Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the CVRx Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mike Vallie. Mike. you, Thank

begin. You may

Mike Vallie

Thank second you today afternoon. joining for XXXX earnings CVRx's quarter for conference Good us call.

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

risks due addition, to including SEC. and that results the the with of differ including a In XX-Q earnings this prior upcoming be filings, the in uncertainties, materially identified issued to the actual and in company's those SEC filed will Form number could release call

and Officer, Chief now Yared. Executive call would I to President turn Nadim like the CVRx's over to

Nadim Yared

joining a and begin year CFO, by our our thoughts the second our before Mike, thanks I'll conclude with of by an an for turning for by review Then Jared and followed our the Oasheim. everyone to operational overview rest us. providing Q&A. you, update to of quarter of I call will today's results Thank financial performance,

development thrilled we our our are the in growth The year-over-year nearly U.S. to of pipeline. that the new strength of excellent expansion centers we highlighted share the XXX% new another implanting We had exceeded by is and expectations quarter. volumes, and the the delivered that in active U.S. customer

regarding feedback therapy physicians positive Importantly, on very their experience we patients. when are to continuing our their from own using Barostim receive

to the market the quality execute. the ability procedure, in demand to robust for the demonstrate financial our Barostim continues of performance Our and Barostim

the our was Worldwide primarily over territories XX% failure quarter successful increase the over XXXX. the patient awareness. million, existing into the within our Now base, new U.S. was elevated utilization performance let's of an heart the dive These during grew from $X.X our customer to by the expansion within ongoing came which execution This the Barostim of physician XXX% and continued and second quarter. year. results prior due into revenue of our details business,

that encouraged four and and has the utilization the announcement following data of In of been business at had the results that meetings the BeAT-HF have are Barostim We February has continued announcement, physicians have of following to trial, each the months our positive reactions. grow. adoption of preliminary seen scientific strong

update our second on Turning quarter. progress an the to during operational

and As our a areas the of reminder, of are clinical of continued our infrastructure, our the focus expansion body evidence. commercial expansion

expansion the with Starting continued of commercial our infrastructure.

new physicians progressed able to U.S. initiatives, and second bringing we we our education XX. and support have optimize to impressive, healthcare total and and their leverage marketing forward our the to put commercial and patient which abilities programs, talent field expected, during we train territories, sales direct-to-consumer to added is the we our look three providers Barostim. to educate The been Also the further will quarter, As to continuing on we attract including to strategy. into continue

body expansion area, Moving evidence. to of our our focus clinical the second of

to supplement the collected which June, FDA, part study. As announced the BeAT-HF data PMA of in we submitted as post-market included

As line of the with a is seeking reminder, the a of the expansion executive BeAT-HF potential steering PMA for Barostim, recommendation the label supplement trial. in committee

heart safe committee's strongly the a with agree treatment as fully effective Barostim the and failure. We assessment evidence of for that supports totality option

the FDA will updates progress of from response receive review end expect and We the and we share. have remain FDA committed to a undergoing closely to the process significant monitoring provide are year. by We with when currently developments the normal to

along new for the March our of one XXXX. additional same with of codes as APC prospective payment technology for physician for expires particular period. the absence mention was of the system XXXX, payment One short, transitional any at OPPS, last CMS note of the Of fee requesting the end released outpatient payment recently proposed submission update, the proposed pass-through our or to schedule assignment

for the in year. document this We anticipate package final on formal proposed submitting comments OPPS later and inclusion the advocate

that the is an status case is assumption base our cash the quo, reduction flow to across for the been to selling to U.S. has approximately expected without equity lead please us be model financing. remember average which reach need breakeven our However, This to complete to XXXX $XX,XXX. price our a would able in in that the guiding

very for quarter Through of U.S. compared patients what XXXX. the suffering from have the months I revenue we accomplish We XXX% second heart momentum about to XXXX. the our have this during excited lives six team and to the for continuing dedication mission year, of the to been we the failure on to able year to as of by our of build first first throughout want their thank are balance improving look our of forward grown We and half to the heart failure.

call financials. to the to review Jared? turn now over our I'll Jared

Jared Oasheim

last units patient physician XX% the million revenue Thanks, and of $X.X the business, of the the U.S. current growth of the result as Nadim. quarter $X.X in the sales U.S. in compared of U.S. a Barostim. failure of over new the second increases XXX a $X.X in by continued reflecting million was revenue The increase total Heart second driven quarter units. new last primarily million $X.X revenue into current and awareness in were million the on In to of revenue expansion increased generated total to same heart accounts year last on XXX in territories, XXX% was representing quarter, totaled in $X.X the compared or an same period year. growth generated quarter, the million, year. failure period Revenue

implanting on end At June of and compared current XX, total the XXXX. a had of quarter, XX, the XX to XXXX, on XXX we March XXX centers active

$X.X current Revenue XXXX and in in compared remained XX, the last on three in the in Total June for at to an from increase had also XX June Europe year. current number current representing territories consistent to Europe the six of XX% of the same quarter XX, U.S. was of XXXX, We XX months XXXX. to the sales XX XX at Europe the in compared sales quarter million March units period XX, on end quarter. in the of ended in revenue The territories QX XXXX. increased XX% generated

a margin last in XX% Gross profit improved volumes. a XXXX, headcount, year. expenses in in associated three in driven unit a were of margin ended mainly expenses Gross increase stock-based year. to compensation and the increase increase quarter in XX, and an due a XXXX. million to and $X.X a reflecting for development of million the expense June X.X million, period stock-based compared million June increased months for quarter of the the XX, the compensation noncash current three by months expenses last increase This period the production per $ increase the an compared quarter expenses, XX% increase to in increased fees. the the three million, to increased million XXXX, XX% headcount, million same million the compensation as increase compared a an $X.X current for with increased $X.X period travel driven $X.X year. expenses was for $X.X to Gross SG&A $XX.X million commercialization XX, $X.X a XX% compensation of cost result U.S., decrease current Barostim were same in advertising the ended representing million was result increase as compared for was $X.X in of a last ended to This months June and change $X.X primarily driven increase million, a expense. of Research increase change by a noncash expenses primarily marketing by the in for consulting same $X.X

increase year. the was current other driven increased million under in net agreement ended expense ended Other into compared months the to same $X.X June XXXX. last XXXX. period compared the the months Interest October for by quarter interest XXXX, on borrowings loan net million XX, This $X.X on $XX,XXX for income the June XX, the of three was expense to the expense entered XX, three

XXXX $X.XX loss share bearing of our average XXXX. of quarter per based income income last $X.XX million net was per compared per quarter XX.X of $XX.X loss $XX.X was weighted million the for was a primarily second year. on or second quarter share driven weighted average shares the Net the Net period current share XX.X for to interest second The same on quarter the loss shares of million outstanding in accounts. million for for the by interest XXXX outstanding or and

which million and $XX.XX included cash investing and the end cash equivalents This million net for were operating investing the XX, directors second annual for ended of quarter, the $X in cash quarter, second $XX.X used of XXXX. used our of premium cash March was insurance activities to approximately operating the officers million. $XX.X our three million. compared Net for in At months and and is activities

Now turning to guidance.

from between full full XX%, $XX million, XX%, million. $XX.X the million between to million $XX to $XX we million For million now revenue $XX.X expenses up of and $XX.X expect total expect $XX from and between we to expect million XX% now $XX year and from up up million. margins XX% XXXX, year We now operating gross and

$XX.X to $X.X XXXX, report and the between expect For third million. quarter we of total revenue million

Nadim. to like I turn call over back would to now the

Nadim Yared

had Jared. half We fantastic a first Thanks, XXXX. of

of has Our is strategy improving consecutive adoption increased which the driving the Barostim quarter. guidance financial while second resulted for to in working, performance for deliver continuing revenue

has continued the to success of forward February, in our data remain grow. pleased We look of that our back flourish, BeAT-HF during We the about the to are our particularly and on continue half announcement since year. building this particularly to business we to plans optimistic

And now, questions. for I line to open Operator? the would like

Operator

you. Thank

question-and-answer We Thank session. Instructions] be now conducting will you. a [Operator

with Our Robbie proceed first your JPMorgan. Please question question. Marcus comes from with

Unidentified Analyst

Alan is this good Congrats on Hi, quarter. the Robbie. on for

and we the you first momentum quarter starting better second through originally contemplated. saw with quarter, some think that really centers active Just of that saw implanting translating into I and

that? to you seeing then think sustainable high-teen the far that? third more so quarter, what be center adds will quarter, it to that fourth third quarter in are into And beyond when how mid So of and level you relates do

Jared Oasheim

take this that one. question. Hi I for Jared. is can the Thanks Alan,

XXXX centers. wayside to to quarters. seen this and as interest in kind were strong about for So more these shortages active of center from few really started programs staffing COVID we’ve to hospitals over ground, solved, activate additions we us back and moved numbers get these the allowed talked the the to see hospital off last We implanting that’s

as identified that new and assessment center value centers champions and active that therefore in to some insight step remind get process contracting an the pipeline have everybody the first And contract that identified. the into the take patient treated. next process through do on be we We to does implanting of is time are then

And the I that’s quarter where to centers and future. QX could some to volume come think in active see QX we’re still into we of based the shortage per new forward issues the as But current into and hospital expecting and today. seeing XX XX into look on pipeline we’re XXXX, implanting just about out the play staffing that

mean the because beat to in quarter, necessarily center and QX slowdown going that we’re a of see second So the the adds new in it in QX. doesn’t

Unidentified Analyst

seen given for good kind That’s fourth $XX.X the hear. seems to an quarter, $X.X of I far it we’ve when like guidance million look the improvement in it. to million $XX.X million increases $XX.X And to this implied million year. pretty at Got so measured then

going that better I so room far the you. staffing is see appropriate why that general we dynamics back kinds is should this for shouldn’t half? forecast of more of forward? level year, So increase have we upside the sense in think the why gotten so those Thank

Jared Oasheim

that mean, to Alan. really the I’m seen results with to Yes. I take that one we’re happy happy we’ve Yes. again, date.

look as like, look active into what’s the what QX, provide current also implanting are take to and horizon. funnel we to for like, the the I what looking center is guidance we rates on then new starting think consideration implant

so seen thing other consideration into and July. we’ve the the we quarter And in in is what the far we’ve seen take that results

long ahead we out coming take think QX, people march into seen of vacations. as right, slowdowns in COVID, the I of we historically month have August, where

quarter there’s from jump QX of for in been just yet. dollar signals from biggest amount a one to And next pure no revenue. the just of our did us that Now ever QX see to we

with million ourselves pretty didn’t And and too ahead want that guidance comfortable so we to much with of for get range to gave million QX. we increasing of the $XX.X feel $X.X

Operator

Thank you.

with proceed Matthew Sandler. Please Our next O’Brien question with comes your Piper from question.

Matthew O’Brien

for question. Thanks taking the Great.

you. for this Nadim, So one’s

of number – is lot rule. to sense here in meaningful like on missed potential to the I’ve do a experience you’re don’t, for things that based code what the this going got just as perspective, ASP it, Because get this first an the and time us help on a next the heard the your You’ve pretty you from a APC specifically. you go year I reimbursement XX% but side we Maybe the of pricing ASP side for if year. get headwind XX,XXX final just that’s into on

that’s have you’re to side things. of be the on on obviously to potentially that grow with with to side, So that, but going to able still unit ASP deal you’re nicely going headwind the

XX% profits gross both down great, think the to So and going top about on even impactful be line ASPs just us help but gross dynamic margins. profit the on are that’s impact because business and gross to that are line the

about code and the or that the that to help for just then of happen. us So code extra doesn’t that think looking the business get impact if the get you’re potential

Nadim Yared

Matt, Matthew. I for Sure, the half of way. to by thanks will ask the answer question. question the second Jared the

about and follow same this, another that’s last I’m in to don’t similar process what CMS the but we how looked company much the think now the Let process. by at part followed the first experience answer exactly Zoll. a they We process. of me about happened with mentioning [indiscernible] year small have one

them of matter for and tell panel, into as at it we find request parameters it front whether application account CMS looking here the much in not other it it, ops, the how What in in ours why constituencies, it end can for how not because proposed necessarily And the that similarities supported how, got will not we they not. no year. at different. be us? worked to the does things. define of the mentioned Well, as for work summer’s here to we the Their That’s try a case they find they well them, then are or don’t that went understand is case take was will and wouldn’t utilize what in much made And us? every they like solace

to little gross it about been have we’re in that you walk let we about ASP. to through internally the how lower why will in That’s modeling me actually, future. ASP a the And be turn bit here a margin thinking Jared from

Jared Oasheim

payment XXXX. been on the Yes. for December right? horizon going Matt, the has to years expiration I XX, now, mean, knew several this We was of this be add-on

route building So we take conservative models. tend to the these term longer when

And so would our price in to average XXXX that we consideration selling wanted to and what into take beyond. be

would that in XXXX $XX,XXX are we price base And our we to with so selling average the look assuming APC same as out we are today, case, $XX,XXX. be that and between

the volume, over margins shown with XXXX time, can with still that unit XX% And the price a of in in would attainable the believe seeing XX% in based even margins in XXXX, quarter. volume achieve we off Now that us a unit in comes it think thing that of down cost in decrease That’s allowed nice per the the or average drop probably short-term revenue to gross we’ve dramatically. drop That current doesn’t gross drop. but be per cost pretty we just cliff on and here overnight. number I see selling

Matthew O’Brien

Got it.

I just negatively us I I’m but did or make that. that just then deeper the it any for know you see curious to more, think Okay. I treatment the well perspective? for a Anybody and were of go came validate or – do able from some about if of know you’re that – get to to that then easier what Appreciate And centers? HF, this existing did QX, indication Thanks. that if centers information? centers whereas going to help that? did pause out see technology it digesting business? the impactful any what still selling they you And does as but – new don’t BeAT-HF of you in helps from Is your like potentially just some recently, it said, you

Nadim Yared

Yes, excellent question.

company based to on allowed the patients data. proactively or answer We with as not first not these everybody, not is share are BeAT-HF. a the we authorization the are one start We asked. reminder where yet when any healthcare given make let’s us questions to manuscript where with has providers are can result of published, and So only now, claims FDA right to the questions

So whatever we have over of slowdown, meeting that at any healthcare How data the the the so of this at XX sharing provider on a to and scientific what’s meet the data that not breaker the late seen the not presented presented and don’t it. without of until by we mentioned repeat have and impact went the percent March healthcare – not Nevertheless, publicly comment we can at the split other we were sites and seen providers when data between who THT. we – out the or I far have February it? physicians get a exactly. over, endpoint we XX uncertainty later the data that seen even has seen have month the BeAT-HF I limited another have been at when primary trial did height have

slowdown that in seen month activities not or site. of of even the During had observed uncertainty, then any we

alleviate that concern monthly level confidence on in still of of a providing track. the here basis QX give That also revenue directionality right in kind some to are this any of we and moved us on into of

are patients hard not? to results current the results, more that hard se, to – of BeAT-HF. our implanting say more Now, the can with link That’s per seen treating and I growth or for that sure quantify those have patients,

the part if labeling? Well, increase the what second bit should total on addressable expansion a labeling. the of the we do our of To we expect little market question, get based

be and did through we actually If we disclosed our the therapy may total eliminated addressable funnel. last details a when only SX symptoms, a other comorbid you patient the other it’s market, be many step that who have treating and the At you to in assuming from this, to funnel, comorbidities. recall, the when go in not is it subsequent assumed patients have filing, who diseases, prescribed full and in

total on the conservative went a addressable assessment of So bit little we our market.

if Now, be of from the addressable. addressable will believe FDA, market treatment the will Therefore, we total get we some this that labeling market increase.

at Matt. what yet disclose be on are not sorry, – We new a for yearly our to yet, the But point new will basis of new the therapy number patients patients at then they’re back clarity do we we’ll is everybody exercise us, that once this right we the FDA, come to have it. what and allowing with time, from label the will eligible

be will So will we but see so, I an Will it Possibly, yet. there we drop an increase? that year. your not sufficient be next previous about concern we’re believe see to impact? alleviate ASP? the Will but in

point for at we’re We’re the not guidance yet XXXX. where giving

Matthew O’Brien

it. Understood. so Got much. Thanks

Nadim Yared

Matt. you, Thank

Operator

Thank you.

Please Margaret Blair. comes with with your question from next proceed Kaczor Our William question.

Margaret Kaczor

into Hey, to might any good terms additional guys afternoon of of would months taking in maybe compare summer guys. traditional you summer if wanted provide the Thanks question. cadence seasonality. cases to that throughout how I and the and for July details see

Jared Oasheim

Hey, is Yes. Margaret, this Jared.

was came April. QX the after we about over continuing month we’ve how into the month we months, here last know out few to results, discussed I with results momentum So talked

get gave was the data May disclosing this through at update, approach BeAT-HF, quarterly going maybe clinical I now one to uncertainty that also procedural of into a we’re know just process business, out trying we’ve strong pretty quarter there with gotten But sharing perspective. the giving and from happen about the continuing where be how a from to back to around then traditional there basis your guidance of on investors forward. that conference the We was results about some for was what

the way us we’re just what any forward concerns indicate the a is that to in give back move deliver right? have about normal cadence This not quarter, and is to we guidance seeing this getting July, of there. in So

to going So I any give pass on think the question today to July. updates on we’re

Margaret Kaczor

No, understood.

crack surprises seen, I’m that now So just the slightly I’ll got second utilization accounts, look as question. a take got at are slower, we’ve Or some But expectations? you’ve your you’ve of I things there? you a online, track, kind growth tenured guess, the at with different some you more curious, account profile any newer about on can that’s faster, talk of accounts growing

Nadim Yared

Listen, these quarter in This we’ve more two most been per more treating more And Yes, than been the doing years for are to excellent than one, the question, doing patients said from things. XX in patients Barostim have months. that also accounts treating than previously is ago. patients with those have Margaret. two that Nadim, patients quarter the way. are Number with that accounts average XX treating XX patients per Barostim last months recent started by

more word at with time, the the stand us quarter. treating is more to can we patients still So and build networks, network that impact them, treating conclude with that led end their positive to referral patients, more see on the around behind institution site the a around to spread up the longer they patients they more the they the statement per Barostim Barostim, strengthen the the referral the

that stands. So

like in played the just at local interesting, is is that dynamic politics, everything right, second The level.

out on to more lot we specific patients cardiologists the the to around up And the the the come see So them. to the and augmenting new more wanting sites more the their something missing the in at – market more see it offering more fear that local you buzz to they’re big. in we the the a between geography, therapies on in, community, of or the general in geography, The it’s – hospitals hospitals accounts a competition trying start that geography. have ramping depends competition

real and very level, happens And at is that local it see. at national the bandwagon level. So that not the is exciting to for effect us

Margaret Kaczor

Yes.

having won’t bust. discussions of whether guess and kind was the panel? But of Any confident then recently? back a FDA I’ll they more convene since sneak the And a bit That’s first requests on with any label you. that a you’re Thank you’re of expansion maybe helpful. forth Okay. little one concerns and color one on very kind in I

Nadim Yared

always to me things. from get able You’re new some

submission. I we So discussions mentioned supplement prior that have did the this after to is with at And one. you here submitted publicly if Yes, FDA recall to PMA conference, we having your the a with few discussions to became with we all interaction or stood with prepared that. the FDA evidence We and dossier comfortable we totality evidence, of where prior the of the them, with we FDA submitted.

process not period come back is need we FDA now does they to this And FDA XXX analysis mean the take in the supplement. are Now the questions. with back for and all to days are we come are them That we where for then right do labeling with in of the specific not of not PMA having conversations on us with to but that other parallel, and questions. waiting

Margaret Kaczor

Appreciate guys. Congrats it. Got that.

Nadim Yared

Thank you, Margaret.

Operator

you. Thank

Please your with comes Plovanic from question. with proceed Our Genuity. Canaccord next Bill question

Bill Plovanic

A for evening. Good Thanks. you Great. questions couple here.

reimbursing understand When missed. $XX,XXX, the one Just the we to just code through want what saw that figure – you and referencing to to I on read guess you’re a on was OPS? that we are reimbursement. code XXXXT we T reimbursement. think want referencing I I’m I in $XX,XXX, What trying out, OPS, the that

Nadim Yared

the way, by is this Listen, question. Bill, Nadim your let pronounce me great name Plovanic. and correctly, Yes.

procedure. procedure. and net the the is the the device mentioning of of device So is XXXXT reimbursement yes, the what it Jared And is ASP for the is that the

$XX,XXX. are where that’s up lower $XX,XXX, $XX,XXX. national major the is United could average, a States a in lower cost say smaller reimbursement sites rural of to go you expensive when go and in more And areas living way might Now, the than all the cities so at hospitals

be, companies So because that’s is are the why reimbursement And in to let’s say strategic account see targeting the here. areas often major in higher big metropolitan novel targeting that there. drives the therapies you

year at about be you probably average will we add to in when talking quoting currently sorry, utilized, I’m $XX,XXX. is are Barostim XXXX. something? So $XX,XXX, higher want Jared, the look do where the sites next than when you it’s

Bill Plovanic

And today? remind reimbursement us what’s the

Nadim Yared

expires this below this therapies and on that that top year. the the end $XX,XXX, And be years, TPT in that is to Yes, and $XX,XXX granted the payment three $XX,XXX, transitional transitional it. top it helps by on today is novel the process for this have slightly we that’s pass-through States. another We’ve but been the adds of adopted pass-through United of of that

I me similar ours, take compare to their have and example with transitional a live of let they contrast if and They did that Inspire when another within Now, product learn to the right? pass-through started lucky. In $XX,XXX it that about pass-through case, today. We now envelope it’s product, not Medical, it’s years, our we’re end year. this that they of arriving for talking end three by received we got and transitional but payment, only the the toward of

Bill Plovanic

you if And the BATwire. could I wondering about was then Okay. talk

in days. you’re Now had submission XXX you’ve and the the that

had team, should a and are kind regulatory weekend we think you about then of the re-energized BATwire – assume I how would whole program? that off Your or

Nadim Yared

more energized. more reality challenging difficult has But company, the we on a anticipated. is we’re yes, enrollment been for have than The this. nuanced super As and ground BATwire more rate that the

it enrolling BATwire, an route now selecting FDA with uncertain majority seems right are approved and patients outcome for go the post-COVID choice worry because a for little are safer that the when given think a bit an Barostim. invasive in experimental regarding I patients a to they preferring minimally and a like approaches. the clinical not FDA have indication is And Barostim already trial approved that between product of

the enrollment And on a we BATwire. numbers, blinded remain see slower in five this XX in in this report basis, we That to patients Barostim, we’re in efficacy the our every or right said, a of to safety we’ve now we’ve seen growth seen with but on and patients FDA. paying the of safety we BATwire, while the daily the price

we happy super, this. trial, But provide with safe something have as this. with far me proceed blinded the about for when efficacy still patients. more how super of so that we is we’re approach we’ll And And Bill, let updates again, say, to to forward everybody, the more we’re remind

Bill Plovanic

Yes. might for far to topic, idea? of kind any And my complete do when have on taking questions. thoughts us you an you are give thanks how On enrollment updated you just or enrollment that through

Nadim Yared

from Yes, anticipated more provide the challenging little next the let here learn I me punt enrollment. quarter on you what when this. in probably bit a has it’s But of the we’ll slower. the concern trend been we a about is enrollment than update. We’ll about believe the study hear in more that fact terms going longer me and

Bill Plovanic

look our We at in two weeks. to conference forward seeing great. Okay, Thanks.

Nadim Yared

to forward you Bill. the it, Thank for look invite. I

Operator

Thank you.

comes Our your Please proceed Nowak question. next Craig-Hallum. question from with Alex with

Alex Nowak

I Great. there or I’m that no a is wanted pricing, no didn’t Okay. I proposed Were the pivot of a understand everyone. is APC proposal into is out outright And just actually afternoon, the to just trying simply of new that Barostim surprised little follow-up APC to there. the about that to it to for plain the but code, getting code was documents? talked anywhere it you just Barostim just HOPPS documents denial a yet? on within questions bit, bit the the proposed mention that new want on understand, an to trying make was Medicare We couple Barostim? how Good thinking

Nadim Yared

is question great received this often hard the yep, they Seriously, it. I say, to panel silent answer. to is the Alex, know. to I them it’s a is how it the in which leaves door But to negative comment dialogue we’ll give I do one know I have way. they to silent It wish hard by better. or and have a request better. what open you? explicit, know think we It nope, It’s which the don’t know, you are really Alex. the will stay not prefer August. I on have Would with is

Alex Nowak

Well, will or new getting indication the FDA, that on label a the will document? an any in that all code influence APC at ultimately at upgraded final choose have expansion Medicare

Nadim Yared

that think have it are three way is as they independent. about The Medicare pillars structured, – different

CMS is driven the almost that report coding. under discussions. the the back would coverage by impact The CMS, You not regulations labeling not charges of payment Payment will impact coverage. have coding, that to entirely cost payment it’ll the hospitals and analyzes. expansion It impact and the CMS

based therapies into buckets each labeling in claim buckets, tries device the linked anything a CMS of generic receive to or bands that or on label of they them have flavor don’t average So, data efficacy And each to they they device to or from one, and unfortunately. in that They these buckets data – price so different. or hospitals. each try that or to put the it’s price like not put an

Alex Nowak

this results seen makes Okay. year And year, as sense. strong sales well. obviously, That really last then we’ve some

number? get insights with a there. You’ve thoughts how three more for of to hand? the average growth the quarter. I there some this What bit been and start territories follow-up just then we but think be start current a cash on the adding might per just the breakeven, is we the it provide like slow? is sales OpEx capital XXXX, When do to resources on leadership question flow asking What right little on And team for? [indiscernible] sales sounds see

Nadim Yared

Excellent. Two questions, Alex.

the Let to I’ll one the me Jared. difficult and take one leave easy

we is we’re the number per quarter. – right three yes, So believe

months, possibilities. we As we’ll flow fast, we too we getting path if to burn raise to of a cash go looked XX too cone months before to never many months, in the the can Why field take does first take accounts rate, the creating rep it’s you their start without getting until for patients. And – into and they it through we that get growth process treat go too contracting in It’s relationships because to why a we nine the to is trained way there. cash slow the that? will hire six the dilutive months capital, soon know be needing But to rep, our if when breakeven takes there. the

cost period, real territory that during the additional carrying rep, in So year. manager, you’re benefit of from sales first getting the that the without

able maybe being five you we if upfront, burn of the where need sooner market to raising cash you the through years So get too our flow were the this I to rewarding that and to load been capital, it you the would’ve conversation ago much growth having without – was If faster up of breakeven. through irrespective to the strategy not to grow this where today, process. to companies the not it thinking to focusing environment flow, us on did appear current let are But Jared it’s investors you – cash than this in generate this. the me strategy. for be right ability But walk did turn cash to

Jared Oasheim

Alex, flatlining it’s a Yes, was XXXX something cash was burn we’ve year about been perspective. from while talking a the for

burning we similar we the beginning XXXX, based that that put on in that the had at would of a that the burned So year. out be XXXX guidance expectation the in very was number that the to we was number

in growth revenue. see that As into and number. is march amount beyond, out start coming get flow where in and leverage where that’s how we cash we to the a we the than seeing And the burn to OpEx dollar breakeven in down cash smaller model the number XXXX play growth that’s that

Alex Nowak

Appreciate you. the Thank update.

Nadim Yared

you, Thank Alex.

Operator

you. Thank

with Our Markets. Takkinen next Capital Frank Please question. Lake comes your proceed from question with Street

Frank Takkinen

to BHF the it related the was impact be Great. marketed. know And or negative impact data. something Thanks if any label for there that taking LVAD probably from you positive and or label. you the but potentially not now, slightly whether death despite, that’s centers your that from transplant data? I came or it on it’s data patient, ask is off-label was I familiar your reduction on the technically, understanding implanting find questions. is not a about any it’s XX% to as way can can’t it were up saw differently ask fully that so there on flip Wanted to side, right not that, know physician active with you

some So of at maybe you that, to it have centers. and any your tailwind seen active as that may planning relates

Nadim Yared

question. excellent Frank, Hey

the the got at of a not a the common investigators durability when are feedback customers. those mean the present were long-term endpoint. as very it’s met And it that the was the the questions focus we And the late at to So Barostim symptomatic in we unblinded was time courtesy. breaker, and current committee investigators to the have okay, participated customers, have positive, who But trial well there on improvement. data what super primary of presented data steering safety, current the as many the does the data to the about, Yes, encouraging. practice

of ratio helped were we day the defensive negative message totality evidence, trying the some change it the a to and around trajectory analysis at compounded why good trend And has as a felt I the year look year way you particularly might in and versus last but have positive in us with appeared win in convey be that reason when the when the the effect. growth. any was – slightly it spoke for about then, think to and back about did the we bit positive And that publicly mortality we probably, that data, people we’re messaging there is believe was carry the sentiments messaging terms we that seeing positive this of very

we yes, had in mind, growth. on this it a So we impact believe positive our

we’re the patient population. here about talking same Now

to new conservative eligible year. every with we we not patients are be ago that therapy. even Those year talking did IPO our We’re outside two could years estimated, when were that back labeling. our new XX,XXX patients method, Listen, every the there current of the

year digit we’re don’t next population. So talking a or that’s this be patients every percentage them what the treat forth. Less now, XXXX still about? right year, if a there’ll we are X,XXX treating and year, this so single another XX,XXX than of And point you patients

And patients key preach is treating to the the here a about – see those network treating they answer the the Barostim in have in physicians center for here Frank? who when turn a how give to That’s can about been that’s referral what I meetings. data of treating referring sites who to the Barostim. question, spreading the is scientific ammunition to Barostim the it element can the are at start more with able allows Did virtues So Barostim. word key the benefit your to of

Frank Takkinen

hoping bringing per computed how that And I or approximate average just what running so and get one is just at your are for many that’s perfect. you implants really to of percentage on your trying a year, of average or then maybe one XXX that utilization. more sense contributing was centers other are how XX Yes, up? could maybe to

Jared Oasheim

Frank, Hey, that take I’ll Yes. one.

So for call like one thing out everybody. I’d to

the we’ve So XXX centers four quarters last right Half we the in them of just active so. over have the or year. on done based last implanting added additions were

than XX the have of So that year. means as the of of June months XX only us end centers more been with this

have implanting centers two see really lot average have asking long-term have don’t year that the seeing been that reached of month for about. ratio to we that you’re two that a that that reach plus us signs marker, plus but or XX we year centers are average of good per with per So one years

started of on So that not we’re to recent have the talked more going in details exact couple about quarters. we’ve more it It’s that than go reaching the past. average handfuls but into number, centers a the the in

Frank Takkinen

helpful. questions. I’ll taking Thanks for there. the That’s Great. stop

Nadim Yared

Frank. Thanks, much. you Thank so

Operator

There floor to closing the you. Nadim turn like further back Thank comments. are would no time. over questions at for to this I

Nadim Yared

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

Operator

This concludes today’s teleconference.

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

CVRx (CVRX) 25 Jul 232023 Q2 Earnings call transcript