CVRx (CVRX) 29 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, good afternoon, and welcome to the CVRx Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Valley. Please go ahead, sir.

Good afternoon. Thank you for joining us today for

Earnings XXXX Quarter Second Conference Call. CVRx's

statements, on Chief over Executive me Jared are The contain based today's The and financial Chief today, call and President Oasheim. which forward-looking will today as company's on the remarks statements Officer, statements time. Officer, about guidance. are Financial Joining including expectations Kevin of plans and Hykes change may

President release could of identified the Chief results Officer, will actual SEC differ prior earnings risks in turn SEC. I the and uncertainties, addition, to company's number filed now materially be call In a upcoming Executive this like the those and including the the Hykes. CVRx's that and to Kevin issued to over due call with would Form in XX-Q including filings, to

second Good us. the you We afternoon, our quarter having I increase the second U.S. heart about Barostim thank remain pleased failure the building therapy with of XX% XXXX. of strength impact million, over the on delivered quarter revenue is and and driven Mike. in for team results, patients. business. I'm $XX.X enthusiastic Thanks, joining total again of we're encouraging by an solid

leadership first reputation failure medical sales experience building and Chief Revenue within novel significant community leadership was priorities. To John the priorities Officer, I has leadership this as to our to officially and drive failure recent like team this June would the that a us quarter. commitment over of leadership Robert and the of sales X XX was our seamlessly new announced in launching leader. during heart who to second our able stabilize heart has appointment the Varastro, and confining our in delivering brings quarter. our One team, strengthen team, sales started interim our numbers our organizations my experienced sales industry. and Paul of U.S. Paul we the most thank Robert years in device to XX period. development has hit second the his team head deepen key on quarter sales to therapies unify strong results. and for the market assumed Robert we recently experience from disruption open This territories to quickly Paul transition of new and allowed

Robert confident in ability development to is to his market solid we're upon forward that contributions our Robert's While build look on still early obviously initiated Paul driving tenure, in momentum and the to priorities. his

to procedures and Chief The Chief accelerate and executive new heart we've help President Healthcare its additions of Human overall In notice were and changes including which its involves underscore in growth, Barostim fully This placement awareness I'd team payment patient on potential we the status our change of from expanding us for failure. Resources from the and provide focus England also would addition Dr. to a to on patients roles, CMS July leader, Patient of key Philip Global to company's an access adoption education to first access. Senior and as Barostim's and decrease approximately change as Jennifer prospective economics, the proposed system. the other outpatient filled Vice Barostim, Adamson $XX,XXX Bonnie to new hired the order among Hankey hospital Reimbursement our focus X Access, and Research XX, in rapid update sales of Senior referrers XXXX. as The moving that Medical the President developing Clinical Vice Officer; in hires and a the talent of ahead APC-XXXX. robust developments. XXXX proposed more of quality of these resources hires to therapy, $XX,XXX clinical key complete to able increasing current of which us. to for with reimbursement approximately improving Officer, some senior allow Tanya to to to includes on new recent Barostim like such outpatient Austin. reimbursement of, with reflect proposed discuss opportunity on include These our APC-XXXX the evidence. Starting On our for These value the barriers in OPPS portfolio rule attract addressing released patients the XXXX we rulemaking adoption average speed now with hospitals support payment technology patient

While disappointing, the before remains proposal subject finalized. to it be can comment

merits feedback hospitals comment will XX-day the the a on Barostim as from the period, impact Level APC as placing APC-XXXX. on and creating well physicians Over of in solicit CMS of neurostimulation X

health final data, in any done neurostimulation engaging to advanced care with to our third on in process for patients outcomes and APC. work Barostim this period at past, and value least updates advance physicians technologies publication reimbursement. with will current on appropriate successfully industry and another The X administrators confirmed hospital a with this the hospital rule stakeholders is fair CMS call colleagues our we systems by ensure for in actively APC maintaining similar and are quarter provides the of and of November. have We'll the we Barostim's earnings provide or in As the of advocate to we new placement creation Level for the during technology year

inpatient these a is this proposes be proposed hospitals of approximately look to earlier rule-making to inpatient prospective navigate forward to approximately to the have $XX,XXX. We this use. favorable system released payment Barostim processes the which on $XX,XXX While payment resource from of to reflect reassign the release potentially final expected in the inpatient to XXX an rule, outpatient year rule we clinical the side. and change would result we development The August. MS-DRG severity reimbursement in better increase in setting, The

the treatment increasing community continuum. in amongst Verastem and as referrers awareness initiative to in role second is and Our benefits education of patients the and the

our expanding a our cardiologists effective marketing XX% and who Barostim providers also we're patients. practice efforts, general indicated to their prospective is failure to invest X,XXX authorization advanced outreach direct-to-consumer which target our primary providing the also of prior heart support While education our program focus our and who XX% in of are key patients, Connect on specialists see population. We're manage continuing part highly our of to

third with a focus outcomes positive is are strengthen clinical on of stream Our to the Barostim developing consistent comprehensive clinical evidence therapy. a supporting with more representation physicians real-world clinical that achieving Barostim therapy literature of the more

CVRx, those they us continue the patients to published benefits support described their patients that encourage repeatedly of literature the that from benefits During in date. range far, publications Because to observed the further this, wide my with time Barostim. at Barostim exceed in heard so I've their on physicians experience they of to

additional therapy illustrate publishing fully action. involves scientific of more These Barostim's and mechanism We further scientific help results. are more the evidence action. This for describing effectiveness impressive explaining the that will physiological of also underlie of foundation that on Barostim's its mechanisms the comprehensive and focused publications hemodynamic a mechanism provide

base, integrated our programs. therapy From champions a and that focus demonstrated the utilization. will and like we our by We and surgical organization. Turning want building continuum adoption, long-term growth. I we the The heart focus on Barostim programs plans new of into drivers have is during our The our to multiple optimism our of supported opportunity sustained the successful sales leading and our best to the partners. increasing work most market the Barostim accounts into therapy about the on are treatment changes These these standpoint, failure leaders have accounts as Barostim where therapy, of characteristics are strategy our strength preliminary additional support implementing the high sales. sales continued done deep insights that emphasize adoption. our the bringing specifically of transition as execution for improving believe our to observations near-term are account well performance we're and of key physician

at which making broadened evidence aligning indications. the our other future, to diseases team potential in and inspiring this strategy, at and deepen we'll transform is explore long-term to time. comprehensive base long-term a suffering our company drive and already commercial the in and leading people be Our driving privilege to beyond. a growth it's in and treatment the XXXX market cardiovascular millions aimed of resources the Barostim vision is in from We're and adoption scientific share failure to leadership of additional paradigm HFrEF for developing to Barostim's strides heart

meaningful goal therapy team, clear, drive remains towards technology, With strengthened even positioned Our make patients' in and innovative our more difference to our to becoming presence of expanding a we're well care. standard lives. leadership market

for I'd call the like over a financial to Now to turn Jared review.

was territories, that the by June failure XX XX, $XX.X XX, into XXX centers implanting XXXX. primarily same reflecting Heart $XX.X quarter year. U.S. sales heart current over an were new compared XXX the revenue XX% million last last continued of Revenue In the the period million, and had total in increases accounts Thanks, XXX increase increased a to last second are months. current on Kevin. The customers year. least the revenue XXX on Barostim. At units. a a patient in end awareness $XX.X was failure total implanting year last Active of units we of March heart second growth in commercial to XX% the result period have completed new of revenue the as on and generated in the X at failure of total growth in $X.X centers U.S. generated the and active driven expansion compared physician quarter, of in quarter, compared the representing $X.X million to million revenue business XXXX, of or on XXX quarter, million the quarter and current same of the U.S. in the totaled implant

March for change increased increase year. the X million, XXXX. Europe XX, $X.X million Revenue in months XXXX, of X% interest increase increased increase was an XXXX, agreement. territories XX compensation XX, in $X.X increased months $X.X the the compared compared for This ended for XX, travel million income expenses XX, for months same reflecting increase expenses, the was of per end on was XX% by $X.XX increase year. months million the months of in last headcount, XX% current increase interest-bearing was consistent expenses, XXXX. $X.XX X also from the for Gross of months the to and the share share XX, current $XX June shares for June at ended period ended decrease XXXX, increase income XX, This months of June average XX, months current per a the million X of X XX% mainly a $X.X on months a June months were ended as net of the current XXXX. primarily $X.X XXXX, representing compensation $X.X XX, was driven remained XX% period year on weighted accounts. million outstanding per X% ended last ended June XXXX. to in quarter X change in quarter an net and each sales to loss in consulting revenue stock-based the Europe XXXX. at quarter XXXX, This XX.X of period Europe XX% XX, compared XX, XX, in X Net compared ended ended U.S. compared loss primarily XXXX, noncash X a Net the Gross X in the compared the period. The for in last development a XX, decrease ended margin $XX.X for $XX.X share $X.X interest ended greater million period to to expenses. Interest June was a was the We million borrowings $X.X decrease SG&A had driven XX months to prior a June million last to the was expenses. in the advertising number XXXX, the ended XX, driven June and Total months our on was the increase units sales quarter same This million to by under million for June profit XXXX. X weighted and outstanding million $X.X at decrease million XX X expense, million by the loss increased shares $X.X same the XX.X for the increase and XX, in loan Other expenses territories X compared generated driven million ended by year. and a $X.X a June million, X June $X.X compared XXXX, consulting June the expense in $X year. June of XX, compensation Research average in or June to million a same based or for result XXXX. were for expenses the representing expenses million expense the

cash of to was June million. and cash compared net cash million Net XXXX, ended operating the $XX.X August ended months million This XXXX. used XX, X for investing $XX.X activities As in XXXX. used XX, in the operating were for $XX.X and and investing cash is activities quarter of equivalents XX, June

to turning Now guidance.

total For XXXX, $XX revenue of the expect year between and $XX continue million. full million we to

operating million. and We year and continue XX% full million expect now between XX% expect gross to between $XX and margin expenses $XX

$XX.X call would and XXXX, third quarter the to expect back of Kevin. to million the over report For revenue $XX.X like now turn total to we million. I between

you, Thank Jared.

for I'd valuable reflect and interactions and patients These line like to our benefits physicians potential months belief the in my strengthened of as impact open into the have Barostim's My on to have provided only we lives. my questions, transform CEO. therapy. X with Before real-world first insights experiences

we lives impress has to not more that day progress and now committed We've of and opportunities leadership team spent to seeing to My strong, our coming mission. me. We keeping have QX optimism also I in X into been who are executing continues identify forward bolstered the built focus pleased worked by dedication focused and to built could recently with our and to improving are which team's the the you full quickly expanded team quarter. begin group how Our a a our momentum collaboratively the together with continue third is areas. our have on on updated look to months. professionals patients' we in

Operator? line like questions. Now to I'd for open the

the of Our Instructions] Robbie [Operator from JPMorgan. question comes line with first Marcus

the Revenues the moving a in a guidance me. touch one, for up would just of line on there's Street at organization. Two came imagine, Maybe first with changes been Great. the lot the us cash that walk think start I here, when low might the you profitability new through enough do generating to get Maybe enough flow? you expenses happen? high hires. And to pathway here? And do revenues or how free OpEx

Robbie, this Jared. for to Yes, Thanks is question. take I'm that happy the one.

U.S. more centers more time, having know, productive and as has the out training into you sales up and So more where force, adding model individuals been with them them to getting built over more the more activate and we're them experience.

a we we And breakeven. say so when while haven't to drawn line in the reach sand will

make this built haven't hire and out that to still to that continue back of breakeven business, The sand the reps to these Our territories pace sales decisions and we reach to because are opportunity models add continue see same productivity before more us to territories or on invest level that in a the quarterly in show we basis. have at a allow quarterly pace about to territories increased line to basis reason on go cross talk result added to we quarterly one we want basis a raise as whether would what each capital. that at a we're will X we point revenue to where on is faster of continue drawn the threshold adding a of to about we more we grow

viewed we in So of in be it QX levels second a while revenue step to the we quarter, back from to had as a to the go the push did bit bit deliver QX of quarter. here and first a that able we a

do in revenues with to us line about that that you the down? ways go there model to of think have the you other change going are reimbursement I Or reimbursement? changes, that down not Should when want then come percentage you forward? think can how the And ASPs offset

Yes, second dive where into kind and the moment remind of to reimbursement people back that that a I'm Robbie. been just and going I question, take we've of step before landscape part on

about year exact the to average this we which APC-XXXX where outpatient in in out in hospitals the proposed So be proposed to the to had turn and January a the coded year. and a received August the then reimbursement of the spot they if July in mapped Once to same physicians data, cost at remembers and rule that came mid- would brought last we be beginning late of being the ago, gather for rule, XXXX. to we of CMS about steps CMS X, $XX,XXX for understand took panel to us the of submitted XXXX, procedure specific everybody 'XX this setting would front

physicians The outpatient is to November perspective. recommendation in payment was where did there reimbursement that of new the then be the to January As that. individuals should procedure They favor a setting to the was that to result an in process, in APC-XXXX XX mapped the a part XXXX. nonbinding [indiscernible] a from average on CMS where of nonbinding or released hospitals a mapped to us where final of our XXXX tech vote make And starting $XX,XXX map exactly add XXXX. APC that rule X, be was

good of to past, data cost same the in XXXX, we is move better had or into as volumes. as the cost what Now levels than with being just the the submitted we seen around hospitals, higher

group to we we with little surprised by outcome the panel the now proposed a back data positive this more So went know and We a November. through the end to as while hopefully get into then up rule. last year process bring that physician again

at We time. being neurostim of long-term off any Level not to the code same we're our New reimburse model changes about believe to to being in making Tech another point on at CMS As least hold the the the as support that submitted this going APC a year, to far models mapped goes, X if would XXXX for do us level. creation costs

I November, conversations can the rule have in to have seen about stim more think see So we what then mid-XX,XXXs devices other neuro final in the once to the we it general, long-term products model. could when their we've in pricing impact mapped APC-XXXX. But

is line Piper Our next Matthew Sandler. of O'Brien with from question the

just if pretty half QX Kevin assumes better past. up is guide what step in for nice to QX, QX know the But QX, to seen for than or don't a here Jared. I the this we've back

to bit saying that we going little new centers your think, a existing getting going message? hit and really the Is And ability Just we to the talk in comfort circle kind these think is do we're that. wagons to with the you're what ones. kind about you're expanding of guide, into again Kevin, I on well guidance that focus numbers if versus to especially doing about of how that do we're

for of step we X question, my and bit done Yes. short at give that this opening that back Thank throughout by accounts, this I in accounts are, career. here. I year X new more of more X of an in on rest transition you doing brought and just more that's of here it something the chapter driving that's point first term. stage by you little that's given typical commercialization from through think more And sort focusing better the in that's pretty was reasons to a of so Matt. a making for We're some I've learned. less quarter widespread at perhaps the of a and and CVRx, we've that informed our existing context what Nadim the early utilization here Maybe fact, certainly I'll doing take color, into

lot ultimately from types should how the case, we a you is we've our a the chapter. supported we're lot team what learn tried tried understand we look adopted. take as to be and of different accomplished have. will -- best what this often this first of now careful help executive types a physicians, that accounts very things different And And We of we we can lot approached and of so with new therapy of a of at

differences makes types the in that we through important. really and understand of across accounts, as good now different good and So really the what that's accounts what utilization dig causes

So patterns as we're of understanding think adoption our accounts. applying see that of the some in we're the head really back to now of into and is we best starting year. and strong half the why

do this significant of So number our of new least is of that in a accounts more commitment to lieu at period. in approaching

we're that Matt, on really the stabilization of the the year Kevin, good the in the we the potential just quarter pretty a of feel of at for months. full see add sales the the together new and on your of by now interim and added that with some of third that high then been made coming board, year about was to force go then the up is And feeling leaders we've well half maybe, first we've pick through like on these this out of have first have And as of year. X some utilization guide the assets I'll accounts question kind part back our adding, it the for and the based we lot investments in half put we ability seeing leadership the to been first point, of in Kevin

I comes and the it no, opportunity. mechanistically you're that an And proposed we're back of is far too I inpatient a that? how rate, opportunity just side? Kevin, pressure And like result saying, see then in to don't quickly easy with know $XX,XXX to question would to they're to pricing shift step and there much really that. do Robbie's is be take as something this not as aggressive? rule outpatient Or guess, to reimbursement page kind sticking Okay. just the next Fair If the enough. the introducing of this

a Matt. of not influence service. we answer will is The site short great question, That's and Sure. cannot

physicians even So patients. where link we or shift treat or not cannot ourselves might

time moving physicians themselves that setting It's little sure setting. the do the that is have goal inpatient are paradoxical or us therapy the they the it choose to X,XXX. inpatient outpatient to hospitals rule appropriately a up whether make is would this XX,XXX support results noise Our want in the influence And they or a to mix from in at it. that and to choose -- decision-making XX,XXX physicians we OPPS and reimbursed that. to where and in the the But patient shift But a there's certainly, we wouldn't would side. would support same that on ready regardless if we're their the treat to

is question of Kaczor the next Our from line Malgorzata Andrew.

little can at in said the I wanted account maybe give improvement you see lead step into utilization that throughout you saw you a then to a conference guidance to in deeper in into extent XXXX, guess? maybe some implied bit that is on and it you month-over-month per to think improvement monthly basis, continued utilization May. our the good I Have QX per XXXX. that does taking adopting you are And guys in What how I a July? center again, that further June,

Margaret, of yes, here. buckets to break down I'm kind X the happy

again, Kevin's we momentum had through starting in we remarks the second in And continued July. seeing talking in the some carrying March, momentum the then of month into about first, prepared seen quarter. talked So about

again, into guidance that together reiterated we quarter the that put full obviously the we that's of we put today. then and year All guide factored third just for the for out

a revenue back when of couple base then majority wait account the when seeing we know and of some at board, with look treating from sitting results. adds, the account so and the of patients existing And utilization, new look the kind accounts coming and is vast we we on generated at

in at look similar when the to guide QX we're at per on back account saw we levels rates increasing for utilization XXXX we looking to what basis. specifically, So a

AIC So revenue per units outstanding.

of I where results the continue that of good half business us go of for able without year. seen quarter, as think, the positive see to talking confidence the grow getting we've specifics, the that we've and momentum added that to we're we're about in positive the in all into fourth out and far assets again, the quarter year. the As some the this first in final give That pretty

Okay.

center of I -- in if to something guess, scenario, so the One, follow-up are questions. addition. you plus still of that And the the XX referenced X you new we is the about that or then other per new that And past the account XX, keep by in kind in accounts interest adding things going range. of X kind have C-suite quarter driven spoken

maybe the part that's So of thought processes.

brought sales, us also in seeing new of into a a et head new are interest can externally you some cetera? guys give that a And around 'XX. of CMO, lot leading metrics as you You indicator just as

Yes.

utilization on I especially think remarks, is really centers, prepared driving our are a potential back Kevin's of contract. that active patient we funnel have lot a would focus do to always going the actually centers process. the But already turning actually already high when are of through So still uncertainty they an account. these towards the talked at that activation have accounts that and We've about treated of treat first patients and become active

new a focus towards accounts So on being for the rather our accounts. It's the in year, activated. third just account number active adds this the we're think turning vast utilization historically when fourth are going rest know said, that the necessarily for already going setting a the quarter we've in funnel that to expectation process the revenue generating significant from of don't to an net accounts at but there to be here seen active. That be are the the are for adds what quarterly that I majority and new through I of driving back basis, of we're

could the heart they've Adamson, Officer leader, years. failure number sales the quality they've think, can, pleased particularly you I Robert a of put at speed know. many, they we that space -- the Dr. could obviously, Margaret, at both impact as sort new we're address thrilled I almost -- our in Medical remarks, that And I'm strength is, these know many the and question engaged. Chief second I new of heard been maybe your on what executives that for our And John, prepared I or the in don't with and which X don't There's my no

qualitative access I piece that, the that's, has certain the has Washington to would a say been very, us response so influence in helpful, Hanke, -- a I very new number level the obviously in long points relationships positive -- within but senior think, very whole role bringing the the efforts overwhelming business which imagine put and term. our going What on So is deep couldn't at I to on Medtronic I help a also from joins our industry of and and in very who front. reimbursement other is Bonnie and would

quantify but in obviously to terms hard of that, again, moving this forward. a So therapy positive net

next Our the Takkinen Canaccord Bill on the of Frank the from with been question, line Markets. which our line Plovanic gentlemen, question from Street line to Lake next Capital move of with and has We dropped. Genuity. Ladies is is

was since look than reps maybe right. if less exactly the know X in how disclosed the than salesforce months. X that define we of I to past, less little versus to a comfortable just how so, X trending scaled fully know of that don't like? senior reps you ramp guys those QX? bit this newer talking don't of maybe can talk is you're years, more. maybe and I new we'll about that with define some been All hoping mix I company reps, but the you does in with the company maybe What doing mix have for more And the as

territories the people don't Yes, mention to did some had they've have tenure Frank, We over quarter first up the the of thanks up we reps disclose and speed. for them typically to that getting we speed. in come the as question. taken

get are the getting breakout a can the or high-quality year. But really they pace here we tenure up we at getting where really the making to point half here the in thing the to and and programs highlight field out a their we'd are think is through of disclose reps difference don't yes, typically reps. start I really get different individuals in XXXX like we to quick as the speed training that of the back to hiring the this

about policies maybe those there coverage see XXXX? impact switching X perspective and some little coverage. establishing reimbursement a in we commercial to initiatives, And how about Okay. the those works or what's an talk commercial the maybe investment could then enough. in Medicare gears and talking of Advantage and from that Maybe landscape start Fair bit

Yes.

Frank, Kevin. thanks, So it's

on So weeks or job. is her after sleeves obviously, Bonnie X X rolling up the

with have coverage. significant team begun to to establish consistent try effort the payers her more outreach through commercial We

So that's in-house least Medicare in pleased its getting that early very have stages, at a matter, to the but supporting commercial it as Advantage authorizations for we're relates prior robust or payers reactions with we prior surprising Medicare the Connect both has had, prior program, and authorization that's authorization commercial function with part Advantage of and requests. I winning ultimately that Barostim with we're and think, supporting patient appealing success

Medicare and to our with So I what interactions as we're seeing. and on bear engagement well both with bringing pleased We're experience new found sides think we're MAX. those the as

pleased with we're So what we're seeing.

is Our the Bill Plovanic Canaccord of next question from line with Genuity.

a be at You stage. work this think able to I'd phone

sales due And just to that of curious the see question my here? call, is since has fully have follow-up backwards. is you your a been just Or did the turnover? And then the it's more stabilized sales of that and last what -- coverage, on I'm In strategy. So I just you? all of adds R&D terms force, loss have you accounts went one, obviously,

I'll Sure. Thanks, Bill. Kevin, that. take It's

to he our largely in stepping and maybe [indiscernible] to reverse was So without the Varostro the limit first quickly stabilize able a and , sales quarter. to order, thanks disruption in to team Paul missing

heads to of company public what few and mentioned still a early in is X were our in And down at size the have expected we would stage. part June, I turnover of while well As a quarter. early there more that turnover below for event a left, had we the

their pleased deep, what the team. we're we're deep excited from energized and about They're XX leader at of hearing brings experience scratch and new building teams from So who relationships. years

quarter, strong the answer months. which implanted your implanting really over short I whether that good active team sense and this by To affected question, XX So in is the Those accounts not accounts had no. the of about definition, within morale momentum. feel are dynamic is that, the first that

that, recent different for go team. And in now weren't months dynamic back that so the they of there's X really part from sales reasons XX but and to most

hard share at willing R&D, here. just look to on think while? I strategy a then board call, you you're the joined and when you've the And a on about Okay. we with the taking us talked go been Anything last from you since longer-term on where

Yes.

Another good question.

to our both who Clinical side some how So therapy clinical Officer, support prospective whether pursue how we Medical we clinical and trial. right and evidence of and are base news is our at work, we we build another at point, carefully the and very the looking The good may, are product at certainly development the strategies. Chief multicenter understanding SVP a on have hard new

do I product as underway. a little going report those there's is new to lot of work think energy early ultimately, is well. but that into we part questions. And and development what that So insight of R&D on both It's will decide to of the piece a

of if tuned, eyes we've would to but bear. fresh a looking being got brought some and I you experience, at So say stay lot it would, I think,

Chase comes Ladies of from and with Hallum Knickerbocker question Capital gentlemen, the line Craig our Group. final

not that just it it's [indiscernible] the number near the if So was just the centers had is because of think wider. number? why more to Kevin, number? or kind an sales active center of that of In going of this lower rather it sign number. you of deeper to strategy than in of the new kind as dropouts term, lower uncharacteristic first we of fair on X the guys sequential Or

new that, insights how of really level them. can looking former. the centers has like at for time make No, current out we're a with of even doubling And set new seeing. really more best we're it's what fresh I but a us look and centers, by us Yes. out a new And and the we little spending then is of definition, discipline of and this think looking a less with our pleased of result a leader

meat reimbursement. think -- code, leave investors customers? that to to neurostem to just customers? that your kind rather the code? should to of on Level good kind were the that your mentioned on a X perspective Or we those about are an In that the that for of in different a about scenario from which X mapped proxy for X be also mapped bone think worst-case for mid-XXs the remain to the in Jared Then expense this were of than you need ASP guys more other us about the Level your procedure amount procedure products there for anything profitable being

having we towards could right? that's that to mapped APC end business margins model, being like, outcome, cost but we at right, right? the -- I in understanding think and we're gross evolve ability structure can a that's XXX look X, then have looks this in believe what up of our I and I Chase, either our And we have think to and will Yes, that we manufacture to with model basis. confident even scenario so go-forward sustainable the solid that still an a device on we case,

so hired mix then of just how about of that couple fully should expectation of X versus about a the Kevin, it. kind months, inpatient kind of of we from standpoint last quarters current those new of Is your these for what's months? of that? productive? think as and think of as then, me. they you X of guys get X your we kind magnitude should last have all kind expectation be the when both your And Got over potentially just reps far Just changes Can outpatient, we can

I'll get since one. directed grab that can So second X the first you the X Chase, then to Kevin him.

to an breakout today. So the XX% treated is in roughly setting XX% are inpatient roughly, being

in so couple And over of last to been and years. setting. XX% And that's outpatient consistent XX% the pretty

a we've reps anatomy don't I of things, reps. I a reps know and at the pleased reps, as most really Jared have both from we've choosing cardiac therapy you just start worked rep development a think, like a who what guess [ through works have These different comes all gotten and going chapter understand to think with yet highest I including and better And mentioned, Yes. as early the novel bunch launched programs QX that kind happen who've environment this have we're who but and and the of necessarily a with quality better that. really Rolodex of a classes hired. with experienced just profiles it don't or and whole are, ] to relates been in appropriately try market importantly, QX the mentioned, we built well. I of the And where here transition different bunch you to

and to new a as well So and the our approach profile but certainly, bringing training. new hiring onboard, of onboarding is to leader sort hiring as

that these the change will is make to But ever So reps productivity time launch you of and materially tell they've than as I background with these can't faster. that intention then our much hopefully today. more and productive into territories to support new them

session. conference now for Ladies over closing this would question-and-answer his to I comments. hand Hykes concludes and the Kevin our gentlemen,

earnings quarter update. our on Thank progress our we operator, call. us again next for you appreciate support, second our forward to at look Thank joining to for you. you, updating everyone and thanks and We ongoing your

has of concluded. Thank you. your participation. now for conference Thank CVRx you The

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