XENT - Earnings call transcript Q3 2018

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Operator

Good morning, and welcome to the Intersect ENT Third Quarter 2018 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to Officer. conference like Hilleman, to would Financial Chief now turn over the Jeryl I ahead. go Please

Jeryl Hilleman

Thank you, thank Keith, and today's participating call. on you all for

today me is Earnhardt, and Joining Lisa CEO. President

we new limitation, of Lisa? we products current meaning of forward-looking statements in without Securities like call coverage, estimates which to remind outlook I'd procurement events begin, now timing with results such disclaim these as We Federal file time-to-time financial other performance, or reimbursement uncertainties, forward-looking our which as from I'll turn could assumptions include, the we the codes you forward-looking from well differ as the Laws. to Before any materially SEC. that and and risks for revise indications within obligation and update and or statements and risks Earnhardt. statements will force approval any our and upon to result of clinical reports are growth, undertaking Actual over a of make herein. the anticipated those based sales contained detailed of in Lisa studies,

Lisa Earnhardt

the SINUVA of field reimbursement proud to continued experience on be their we physicians on a initiatives from morning. we strong enthusiastic and pleased and including that on made execution on are access. our progress call. last growing Good gratifying positive SINUVA I'm patients we results and QX solid product access We've sales report feedback to are outlined teams. and and significant and making our The improving the on strides

Friday, yet the which J-Code. results, will is be first be half QX our SINUVA to decision CMS's new HCPCS CMS for in final dive past to but The listed J-Codes, not many issued XXXX the of rule did include their SINUVA. address Before reflected we which final This file status like one posted. into I'd

for and by this among [indiscernible] the processes, added We to it plans served both has payors Anthem progress a the appropriate means, not by of J-Code authorization made use do this therefore commercial This of issued in and To for code Overall unassigned large is recently group policies have payors ramp of listed use on the and this up J-Code by prior representing payors effectively with we have HOPPS formulary CMS to adds positive in view continue prior product to significant year. the is and by of OptumRX. and by physicians five HCFC, all, is authorization individual XX% the specific out Blues J-Code or the supported largest in the including SINUVA favorable have some million code. we a rate expect we payors payments. has back of in In determine the our covered a accepted SINUVA J-Code. miscellaneous submission preliminary in rule, have expect to with coverage the received lack and what inefficiency and to May. described their for by six in unassigned the communication, the covered specific also refer based largest next Today round. unassigned today authorization this of meaningfully lives. the payments listed to code and SINUVA CMS payors receive XXX lives use However, to now claims both. been a that the recommended the interpret of behind All coding prior an commercial both while Aetna both decision experience of

experience also payors regional from well. as positive and now realize to are coverage We starting gain net

we In cycle. There for a specific without register. J-Code. be clear for be on foresee Finally, codes and new for the success XXXX XXXX second a we product soon the CPT feel the submit with sunset J-Code picture to clear CMS to path is a the we application or will precedent a in code plan forward with for short, do without applications to SINUVA

Now this on let's feedback, our trials. The firsthand know, patient are the story outcomes our of you targeted meaningful of positive. has from many as us life. switch of to launch. consistent patient's your with every reminds quality gears and Each technology strong SINUVA clinical has very the results impact conversations been clinical in The

quarter, a patients X,XXX prior our hub. we about the enrolled During reimbursement for authorization via

XX% to of QX report of in our to level at authorizations experience payor recall, launch. we and XX% we that quarters to had XX% with may expanded targeted approval we for were of completed that range that early see continue coverage. approximately prior you expect at top with and climb to pleased As I'm the

growth launch. physicians now number XXX XXX This side, launch solid treatment SINUVA treated XXX of targeted both of in the and have our for our with four doubling patients the line QX. first On expectations represents patients physicians those in the months of with with from

progress submissions payor processing are increased hub process month. prior reliably reimbursement improving with now have We including performance to metrics, in under our authorization the on time for in review; at with we made staffing consistently a pleased also we the line a We product are access.

offices and this timeline SINUVA. physician as familiarity payors shorten with gain expect continue We to to

both September. August visibility educate doing rose gained payor to offices in greater QX number buy-and-bill to requirements, A physician at by navigate gain to access. XX physicians we we XXX% are of the now and buy-and-bill increase of As specialty in positioned how pharmacy end into a better

We in majority while experience. the include collecting payment on in payment the remaining with this, process support access data few their be To expect pending still additional buy-and-bill history information. are to we appeals being the gain physicians we observed we claims and are of willing that more commercial paid practices early will and vast

of covered drug. along we what a expect the are administered physicians with Importantly, appropriate contract, the workout. from cost assuming is fill an would consistent physician per their implant the with is appropriately rates payment That

with In payor addition and we access both SINUVA our improving to help expanded which and product coverage, PROPEL. sales reimbursement field will and teams

year-over-year QX with add consistent our continues our and expectations. growth continue in to new XX at family element a to PROPEL, to similar be we to Contour XX% was family sales QX our mix quarter. of a stated strong about Turning PROPEL PROPEL accounts

that communicated contract As to our are adding time PROPEL. users, our sales with XXX increase including field majority force QX, QX of usage XX% and from of the expanding total to reps, current field were the of end discussed our from encourage reps pleased and sales of be call XX% onboard during attending to We the approximately an previously, we by that we physician brought year-end. start enable those raising more we of We teams would last the year. reps consultants cases with in broader XX

members We XXXX focus to therefore and integrate million XXXX $XXX these Our continue team of guidance we to new to QX and growth. growth support and million. train SINUVA maintaining to PROPEL will improve the believe, are $XXX our is in of both

We a expect physicians fourth of to SINUVA continue work of to contribute base we about establish as buy-and-bill. to quarter strong X% with revenue

call. outlook XX% as our continuing approximately for last expressed of growth our on we also sustained are We

product now financial conclude and turn you with me through I results will and to outlook of pipeline. to our call the a Let Jeri call our the take over discussion

Jeryl Hilleman

Lisa. you, Thank

increase just third was SINUVA over of an quarter XX% over QX. $XXX,XXX, Our revenue

and adjusting price mandated our channel continues about remains unit. $X,XXX price net list Our after fees XX.XX for to discounts government be and a

outlook our noted, constant. Lisa remains As year for the

for approximately with Moving XX% continuing in is to the year. QX line margin our guidance our gross margin, of of XX%

efficiencies We continue to to ramp expect our and product. rise increased margins as we gross with overhead against new volume

expenses million operating or the Our year-to-date. quarter million were for $XX.X $XX.X

$XXX growth very Lisa. our complete toward strong place We believe feel to and three-fourths fine operating the expenses. $XXX are look $XXX primarily been are we of call you, year and turn factors, in in $XXX This from We our and growing about reimbursements. now we manufacturing hires that to our on back we XX% headcount team expenses about of comprises XXXX. takeout timing has by growth our this previous now million able to to million. million outlook I'll other this a over impactful have to we sales for XXX million tune and approximately and challenges headcount addressing to as of Based to employees view is

Lisa Earnhardt

and Thank polymer of competencies care to continuum across what Innovation new Intersect a leverages core initiating study drug chronic core for the is clinical delivering to both science you, enables is delivery in ENT. sufferers. Balloon. that to the Jeri. solutions We address end, platform and proprietary a our of opportunity. ASCEND a under-served an To we remain technologies soon sinusitis This committed be trial will we Drug-Coated believe us product product and

process. at the sinuses the opening current they balloons are not inflammatory of effective While do underlying address the peripheral in time dilation,

that from both would this balloon As XX% itself. physicians stemming prescribe a steroid if in the and treatment of local product, the by our procedures time indicates patency the of successful result, welcomed as and procedure with believe sinus our interventions. dilation that through disease successful, paradigm rates over drug the steroids reducing at delivery surgical market change inflammations to improving physicians We for research manage delivery Further need PROPEL, of fury have interventions. medicine the adoption the combination adjunct evidenced of of

at blinded study a commence trial efficacy The patient will of XX our assess sinus safety will patency Drug-Coated soon and multiple time will points. ASCEND to clinical We randomized Balloon. set that study be

regulatory overall would will in submitted the PMA may this and FDA study design XXXX. We for be outcomes an to XXXX. approval results discuss for of potential specifics outlook years. interactions anticipate with the Depending the to trial the early pathway We completion submission. once the two the ASCEND end under three study in of study in FDA, If commences of sufficient more the successful, be with ongoing study our on by

used where our little on addition so in current severe so to we this device ethmoid Finally, focuses will be in is their we've of we use reiterate provide majority envision fits most a we on We sinuses. we the current products laid accretive as executed our treatment out Further option of may and sales Balloon used that Drug-Coated family in would in are both our because key for typically portfolio. sinus it to like straightforward reimbursement, use I'd additional procedures to surgery the sinus objectives sinus the physicians call. this of is on versus established importantly is the office well closing, of tag where treated offerings. complementary overlap. believe under cases see view sufferers. the treatment and less In last highly to our that fans product product no the propellant be and PROPEL an ethmoid the peripheral office, in the SINUVA There ASCEND pipeline

authorization prior the We have for streamlining improved coupled huge access product with the national making on front. process care including SINUVA strides

team by delivery our by potential care will brick establishing to sinus in the in sales sufferers. our brick teams and significantly for help been level at for expanded for the And foundation growth drug are high XXXX. support The We localized has have buy-and-bill. fueled finally, standard which belief we executing become a collective our the of reimbursement

to your both you that for care greatly potential Jeri offer We focused lines. and PROPEL. address We as and on remain for and are I keep each sinusitis. we solutions will us the remain of finally, of fortunate now of day line would on to your hear Balloon every up the interest pleased questions. work the the and ASCEND the And stories SINUVA to continuum open advance the Drug-Coated chronic and patients to please are treatment attention delivering we Keith, on across appreciative

Operator

thank Yes, certainly, you.

Robbie question-and-answer And Marcus [Operator begin We Instructions]. comes the from Morgan. session. from first the J.P. will now question

Robbie Marcus

my taking for question. thanks Great,

of end quarter, because are is XX% your be You there it getting my can have process all talking experienced, getting the hired, good to lot reimbursement like a exiting to probably given with sense. us more your claims recent it how the a going sense to need going Maybe in forward, docs and a now spend it's more rep that give much how with its that start out Jeri seems us being and of reps and affects sounds both about lot more call, improvement are like getting the from sales business almost Lisa productivities on to higher of you time positive. base

us understand we XXXX? into heading think that help about So how

Lisa Earnhardt

had think those product mentioned we as particular to national Robbie payors definitely that and to snapshot and teams don't it that are and bodes as well as of a into access for from team any the getting on our know initiatives -- beyond. streamlining at the if comment benefits specific focus which both with SINUVA, premature XXXX. or continue We're we will next I so us of conviction growth That question productivity to you year the some I encouraged the in relates it's they do us to to that ability happened more help enable those combines well around certainly coverage, administrative reimbursement access, but -- to product certainly Yes. for drive the covering of probably believe point head majority our about provide two best parts let is clinical our more fashion. there's current streamlined in know discussing have of what on sales I of as technology the this and further sales in growth do overall

Robbie Marcus

versus specific, if PROPEL business, think the dealing SINUVA year's whole time the productivity of reimbursement, spent a was about productivity reps lot Yes, it just in improving more that's year's to I maybe -- last the little a like base seems this a get with maybe lot.

with want they productivity to code a you should that could of that spend miscellaneous to headwind significant assume have Street start about time now still less still going that likely? dealing XXXX as becomes a or to improve reimbursement it's of So most amount into the a we think reimbursement

Jeryl Hilleman

Robbie you're right. Yes,

time our the and that field sales having improve less team access the expanded is time definitely should track we've have to We productivity. goal and also questions the spends over reimbursement over team, product expanded time down could team sales that

range include focus though pointed really as grow is the launch XX% in most that Lisa since continuing would what for seen of PROPEL of a to we've the mentioned, really, of SINUVA. level business and Our higher growth than

really productivity. which very improve driving growth over we're course So into time for focused year will much of top-line going next

Robbie Marcus

submit yet any the product the that could Okay, Appreciate trials trial great. you And the have that? that just on date it to run pipeline, leave Balloon just lastly then confidence at one with here I'll and see Drug-Coated you you question. with

Lisa Earnhardt

small code around run clinical the in Yes, Drug-Coated Robbie, a the itself. of particular we Balloon pharmacokinetics

drug think just what I is very vast confidence in experience the our to sinuses. us gives delivering

all with into our we gives PROPEL done So combination done the ASCEND SINUVA work that work of we've of the animal lot with us testing invention we've head and a products the in as trial. confidence

Jeryl Hilleman

depend years not timelines this really for that's we're said will potential clarify, there to to and a be on is won't allow talked pivotal if when flexibility results to pivotal. just be we this a And Yes. sure there. three the Lisa going to to But the about two

Operator

comes Thank Lynch. Bank you. next Merrill And with the of America Hopkins question from Bob

Bob Hopkins

morning. Good

the from of Just wondering did? back reasons the I us that question, it way product go commentary you first are specific made what you perspective just maybe just out and understand if the for was to your could sort it's help J-Code why the played

Lisa Earnhardt

that the referenced and and that CMS the steroid Category a most not those were therefore Yes, preliminary decision CPT decision SINUVA sort for May the J-Code I was placement forth back necessary. Bob, that implants releasing put of code at the that X think they codes asserted on of we separate or time reflect appropriate that

you CMS knows this know this those at end well year. be As of as sunset point codes and at the will

would would just feedback our -- point lie we that's would be reapply January this of And no let then that and understanding effective. would codes be longer additional be and they of those really, so don't we from no decision preliminary that XXXX CMS longer but have as their that we

Jeryl Hilleman

which from on to clarify this insights have that at CMS available. any publically is don't point we Yes, just further

Bob Hopkins

to that $XX by in assume implied terms are as about next then either what base grow with on you should Is of has could growing of this look talk in but challenges And the then base appreciate again you then Thank range? that million and challenges XX% can $XX you context, XX% the or million somewhere that year that year? terms mentioning to double-digits next year, thereof. I the XX% the SINUVA anything really business still comfortable revenues maybe while changed the that we're just in presents of to that's you guys you're in next comfortable the we you business also means the you. sort just of lack that Like and topic

Lisa Earnhardt

handle second Yes, I'll Jeryl first. that would the part question of then refer the to back

Jeryl Hilleman

have when that we We got preliminary that parsed low-double-digits certainly at see do specific so in a just that we we only guidance. we continuing and overall, expect But the haven't to franchise. do view growth really PROPEL will detail XX% we'd expect and said to give grow

Lisa Earnhardt

Yes, about is present. headwinds reimbursement and product might but and then Coding about we of coding and what of J-Code think piece coverage we it this payments. a it. think earlier one And for just on you as asked the coverage

or that four payors always That stead our national the is publish formulary, that we've good previously along there for SINUVA. i.e. a really feel of can submissions positive their the coverage physician we to element to coverage those easier in to that with particular nauseam will claims, number will payors we've are something described put with last for resources it's and/or where the experience important we And this we've through use it's driving us at in said on but needing most in force believe an all J-Code. we And based we we ultimately think as surmised at I policy like and and we've point what get at for pay believe some we're to flex us most we weeks doing needed inefficiencies just unassigned make of their we had there. that is been we're sure always the six success our practices rates? in can advance It's and a either muscles. all think becoming very support we products consistent brute important as that in month part

Operator

the And question from third you. Richard Partners. with Leerink Thank comes Newitter

Richard Newitter

with Hi, was to a different in policy the is questions. changes start decisions. thanks bit just positive specifically wanted the I know of and AETNA; one than little coverage Anthem AETNA, Anthem for kind a taking coverage. the medical I policy that

the authorization, types was insurers drug describe Anthem you've what a specifically submissions? types those changed of just you and submissions has adding how carrier think one, just respectively those within prior two it's insurance formulary. seen happen I with Can of process

Lisa Earnhardt

Jeryl. ahead, Go

Jeryl Hilleman

Lisa I asked. you and [indiscernible]

right so is where there's are We excited. and to hands a Rich, you're on processing benefit look specific medical pharmacy. the medical patient of their and bit one little needs they the more the

more we commonly bit can't product sense down Anthem we It's AETNA coverage, coverage. process little formulary being straightforward had we success to for to great and additional, more that more OptumRX we'll a how specifically gain experience of more provide we speak as And and potential So until we the more based been more on those selling going is a be tracking both. to have get does products on better both. have with or with but product or certainly coverage get

Richard Newitter

me being same something maybe buy-and-bill question formulary that patients pharmacy the the or a an more process, those help with follow-up for specialty as decrease as sense AETNA? example maybe give with on is this helps Anthem just that does you Let buy-and-bill us submission specifically can so on reliance that, much and on just with

Jeryl Hilleman

Yes, good question. a it's

those thought experience through position we to peers speak putting gain patients better we that and next with before something in think that a comment to it's on call. be we I important

Richard Newitter

Okay.

to -- just going given any either of will SINUVA or in we you are any seem to potentially I if helpful to to the specifically new are at hear there. love launch people changes leadership recent confidence I last think base couple weeks on some that to of the that it’s prospect be if that out increase call Thanks. hear any you think. that business that like love are there Just acceleration firm, the the be kind

Lisa Earnhardt

Rich Operating I our retiring Rich to we Officer call may think, importantly has and first our be earnings most employees Yes, shared from of would been you that and our Kaufman early Chief May who one longtime remember XXXX. as happy

joined So shoes news search might as a it's we imagine begin since is has fill. didn't his great to you big Rich changed that ago. the company lot for a The years replacement. And

and organization. excellence to hands be next we recruit we're will as that thrilled take look area standpoint. welcome our quality, information technology. some chain, operations, a Her so us can of able And forward operational level supply really in Kowalski really Christine from to to the And identify manufacturing, we're focus to

time. really trains on the making So run

done roles at And both similar emerging well positions as so Scientific. then at growth had she's Guidant/Boston and as companies J&J Executive

is us with Intersect we in and one is for chapter which particular think still is on as on driving certainly and is that an move growth. innovation us at Rich's to our taking core exciting focused So ENT. core us next about passions to of Rich

So ASCEND us we're the in driving getting the with thrilled be to with first have him the innovation still on and particular organization our running. will board He of quarter. up until product portion in trials

Richard Newitter

that just to additional Okay, for. one have type just the curious balloon initiative. drug of of the considerations, would specifically other reimbursement I top balloons and a any one any Drug-Coated the balloon on paid last consideration types would codes Is reimbursement are required Drug-Coated be thanks. be if know And and part. there covered there balloon Thanks. I'm But well on

Lisa Earnhardt

reimbursements once Yes, market. we codes we we get once and and offerings sufficient if cover Balloon existing will is -- believe the and Drug-Coated our to

Operator

Thank comes O'Brien you. with Jaffray. from question the And Piper next Matthew

Matthew O'Brien

so Thanks questions. morning. Good the taking much for

to supposed with a you've good so new year out landscape SINUVA respect got far. end next has there place the has treatment the for polyps that got space of pretty to recurrent shown pharmaceutical but the a be which at got Just product Optinose you've in data obviously

those With products the and talk just the where fits products it So be can as the competitive in market, market? landscape about hit those SINUVA? for how durable you will it

Lisa Earnhardt

within that I we with the that and unique opening of SINUVA residence a has fact therapy a with safe mode see very think paid drug good there immediate very question, strong and umbrella and local as cost profile. delivery I'll profile looking who start very are certain residents also patients with a for Matt, That's a

So the do category of mode complimentary the a intranasal of action, to with against been that as the molecules. will care, of patients It's inflammatory high with benefits, the in find if a home certainly very going antibodies sometimes steroids there's other steroids cost very those or intranasal for molecules as you compare by to working for profile. have used a long SINUVA to continuum sprays you sprays we that very therapies a delivers to the a time. use injections, Intranasal but steroids was of really speaking nasonex monoclonal -- speak either control I to different actually the category, while involved doctor's just Optinose SINUVA arm see be a can regard alongside of commitment so intranasal With and specifically themselves is SINUVA. used to of SINUVA. in I'm to blocking weekly offices patients different specific sprays cascade systemically And won't

So systemic certain a but and it's we always the as market between will to broad having find to modality the a and among place we cost, as unique continue patients addressable again market the opportunity a work different probably same treatment see the SINUVA have. compliance and

Matthew O'Brien

the position talk size a marketplace versus the going Balloon be that you're polymer missed going in perspective are doing right actually the market be the can as to et going and from far that's the and what as product because going other to fair. a you’re competition category opportunity, into you is I that how then that far general blues this on to cost to Okay, you're then try cetera? as have as today, there, just there and drug to going you're some using be may Drug-Coated And that's versus

Lisa Earnhardt

and medicine of with standpoint Yes, declining how a From specifics proprietary Drug-Coating point be at that. we size the PROPEL Jeri I'll on we're products the is technology using the market will we a comment fury. the same and the is to on drug this point. which At anti-inflammatory about is technology SINUVA view talk and used start the that little is this our view to bit we we've piece a ask around deliberate, question

So to in and do it's very much where device a these have one the could offering unique a believe two used for a office able be be setting. particular to we patients unique, that in

Jeryl Hilleman

we about that Yes, market is could stage we long treated. disease had patients with XXX,XXX believe be would forth would that as you size put of sinus not think early about that surgeries

As with there is and currently treatment different offer segment usage is is of that and balloons the some very with associated profile with procedure. growing with different of to potential certainly for to disease procedures estimate the what potential we growing And the available think inflammation available the the largest market today very than a being drug being to XXX,XXX a office local which treat that. sub Balloon around we be today that Drug-Coated segment the balloon the with

Operator

And question Chris the from you. comes next Thank Guggenheim. with Pasquale

Chris Pasquale

case kind to the early country need Lisa going pleased there physicians you're and under out Jeri, across make different something help ultimately evidence you're what how the groups? payor of that do to building us you the the are along far cases process you success, the think it to that you across like cases with and buy-and-bill Is of model, payment sounds or can requires Thanks. X,XXX that relatively there? in support XXX to

Lisa Earnhardt

treatments that good is delay usually a months as you the in a with natural might physician before because a and it’s there's are we the comes payment Chris, early imagine that of collecting Yes, couple on question receives payment.

gone a of had an the that literally opportunity We there's just to claims the handful vast with we've through fact been appeals are that process. see go to paid, pleased needed majority the that has have

team to or buy-and-bill that Benefits physicians talk starting they reimbursement particular be have able about or We with be able as EOB use we about to that them have expect. Explanation so we of what we're XX to to in and might

as you have payors of have as number obviously and is the physicians number it’s bail country situation think sure to across of early, across country. the we we in where truly making well the used And are we're things evidence what a is the the in representative the is terms still terms ideal as of a believed most part that important getting probably are more us that types those this by sort can more. So be of and that that is

Jeryl Hilleman

coverage, get positive Also creates lot physicians can as we continue to to a environment different just of a very when look it policy.

pictural to doctors the that growth decision you emergent buy go payment, coupled the make with when will policy think product. ahead help the that put So and we that

Chris Pasquale

will And revisit until the built your Thanks. one-time are been portfolio now extended question the how to prognosis anything wanted you time ASCEND, then meaningfully sufficient the the procedure impact be to levels? you and confident patients drug release I can a that of delivery around the tissue at how these in at balloon study therapeutic around share products, sticks long about pharmacokinetic has from for actually up drug around

Lisa Earnhardt

be to we and going and and on time not medicine period believe dilation, to is how post delivered of bench preclinical Yes, therapeutic research. experience on fury. during that at based our clinical I'm while dilation one we'll period note a It's the about levels point able of but at post-operative therapeutic able is testing particular deliver experience the that, we're during we to over do to will talk of based preclinical this time there early or i.e. feeling period that that a in believe release there benefit sort be important drug or

Chris Pasquale

available what balloons is you’re against, randomizing you Can it it or something share else? commercially is

Lisa Earnhardt

Yes. non-Drug-Coated It's a Balloon.

Operator

William next Blair. the question And comes you. from Brian with Thank Weinstein

Brian Weinstein

I just to Hi, guys. next Thanks for XX% guidance the for taking wanted year. about questions. ask my

you you last the XX% that or year the said guidance XX% cute on kind range? is it don't to next is it then just I Jeri I range, in get XX% but too the think see, just and kind I on said want to of that said clarify in want of today You to I call this for want but

Jeryl Hilleman

quarter and range get of year. as to which the synonymous is consistent the the complete Yes, feel we would XX% more the beginning precise approximately guidance think to XX% in with into at fourth is conference the the we it's say give and I intent

changing intent or for approximately not we guidance a expect with growth just code ZIP giving the without always it's pinpoint said what anything XX% prematurely. really it’s paint the to So we fixture

Brian Weinstein

to think to Okay, great. talk year. to some but It early sounds about next fruit next need this for you've any investments or know year? have I not, it's talk might what that you additional too if add the that you need you bear just then, started like, new about can think investments you but don't And you about can made may talk you

Lisa Earnhardt

program we through with spending everything of build but historic will headcount support have line of our but in course think place I continue this year working our to the then both We're But SINUVA making next picture. to which do be to probably and headcount the sure, that we sales in on for plans will we our ASCEND R&D on can to and deleveraging into right lot add clinical focus the put continue Yes. we our reimbursement continue trial a we spending. support year as is field go of reimbursement up rate for and

Operator

comes And Berenberg with you. question Markets. Capital Thank next the Ravi from Misra

Ravi Misra

the thanks Thanks. question. great. morning Good taking for Hi,

the on to but actually the Just the that how trial kind is Can type this to secondly a IP that us it you has of won't paid there taking it's there? do after have be Thanks. authorization gives the give doctors that one similar for the size get you then just able market long what remind come? competition design the And buy-and-bill. around you confidence perform different protection you technology of ASCEND to do when procedure

Lisa Earnhardt

question, first questions. both thank Ravi, for you your what's Yes,

actually vary from so the pretty there completeness actually typical, to later. the why of next with was time the get with and a or but six majority materials know getting and submit in time the well based that time the proof eight to plan physicians' we usually that the payor of then on in case it's has authorization was the it get that's any delay the ramp to that's that It because patient weeks clinical as as takes to offices authorization day a been SINUVA regards as the could until second you then one payment. their prior the the usually patients and timeframe. actual gets about And the thing regards sort meaningful physician we important with happen volumes had question the their they could the didn't to a summer program. ASCEND that treat patients treating the that prior to they're first payment weeks. to note The to happen one It's does And couple the once

companies unique You space. We is, know it's that what where and for have drug to product really something up we it built is was and ground continue here. be this that's and was the delivery the this in been localized doing leader believe from in on us to hard are other comment

position intellectual And from property we as standpoint well so a as strong in standpoint. believe both an differentiation we're a

Operator

Securities. you. And question Thank comes from the Okay. Kalia Northland next Suraj of

Suraj Kalia

Jeri. Can you morning hear right? Lisa. morning Good Good me all

Lisa Earnhardt

Yes.

Suraj Kalia

questions. and little help of me doing correct taking Can X,XXX And details of of thank questions. quick many -- be -- procedures factor color can with get you growth what's I'm the haven't here? pressures time are guys inflation -- the Any What's accounts these many should on math rate would Ladies, you you Lisa, have give PROPEL? understand is balloon-designed how by [indiscernible] independently for all what idea you you'll of ASCEND please focus I'm rate second trying respect more to for PROPEL, should two for thing, my the I if XX% Lisa, growth as on differentiating So wrong. us the details know an us we MF. to over great. exiting given these

Lisa Earnhardt

having question unique trials but question that future Yes, caught we'll the with the us second a product not then look hearing clinical in details won't move certainly We you? I going of towards little specifics so in the Suraj. allows we're on hard believe you the But as position itself did question, proprietary more I first share et dose likely there our around be that is time we to the in to marketplace. the ASCEND first was commercialization. Jeri lot around proceed sure cetera share I'm the formulation a progress drug this really is a to regards --

Jeryl Hilleman

No. I'm I afraid didn't.

Lisa Earnhardt

Okay.

Jeryl Hilleman

second? repeating Suraj, mind would you the

Suraj Kalia

change math of [ph] sites great. what just SINUVA is how was I resources independently would just I'm is to color this Lisa rate; the trying X,XXX you understand growth indicates Sure. so there many trying the a the these have. XX% or it that doing any to independent PROPEL to being let's low-double-digits, because or say fundamental in pieces be diverted

Lisa Earnhardt

Yes, really no fundamental there change. was

you it's Our the which a two the speed the and in having train the expect believe fourth I our as franchise. particular perspective third do a we love to for and quarter or in of the but SINUVA in what but booked additional relates of to on has a would some PROPEL in brought same SINUVA PROPEL been, this year more and immediate as taken up use the are distraction because to outside quarter board thing we resources of there's the in launch it quarter lot impact enthusiasm the it they're a with know word teams of last labor certainly time sales hate has we've

Jeryl Hilleman

current that thing very we're really is other product all on and and additional to if some and continuing factors has thus of SINUVA we're for think the you putting through present growth growth as grew contour drive quickly rate far all the strongly. contour We're effect resources how is in. took to sales it the the I alignment though product with know we off we experiencing the very immediately our the launch because products and would with growth to just now note we’re after aligned we characterize access and Yes, of at these comparing are that that I think

Operator

you. Instructions]. comes the with [Operator next And from Kyle Thank Canaccord. question Rose

Kyle Rose

very Great, me you in. Can all hear much thank you right? for me putting

Lisa Earnhardt

Yes, hi Kyle.

Kyle Rose

talk what territories, So to of trended consultants wanted about maybe get force consultants of But you’ve of understand on just expansion has we has kind I sales I a I a and sales then an what understanding as the little existing think about productivity bit, added over the how been reps more for lot to help sales they time become been trying us and just period the historically productive? to asked. the contribution type -- and the was wanted you’ve like bringing the should to

Jeryl Hilleman

you think stent doctors with they think they they that more consultants how closely Yes, patient's Kyle working of this about sales and will fill I a about is Jeri. And really take if question evaluate patients evaluate initially. procedures. role as

of complement territory owns PROPEL and strong who manager achievements to be that and territory. a much really to all growth it's it’s one within the responsible a use more products So for focused who is the historically the really we

the have very and we're received role it's So future. I’m in we growing sorry great PROPEL bringing see what's focused on it’s success the had now, with to second how we then consultants for on-field up we just we’ve sales And part that well think your a question? leveraging in of

Kyle Rose

consultants you’ve those territories? Just levels, productivity add into those when historically

Jeryl Hilleman

get in of get end get gaining is anything as as we the into this of completed see training we time fourth third we expect and I is role some to new into year see productivity the sales as consultants be the who experience to these quarter, to next think think to some going up I at probably from Well, good -- with anyone quarter and take quarter. they’ll would the them benefits we

Kyle Rose

Great. And on just SINUVA. one then quick question

are as another frame the I you’ve physicians think or I XXX us thus of XXX far, specific for about on that more we can just coverage to waiting the kind XXX better who entering trajectory are XXXX? a how you in do a in buy-and-bill and color or more little mentioned momentum and to interest, used range there mean give physician had just you geographies, think there clarity the relation

Lisa Earnhardt

as goal us Yes, third definitely that the we’ll those the was really continue well. launch that commercial We do and a pathway more in establish the Kyle. served has targeted of think approach are physicians to our quarter fourth XXXX. full We in we XXX focused in and quarter ours on

this we walk as course to on today going buy-and-bill, interested who we forward I are more it the we SINUVA who launch run decisions more and role point and practice. know broadly have is needs, right want gain is more physicians around positive we their are as the of forward there have serving X,XXX this many for more one believe We before product the as move of that biggest in in We with ENTs us using the on called hurdles to to the of action help will don't think out the the in -- PROPEL certainly near-term. confidence coverage we experience we aware just are you I Kyle with that look more at and peer have

Operator

you. closing to would concludes Thank This our Earnhardt any question-and-answer like the remarks. conference for to I session. Lisa turn back

Lisa Earnhardt

so much certainly morning. Thanks great for joining interest us this We you Keith and a support. Great. day. appreciate thank and Have all your

Operator

Thank today's you. attending presentation. for The conference has Thank now you concluded.

You may now disconnect your lines.

Intersect ENT (XENT) 5 Nov 182018 Q3 Earnings call transcript