ReShape Lifesciences (RSLS) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon, and thank you for joining the ReShape Lifesciences Third Quarter 2023 Conference Call. I would now like to turn the call over to Michael Miller from Rx Communications.

Good afternoon, and thank you for joining the ReShape Lifesciences Third Quarter 2023 Earnings Call. I'm pleased to be joined today by Paul Hickey, President and Chief Executive Officer; and Tom Stankovich, Chief Financial Officer. Paul will provide an overview and update on the company's activities, which will include a discussion with Dr. of Advisory Member a Apovian, ReShape's Board. Scientific Caroline financial the period. Tom will for the review Then results I'll the the closing remarks, question-and-answer then for after Paul turn session. which call back we'll open call a to to over some

to materially Reform a results the ReShape SEC those unknown as Private annual additional meaning as from filings identified Investor Commission, and on section report in described risks, of filings as known Exchange factors. contains uncertainties could website, Litigation factors the Lifesciences' of including recent company's These the reminder, risks the more Risk this Form XX-K. Act and website Factors and forward-looking due As with the are Actual and those other call Information the well in differ Securities of and conference XXXX. and statements the uncertainties discussed including most Securities within fully company's

stock the to now on additional listed NASDAQ, reminder, an Hickey, President under Paul the ReShape turn ReShape. and CEO trading Paul? As of I'll is call RSLS. symbol over

Professor be on Member Thank activities, thanks provide all at for Scientific to an of After third Brigham this and at and and Co-Director earnings for us Board, of Medicine our overview our Division update joining Advisory and afternoon quarter will I Dr. a Weight you, Harvard we Diabetes Caroline Boston, XXXX at and you Hypertension joined Mike, by Women’s call. ReShape's a the Management of and for Center of Apovian, Medical Wellness in Endocrinology, in School. the Hospital

their on to provide obesity. for field, her leader a to Apovian care expert her GLP-Xs Dr. and continuum related an As opinion asked in key clinical impact viewpoint and I've

of for creating as by this Louisville, Louisville. our to implemented growth the maintaining Excellence and marketing from as The call value. our profitability remain I Hive of on Yesterday, program. we This of also strategies a all most known investors important our co-op executing dedicated to platform visited our shareholder achieving has takeaway of one Kentucky, from that emphasis our Centers and Lap-Band understand in with surgeons of site part is

pressures that the in initiatives center There look the on marketing year-over-year growth is are for adoption, validating we is growth we about XXXX, Lap-Band and have forward from the potential procedural our much move Despite working. pace as GLP-X are to towards XXXX, company. this optimistic to to

Before today. I obesity important subsequent quarter third recap our the on I'd and occurring like market comment within highlights, to events

at alarming you achieved. to associated treatment As Obesity weight it an most the significant that disease with understand loss goals of long-term medical ensure carries rates complex obesity repercussions and already remains personalized growing is and requires market global costs. lifelong a are economic

you're brought reducing suffering benefits believe adoption that also type loss it weight diabetes, aware the bariatric especially those past. this numbers stigma seeking obesity big who attention intervention, related the increase has often efforts in have surgery. surgery the vastly agonists those and helped medical by pharma and including of sure X The adoption of to of medical growing for GLP-X I'm is occurs that and around significant market the that marketing those have popularity avoided are the GLP-X by disease, who from obese. We expanding helped resulting GLP-X people medical

limitations candidates weight therapy the as next From believe Given related due loss opportunity individuals of bariatric will a viable likely anatomy on GLP-X obesity the surgery we for evidence that treatment. to potential Lap-Band perspective, for preserving weight are to continuum fact with Lap-Band increase. the care loss body of accessibility, that comorbidities increasing market the and pointing the to has usage GLP-X

consults GLP-X loss, Dr. other issues who personal a surgery, we In across are in bariatric delaying U.S. what hearing term from agonist words, durability especially that the like which Apovian have patients weight the Lap-Band. surgical short to increasing experience, the of the surgery taste Shortly, number patients physicians consider get of contemplate while representing they her I will procedure the speak surgery. is minimally is with GLP-X potentially have invasive or the bariatric tolerance, yet once will would drug's accessibility, adoption,

X Apovian, Now to on pillars. take before progress let to I our introduce a Dr. few related minutes me update you growth our primary

a disciplined recall, first model. scalable business with business approach to revenue a As expansion is our drive metrics-driven operate our through you sustainable predictable to pillar and

The continue pipeline validate our Board pillar portfolio loss to across to to insights third our our leveraging on the strategic or continuum. continue evidence-based product weight Advisory to second key and expand is solutions, initiatives. last for is care our And Scientific

shareholder remains pillar to deliver first ultimately, value paramount for profitability. ReShape and Our

the X, detail realized expense we key has that consider later GLP-X necessary company adoption XX% we will our and hard which adheres of expenses markets, it have a approximately Tom and weight for November have while loss our metrics. look are summary, impact on and pressure several significant ensuring identified, totaling reductions implemented reduction cost including in operating million, As to the $X in growth than But reductions to cost more make a for. effective planning at put treatment, P&L identified was savings for we take operations, XXXX. bariatrics, representing

additional We reductions totaling $X.X approximately in our spending million. making marketing consulting are optimizing while services

a Force executed $X.X approximately Reduction of also have million. We in

continued to savings to employees. employer reshapecare pause to secure decided estimated $X.X self-insured provide our we while We a of reshapecare program and their to have our an million, efforts temporarily achieved

also $X.X our part planned a revenue. but significantly compensation have for of affecting without amounts, all streamlining reductions million payer-related for team incentive We and of other

reduction with their aligned strategy in also our XX% and will a take compensation. is Board Our

indicative while reductions and at our runway. focus invest together, Taken allow and the our to bold, necessary changes to in commitments these are XX%. XXXX at drivers cash growth I pillar XXXX. these reductions late XXXX will time to estimated same company's growth million our point expense And extending fact, and with or are the XXXX first us in operating of our established reductions, $XX core between These

addition digital patient and reduction cost the related engagement first our significant growth campaign. initiatives pillar, necessary generation made to our lead we In newly progress with to improved

earlier effortlessly us seen an direct-to-consumer exclusive and intake mentioned while markets with to targeted our advance lead This Louisville, optimization that targeted new of in As patient in software increase with I challenges. where costs campaign operate. the enhance quality surgeon increase our patient utilizes volume. SMS with successfully In helps Medical in allows patient patient combination technology, Lap-Band can patient AI we particular, which, reducing Hive engagement our software leads, individuals overcome marketing partnership of self-service advocates have

at with result, a any time. As patients appointments easily professionals can book medical

second our our progress discuss growth pillar. executing now Let's

more feedback Flex to product with designed with order the can long-term the opening patient's physician We weight post This experience. system, the positioned treatment This current Lap-Band obesity safe next-generation band surgical be to a been therapy. we adjusted our improve tolerance Flex. and X.X provides are FDA-approved June, past patient increase which the depending filed current or alternative surgeries. FDA well PMA has decrease Lap-Band to operatively Lap-Band the minimally for for a for band supplement in the loss invasive Like invasive, to with is the X.X Lap-Band, on

a as larger valve, has pass narrow new a Lap-Band the food to enabling of X.X easily. pieces Flex relief feature passage through Flex which Additionally, Technology, called acts more

approval by returning food. minimizing discomfort by year-end the anticipate XXXX. its early swallowing large while relaxes resting before Specifically, the to of pieces We momentarily caused FDA from or band diameter

we in be believe, an ReShape the payments Sri note, the sales X% distribute Gastric approved. We Balloon and in Biorad for ongoing commercialize the exclusive surgeon from of license on catalyst will Pakistan, company's Lanka of territories. Also our Lap-Band manufacture, signed System on and Balloon that license Nepal, X.X gross to once Bangladesh, Lap-Band provides India, September, the for in based feedback Flex license a Bhutan, agreement Maldives. Biorad payments the with royalty-bearing upfront of agreement $XXX,XXX Obalon Obalon and growth franchise to System The

The ideal Asia of devices it Biorad market, experience approximately System, we reintroducing words towards technology. the decades believe medical is XX% and the reach and an partner to to population, reaching step important with patented XX% distributing agreement of is our in that Balloon the expand as potentially manufacturing represents the of vast South Obalon our first

catalyze groundwork We balloon successful expect system lay worldwide. the this of relaunch the in commercialization markets the and to agreement will

of engaged the is scope recently growth we pillar Group acquisition ReShape an the priority opportunities Maxim partnerships. high executing and very our the given this second expand Now to initiative basis have on distribution, global to our synergistic for that exclusive Engaging and merger and on and Lifesciences. portfolio Maxim me provide strategic identify

engaged fully solutions. X.X growth disease launch loss helping obesity and marketing our to third we Scientific strategy comprised fields. Flex surgeons of pillar, our Board, and SAB, suite our the As with Advisory Lap-Band work metabolic closely develop us and weight continue of SAB our for internationally The recognized is experts or in our for in

to this Brigham time, at Caroline Harvard from Now like Hospital and Women’s I'd Medical and School. Apovian introduce

for a recognized expert metabolism mentioned, field an previously in leader bariatric Apovian the key has obesity As our is and of member She Dr. Board nationally medicine. opinion and nutrition, Scientific Advisory also decades. is been a of experts and surgery on

to comprising to GLP-Xs GLP-Xs loss. hear and in impact changes obesity feel We'd about the other ask treatment, gastric they plateaued field and and you like on Lap-Band your weight today. help the overall surgeries, the adoption then view have to therapies Dr. your the everyone experience to background your will surgical Apovian? those procedures combination of given recent on their Caroline, including the with I'd of like you including who with available also discuss

Paul. Thanks, afternoon. Good

after the at medicine am there. Medicine Medical and completely the a metabolism Professor and Endocrinology, began have internal years obesity father studied considered at a the Blackburn, George I of XX And lucky As and Hospital is Center the since interest I'm when Hospital focused time, was honored who Women’s Diabetes completing mentioned, England I and in Deaconess obesity the nutrition on Paul fellow Division Hypertension was and ago my for Management I Harvard in at Co-Director medicine. under have I and School. My of of Weight obesity to and and at Brigham nutrition in Wellness that New residency nutrition.

disease exert X/X of economic is adults toll the than States both and terms. obesity. have its and complications a Obesity More many human a in serious United in heavy

of of type rates of over who Americans and will and on suffer elevated to cardiovascular subject develop life obesity negative type fact, go And disease. are XX% enormous. a X heart XX the is The on quality it's XX% to of with diabetes effect The dyslipidemia In from likely X hypertension, diabetes, they BMI population. disease.

call are for treatment about positive their are that obesity. people more and asking GLP-Xs hormonal therapies, ever nutrient-stimulated having in them other, impact a tremendous we NuSHs, than

surgery, which almost secretion other We by gut all have from learned altering experience about bariatric the works know and hormones. GLP-Xs that with gut hormones our of we

laparoscopic weight and In of that we've would use the with learned loss. addition, banding be facilitate from Lap-Band the complementary GLP-Xs long-lasting other to NuSHs

of to analogs We're in companies since more don't the as as now many GLP with XX% and naturally today's reducing occurring the utilizing agonists helpful insurance government gut a of can really of kept up the even haven't disease. since can be obesity their and hormones Zepbound. approval we by Unfortunately, embrace weight that body and as up FDA the by science

powerful ubiquitously Medicare drugs they're by or certainly not are these So covered and covered, not Medicaid.

the just just XX,XXX more Wellness Management than year, for at Center Weight seen last medical the on we've end. our Brigham, In patients, unique at

GLP-Xs believe endoscopy, the of consider who bariatric that I weight So NuSHs bariatric would but medical will and management the surgery. ultimately surgery, of increase number patients. at end the patients utilization not XX,XXX

XX, this In convince can the they of more to unable better understand this, true. procedures seeing accessibility, able Lap-Band. durability, with the once a patients XX, is than -- XX,XXX the by first surgery I over those to seeking patients and coming lose I'm are months. other seeing -- treatment, them. medical words, option that with And patients anecdotally so on we're altering in And weight past X over gut all, BMIs NuSHs hormone but really for well, get and invasive also of used over BMIs so feel they certainly of may with like to last drugs, over seeing contemplate X since and this months they remains issues that Wegovy be more in the or their the are again, we're convince have we minimally includes And -- have surgery to the again, better, many bariatric certainly that often, XX And since surgery Mounjaro. tolerability best been patients advent And we option. that much

thing procedures Now problem bariatric happened the X% with underutilized is done surgery procedure still eligible gallbladder is even the and If same annually. free. true, getting regain Bariatric the States, have negligence. obesity. not When annually, like with this they we surgery though of XXX,XXX the of would that in your this erroneous done only -- get course, this cardiac which, feel surgery weight, the But patients they that is say idea the for out. have United patients was surgery, is people surgery is the is aggressive overlooked their

patients in time obesity the understand more and if now they that a consider including a patients And disease more bariatric losing weight, way Many the NuSHs as they feeling their and don't also feel first they to see helping to full take continue more understand have that the want they understanding surgery, that Lap-Band. medication lives. The they're and disease. their for because they are

exercise, diet, including therapy, who different loss Lap-Band will NuSHs, effectively order medications back stages surgery of of NuSHs and imperative, from track. GLP-Xs treat including with patient's their endoscopy at weight weight employed combination our loss surgery, bariatric journey. a those like as help such on to being obesity, Combination for it's the get In individuals bariatric and plateau the interventions,

the ensure BMI be and hope That combination. on collaborate to the appropriate from questions back call. I that helpful. treatment certainly development which to patients these or medications few can receive surgical importantly, gotten have to on for been insights pass call medical this said, my that I'll now and in guidelines determine patients look is stratify and and these have societies Paul. based years, I years of I that the that I crucial experience of during over procedures used insights past alone to answering the forward later XX most hope

Caroline. But participation I you, your leader was firsthand. field, opinions you your your I'm -- think was and hit appreciate and a appreciated the that listeners, you. That as there'll for Thank think I the and spot, be by sure I truly in hearing questions

do as historically weight manage company patients to I that aversion the and option you loss in positioned medically heard before so Tom, durable we with offering confident So safest we turn loss that on most a what with Lap-Band few X.X are and more our far, for future had just Flex a and over thoughts, based least very an remain Lap-Band those uniquely that to invasive, the weight have expected surgery.

the a usage for And We accessibility. that limitations Given weight candidates the related loss for from a growing body of comorbidities market the to viable bariatric due these opportunity of loss weight Lap-Band increase. care to continuum GLP-X to evidence treatment. fact pointing and has surgery patients will believe next potential as that perspective, are likely

to I'd recap provide now like our of over turn Tom performance. a Stankovich Tom? to to the financial call

once this And our all you thank joining Paul. webcast Thanks, for again, afternoon.

discussion our financials As press XX-Q. a full and of is in reminder, available a our release

more November the the XX% approximately Reduction than December, more to alone, in phasing earlier, company's mentioned reductions are been and payroll-related continued categories. or we in have budgeted well Paul GLP-Xs, the $X.X pressure million response XXXX as reductions in across reorganizing $XXX,XXX caused As revenue by of approximately November, in on for and of early of amounts and company $X compensation cost of adoption identified incentive and other a in as expense implemented million and all Force $XXX,XXX XXXX have in cost just specifically

include totaled patent G&A which total of consulting consulting related professional million $X.X by marketing $XXX,XXX, $X.X costs costs and to the been primarily reduced with to optimization, reductions in costs. Expenses total fees those spend in without reduced operating $XXX,XXX. and fees. of marketing and Core R&D continued insurance reshapecare our approximately $X.X have million totaled pause affecting in million, related expense primarily costs

the lower compared to core Additionally, XXXX XXXX. third operating quarter of expenses were quarter XX% third of

made far, in our with is $XX XXXX. or actions XX-Q. of release thus core altogether A our press and expenses, operating XXXX significant between cutting Taken approximately progress reducing actual we've million in today's available XX% financials and discussion full

financial moment review to So take a XX, take metrics a just third I XXXX. the -- I'll quarter for ended key just will September moment

a of The $X.X XXXX. reason revenue in the in months X million $XXX,XXX for drugs XXXX, the to is weight internationally. same popularity September period loss for growing volume sales primary XX, compared totaled for the Our in reduction which U.S. treatment ended prescription the the GLP-X and of decrease represents

our focused and campaigns new targeted through centers, digital marketing reducing surgery near strategies while have cost efficiencies. media and We AI-supported bariatric increasing

We expect that fourth will during efforts XXXX these come and quarter beginning XXXX. the to fruition of of

recently focus grow the calibration continued sizes of launched Our X will for tubes Lap-Band increasing on system and revenues. demand new

to receiving contribute U.S. the that forward. a XXXX, anticipate approval sales or we Additionally, FDA launch going Lap-Band year later in by should increased Flex product for X.X followed early this

September Gross decrease period for compared to XXXX, for XX% decrease The of volume gross the ended to margins any profit period year of in million XX% in profit $X.X the gross XX, XXXX, quarter. September the months $X.X it due for the million to sales on primarily for GLP-X to the highest in ended a impact percentage same related as cost the market. profit gross third XXXX. percentage percentage Gross this total our XX, Nevertheless, drugs positive in $XXX,XXX. of coming is compared months as the during quarter decrease X is revenue XXXX, some was X a same a have was reductions in had to margin

of approach X as a the period Sales same and moved and XXXX, the $XXX,XXX decrease campaign. XXXX. million digital a primarily to advertising ended to in is compared to by decreased for our marketing targeted million marketing decrease $X.X expenses have $XXX,XXX September we reevaluated months and expenses for due in XX, $X.X to The marketing marketing

to decrease expenses payroll-related reduction September to period primarily to professional ended the XX, $X.X XXXX, same due a for XXXX. $X.X months expenses in changes The is General for in and $X.X X decreased personnel million compared and reductions million in services. and million administrative approximately the by

company of decrease reductions location. and the the other quarter amortization in a asset as expired our assets finite Additionally, rent former included XXXX California costs its insurance Carlsbad, intangible during impaired for the fourth lease intangible of and

with remained to costs EBITDA the professional of Non-GAAP million months September the million development $X.X and September period XXXX, last compared ended XX, for for in same with consistent the was X months $X.X loss XXXX services. XXXX, and loss XX, adjusted Gap] Research [Audio the a period year. X ended a for same

equivalents $X.X million cash with ended sheet. and debt balance quarter We free our of cash and the on remain

from in October in preserve recent company's cost the call, cash With net will cash the during and proceeds public the offering $X.X detailed our the million we and reductions runway. extend

As XXXX operating increasing our move turn Paul. and and the will a we revenue we finish expenses. into I continued back in anticipate XXXX, over that, With reduction to our is now call

Tom. you, Thank

all open taken for to Q&A, significantly we invest to operating have I Before that the categories across and will help and expenses call as reiterate, and The bold initiatives. important continue sustainability we so growth to ensure will both Tom company it's we the we scalability. to reorganize detailed, steps up have in our can reduce have

investments, to continue messaging booking lead website reducing with costs. consumer-centric scalable segment acquisition, while patient a improved frictionless engagement support system providers to automation generation via We on including and qualified lead and prioritize marketing further for an updated

revenue. increase and to expected Lap-Band we together, ultimately, Taken procedures

plan market work continue healthy lifestyle time, Board selection to services on help treatments bariatric continue same fashion products, effective to world-class is our continue to -- portfolio surgeries our to is competition offer of will achieve durable we that develop and loss. in changing more Scientific safe patients provide differentiated with execute Advisory normalize programs transformative We invasive for historic and obesity. global technologies from weight for that a selection enhancing a that At to that non-anatomy-changing the of to of consist success to will in alternatives the with patient-friendly, a and

This concludes our remarks. prepared

open So call now questions. to Operator? we the would like your to

Instructions] Vendetti first of question [Operator Our Anthony from Group. will come Maxim line from

But as loss your was discussed, lot There's of the XX as point, was know and studies out very for obesity. the XX or that guess Maybe you Apovian. other don't I there's a the Dr. weight we'll overview, GLP-Xs for this We helpful months -- at also side find effects. also Obviously, this starting potential over there's comorbidities. to approved Thanks rolls And there's today, level And news view. hear Paul, Caroline adverse expectation? at next what is with Apovian. than what out. right, are That Dr. what your showing. around for Lilly's or

Do in get that before them guess for wear before much GLP-Xs to how Is of sort process or or a what's some some are sales for you of X the guess to impacting to as realize when What's patients best not that. effects consumers sort to better -- it to the of your try estimate to decide and initial maybe, bariatric the it? good Lap-Band, starts obviously new it's new. of as of just data the for It's side is apathy worth A, your starts for certainly, starts or maybe all of off. procedures out, cost some toy in the set years set plays they to think trying understanding your something X on But a best this shiny sort of mine. than XX-month

our of XX,XXX we decrease X We're medical of you practice, came bariatric X bariatric most am it We saw And went as Well, all. I'm see increase. know. -- seeing numbers The doctors, -- from first the obesity in seeing, PAs surgery to is coming what decrease and surgery. new all RDs part nurse COVID, Yes. last in -- down, practitioners, year. COVID medicine. in X have don't -- and an the patients are but recover I starting I

program. takes but get through last arm XX,XXX we the medical in the decrease, So it a just the for my are me year there's saw patients telling bariatric in while surgeons a practice to

year new providers. patients these aren't that? to one trying in our specialists have States get There to We They're this enough they the for United list practice resources how obesity how in, NuSHs, And in to practice X headache, prescribe can't great to they then medical all quell the Therefore, to because the our FTEs medicine on care fantastic. have and know medical that's just of to don't prior give the their treatment. process Why don't the But have demand. drug. they the just to see practices X,XXX providers which -- -- authorization. waiting they to primary prior of requires new wait is to -- months authorization know X don't

diet They don't know to how exercise. provide and

it's just do have -- cares So the the resources to don't this. primary

obesity specialists. specialist So There X,XXX ] it's relegated medicine to medicine are only [ obesity United X,XXX, the States. X,XXX, in

a are you're looking when of and Wegovy. I'm it get the shortage can't here to get say have the is that to to them seen seen I Plus, patients what at in rest have XX So go to for Wegovy, the And know to XX% relieved, on on for I I Do can going over you yes, you BMI Wegovy. my give months, be lose have we is want a as lost weight gets you Wegovy. you're give realize patient we the to to give pounds and more. that colleague or you and is There's the over over shortage. I face I -- a loss? trying in life, want I able the your patient, Or the and on going and them have a new them We're XX. XX get saying, all what we past I backlog. once in, X

you're to way surgery. lose XX. The BMI is going Your is more bariatric

loss not with more. injection these lives because realize XXX And because able, And to loss give, but that the rest pounds. a so fact weight to that going XX% the and can because they of be not shortage, all they got XXX for the their needs work. patients, I'm weight got of to they they then that on lose the who of patient need an of Wegovy to That's

have next So to XX now to And have of X-month appointments an a one bariatric able we them. get week, with surgeons. whereas convince they waiting. All I of to consultation And our XX-month I'm patients right. have

because good the So get It's and take right. have have to gastric now laparoscopic what's On now adjustable the NuSH always you of combine in to ] the through. down some I and the GLP-X to we the with the duals a of we pike. Lap-Band of the top But pike change coming it's double Lap-Band you're then milieu that's restriction gut have a happening. yes, patients we with bound, -- hormone have these time the and that, -- that's NuSHs because are [ wanted with triples going band. multitude coming down get that

say, more XX%. provide to going losses medication is this of form than with aggressive a weight So more surgery let's hopefully less, of achieve less can of a that XX%, than

That's very helpful.

versus the how with to lose -- instances guiding you without bariatric GLP-X then the often are patients? in recommend now GLP Lap-Band where and Lap-Band right there patient's is -- later? they So I'm recommending just or XX% GLP-X? right the your just goal you now surgery can you are And the you're the want wondering the where the advising situations you to more than or do Do XX%. how do

runs with we understand endoscopic about have bariatric It need you to and our surgery, but not we devices leader have gamut Chris procedure. because have in also center is world's what we the Thompson, bariatric -- the endoscopy

laparoscopic certainly or or for sleeve surgery, endoscopic either gastrectomy right the definitely -- going we're we adjustable Lap-Band, procedures, I with if endoscopy, are both adding a is even surgery what initially you're band, gastric recommend bariatric what not the NuSH bariatric away. definitely procedures, -- surgery, -- and bariatric -- the the GLP-X and do but are we we add So to bariatric don't and within endoscopic

excessive because -- to muscle We to want you're you going want lose and don't fat. weight get loss to because

diversion, sleeve, more you're and the procedures almost like so biliopancreatic the You with because bypass bypass, lose the you're bariatric fat losing anyway, surgery muscle especially the sleeve, the muscle it aggressive even half the and losing fast.

don't well. You expenditure, And those That and it's don't a lower causes patients resting energy that. bad. do sarcopenia to do and want

loss weight great, procedure. or do What don't or weight, you plateau the as then often one get you plateau, to then to lose but as NuSH. some a good of with you're you add want then is which much the you going you regain when either amount you is wanted, procedure later, do And year use if you case a a

Okay.

you at everything once. So do want don't to

the Dr. the could X% have people and years, during decades, I our that's And I answers -- more that, is talked can that Anthony, we've you're for of maybe as pharma. in affirming being prior GLP-Xs there's seeking terms X% add -- more to that both big this surgery. Dr. think it X% the I there's seeing, to was belief point, with beyond are surgery what in now about that as Anthony, you Apovian people the Apovian, let the mentioned popular call, of the is, people that provided. -- numbers add just only marketing you one big this as that wanted Paul. before, care, reminding, push thank know I -- with there's well. of out seeking or from Anthony, me all you that specifically where of of When kind

less centers get that answer, apt board on I sure, out to the that Brigham. know I'm and all and it's to Excellence are that unlike Apovian look at years, centers have you experience of that the you their that And I'd as at the Women's too, different the are nationwide across over timing. managing right? timetable But then Brigham smaller of that completely has are average, timing that the have formed has Center the ways centers Dr. for the and love

counter efforts, than in coming one marketing year the they I I based actually of that year fact working. last that the only it's in center is this [indiscernible] and the to X think that we've the marketing procedure briefly kind our with GLP-X put place, more And push our Lap-Band are doing and one are things growth doing with noted on that was marketing the again, pilots our which of

the last you X because So to that's exciting agree see happened pent-up what's are for for that would versus previous in years coming that us. demand But months? in more you of this you would people have year Caroline,

doubt. than media a same that not needs used are That's many is changed. the can no patient of doctors your no on are, the fact from they it's ending to going the weight because It's minutes. patients There's power on We're to it's understand more their lower there's really just XX injection patients but not, that's we and have or to can't be that because realizing, what will an a is the but stopped who doubt. finally finally attention And said just obesity. because that if patients There's I what not medications, body people finally shameful. of obesity, seeing this the the point, understanding that help we're doctor matter see set what's pill you it -- about

I know suddenly, not patients surgery. that looking hearing why open I'm as on I get my I'm that's that's not they're a I "Oh the to bariatric for we any idea can like hearing they're in I don't medications, do And God own." And and want that used more but anymore. can sent. amenable doc, it surgery. of to,

Okay, that's great.

end that year? they the for of company to that being expectations the private maybe start obviously, royalty-bearing but it around Obalon X be Where Biorad Balloon Center with agreement XXXX? [ of System. -- just like a backlog and any a maybe center Gastric just Paul, the agreement is in going points patients on of you agreement? signed that helpful. sounds line a Are very exclusive And That's that you have the your Of that's huge selling the terms And is shifting excellence going something other other and gears, before rolled here. rolled ] out? to Great. in Okay. Medysis, Is The and out

Yes.

that kicked I cadence Biorad The of have they've aggressive has you'd engaging ReShape off and terms they the signed expect, the project goals think the in we've has stated. and And Biorad there. aggressive as teams from we appropriate in, meetings. got X of time lines weekly the -- sort agreement, of from project

the getting is to can longer know needed so validation beyond think knowledge production. execute terms over same worldwide. could transfer bodies And they then production, it into pass global of I their process so muster quality level of hands of the the we it's has their that what that the the with regulatory take verification in

in were done all year -- here we're pushing now this think something get I year. have sorry, -- that I'm to expect we're something I'd It's -- sitting pushing So mid-November. we do to to and this

have something to product get predictability sides the and right it start But be to on define are and keep updated get next Biorad now you of looking phase both has I'll about sharing way this. get of as I next you. I year. the to first going produced think be I'm initially we milestones that this done at and we're with part them them. some -- be can in to the so yes, progress eager definitely -- But shy those to the we won't

And -- some in on there are 'XX, onetime quarter to the do fourth to in a then what $X right the now going in handle million that that? that Excellent. you to cutting, be? if And have charges you might have that do of Okay. -- cost we're is going be is or for Tom -- so, account

Yes. Tom, to do that? to want you speak

if Thanks, onetime not charges the they of Andrew all as this. any I'm of sure. of would nature. a there were, not in anything if ]. And as big We're [ of anticipating will. (sic) right they result QX in Absolutely. millions But be you Anthony -- now, in Yes, dollars, expecting

not question directly, no, expecting your So answer anything material. to

be Yes. there Will some?

and be things. you some of types You -- that severance a to when do that costs related there would -- there Reduction those can Force, be most going some in likely costs imagine there's to

during of QX. for we'll So all accrue that

over remarks. And to back now to our this session. the closing for concludes Paul would conference Hickey question-and-answer like turn any I

Thank consistency the during scalable hope this value sustainable of transparency grow quest company. appreciate the expressed to and the a as you what value through Great. I organization we've our to to and of that company our revamping efficiency you. our and that able shareholder you're of continue reliability or enhancing and call,

We will devices continue we long-term the remain to and work the diligently to build on potential our optimistic about commitment to for personalized company. provide as therapeutics growth evidence-based

A to in for participating today's Apovian special thanks Dr. call.

and to shareholders as for I employees, continued become existing past continuing care want physician-led your stakeholders, current consultant new of to advisers, members, look weight progress and our all Board support of health As loss we I the to company. suppliers, forward always, customers, shareholders. our our partners on with mission ReShape our premier thank and to engage

This now today's conference for you concluded. has call. attending Thank

day. You Everyone, a great have may now disconnect.