Monogram Orthopaedics (MGRM) 19 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Monogram Technologies Third Quarter 2024 Financial Results and Business Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Before we begin the formal presentation, I'd like to remind everyone that statements made on this call and webcast may include predictions, estimates or other information that might be considered forward-looking.

While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

You are cautioned to not place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. new that [indiscernible] not of result statements light mind revise ourselves these in events. in publicly future or of of keep we obligating are to forward-looking Please or information any reservation

Throughout today's some relating predictions. our to our to that affect important may factors business we'll discussion, attempt present

press complete results most those factors these and company's issued risks, particularly review You XX-K XX, is Form of may our XXXX, also these XX-Q monogramtechnologies.com. website, Investor available discussion and Risk release Factors. on November in A heading Form our was Relations recent for detailing a more and of section other the

third Your Knape. this Chief Chief host will Financial of Monogram the present I'll Chief Executive is the XX, Officer, Chief Noel Sexson, results turn to Financial ended And XXXX. you. Officer; quarter and time, call September at Officer, -- Ben Noel over unaudited Monogram Knape, for Thank sorry, today operations

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go Sorry to I'm and then with our then financial hand go to to and Good floor everyone. to questions. brief strategy over presentation. over a start Ben just it afternoon, review a summary, of going milestones, upcoming off a I'll that. I'll regulatory agenda about today's over of open the

please. slide, Next

at of on key end points $XX.X financials. cash We're in year-to-date some our are here So XXXX. the on million QX sitting

and be going we've had $X.X That par what is cash the that out Our year, run on flow operating to be $XX.X cash million forward. we about the a is works year-to-date to million. with same continue in rate

your you share $XX involvement We [ greater up generate was for financial in of this D really that had a $XX supportive, going able successful started was from ] and lion's financing preferred We a in ended X-month really Thank raise us $XX.XX to important crowd looking were we very oversubscribed, The upside. million million. activities. position puts significant that we The which from note was came for The good raising period a to million raise that that. and forward. raise.

amount We a have of of XX variable employees, that, we employees the XX, and same on in cost have continue full-time highly staff. primarily engineering and R&D top to structure the the around

are The outsourced we turned have and and be other on that engineers off necessary. can we deem as

So it's been important very going forward.

are no for minimal raise. have XX We to traditional D obligations have related warrant that That continue -- we executable short-term those were preferred X and months. in months very to the and to debt, up

long-term So any it's not a sort. obligation of

get estimate the we'll of $X.X about the that U.S. Then That's run $X.X cost included that million we at [indiscernible] clinical a in out month. expect Our upcoming. to is the forward go trial million. in rate into

sheet position. So all a end current our milestones we short-term to strong with sufficient in this good meet said, are our a capital the have balance our and very obligations at rate, things we expect through to run year and access raise position very to

pleased this activity we're very So with the quarter.

over Next please. to I'll hand Ben. it slide,

some about. it, appreciate are updates Really folks interested for and of to a just giving by want lot Noel. you, hearing everybody, Thanks, drill call. some today's Perfect. for I joining and us start into in think that more thank high-level I detail

company a as team, making right devoted a solely an now of to autonomous is management start is fully the at to definitive reality. market. team, every every goal our now That's off first on cutting robot with Monogram -- the as really that to clear right commercialize So employee engineering objective pretty soft the much the

to pretty significant As progress slide, made we've end, we next date. that move to to some the

off, first into drill of kind been to done. going a that's I'm So is mission

The the far followed request to of FDA, incredible which have basically we have XXX what's how of took try review push, The who application to XX really pretty which days, you days submitted pretty task year them next Information of received to also almost to latest a development us schedule to a level reply That was be Additional that to AIR to an following That and been really This July, review story submitted aggressive XX,XXX that the first submission, to FDA the is was management. the those we able ahead long the what the very information, in a was from surprise for received XXX(k) March kind of of the complexity we kind And not requested FDA. September application. produce We'll would application from Request. pages. would would our So clock. be they versus that of to was put we overstepping subsequent without now additional the in receipt the called have And communicating FDA. XX that call market. XX. to we of on

Request So as Additional into drill a I Information to much kind as bit want I little the of can.

will Information us or So that as place that We meeting. the request FDA or part in anticipate Q-sub submission recommended December. that we of a Q advised Request, take the what's meeting Additional called

clarification buckets. related system. in just different works. comments had I that various aspects how would about FDA the basically bucket the would of the One characterize questions be So system them to XX

would recommending could making be some be just recommending not specifically additional proposed be clarification testing testing, testing, comments and and or bucket -- additional that then points Another but to inferred additional questions.

That on those actually detailed. planning It's week. incredibly a -- is this prepared submitting written is, have to We a questions. response XX company the response

every spent appropriate question through testing of looking be appropriate probably asked, was have thinking how single we where in man that needed. hundreds the meticulous think We into want address we would to cases hours testing

will about XX,XXX XX like Right to it's and something document to pages submitted the that So words, FDA. be now, maybe XX,XXX that.

thoughtful document. very thorough, pretty a it's So

that. to respond to days XX about has FDA The

go that's included sometime testing proposed response. and us that So our a in into through to response puts proposed that the in -- December meeting our

is we guaranteed, to during fully very the have of have we would be for FDA that a Obviously, application. on that plan certainly sufficient but the clarity. it FDA address that that position a more meeting, is our going questions. think think, lot of And testing helpful if favorable have we to the terms expect the we get more planned, -- we execute whether plan. proposed the proposed to a takes the have in and the company moment with have time conversation We And believe will teleconference, derisking really really nothing of we're critical all on kind a that clarity we testing FDA's

wanted to in be is. time we our really extremely plan what to take our So thoughtful really terms of

more kind of questions I'll that Q&A. that be to on happy and AIR, So answer in the tackles the

OUS milestone said we've other perform, an The many -- times, is moving kind planned major trial. is the proceeding to next the as slide update on as of -- That plans to company clinical that schedule.

run autonomous trial of So the applied version robot. an fully OUS clinical for we our have to for --

XX.X% Shalby We're The XX the primary to acceptance are tissue They're look criteria secondary hospital will the The an complications. weeks, that a sites. subjects. going at market. to running chain. to at in X execute clinical working trial. agreement to listed X us And be going is our Shalby be that us The in goal Shalby. We India, will wanting perform surgeons endpoint to be help XXX with with listed X be will incidence. The after with surgery group is stock of a They're soft on a Indian endpoint called X FDA publicly weeks.

the period. So within months X will follow-up be of of kind post-op, kind that

Noel be for the As low because company Monogram. sort end, The of economical it's said, million. the uses same cost is trial $X.X order largely to we expect to the the of think Shalby the going on implant we reason as on clinical

the that So And have we the we we from. implant acquired an licensed licensed company upgraded. implant Shalby

a Consensus company Orthopedic. called it's So

there's So are FDA-cleared and we implant. established the clinically leveraging a same implant,

us So really have there. about there's saves money. don't synergy on lot We side. of the of worry implant to lot inventory a a It nice

U.S. been by reviewed FDA formally And I that they in the clinical the February. trial believe population the indicated They've to population. should highlight that generalizable the is has

plan call belt-and-suspenders really have, is kind this clearance. a So We let's great of news. getting to it,

great the FDA December with the doesn't meeting clinical wants FDA like that's with needed the everything terrific. data and the AIR clinical in data, goes is feel if okay. our If So application, that's

of We system. that clinical our will will have it's version to trial and system, data the about valuable the a get plan very And information clinical it because us quickly. our give be autonomous trial fully for regardless if a helpful

very a a our this. system, FDA also milestone. to if very inpatient let's out X the that -- milestones we first the there's come believe would live milestone. We we we were critical Obviously, call have that our it if And clear that's of think that's surgeries, once certainly significant think risk. obviously But critical FDA the -- significant

So the at interesting inflection a point. company is really

Moving to detailing next slide just the of what's upcoming. kind and

of this a application, was XXX(k) lift. which year, was significant what the done submitting we've kind news year. we've So this big The highlighted really

a I strong application. really, think really it was

an think I the incredible team job. did

of just size really the For team, our terrific. was the dedication

happy So landed. that with effort. team where a it massive Very was

on clearance the was forward of clinical and the clinical running have the to where a FDA push trial. now, done year to that we're outstanding July submission right sub India, is in in do getting So planning Q that main to thing about trial with kind continue this on

Moving a of couple into next we critical milestones anticipate. we year, have that

we've our second initiating trial we autonomous that the fully XXX(k) of plan been So we robot. submitting firstly version anticipate about. talking the for on clinical also a And

like we relationships volume to efficient. is other or a attractive large we established very be its growing similar that lot surgeries demand are relationships. the We will robotics. of have, with and international would The We patient there let's does entry inpatient underserved. lower looking relationship populations anticipate enrollment think to market. Shalby we We -- as the is that that quickly. markets Shalby find expect expect with barriers may -- of trial lot for a live to large company markets our and The that very or for also attractive first say, fairly Indian clinical in significantly expand and to move

system we're next we the in terms submitted, in going So be fully of with may XXXX then happens first early year. trade with spot it to critical on a major year depending the our planned system. kind And attending the XXXX what obviously, milestones. But show was regardless, international of may pretty autonomous version a anticipate be that, of just into respect be launch to or that for exciting launches, we're

the next slide. to Moving

better market reiterating thesis look you When a and at a Before we the XX,XXX-foot of open from big we And solution we the developing. been up is market it's of that be generally. the is is way the a market the underappreciated the a get question just never Monogram. just like changing, for proposition reason has we underlying and think Q&A, may investment in very the by sort we're interesting fundamentally view, value that for and market that the changing think dynamics, quick

this just at XX% Mako going share have [ XX% fellowship. if think ], a that More seek some of highlight access incredibly that programs going of to without percentage to programs a a than access large you're that joint medicine, fellowship we orthopedic try statistics of select fellowship get to residents fellowship, So is And and a you the Mako. When I'm look it's reconstruction at have point. orthopedic into to difficult. number

funnel is the end much very So of Mako-dominated. the front

the at the look XX% suggest then And going. that's be of robotic seen frame. will be where robotic. X -- the away replacements in that knee of surgeons studies And U.S. and you adoption X -- then fact XXXX, in similar couple time that years you which only XX by X the with over that a We've that orthopedic age is will

we've changing really to is tends that the control job incredible way For is into dominate funnel, down about sort attrition you Mako of knee on up any fast an locking new appears market. of funnel, the what's lends market, way share entrants of think just of mix over done We the the to the replacements we mix, filling is very to right? So today future whatever the then done up think appears think that the going that very future going not the surgeons if the we market of that replacements. front the end quickly. be Mako-dominated. are and And that time. is do knee going funnel road. surgeons, it backside this We to The forward that to existing medicine. has as Mako orthopedic much away the kind think And retiring itself of of

and any up to look questions So for may forward with have. answering questions open folks the to want floor I that,

[Operator Zacks here from question Great. Tom Research. Kerr Instructions] is first Our Investment from

of A India question trial. U.S. the out on

that but items just is purely And we're sort then trial, line we waiting than there your it's expectations? Or that? think on I from of on on what's it Or that thought? the XXXX, taking revenue-producing part -- are clearance. Or on X if Is time OUS the longer is just goes would a that ever R&D be trial? in expense? the proved what

Sure. for Thanks your questions.

in point India, first the launch yes. So time about to

So regulatory the is agency approve for has in that the imagine, -- United clearance. as can there a we you system like -- just to the States,

we clearance But the is are It clinical done application. really research country good to painstaking with soft helping really, was kind us job received approval trial that organizations one application. a largest purposes. in the that in has have of import working of for unit use together process. clinical still put a The for We the training

I think we've very done with job a that. good

I would say to technology. India receptive is pretty that

there's the market. that think that of robotics an for awareness value I proposition of

that's getting clearance feel concerns have point, run to the this on time like trial. we at don't and clinical about So any

that, We that when would certainty to haven't dates off. largely -- to the system. we prepping on provided we I say kick that peg for But any ourselves expect don't having without want absolute we're to specific because

And to we we're prepping have as start the once be ship to once going to initiate get Now surgeons. we as the aggressive we we're the training possible But to announce that X clearance to we going the that trial and clearance. got over import, system it. start clearance would

is going I of second cost? the opportunity Part -- -- there is is The clinical think all cost. it of to of to trial we running for out was, best itself clinical it? be the all trial. follow practices your just is that any terms question In of a want Or all revenue

It's we really to -- economic have pretty removed incentives we purely a from want any process. just really else. the anything So want don't to cost. We're far or

They're proper clinical surgeons at enrollment. So the is trial be when responsible really organization going actually for and going is to for the really are to be of an be the -- executed. study. the execution going length to research We're responsible arm's

obviously, if -- do to anticipate which would market. trial lead don't in we the But anticipate we what revenue. But any could India, clearance we very anticipate is is successful, is that significant a

we terms listed Just can think We market in I help market they're the with that. of Curexo, Exchange India. the year, last how paint much big dynamics. systems the favorable player robotic is some on the potential in just very picture India. of there. think guided We significant we that have XXX There's think some than a -- in more we system, compare have our competitively Korean order we the a company think, They on that's called Stock in

cost a different sensitive. it's But market. Obviously, it's

our competitive clearance we a some huge so can working try be market, But for it's large us scale on that be as we post partner possible. have a down that we're anticipate to and helpful a to drive India. as very costs Shalby in obviously. quickly population, technology And We could very

Okay. that. on of the for quick A financial color ones. Thanks couple

that Does in X-digit obviously, preferred you're costs advertising X-digit high, So quarter or the the quarter, stock. where go of the because fourth the normal to numbers? was marketing in back numbers

you to take do that? Noel, want

Yes.

that ongoing So Tom, thing. I that's not would say was an

the marketing was the that been marketing the really awareness campaign, of largely to spend reduced materially closed. was So drive expense has and since

makes That Okay. sense.

quick more clarify. to wanted one... And Just X

synergy thing little I -- it out would one a think I underappreciated. that of bit is a of nice say, just kind would I say

value want potential highlight some or just kind -- value I our of propositions. of So the to the of propositions system

about of team is the we're devoted is us and things One really lot having. to a thinking the -- really

an have accurate most We system to goal aspirational market. the have on the

this that be example, if goal. to turns very demonstrate case, that Now is for robot our is validated, clinically the and clinically speaking, we to out, be would accurate. need an aspirational just that obviously, But can

been the in market have spent our ability potentially think And of system feels will the that's the that somewhat to that our we it asset to our date intangible newsletter think the that have audience like will company of with -- and marketing audience. we Monogram. follows over that an We in in ways we resonate the life could

So it's an I to think us undervalued support. for have the thing

there. note So kind of just a

queue. more with short-term And and an said in you're quarter than mean? in burn -- better get back But Yes. term funded short is the milestones. say rate, to milestones it that's That's milestones? -- does said enough achieve Or I'll you interesting end you Will your XXXX. Quickly, the long-term what until of short-term XX you're $X.X say note. throughout to then not funded you way Why that months. XXXX? XX million The cash, a this that

sure. Yes,

want I think make there's at always to I X. kind for things always a -- speak. kind -- important There's full, to think of want that to we a we sure run we so -- don't it's which us to to tank the point is of

we may that's of think I opportunities continue to critical think if We that on execute milestones. there part So it. be

we basically strategic to that. milestones table cap help of become being players. the to public the some was large went clean up for more to of We've One investable helpful reasons the alluded by

would I capital. have part, to our ability to that in the access we accelerate be to but that think development, tied

deploy new a to on system, it is you returns company for applications for incredibly system. when to capital, on invested right? what our we've want said that think is So about So example, we multi-application the be accretive

for been knee. has a any a has partial press-fit a could space the the example, knee, an example, that for kind for press-fit press-fit partial company we There opportunity If -- of is not a perfect develop in for see, application knee. which we So implant. commercialized partial

a possibility there sense. if right opportunities step and that partners. hope I accelerator on could we the makes So is that the have we

but very ROI the high would could say. R&D rate tied, to up, be go I it So we feel, burn capabilities, would

we So time runway. to think new if I we is attractive we the just of have sustain But now, right applications. deploy are essence it where an yes,

I'll queue. Thanks. the jump back it. in Got

web. [Operator over Instructions] over the floor for At any [ point, to like Larry the Hold turn this ] I'd to questions

to advanced discussions? first Our speak any and can How question are your how you webcast many asks, technology? in strategic any interest

Larry. Sure. Thanks,

system. would -- market is of look trained reiterating you and the market So going say surgeons surgeons at being you are the what XX front kind just will orthopedic old the I the think right? to And slide, next kind X of the last years funnel. the years. when of fellowship just XX% about then that within trained XX% of Mako now, of with So dynamics, And end be right

think the the of attrition on end funnel. kind So of you about back that

we Monogram attractive just think would now. I to. speak limitations with We that as that the a has we market the on time So investment some And already Monogram is, let's robot can we most awareness be has in believe was to think matter like was Monogram interest And development. believe market. they obvious. is of Mako we quickly a in is if interest is dynamics that the, robot the the me we thesis systems the shifting only best to as Stryker's one felt their it, -- was always what and Whether we Monogram it competitive the before system. value it's of landscape that to anticipate for driven has overcome be orthopedic next-gen market have the by kind on for call think always it drives proposition of going say difficult that --

-- has think I think incredible So the I done team engineering an we job.

very I fast, is think efficient. our registration very

safe, I cutting accurate. to think very efficient, is our going be fast, a

Our of it. [ all LAX ] planning,

to of now its performance. starting use we volume and low high robot resonate. convert system and think come will convert performing. commercialization. think validate the well XX will surgeons post feedback both have we over incredibly the we surgeons that appeal. I'm we verify surgeons and market So to be We in platform our is We had our our proud broad is And volume. the and We've system think how We -- think really will

on it's think of somebody looking for all those Monogram, I the kind think things. important I just So through think outside of at really to

important of really at market. it's in utilization think look systems I the to

has very that utilization system robotic. of the Stryker -- high So XX-plus much, much on does is Stryker are Stryker The any the surgeries that. other the order market percent of does utilization of surgeries system that on of than robotic lower Mako of

start And is the well-utilized so a X where cause we replacements, if robotic, just move joint having X a replacements think that knee to of of to a world not we squeeze. robot out dynamics will

said yes, So I mean, in space. I our communication that's constant would peers in with think say, the And publicly. I we've we're what

webcast outstanding Our the asks, on any can What are question next of you clearance? more provide the details any items? FDA timing

Perfect.

FDA So -- days July. -- came if September address in us XX after information, the test now, information were The largely our they we the think to requests strategies. big for we the can a proposed in with request FDA's that. all submitted accept to thing We additional right expecting of back FDA to we on

FDA, optimistic, with strategy proposed the cautiously but a meet we're we our to need and have in So review detail. teleconference

next the -- March to get and do all do until so XX of days And of then to is the from to have their a the FDA testing respond plan proposed submission would have to we then XX target We year approval. FDA.

quarter of the if to use clock minus the full idea back we submit. been XX a XX that have But when back. you second next of hear might we in we conservatively speaking, year year used would days the gives expect So some

be submit. we're as FDA plan the I response and to the that give we have December meeting, aggressive going can we Once to we as data this in would the get note to that

FDA the call If expect the next slow clinical in time going quarter on that we of of data by, sort let's the always submission, would which be of go. So full would back trial requests it, the that kind was the soon, kind have frame our plan to year. we to to clinical hear the India with simmer risk, second do ready to from a of

get good So thing what we're in position we a to cleared to as this can. to quickly pretty as needs address done be

next question The asks, what trial webcast the anticipate timing you do of be? to the clinical OUS

Sure.

to submitted I to So for be careful received we I for a We've this want system I how training and -- we to notice have informal -- answer variability agency, -- received actually reliant anytime want we on it's clinical regulatory the there's trial. really -- some got because a notice that. already just you're today, to that that comes import surgeons the approval -- start with

been by I on the say surprised is be patient that front. But these going kind what's through news that who of application versed communicated the live anticipating is would if well certainly moving is to as CRO, more would weren't So expected. surgeries. And me It's we year, next matters, on we're the by eagerly we process. doing

FDA, next question if right goes what look could Monogram? like the revenues everything webcast Our XXXX with asks, for

Sure.

kind of Tom I buckets. was burn that in -- about capital. the caveat and about asking So X would And we think

the we're obviously, capital the necessarily down company. capital capital not the itself. much comes think to value But at reflects obviously, do we And needs prices of of the sensitive So to availability. company intrinsic raising

it's in get that to that the bit that accounts to of for fully hospital outside a say just of And expect reason a U.S. is United initially implants, and I'll take the the caveats, States. with buy the through us all kind time the in to the we little faster U.S. groups. it's than time we're of to with seed going grow targeting longer So those

So that surgeons we've have relationships have we been -- with.

So little -- is the involved. servicing a and more also of the revenues U.S.

We a ] piece. the software some whereas and where we and implant. already has more model consumables sell be supply would Shalby bit platform a [ robot So OUS, little of would the the bid

you for the system, say, did year. look at Curexo we units they that if comps So to India all XXX in -- last the

a India not But saying what So sense in value if very we the with do. that we makes quickly move that's could obviously, is I'm India market. think attractive we would pretty Shalby. that proposition

OUS. what that's would say So I for

sites Domestically, is initially. we're X our plan targeting

systems. So play that would be surgical X

have a surgeons of We range various of levels. volume

of X who's interested quite our user well-known surgeon lot does system, pretty volume. in have robotic that a is We who

provided it's mix, in see to like we this. yet -- haven't put going where be -- we'll guidance XXXX. any we revenue we on it but So a think But think we be

when I less trying interest, think market demand. able we problem have think to meeting demand. but we what problem of to think I kind have anticipate, -- I see fulfill a we're going won't have be I of And drive to time we'll a the a we'll comes. where That's

are question Next asks, what other international markets you targeting?

Sure.

So that's why in we're going Health January. to Arab

which markets a in these for pretty Far Turkey. massive example, like, of there's bunch -- the is you attractive a We Eastern think America. some parts at South East, Indonesia, population, large take East, even Middle look you when markets, So of of

we trail are where attractive markets at Curexo the blazed robotic of look kind you terms that adoption. they well, If think really has have in of done for that

some shows we're the And need a launch going would the start some those us of to of be for focus areas relationships markets. that So are United that build we us the those to States. will attending in outside trade help

the cost mBos what benefits are and robotic next surgeons? to question savings hospitals asks, of The system

Sure.

of biggest really proposition system. So the value saving robotic the -- is robotic the well, it is clinical system for cost any

is X robotic be it. out robots have X XXXX of that changed types fundamentally by of reason the will because robotics actually certain So changed surgery, the

the to enhance And preoperative surgical basically what shown world scan has patient. if to personalize Mako surgical in the information surgery, the the satisfaction use CT a So they're that surgeons And plan for the that seems personalized Mako outcome, generate CT scan. patient robot as uses is a few a companies that X that custom of outcomes.

a So cut really approach everybody doesn't fits the surgery not none it's surprise that knee and one it. same a to giving size

enhanced. be the if seem has shown you customize that Mako What surgery, is to patient outcomes

if be to robotic minimal it ability kind So learning competitive profitable and of plug very surgery, without enables curve, thing, a that it executed day are to landscape could X you a -- to hospitals, where be surgery joint that a have of the for highly kind risk, seamlessly a in in efficient reconstructions very with orthopedic from surgeries that think the hospital. about valuable system surgeon's

real clinical surgeries enabling from is marketing most It's a really it's fundamental cost that difference. it's savings a of the just So makes the value -- side -- proposition it.

long adverse a And MCL, then mitigates it's cost the something that savings. patellar outcomes, A lot about a drives tendon, surgery, of risks of risks kind cutting doing cutting of tail system really when you those an bad. think

So be first the thing. that would

scale, The as volume. disadvantage the going is terms of the we're unit getting system efficiencies at be to -- for our the second be say hard at obviously, us realizing peers of be just is versus competitive. kind consumables, our look of we're out I be getting to going to you a to be it's When -- would to going our buying it's thing in going economics and gate, right of of

some But advantages. we do have

requires the example, for change. system a Mako tool So

And will blade. need the adapter. and surgeons lot cut they system, Mako a is adapter the will a femur of cut So angle what to that you a with do a do distal posterior with preload right

be So the tool switch switch blade, will the other tool. That surgeon surgery, the will start preloaded. to the

a with tool rep was And a used different preload tool. will sometimes the that even

So you with case. a that tell I our X not pricing cheap use can are blades those analysis. you in could single And blades

is -- just system no blade So just X per tool a procedure. It's change. there's Monogram's

instrumentation. using there. to the and advantages [ we knee is ] So other economic Pretty see everybody fiducials some similar navigate much

opportunity huge going, there's that certainly there's potentially and fiducials [ and a the about we there. opportunities But kind of So ], it's we lower think next where think as cost. to the eliminate gen not consumable

the you When throughput, cost time, a kind it of faster efficiency and So competitive up. also surgery, could a think in more the head-to-head savings, of the about a just it's more match right? robot increases your is do you

meets rubber speaking, certainly the especially have and is we road. So But our is think where we more competitive, we robot the power. as think purchasing clinically scale

large to base, care of some of So that about to calibrate of. think robot So manage and thousands you service a in take robots manage if you the they strategic cost and kind have space, right? companies and servicing think the they deployed for a and have about

a robot shoulder say, but single becomes it's optimized is for or not application, optimized only knee, hip that your total let's for whatever, inefficient. If very or

standpoint, So having, call significant training let's of -- we be standpoint scales kinds it, on from applications applications. clinical of standpoint. interesting just hardware to for best-in-class all other Cross-training will we and piece a robot cost There's multi-application, time, over that think that become multiple servicing operators a distribution savings as a synergies.

way So advantages. a have we we long-winded saying some of think

once to The clearance you to next do have receive train you commercialization? start surgeons and question asks, commence

system kind Yes. But advantages X be the system, so of curve, learning is to training of X the fast. of of be our we the is in very the our that -- to we required an -- going expert think,

the kind use to to of required you cases of number give some how the think learn minimal. just we To is examples. system So

So training them doing that of system. our had being the and the And to surgeons had verification came quick basically session accuracy only when the in that and a all of a took we as from were with to come same we for surgery use Many FDA, run and would part use the system we a have in data cadaver. surgeon the used who on to were day. that system the protocols sorts run submitted validation never of surgeons

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if -- XX-year-old -- at were don't did Larry, we you think robot the -- had know, Dr. but don't ago. run the don't actually were there, the -- think I Day you So an daughter long we I not I Day, too bone And for had Analyst I we Unis' Analyst prep.

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system. we're plane, of to go plane on the should it going where that, off, surgeon get and telling to own. intuitive. it robot autopilot Kind really So where just outside pretty the is will But with the tell of sort on thing the be of of similar its lands put a where much and surgeon wants plane to the The a to flies takes like pretty the point cuts. our kind

Is model? is cost system? robotic what business razor/razorblade asks, question the Next mBos the of this a

Sure.

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the and commitments. for exchange essentially use in drives for utilization robot give So the economics they away hospital,

direction that's model. So the is And going. it is yes, a the razor/razorblade model

is very the So consumables in think equipment implant which consumable, on doing attractive our consumables -- capital to our be made an business, And in the is the the job certainly we space the the very, a implant. can robot money addition good in robot and but case companies that monetizing the the consumables. are some

where So the think, system selling going really and to as made is the of utilization that's money, the be implant. we

procedure And it does an surgery is our rapid elective you cleared? asks, that as matter question to knee adoption once look last

it's amputation. the once in way have real that very permanent. at fully think deferred. replacement, business -- is wasn't it which -- reconstruction. knee So you're we ] that a need the appreciate look just the who a I when that, say, is It that you on at let's the you're mean, I happening was need replacement and of demand fear of kind that surgery, barrier got It the material you knee mean, I biggest frankly, like, And a People when impact away. a reality [ knee a reconstruction cutting demand in I and went the what's joint to would how replacement. COVID, to bone even the look knee had taking

very back. That a going is never You're scary thing.

highest not And so replacements they have that tools our into accurate, goal surgery, skill is need to surgeons that try system right? a very, If and and over that all the put patient, has being knee where very appropriately and with satisfied the implant plan we think carefully risk been who likelihood want to the really It's when the to a that's that or of through, on they're are the goes it that and sidelines, to to can space. back. just maybe patient can plan the tremendously. we people give so it's to are get quality because the time, solution life a requires their life those we is best their that we people execute turn kind minimal Because for LASIK to that enhanced minimal you replacement people have for it's really a there knee suffering sitting replacement And elective talked of so and replacement get getting any that of and do game changing. many joint well, the I've

really So our vision. that's

has Our that surgery knee isn't use the could value manual if really vision knee need anything If of that's itself. part will so not a say, And instruments, do just just that you really use you robot that to you surgery that's autopilot. on is you almost to proven what happens a is reality just think to And lot happen with to ways is showcase It's to people replacements where yes, a personalize starting that -- use surgeons value for if are really a basically a But a right? transformative, use the in clinically. And robotics more robot be robot significant. the haven't of to true basically well, the is proposition make -- proposition replacements, do surgeons just to that scary. what and do robotics. to we generic

helps address So that. that hopefully,

turn management closing comments. like to the for back session. This floor does question-and-answer any to conclude the I'd

Terrific.

[ believe increasing I building more that So the team been very a more the most of working very robot to the that need objective. and things quickly. And believe in think joining objective afternoon. market. the thank who Mako. The predominant our autonomous robot on younger orthopedic execute the hard cutting use are acute. us surgeons have like way coming what kind Monogram building need. become to solution saw-based our what going dynamics has used the want the more the We fully space market is to an very, market just we're the on they We first for ] is doing of think is old you shifting commercialize to trends the we demographic and want retiring, use we to surgeons is think And for very has everybody of to kind as robotics, this shift market clear. And we We and

executing as going think we doing everything can time our we And side. our on So we're down to clearance is continue just possible. heads to and putting quickly and as get

you thank support. for really your really, So

will updates trial. We additional our hopefully and FDA with the have news over as coming hopefully for be meet in some we months touch the clinical with

thank really with time. appreciate So that, everybody's you. I

teleconference. concludes This today's

Thank time. lines You your for may you this at disconnect again your participation.