ReShape Lifesciences (RSLS) 22 Feb 192018 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Obalon Therapeutics' Fourth Quarter and Full-year 2018 Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, today's call will be recorded. I would now like to turn the call over to Bill Plovanic, Chief Financial Officer for Obalon.

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Chief morning and Good me months a be XX accessed the Investor section to Therapeutics' President Obalon today's December company through morning, Obalon. Thank three XXXX and issued financial results quarter and Obalon the Huang, This Kelly full-year of is, With Officer results fourth of call This at release you. the Dr. welcome Executive press the XX, conference on obalon.com. Web financial XXXX. detailing for and ended can site release Relations call.

can this You also from access of the call webcast there.

get events today's to Litigation remind conference and performance maybe the we or statements expectation, everyone on express I that anticipation made belief, company's defined Securities the future statements Before Private would forward-looking by the call projection, Reform considered started, future that as regarding like Act. forecast, any intent

today, forward-looking Forward-looking The risk and and with of the except obligation Obalon its year will hereof. statements available quarter archived of on as include the expectation for first in site, which results release are reliance future undue to specifically cautioned as ended statements December the to and regarding forward-looking required to the update information financial are Actual XX, of intent as Listeners those obalon.com. growth forward-looking law. the for these time-to-time based disclosed the available Web only long-term statements, XXXX. Obalon or and company's statements. Obalon's not involve disclaims guidance performance. in and on be Such These but company one on periodic webcast factors forward-looking the guarantees reports differ by date Form current by in for this the not limited to, forward-looking SEC management materially which statements are may these any statements from the the speaks projected year are place potential filed include, near not XXXX business. risks from XX-K the including uncertainties, of

of webcast, over this call Obalon may I the CEO, Since Huang. benefit releases listening Obalon's Kelly made that, XX, company's the recorded most to please XXXX. call those the be Dr. the to then, discussed, reference For topics and who to filings. related so was announcements and February on may And recent will held the SEC press turn have archived with

us Thanks, morning joining today. Bill. you Good and everyone, thank for

help a to Obalon reinvigorate in Obalon what of of Obalon the of the strategic market and obtaining shipped commercial is United First, console, I'm and discuss the obesity. excited have December adoption provide to patients expected balloons System, approval of from FDA, touch the fourth in will we States the demonstrates which that of System, strong Obalon foundation earlier On data penetrate approval the after quarter We balloon navigation the first and largest recently believe recognized to and Navigation in this than navigation will announce achievements management commercial dispenser, with barrier XXXX. the use, from addresses in physician peer-review adoption, us believe commercial the in for system the I we efficacy obesity. our as of our the Navigation Obalon XXXX, safety and the further the highlights Balloon for commercial significant including call, a the brand potential and System published of registry,

business our review specific and our underlying results, take Following that, metrics some of of thoughts quarter Bill full-year will on our XXXX strategies. current and then financial financing of a fourth

a transition the the the from Balloon them plug-and-play accomplishments launch solution as strategic to for some System clinical in of medical more loss. in like We Obalon I'd will then weight of put context product generation the and for briefly complete now answer pillars we highlight questions. three next an business physicians and innovative to

the and December use. which XXXX, The is we use We acquisition address believe navigation eliminate startup, of placement. the what during to obstacle cost and intended the ease the required to notably to balloon FDA received our XXth X-ray. System, of adoption earlier related the logistics the be need relates system first approval believe to new potential of to to has Navigation to largest pillar customer we and Obalon X-ray On and than expected acquiring using

Additionally, the and balloon we dispenser touch inflation the believe of more Obalon make placement safer, easier. navigation the of reliable, combination and

reduction non-serious reported publication deaths patients, evaluated pounds total patients and of prior treatment adverse proven Obalon controlled outcomes, Balloon and of only consistent American XX.X very surgeon XX.X% Rachel with for online. XX% three serious demonstrates safety. significant world loss And was at for by weight trial On of work meeting with was weight presented System and in in The annual the results XXX patients. showed of real accepted Balloon reduction X,XXX clinical Moore, loss specialist. No top rate our were utility meaningful average occurring SAEs, of X,XXX results, on receiving with X.XX%, total patient This clinical is XX.X weight in with Week, Also Dr. Related of balloons, peer-reviewed trial bodyweight. data and of the again sites low, currently and an over a results. second average SAEs prior Bariatric Society United only for the XXth and the to journal, Average pounds Obesity XX.X% with key events, a Metabolic and consistent at five XXXX, safety and at least therapy also in Surgery, XX medical two dataset the in The was States, of bariatric for from occurred Surgery of relates the by and reported, Diseases, weight patients November available adverse events the patients Obesity loss loss XXXX, and ASMBS, safety. clinical weight pillar the controlled to was bodyweight. XX, the for of and at a loss the data Obalon quartile System BMI in months

The third to capabilities pillar retail to private practice. bringing relates

to addition goal converting we health the that began programs available co-op interest In customers, own and our ambassador build made the supports the have initiative of in having to leads to the efficiency to aspects Obalon's out patient non-medical procedures. This fourth consultation. physician into we to quarter, of customers virtual advertising center improve support out through

for we deployments, in who increase and excellent Although our in pilot received book an feedback the consultation. from increase early, with an of patients have show to qualitative regard customers knowledge

treatment now Balloon summarize, we business and dispenser, believe clinical new we have we a the our that Obalon the when console, plug-and-play for solution and System, peer-reviewed efficient inflation create strong loss to to strong navigation touch physicians patient on and So, combine interest center a with capabilities with and ambassador safety, lead data our patient more DTC our to weight funnel. generation own

of over performance. Navigation reminder, XXXX. and upon placed our outstanding system trial for X-ray using instead we a with was XXX As imaging clinical expected in success. our the PMA earlier This the second, several Obalon received Dispenser the for XXX% based system FDA guidance. than December balloons Touch our of of supplement first, navigation and were months navigation in approval The original third approval our We

marketing trial dispenser with support groups. with targets end key also launch outstanding job did and together touch to field inflation our at the that January also the We system The during a of initial two exclusively commercial navigation sales XXX% success. an team to new the methodically used

we weeks, initial short selling X-ray for our such efforts Navigation and date. Obalon the customers to time Moreover, the meetings a prospect exhausted suppliers in we announced the a navigation participated feedback with product the through to indicator, has scale takes economics. worked was as the positive barrier our for encouraged we pleased group every many due press by these several typically the this month. at imaging who group prior sales us only need qualitative out been could I'm am Also, started to state importantly, the associated multiple our week, X-ray new kit and past We've System treatment believe a process and stakeholders. morning. our this as and navigation prospects in I'm to practice level second, the gone first-in-class And and we to where have higher as customers high, of of from encouraged our who balloon in consistent prior a sales touch very existing pipeline leading of produced drive I purchase by First, to the levels response to are which with product most fell with time. from of who that adoption, response supplying a began for benefit barrier interest I improved few of adoption. meanings shipping engagement dispenser navigation testing supply as first ensure best of this with release The launching multiple is a system with of

and results well excitement and large-scale fourth I'd results, with over the call I'll centralized Navigation generation launch to for of System safety activation And solution our reiterate the acquisition program to this turn back XXXX. physicians. Plovanic to business create my and Bill Before Obalon as the consumer financial for handing that, clinical the a our Bill? call to plug-and-play full-year the the to with efficacy now over Balloon more as quarter touch, next review Bill, for use of and like peer-reviewed and commercial

kit and balance in from our 'XX. XX, of Starter this share to cessation increase Today, sequential million than of for fourth XQ 'XX, $X.X in third offset kit development. U.S. million 'XX kit to quarter in reported December in revenue of largest the $X.X due sales what revenues ended details in XX% XX% Kelly. corporate million, at compare customers. revenues sales is U.S. on was compared XXXX. our for 'XX, and an as results quarter reorder I'd third the financial investors million full-year of will most 'XX. the I compared revenue of to U.S. to XXXX. I like at shipments Reorder $XXX,XXX, more believe account represented reorder the kit our U.S. XQ U.S. of are quarter were reported majority which were the to Thanks, growth revenues, down $X.X $X.X by revenues at of XQ to million our interested a XQ quarter Fourth $X.X in stage

number active XX XXXX, and XX XXXX. Our as September increased December XX up of XX, from XX, accounts to of XX, as June of XXXX, of as

starter reorder As XQ XQ, In sold a site XX compared XX XQ and we purchased in kit prior 'XX, in active as in as reminder, new we 'XX, the account XQ. that's XX define to a an kits, six-month practice period. XX in

that force acquisition sales end a reminder, the we business account roles. made of existing changes the consolidating development at new 'XX, included account As QX to and

also selective process new accounts our productive become new to have targeting intent made We account more with faster. the more

approval System quarter 'XX generation third FDA may of for new was believe Navigation in XXXX, 'XX. received the our XX, revenue International we we fourth December on which account Obalon Lastly, both million prior have $X.X acquisition the impacted and quarter product.

We with highest we priority. That is our to the executing continue the successfully focus believe on dispenser original intend we plan for greatest our the efforts the continue in launching creating to said, We our as navigation meaningfully with value our opportunity U.S. did make PMA to touch approval, to in U.S. U.S.

XQ of in our XXXX. and Middle million quarter January, to expires profit U.S. to fourth 'XX, 'XX. agreement third Also million. we revenue previously after stated intend this not XXXX. in the margins $X.X was the XX% XX% quarter. not That to in third our for or compared corporate XQ East $X.X Cost to XXXX were East million XQ update the automatically with call As to 'XX. fourth Middle Sultan, at $X.X extend We do quarter the distributor, Gross of of the in sequentially any million after agreement. that versus ship compared down in in quarter $X.X in Baader as to do a was XQ our Gross to to as intend generate our distributor end announced, of revenues previously product 'XX result,

goods Our sold. as fixed revenues negatively units. gross to a was and overhead be number overall the allocated of continue sales over largest across the impacted It smaller margins component

products. associated in touch FDA costs are addition, Obalon and and the In gaining Obalon incremental charges with nonrecurring navigation approval there

the million, expense our pipeline. regionally of from for Our up third of quarter XXXX the SG&A totaled to third approved support continued the Obalon quarter that XXXX. touch fourth to totaled in make our well product $X.X million $X.X fourth DE Obalon investments quarter improvements expense navigation for In fourth as $X.X to in we've continued as million the development compared in $X.X and of quarter. quarter new million

the to reminder, force second As end of our of XXXX, strategy at we the go-to-market our changes that a sales quarter included and revised structure.

based targeted of We was the and loss $X.XX of of half on operating to year was $XX.X spending share a up third per compared We on support attributable and loss operational $X.X fourth across million outstanding. XXXX. average our million future Net of operational XXXX and plan million XXXX. to million to resulted third quarter million for $XX.X The from This for also common to more expense million weighted shares customers. as half fourth based to spend quarter. $X.XX diluted loss XXXX gross functions quarter with cash, $X.X the average, share $XX.X compared or and an efficiently the in $X.X the in XXXX operating weighted as profit common or for increase outstanding a quarter our investments. ended The a operating $X.X cash implemented per compared diluted million of reduced $X.X was that's $X.X net less in to second average the equivalents million action short-term in of shares loss $X million million first existing that in of the

audited $X.X starter now million in in With Our the to number XXXX in XXXX XXXX XXXX $X.X was financial $X.X $X.X was I decreased $X XXXX XXXX. $X.X to revenue fewer compared usage the to XXXX. in to that XXXX and impact fourth million account. that $X.X in in cash in of $X.X a in XX% that from reported compare And XX% $X.X revenues revenue in a and XXXX. as from XXXX. XX million reducing offering $X.X upfront about XXXX. the quarter quarter XXX to as results. net XXXX of XX% U.S. XXXX million compared revenue revenue compared in smaller $X.X starter compared Final million, key of to full-year compared initial amount XXXX of XXXX. that in revenue commitment with or revenue, XXXX and in was at of $X.X Reorder will new sold, million in compared was kit XXXX international XXXX. compared XX% of million U.S. full-year revenues configuration million to of third in accounted versus and million revenue million per physician the and was for to million million kits revenue of and a the Starter

million margin to as are $XX.X profit down R&D as XXXX. our course, million of XX%, XXXX $X.X price. $XX.X lower decreased in in from which was units to totaled is more $X.X sold XXXX, a mix expense at mostly compared sales from a XXXX. Of in Gross million we million which for distributor, result XX% international for sold

million to help we costs, balloon As improvements adoption, new and market $XX.X reduce million. product may was mostly XXXX. That's up to loss marketing as from comp and XXXXl. bad $XX.X to in increase debt stock-based due The $XX.X million XXXX compared and for expense the that for totaled stated SG&A expand $XX.X believe in Obalon higher previously, invest expense. expense product we'll system. the spend development for Operating increase XXXX in million continue was

of outstanding all in and common contributed Net operating compared common $XX.X to Our XXXX to $XX.X compared in We average per higher for average or outstanding. million XXXX XXXX. million the was capital per weighted profits, share operations as revenue diluted million loss purchases weighted operating and cash to loss. share $X.XX XXXX in in gross utilized or increase as in $X.XX and $XX.X expenses, $XX.X share million year-over-year diluted

Pacific to from agreements, two Western million the we up us We $XX have of capital. financial financing equity Last intent At agreement $XX enable growth, bolster navigation minimizing end million with sales the to with especially which could taken fund our past launch into down over the the entered steps we position week, to of drew own final to the December, few months by Bank. dilution. access

market place for up The not proceeds. we to first gross with million put ATM in our agreement in is $XX Canaccord to

prices or an purchase worth provide also opportunity on capital various sell us sell cost Lincoln to We us Park is to allows to Obalon flexibility million And to of believe Capital these stock. We raise some they're next these provide to not opportunistically common Most the but of important our line Lincoln obligated XX to shares that Either financial but disposable. executed use equity effectively. subject Both are these generally these limitations, warrants, based prevailing limitations Capital $XX with options financing Park of up connivance. to of includes over financing the various subject market financings are business shares and options rates. tools months.

As for for a intend believe our metrics for provide have on to update concrete upcoming launch it's System, commercialization fourth our about We of only quarterly the prudent of stages to quarter the we guidance, given the quarter. Navigation the we until Navigation. thoughts early Obalon more basis guidance

We of goals to at the also we an have business. look understanding intend provide you that so can how some

goals and range the terms to $X.X targeting 'XX, of revenue $X.XX for guidance, are total revenues million of In million. in for metrics, we QX

range We generate account gross barrier any to For $XXX,XXX are adoption kit the of Navigation on to new a also margins, the sense, the and we this the we and new to sell of $X.X targeting kit million. at $X.X based intend meaningful Navigation minimizes console initially improvements the Obalon expect for U.S., our are In we gross million $XXX,XXX. price navigation range benefits in at the the revenue of to price to covering revenue targeting to in it do we And international, premium balloon offers. contribution. to a current balloon profit cost. plan our balloon by console the not Pricing

not into to our cut profitability. do we intend customer's However,

not In Navigation margins initially console is terms our is at with lower current of of manufactured than kit manufactured gross first the margin, a This expect current one, kind yet catheter catheter. products manufacture system at our the our have than it is to commercially gross we to be scale. new and the Navigation the would any touch product, because, more complex we navigation scale

monitoring we high the to like Obalon reinitiated technology rates touch of did electronics Two, product quality. ensure balloon and the launch destructive are testing also have the complex We dispensers of original system to previously with more with and console. pressure intend expect to that have automate We do the generate with regulation. gas profit stated from three, as not flow any gross meaningful And sales. Navigation console revenue we associated

initiatives reduce cost gross manufacturing several improve margin. have and the intended We Navigation with to associated

with At quarter at XQ. 'XX, in reorder XX, in The end of active percentage from of improving gross metrics business in underlying for the As revenues second balloon, the spread in is I quarter, relates higher to and largest volumes XQ. the the the accounts in units. to past this across XX fourth manufacturing for and potential quarter. end that certain XX% that current the margin use provide kits to XQ XQ, with and the compared like fourth XX to U.S. would overhead more 'XX XQ XX% of months time, our The throughput measured in The XX 'XX, in XX increased XQ XX in and sales starter we quarter of in number decreased analyze at of up as by XQ, kit number to XX reorders XX 'XX of XX to compared business. to six internally XX increased XX new to sales in the XQ third

to Sciences the in Conference Medtech participating comments. in I'd final taking upcoming through As like and two the Annual Tools any place BTIG be California XXth a will Conference reminder, Thursday, conferences; Kelly on on for and we turn XX, to then XXst February Diagnostics it Life Roth over March XXth.

potential our our Navigation efforts open patients, significant launch real significantly and Operator, the private This practice, please to to for next potential balloon and to We capabilities concerns public continue loss questions. weight With largest the our sustainable line Obalon create the and launch for obesity, generation results retail of that our has efficacy and globally. to believe has the one that, touch next shareholders. of the complete. world the impact health prepared comments Obalon and with with system health safety bring the system value will now are this generation you system

question first with Canaccord. comes Thank Rose you. [Operator Instructions] Kyle Our from

now Your line is open.

I shipping that's but at first we year? high right. XXXX kind I move gentlemen. me you in can commercial got touch, of I -- do you should I'll units, noise. morning, kind changes of just level understand thank bit it we keep how conference, how quick. that place with all back strategy expect second-half inform a so you then and background over we good strategic about maybe I hand, through that our Hi, as a hope hop am the the navigation perspective, now hear wanted to the over should of in the from talk the just now to XXXX, I'll modeling you. have and And of can then queue, evolve navigation have in

a Yes, thanks new horizon and company. touch is for the Yes, Kyle, for and definitely good question. the navigation morning

said, controlling as looking are, I key that targeting We groups. two of commercial methodically initially at launch the

benefit of customers And drive navigation the could prospect first, prior a accounts volumes. we The adoption. and the where second from to who a higher of barrier believe is treatment X-ray group existing was group

at We expansions are territories analyze groups, that, the look those future. then metrics to of are and going certainly beyond we measure going to two in look and expanding target to into at new obviously

Thank you.

with Wise Stifel. Rick question next Our comes from

now is Your open. line

interest Good you or How starting adoption And through nav expect with morning, clearly accounts, as how to there may a anticipate gate, there? just the -- unfold imagine it Any it maybe unfold will active but the we existing quickly with other there? accounts clearly think accounts active or help then XX XX, sales is us cycle be your us months six how color how you with that to with expressed and thinking have nav, to about. the the Is Can might nav? it can three we do a Bill. six do the for might start [indiscernible] unfold you with existing waiting like talk think adoption through you help to Kelly, XX-month. morning, in it Kelly. Good could be accounts that that

Sure, thanks morning, question. Rick. and the Good for

I how the think Bill pipeline. territories, gave at We've market, kind some the partners last sale, I financial are the we It's look X-ray. that been getting two people at initially. still or around their partners. for tell you could said to guidance, partners our quarter metrics least looking you that at are years, and we again going XX in conversations again, multi-meeting those their with who have be to well. right, or physician targeting still, a no The of on,

through to current And So, have inventory are compatible current We'll the results they're open the and to we as long that excited of we're the system. customers to navigation not on takes. looking work then to talking getting that And has opportunity in that to past. sales up read, cycle how certainly convert, certainly we've get their people going Rick, those this different been navigation groups quarter. with it's

last active to said, them. quarter, from As well like the XX which of convert you most intend the we accounts as,

year. the we again, data continue hopefully, more as So, we can dialogue in the get

want conversion the groups. also picking of all and one we in We that the but in largest I accounts no terms existing two we will, to are new previously we and next had barrier. imaging customers up transpire we bringing to active the we that And make months. targeting It's said navigation, are rollout six them, Rick, have in happen quarter. think today over the not XX to something sure those expect would to that'll with initial that to is and converting Yes, key the customers due both

both to those we're two categories they our And so that in perform targeting sales areas have of even specifically today, those today. channel compensating and

Yes Obalon welcome. follow-up reflect It's half and that that leads a or the no? I opportunity? I of waiting do for about do whatever about the no will, leads sales cycle, go thinking you converted, of to you've say there better the How did a be no any what's alternative? credible, a there say did to X-ray or barrier, mean would tricky to XX% are just we color of frame Are on accounts imaging interested XX them opportunity and ask, frame we said had the question hundreds? with if that. half, When how your have thinking on I -- out for mean you because there already accounts,

message, get and it's very one can to to we we Well, targets. We're everybody go refine is for stage ready specific I we one feedback talked limiting it. out at of that. the a very quantities was number I looking past. broad accounts to We're by conversations we're get been hard Rick. shotgun right people -- a talking each It's barrier the the at tell and the reps. you We in taking then metrics really the to the out in of what adopt that beyond sales market, barrier. the that a It's at market the figure approach specific believe to handful mean to And very far. our want most it's than conversations to big to handful short-term not obviously are that the focus are intimate we X-ray prove to opportunity, to The much now. broader get the of to of It's that do a deep of going not

say focus prove to out metrics, would it's, understand it that not barrier kind I group. to well question. but beyond of the So, on I that to as short-term get the group was my again, expand a

really much. helpful. That's Great. Thanks so

Thank Rick. you,

our Securities. Instructions] [Operator Thank from with Northland comes next And Kalia Suraj question you.

line Your is now open.

Can Good everyone. morning you hear all me right?

morning, Suraj. good Yes,

Suraj. morning, Good

Good morning, Kelly. Bill. morning, Good

I haven't to the can you'll in our you know the if pricing with So, the you said of something at past, share right I to navigation. give you this said in us now that Is a premium. balloon Bill, know past care all the have the models? help all all --

Sure.

commercializing So, so the -- treat Obalon in Dispenser, balloons call enough include we that way the we what to physicians patients. and the will disposables do the System, kit, product, the we we're Navigation starter a navigation package Obalon Touch a Inflation that five sell to sell our

navigation lower Our as introductory as meaningful component. the at minimizes current are do if console such disposables But it contribution, to our pricing don't adoption, premium said, that a slight gross a said, balloon costs that the because gross doesn't the doing Touch beginning in margins, we've generate manufactured -- testing our scale and it that, new is we're account a them kit. believe priced balloon barrier but balloon on covers it kits rate the today. the more they We be also profit our to on pricing just we at we to to a expect, the and Obalon want And we barrier. the haven't higher it the we our before, in and complex, I are we introductory gross said, such This is profits and market. like

that. but typically, the that per as a you, I I think we've is patient, premium that volumes and this physicians, to $X,XXX $X,XXX to in on said have And slight to the depending it's what past said, the about closer $X,XXX.

is then it at we right, business, for is, us ambassador guess center, to focused target they average what this be other Obalon number metrics, all account rates, give coming number centers? health? how whatever, for metrics should you about I or talking the and framework you new is on? asking to the Are of you a a this And on And centers. of think account. use you per ambassador patient product can think moving center all metric ambassador Kelly, like, or heard Bill of I add the calls, drive metrics that, the the Got about talk one to about post-procedure get I'm what looking all will average center, what companies matter, How does Kelly, it. of long the take conversion patient that should what for And we forward? number. what How you this

first of is brought -- solution Yes, great I treat the private to vein came of Obalon, ambassador practice a I patients like would a consumerization healthcare consumer. that kind and to really of Suraj. helping taking question, when a say that's a that that bringing center in the product I the

So in it taking to together addition interests, in to have both this help your And them high. addition to ambassador are health with putting we them, for this, started already the advertising, we which have point, is and programs virtual that center. about is we

XXXX from in up but on in necessarily now, focusing leads on leads was patient of not that have more into And focusing XX,XXX better treatment. We XXXX. XX,XXX those leads conversion a

booking So, little And -- only because get booking those going how rate practices right. look that leads. the treatment, to of harder are is what of they the actually not at we those show but rate the to many of are

these we leads. we patients are include to to that. So trying do have to reach that, And

appointments the appointments, of looking leads central the we referrals, dialog And non-medical believe that over that way have. consistent how are And leads experience questions of more experience through with to go through those through them actually we time go interactive and book takes the have And go we would the treatment. practice. understanding post-procedure of from just manner in time to better the to a showed do it partner appointments consults. believe along earning patient actually the that Obalon. say they hands And as a to informed the inform a then book we lot of of is could than two-way We showing. not from any was, being something but at that you actually kind allow follow-ups, consumer We the a

would the go things and for only other even Suraj out of those it's Yes, have services But here. unopened. pay typically actually leads. from there would we one case there physicians leads services, they that even pay though not talked about the That's other XX% is of for they

And with the having center, we center, inform to that them and to will funnel. by one, hopefully, statistics But the our we ensuring we able we points that. them to the an having have the ambassador way that that conversion interest patient all are gone So as helps more improve that better from an which leads ambassador open, down the in-sourced. patient to have be touch are treatment. By number outsourced improves all improve two,

to the focus So what that's center ambassador is of date. this

encouraged in more it helps us color can are I with But are those we process are imagine get process. metrics of have that will having by we be improve controlling and consistent, think keep seeing what that. we But we As us early available we very are internalized more that this as you in more to on some looking you. just share

half the I it questions. nav earlier, guys gents, window Doc Doc Got there say the saline you come could lost if the the can Dear characterize to saline a was have how nav letter was if -- on and saline And impact filled finally, the to the system picked up what had FDA the filled side? market -- trying the for say see the in balloon, again an business unfortunately, all guys see you be for last it. vis-à-vis on timing the momentum; I the you would we taking Would you were balloons if I opportunity to am year enough you and just have Dear my letter? guess is there Thank year everything the on you number. fair say where

questions. Good

on impact have liquid the interest we filled to FDA First, letters balloon. seen not due an in

segregated with that of seen being FDA balloon. from We are are category the separate Obalon the liquid gas the definitely one has thankful the only filled filled risks that balloons the is which

The not weight physicians changes balloon be I earn the the are is are on get therapy not that to in steal people that tried category the the Coke But that [indiscernible]. a interested think, and view point to they share to day, else understand in end as have are from into that you game. going at consumers ReShape to Obalon being still get with Suraj, the that in Apollo of that opportunity exists Obalon share. loss a are know nothing stated market share it's of like before. publicly is biggest is versus dynamics this as Pepsi the and some into the a There -- Obalon

So certainly of those other adoption liquid balloons. ease for the do growth developed frontier enhance bigger navigation is of believe beyond we does physicians, that but the share by filled current

in market today, in the XX Suraj. XX for market And Yes, us. to penetration close rate is the BMI adults is real the to the million opportunity U.S. that's the XX of

you. Thank

Thank time. am any like And further this now Dr. back to not you. call I showing closing Kelly to at remarks. questions I'd for the turn Huang

on weight to you with an forward you. exciting Obalon retail real the we are appreciate of safety for giving to We thank It's world capabilities everyone. our great next updates the the time and and with bringing touch results combined the look a time loss published Yes, launch. private generation call guys on Have start your practice. continuing and day questions. with and navigation Again

program, conclude all conference. and day. does Ladies disconnect. have for gentlemen, a wonderful This may you in the and today's thank participating you Everyone