APEN - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the Apollo Endosurgery Second Quarter 2018 Conference Call and Webcast. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Lee Roth of The Ruth Group. Please go ahead, sir.

Lee Roth

Thanks, Corina. participating call. for everyone thanks on today’s And

Joining Executive Financial Officer; the company Officer. Newton, Chief are Todd and me from Stefanie Cavanaugh, Chief

and made risks financial are development forward-looking within actual Before listeners differ meaning for of Apollo's call like product I’d laws, the and Apollo’s include by including statements materially. plans securities comments timing Apollo’s will that we These this and may management involve and statements to forward-looking uncertainties, sales. federal material during outlook begin, results that caution and

call. accurate For a Securities factors, of Except date Officer, obligation today, no date to I Form events Apollo Todd? to contains The you broadcast, only Apollo or as August circumstances live any quarterly Executive call encourage Endosurgery's this information this now over turn to Exchange filed and company’s report to the X, as Newton. discussion of revise this of of that XX-Q the law, required the risk review statement call content the XXXX. otherwise the update with August Commission. my X, pleasure reflect With Chief XXXX, undertakes after conference to on Todd time-sensitive said, it’s by or of

Todd Newton

And Thank discuss us today's our thank afternoon, call good you, you Lee. to results. second And everyone. for joining quarter XXXX

healthcare US FDA's we because great total declined think for OrberaXXX States of momentum misperceptions were we the that our revenue quarter of ahead this for latest important month continue the about balloons and became of in revenue. we to Orbera previous goals had And in X. was concerning lie all There our of In are quarter, on corporate with see challenges trends. a This for that also markets liquid-filled they we our most rate we providers perceptions progress intragastric also Europe. United enthusiastic the steady LAP-BAND in And accounting product slowed last to letter anticipated quarter, issued based opportunities of on made the XX% progress the top-selling not very some sales direct OverStitch June us. quarter, at and second

communicate Although this June. the for US new in media Orbera intragastric led covered which lower beneficial which was ultimately be the to generation the will in balloon intention the the labeling to US negative the a was and sales month letter manner and bias letter's market, of consumer lead the with during FDA

And of is makeup balloon we the Intragastric separately very to addition, balloon sales. With additional able Endo-bariatric to suturing which market In six largest we quarter, quarter States. sales product over information, the see sales you're quarter thing we relevant our how future One and the the call to Stefanie I'll might financial by developed over of to our FDA more issued as think such letters business. year of turn be more you'll better second portion estimates now, details disclose Brazil, a starting outside month had external results events able this the to certain results. point decided the on in the our United that examine our affect our have product informed want last give soft second to this so out, and the I our

Stefanie Cavanaugh

mixed. To our start, revenue you, everyone. second Todd. afternoon, quarter good And were Thank results

in second $X and sales volatile of a due order called of the greater US, Worldwide $X.X second declined account product experienced the of sales million what have to our in sales we decline across or press sales XX%, US, release direct both sales of ESS, Intragastric XX% an declined the growth the consolidated the $XXX,XXX X%. or trend unexpected drop flat In timing. increasing XXXX. compared the basis. were Product quarter those the of mostly sales this notably, balloon mostly an but versus to compared we quarter being team in versus Surgical or the quarter see Outside second was sales within two and in United XX% on $X.X weak an experienced strong were QX in million a remaining million most markets QX were last six IGB have Brazil our IGB sales the and this the quarter in last been will OrberaXXX months prior increased of QX. million XXQ in these year. balloon increased in to especially million quarter, last of was $X.X to quarter. where in quarter following XXXX markets, banding Across to months but XX% available Surgical as second increased where due IGB were million US in consistent decline the would letter. both year overall our quarter XX% last each XX%. excluding second from Through and this in acceleration netted procedures, been starts distributor all May second price Brazil distributor second Outside of LAP-BAND in sales result to sales very accounts. In strong, June US, share markets, IGB year. to were unit but QX ESS IGB XXXX States, of quarter in utilization OverStitch increased the year, sales year initial sales sales versus dropped most had years, markets, the rebuilt XX%. In new and quarter the of the levels, $X.X XX% second For reorder a preceding direct gastric and which have existing and OUS OrberaXXX. the IGB our lower the the or our from you increased market in increase IGB in with sales by markets quarter FDA’s a April XXXX first versus $XXX,XXX declined the quarter, $X.X Orbera in of the of the commercial two volumes back second and departure In

was XXXX followed million. markets our account QX direct XXXX volatile US rather second our Surgical and to the US our Surgical for QX QX into IGB the sales This than the XX% sales Taking in our our versus total $XX.X million of compared sales distributor increase sequential sales strong from this US. outside to results ESS each results, second quarter outside very year, quarter X% to including results, worldwide declined However, decreased revenues and QX. in declined an LAP-BAND typical sequentially time. pattern, XX% markets by $XX.X

margin Surgical margin second prior compared Endo-bariatric continued lower XX.X% gross to XX.X% with gross gross the margin XXXX, gross especially our which ESS shift for margin. from have a year to as quarter to products mix and higher to products Moving period products sales was the in our

gross initial gross ESS reductions variable projects. has XXXX for to ESS million overall clinical and XXXX. to second Research margin $XX.X gross down, quarter trial increase accounted Total margin million and to the this in was expenses in prices with While activity compared and second higher $XX.X to operating a achieved compared higher as our cost development margin associated XXXX XXXX expenses increased products. X% improvement from of selling result due for IGB the quarter increased

lower the quarter due loss million, sales, the was second compared I quarter gross $X.X just for XXXX $X.X Our million XXXX primarily R&D net higher to second and reduced to product expenses the for as described. margin

to margin expected margin to until to begin We improvement are margin XXXX. of the expect gross percentage our current gross a projects continue in which gross as revenue completion of improve

until completion the at We also expect of US Orbera the study. trial R&D levels the to expense MERIT post in enrollment current remain approval in and

cash the Finally, our $XX.X of which net recent $XX.X million finished offering. total equivalents million total proceeds cash includes we quarter follow-on of with and from

of cash supply improvement As we therefore inventory first quarter, our changing reduce we last been and this risk conduct sales our to the as margin our of elevated as use balances we have our inventory year mix rebalanced our has projects. gross and due our to in indicated half average

during rest to towards XXXX. We Todd. back inventory that, back historical it now down of With I’ll averages to the expect balance turn our our work

Todd Newton

Thank of quarter a quick you, to now on progress report Stefanie. priorities. variety a going give I’m our for this

very remains momentum OverStitch Our good.

have gastroplasty be continue run new such XX on performing physicians physicians events the we continue at users. Outside June. quarters, on we events medical on stops and far physician focal and in number major Week pace society endoscopic We the as different and XX Mobile conferences by OverStitch physician during centers well to demand early playbook States, to was to third-party In our to very the meet In so through past our brands our our number target to XXX the remains also education Similar June. that And podium as experienced or Center, this a the in for Learning training OverStitch of Digestive another sleeve of for of commercial trained we was the both XXX around US this on new the quarter and We the XX represented point worldwide. estimate provided quarter end XXXX. of to at US, United Disease had high. end sponsored training made XX ESG year. OverStitch cities educational which internal a

of across on ESG early participating now than the Within a our leading registry roughly is thus European MERIT centers. cases across been European ESG There more are in initiatives, have recorded United data surgery bariatric Registry the enrolled. currently active XX centers in more physicians been in States. have sites, registry have that who announced XX the enrollment ESG countries We revisions trial far. also also for last establishment will bariatric bariatric OverStitch are our various which patients the capture interest May, into the we and and and update procedures suturing participating using performing XXX and have an XXX than the funded multiple outside own clinical was In

many for procedures to discussed has times the bariatric for remaining GI As potential of a many example, States is United OverStitch that sales in the about before, one-third are In we estimate procedures. are advanced while two-thirds have we technology uses. product our OverStitch that relation

this XX And As day. of underwent accounts States. in adequate without It’s OverStitch patient that impact nine the internal adverse proton and the opportunities OverStitch Dr. we the five anticipation of eight discharged accounts their reported in the and to eliminated the expand were on and growth therapy. pump GERD over being with having dependence. it R-A-P. calls inhibitor was the RAP to see great same these dual-channel have to current Sx generation market who significant and on of from XX in endoscope GERD-health-related his ongoing OverStitch technology’s have United daily currently compatible provide plication procedure In is of of median for Benias' OverStitch. were quality see new June, and Benias the is will All access satisfying limitations. months What of endoscope. were months very the example the us on all our a published We us performed of resection scores patients or access within to Sx, long-term accounts scope novel with new Endoscopy OverStitch patients utility, with a single-channel through RAP our XXX significant improvement lack XX Journal, technology. patients PPI RAP of and been the a And as even the series version ranged their the Patient follow-up number events life compatibility to study estimation Petros further the using Dr. anti-reflux International

the dual-channel the a in have channel suites majority hospitals, and and will a single fact, ASCs not regularly access endoscope US world endoscopy have of do and use to today but endoscope. the majority In

are We flexible channel various platform how forward the a with suture. seeing applications to looking single expands also endoscopic

of in are anticipated level assembly high Similar system will June, relatively of the suppliers obtained of activity, our final version sourced and product a late units. the final from Sx US in we development to the the a where for and clearance we regulatory Sx to building be at variety OverStitch is current Sx validation As complexity. we are

and As European validation procedures. result, are of in of units introduction September. a But today, the being we of end as we Sx anticipate initial US careful market around our the

pipeline we disruption patient United letter in experienced already the For lead early Stef in reported, States, FDA's June. and the Orbera in consumer a after the as

was the year, August the which our same US Of there with market be FDA’s and course we frustrating why the from FDA prior good letter. on the the not the reasons slant the are to had two media our to because reaction following the than par last somewhat think team patient when impact April letter months of immediate yet done reorder wonderful in and a balloon was job disrupted letter XXXX FDA levels was back and May trajectory important And had us been will a on shorter-lived June August. by returning

letter announced FDA training. June use labeling physician to the the healthcare physician First, issued approval directions for Orbera new for importantly updated new patient very and the of providers by including and

additional occurrence a Orbera of received been Class device As device update physicians physician that new additional of reports identification training and and customers refractory perceptions regarding followed. This patients media In can suggest not came the guidance to provides greater the authority is risk. information have intolerance, do on III with updated our which those without for training The collaboration very by management with this experiencing FDA's the the materials patient has particular, pleased first physician labeling guidance more we physician also to the we our the getting FDA, well infrequent out and the of FDA the patients. removal approval. notwithstanding very while give the and are that

also aftermath you have the We key have education Orbera advertising. had direct-to-consumer interruption After letter so Not without of notable their physician the program updates. types patient year. what spend a the of we off. or this as continued FDA the to year, last marketing two users label in drop participation August programs may Second, refer basically of

cost-sharing a a joint conducted is program physician market which is The local practices. program, and co-op directed first with

on letter we in June drop-off the not any participation Xth, Following co-op programs. have had our

which July back we national levels. see May lead that The second to funded already program led pleased in are was our and program is our campaign from is the Apollo generation and to national

about lead the has Orbera. consumer us of for definition asked information Our a that is more

based alternative balloons with patients and but Outside in increased pronounced received XX the by our a well unit time Europe. balloons of build. weight balloons OrberaXXX’s for Orbera the hope Orbera see for fatty adding fatty loss time indwell weight months update shorter intragastric is with three DDW that few cost soon to at six to able liver trials presented are is XX% average the balloons fatty more quarter, outside payers effect price interesting have markets included gas-filled higher on We clearance of to analysis balloons. Orbera This highest score United Steatohepatitis Nonalcoholic this Clinic's effective extends NAS our for the meta months nonalcoholic and included. clinical Mayo good with loss FDA has of study to plan study like efforts the these and disease Mayo in had will where having results. regression The to fluid-filled intragastric show we States in that OrberaXXX balloons past expand of fibrosis total make liver Intragastric in be indicators. customers currently is regulatory you concluded the Americans the maintenance, open-label Orbera So million on on complete perspective superior The an future. study evaluate following options. gas especially active resulted be to We advanced showed weight XX% June, indwell any the six XX% patients progressively continues and and biopsy to of weight loss with volumes our options. We body their dossiers represents was based treatment Orbera, resolution DDW. liver and available. presented was of In versus to of Also balloons think compared modifications opportunity results had of thus patient to the it estimated at balloon on value million do achieved XX to filled loss or it NASH and lifestyle a disease stages versus for fluid-filled liver The patients improves more area, a had with approved continued

our to we progress gross projects. improvement Lastly, make continue margin in

expect with cost a two $X reductions system projects completed to completion the manufacturing projects of after our manufacturing and the a future. transfer Orbera is annual completed. to begin color more and improve from unit manufacturer contract certain delivery our completed will lined the our by provide Sx inventory older the projects associated current to will we more these than and two quarter. We off, end on And in near components after up coming and goods at sold expect of third be volumes. Cinch to these online the of activities the have projects, facility of two Once margin two these by together of are Other we we sold improvement these million project are cost projects

So lines with that, now proceed. will up, we operator, for questions. please the Operator, open

Operator

[Operator Instructions].

We with first Group. Hewitt Please Capital Craig-Hallum go ahead. Matt hear from will

Matt Hewitt

me. from questions few A

First the little on provided is completed? bit and any have an the still have eight detail and that update, up, track OverStitch, all centers now study, on begun maybe a you MERIT on enrollment

Todd Newton

it's I’ve results but and about don’t tracking to specific have center by what I feel enrollment expected point. on to track heard, allotment. maybe you it their like that this had information close is we’re that are be there and to and happy one very asking at the pretty seems large Matt, last with we center-by-center But we the

Matt Hewitt

trained been sounds a now mentioned surgeons it but think trained have you how trained like adding are new or on many have OverStitch? -- quarter you I to-date physicians you have fantastic been sites Do a XXX then And physician surgeons.

Todd Newton

physician the would believe be last XX ordered number month we higher are The a physician who have that’s number location. a the that is -- of the physicians XXX who accounts than not OverStitch, because of really in number. The particular of in number number

we physicians. of are with So number very the pleased new

have physicians now course, cases. start is of in using Our those to, challenge the device

Matt Hewitt

Okay. know that look of to for as have that year in next was are given should OverStitch year? a Yes, case, it decline that starting I would about don’t to is see possible more ESG, this now surgeons procedure shift fantastic maybe previously starting that's LAP-BAND and mean you number. -- done how a the the actually I the we that to this if some to then And of quarter, thinking we reminder are be invasive the ahead already and

Todd Newton

Yes, Matt that reduction ESG the would I procedures. don’t be believe to say a that in it fair of LAP-BAND cause is

think to LAP-BAND preference I and procedures just reducing surgeons of are conduct different pediatric because altogether alternative procedures. a having variables

I tremendously, overlap there’s and variables I LAP-BAND doing at other don’t who doctors the think large are just with by they stake. ESG, think

Matt Hewitt

the then from Okay, alright. last And guess me. I one

to So here do doctors September, what ramp-up does have I -- how Sx? you once sounds it look the that initial started the does I and maybe into how like spoken currently think like that XXXX? pipeline in in the pipeline many get for are Obviously know and late rollout physicians you

Todd Newton

until go in slow. really a that clinical full likely XXXX. lot patient is question, experienced experience order of obviously treatment that first are through launch and our focus want going once Thanks, will the ensure But Matt. we environment And it product to then and last in that We've to right users get product with our testing. in the be it validation in clinical On do that environment, think is steps, done will. that now that it works will early to introduce the most with product to you the way be we

Operator

Please And Securities. ahead. Suraj will go hear from with Northland next Kalia

Suraj Kalia

bunch questions. Todd So of

Orbera. on First

going color different a different letter uptick few And on and what and/or downtrend. after latest Your vis-à-vis Doc IGBs the understand quarters the about is to unscathed like flat efforts us Can be you prior it that I side? letters. commentary this to Dear math, how last help over the to IGB on the also, OUS it’s relatively time going recent seems if at indicate, any seem look are was the lining your

Todd Newton

markets know. Suraj that OrberaXXX lot in the United a And the there market States as we that’s if the the like lot has sense to value other roll in cash pay United in that are our mature still our and we know been feel markets that United market work, in market offer like that proven heavy our outside of of that have you there why going those they sales is be a in here a the need market seeing cash that on adds don’t things product. improvement we to We States, the out are I though and able within where our a different in notwithstanding and direct the pay In States feel that to goal. is that's into that fact reactions. efforts dependency consumer a are environment we balloon

be And up so, plan that's make constructive we like to presented labeling say the Week intimating just the why was is liver should is continue other it, difference. which are maybe development disease that of which really to while continue tied study so we that with I important. to updates. the a And to from of for we should have our without more as the a blunt external of medical and at and balloon we are state. to FDA And run distractions And discussions feel Disease treatment a pursuing can is market related Digestive relevancy a intragastric thing that leading course tied the we Mayo had to we commercial hopefully a and

Suraj Kalia

of OverStitch, for primary is applications it management OverStitch obesity the indications are fueling being some other are there for? or of also terms In Is the that used are all growth? Todd, that what

Todd Newton

all of ranging it we is are mentioned may other I where layer of GI to two-thirds within be more hear the think also OverStitch that and Those to lesions the would like and to from third course related the the We because pediatrics, those is It way such or related the something procedures submucosal adds from address, its which the of present our from great also And to built stent GERD they it our clip when US a POEMs, migrating. to to are about is The really migrate things. be prevents of And applications achalasia; fixation, let’s which be esophageal applications. value prepared opportunities tend defect physicians the remarks call a to that endoscopic closures initial anatomy sales lot other there flexible insufficient that where that from, can the the a approach of a which, really they're ranges running of them tailored in for product, tract. endoscopic pediatric across. OverStitch that is submucosal other stents that can removing doctor alternative course, are based that treat several individual’s for There’s is things dissections OverStitch no. Yes, to the kinds revenue on. which fistula have upside. -- all truly them is each other trying because esophageal way -- even OverStitch

Suraj Kalia

saying finally the excess one see something over if there could would the if and was be if overall comments your as number said to few in but quickly across gross quarters margins forward, I some of were and made that trajectory about moving be trying going revenues things two, to you too I Question OverStitch going the is remarks any this a rebalancing it assume the number question about channel? next one. correctly lower gross percent then far And there are inventory if like would margins be we inventory the in would and corporate prepared remember normalize. comes at as on rebalancing of I to are off all margin inventory that you least And to Stefanie I gross greater OverStitch OverStitch, a than is write down was in guess downturn? is

Stefanie Cavanaugh

reserved a further increased point. margin So is inventory XXXX be our balance comment that of What you quarters in any about excess rebalance transitions projects. was these average stock mix inventory historical this levels would shift couple on at part our -- that first and the properly or over was there also see no, norm the to that the safety that exists and no past order any our channel in of has prepare bit for to to compared improvement in of

complete sort as end expect our work average lowest respect margin, to and is our our gross the trajectory, down core of margin it inventory said gross to And gross pressure to putting of balance so, largely margin OverStitch year? we by and is the And be our that normal we've our with to margin. consolidated then on gross downward

We expect that this our pressure however, to continue margin last improved has OverStitch variable for to year. this year, compared year

stay offset near number mix improvement And year to we half we improvement And as such work XXXX. a the start the this think year. first will this is year. to project has increasing that in we show effect for and the in experiencing experienced then that so, our on of remaining margin been the will are of we’ve that improvement this balancing helping The that we’ve so that is far continuing gross

Operator

will go with ROTH And David from Solomon Capital ahead. our next Partners. Please question take

David Solomon

then going and So Surgical on the I'm move to way my get segment started up.

XX% XX% going not down? that or is revenue continue is So number Any in the utilization think surgeons declined US to currently, active to that how it going or shrinking are using many and is OUS. reason this

Todd Newton

Yes.

still users. gastric occurring. that David, have and of as users going trends less in with day. seeing there's the think clear been XX than of active active -- being historically sporadic with still decline utilization range the at higher best rates well sporadic We among I is the we active pace in just although that the decline I somewhere banding characterize users number a users as And our is would down. users, We're that see utilization that is among information, as

David Solomon

quarter? you just up delivered. in Endo-bariatric of implants Are to of to And One give trained number the moving those segment. thing docs number the Orbera data this willing the and is Orbera upward points you’ve given past

Todd Newton

that that quarter the emphasis was The think in not major for is number XX. the though, on a Orbera it is thing, one not this of sorry don't doctors I trained second training a -- deliberate Well, year but to. Orbera decision -- we

we So flat that training a number we are implant then of which as volume United program from course self-reported have And always result, doctors our total precision a take, is that in … about [XXX] at of relatively now give we the is States. and of a the add a or the caveat little here X,XXX physicians, further at

David Solomon

Okay.

a a about got the Orbera? by many? X,XXX users how doctors or the is balloons or still balloons of X,XXX implanted What is Who is X,XXX doctors XX? by implanted it, active you’ve using XX So it

Todd Newton

if don’t have that's But a first. well in probably see customers, at are of Orbera going it’s a XX-Q they doctors those XXXX and trained things never information that about spread of the have our revenue about I we standpoint in know is revenue. the disclosure XX% and that that X,XXX who The all be to at one out fairly I because concentration among get is users. number our of implants you the so from won't isn’t a our least that of one is where over representing way course top but XX

active they were a So standpoint of really while on the bought balloon turned variety practice. have trained having reasons for we they the never the that in coming we they an of to of kit clearly from XXX some starter training, interested

David Solomon

X,XXX I’m of on like more the a is So get five of average a just maybe they or to doing are reasonable the couple are right US now? a quarter in trying we maybe thinking sense. hundred

Todd Newton

for we who if there for you and locator, that number physician the feel estimating to will David Unites you physician criteria Yes, of I engaged that States are balloon the it go Orbera.com good and pretty really the give practice. a established think locator throughout physicians in

David Solomon

about in could have? focus If occur. In -- heard trends to and shifting have term near kind near it guys is it And are just the on $XX million, some given with on the a the like more towards a would million right how here, US really OverStitch. everything rate to the this more run the coming. you it product could obviously the with can possible $XX a Orbera that then $XX your great, it’s LAP-BAND just What the be we going In we We and we mean and Sx it’s take seems front. few and looks growth years growth to now. thoughts? good I be a see of OverStitch some term do so get expectations is million rate or is color What the are it. the that be be appreciate

Todd Newton

probably going won’t that you a like expect -- product to OverStitch for growth we really color is on really The continue Yes, David. my us. be to good

high very are I putting the at that, don’t OverStitch for look that to reimbursement addressable which made markets. but don’t as will feeling very, future do market opinion addressable in far just want on some OverStitch, be of I OverStitch the us upon at in As the require opportunities our based we as those think decisions getting for to

David Solomon

higher lastly going as And an to that as non-bariatric reimbursement now? that front, -- a you of the they is additional the with success the what's have are right Are percentage reimbursement contend procedures? issue doctors using getting getting OverStitch on or on far

Todd Newton

those a of of is paid of cost well for getting the paid. is David OverStitch part of established actually procedure cases Most and The procedure codes. itself are a lot as procedures various for those

David Solomon

separate the a itself to So OverStitch the has code procedure?

Todd Newton

facility our has use usually procedure code No, device. the a and pretty for compensating of the the is procedure code for the adequate

Operator

And ahead will Jaffray. Piper from McKim go with JP take our final question Please

JP McKim

snap with first indicators of early trying to just indication through appreciate that get and permanent a snap and wanted Orbera in But to will the the continuing gave leading back on consumer what on kind back letter FDA get of advertise I that you this you a August the have some confidence isn’t blow? you demand the end, seen gives an start this. docs until that you to I second more after

Todd Newton

mentioned a plenty like of probably in us seven time months what in I remarks is to we lead more back like the think QX took It a rebuilt we’d back. shorter will road. last that so was number about is far May the was the wasn’t I in prepared but of JP, but generation But to come we as before Consumer frames business. feel time Orbera a there blow we have in July it to it permanent back than six, talk probably reasons seven which it see said time like down months time came last

JP McKim

right back So Is normal July. about that but June in came leads the way your effected of to it? to in out June, think it was more have letter the rebounded that kind

Todd Newton

Yes, that's exactly what said. much pretty we

JP McKim

-- prepared then it and in Sx. to pieces it framed your you get Okay. of end on supposed there out moving QX complex things QX, in I of wanted to a way that is now remarks the just It lot to it and And and towards there. was is seems touch be you up the

to year getting long So the kind as you QX comes be get for it for and of some of you just or confidence wanted it that it, get success? a out out as on level the in around your training will end

Todd Newton

some deviation is as to my you is in standard good days the is in fairly of that pretty inconsequential the to really want market. out for in sure out step so feel happen a we making It’s that as think is measured the have if I it for as Yes, possible really in it tends doesn't reality. want we last and confidence QX we it soon somewhat that be QX going level ready -- the that possible to validation Yes as now respects, QX. soon product are good. we product be

let those just you together. all comments I’ll piece And so,

JP McKim

as had you a and fashion, and didn’t sounded new me that if expected LAP-BAND is -- really anything just I know that it last than as the were of jump and for one the somewhere we why faster to decline in it anything And from rate, year? out a accelerated changed, the this declined or just would faster that is the there’s shifting then shifted rest more you that surprised they’re it were like dramatic those events at norm the in decline by any you procedures of on if this sort

Todd Newton

don’t any event to we have point to. No,

JP McKim

you. Thank

Todd Newton

we your today. questions The Should today. Thank thank to closing, your ask for that, please for you Group follow In Apollo our would have you, we you will want interest Thank Endosurgery operator. contact close press questions. you for our meeting. With in Ruth release any on up, to we you of team listed

Operator

for conclude Thank you that today's again, Once participation. does your conference.

Apollo Endosurgery (APEN) 12 Aug 182018 Q2 Earnings call transcript