the remainder kind about of quarter. how So we're

I may you a then is next of pandemic the next we'll talk next and quarter at and with I'd of very and releases our then we'll If it fourth rebound to that have unfolds a it, are, in that about that how But quarter. call. our in amount I talk you over look we see healthcare with that very -- like least deal As right, and the able system is to to well be there at guidance deal quarter, guess we time hope as earnings this about period is time.

the of in as as backlog that maybe quarter scenario, already question follow-up backlog don't did to a were that? maybe sense. pushed patients And 'XX, that in of September out, maybe of that That the makes you queue I got have guess big that than more and was you this is,

true. Well, I that's think

think except treated. July peripheral that a did see in that segment as backlog that we in I our happened of were September you described, And that fair, that that's were quarter. in patients that,

experience a to away there, speaking, won't the They that know backlog a we did patients -- to spontaneously. and have These go come generally are. are where chronic back condition. claudicant continue So see loss up. They we they bit of system a we it pain. did It not

system back care. will be come will in and they they treated, So to for the healthcare

this next late that September quarter. into we'd again quarter, in to quarter it saw we see probably expect So that and

that commercial. are longer-term then And questions X maybe Okay.

the or of sustainably do treat on awareness you on question So And training that sidelines. that guys then with surgeons is, to or move COVID? can back the there are And further right that? of of maybe see Is guys end And not more vascular commercially have into lot Unfortunately, provide the OAS of volume they're could planning patients drives there's second with now you OBL? that you on have? impact the COVID. a able done anything incremental it COVID, a what adoption you

Thanks, questions. very good Margaret. X

been as yes, group midst regarding adopt focused training operating very or the of crisis, on of And case remote are programs programs. we're to that a So education atherectomy. of have we and now do that in medical large-scale community, include digital in physicians live well surgery able begin And COVID-XX vascular then both as wish the types remote now trainings and and education fact, the Q&A. specific certification we peer-to-peer who to to offering

in terms where surgical well seeing vascular in as patients care of for performing are as atherectomy, community the We in atherectomy addition surgery procedure. to their the begin hybrid procedures they're adopt to the both primary

the this strong pleased really are long question. time, got now we and program first continuing education of leaders and the adopters because to evolving, opinion a It In key I training is we've explanation, advocates is also support for very efforts. are that treatment who both at these important but space strong that those So patients. customer in that some mainly and forgot we're

in Movement OBL.

is underway. the to definitely OBL migration The Yes.

started years. really in the the Southeast, other of office-based and past We It's it's have is that the crisis of migration to it I And the more in lab. just Certainly we're happening occur. in most seen couple that, parts geographic but rapidly is migration that definitely, country, the South COVID-XX nature. seeing had that think than accelerating the

the I'll closing Ward back and this now for concludes to over gentlemen, any Ladies the Q&A call turn session. Scott remarks.

XXX helped call employees, if whom in and CSI to are Chris, many employees a joining over families. our call. today's I you, participation everybody. the of I'd team We or dedicated on our us patients pandemic, over life today. Thank a recognize of moment lives take didn't during to XX,XXX the of their And on improved your the QX, be save thanks, quality remiss and appreciate for

ever, like as really I'd we their to now So on pandemic. our employees than through perseverance this their key and our of for thank more drivers navigate growth continued all focus

and your again updating to quarter. thanks, for dialing everyone, in So you We next thanks look forward attention.

and gentlemen, concludes Ladies this today's conference call.

now may disconnect. You