CLPT - Earnings call transcript Q1 2021

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Operator

Greetings. Welcome to the ClearPoint Neuro, Inc.’s First Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. [Operator instructions] Please note this conference is being recorded. Comments made on this call may include statements that are forward-looking within the meaning of securities laws. beliefs, include, company’s statements both plans, projected; management’s may industry to preliminary statements regarding and the projections trends; prospects, expectations, forward-looking without of related limitation, anticipated and future These results or operations. estimates, and strategies, trends or materially. differ could results Actual no revise company future for or forward-looking new undertakes The statements information events. obligation to

Exchange SEC XXXX, and Thank the ended on Commission, for the the your year for For website at or file Securities please to Exchange Officer. refer XX-K with like All on quarterly with www.clearpointneuro.com. company’s more the the to I XX, company’s XXXX, would filed the December or and Form the the you. which XX, turn report information, to Securities be before XX-Q over been Chief now company intends the may conference and Burnett, Executive company’s XXXX. March the Annual Report the Form which May filings has to host ended company’s on Commission XX, from Joe Mr. obtained quarter

begin. may You

Joe Burnett

you all Thank ClearPoint And thank and the part for analysts being call to you, a of and of the vision journey. on Devin. the investors today

pillars of life made substantial global who progress We are products to the growth, quarter and scale. XXXX, owned drug therapeutic we patients disorders functional first of of delivery, our help including biologics restore and achieving suffering imaginable. and across their neurological here four families from debilitating to quality neurosurgery are most ClearPoint of some In navigation, of the all

to significant of pharma our as of the majority revenue capital supports in system a and we the in our to after quarter and will our I review more growth against geographic portfolio over also additional of of now The Danilo? of also Importantly, financial and product call global record our detail that turn CFO growing only expansion infusion quarter but our active the of in our in our the elective add in strategy. hospitals we pillar not resumption portfolio, the four made scale. our progress of will customers. to performance acceleration multiple backdrop expansion quality this Danilo some quarter, closed partners list to a to the procedures I which the the addition

Danilo D’Alessandro

Thank And today. you, for us Joe. joining you thank

and quarter of was first the ended three $X months results, three months the increase of for which at revenue million an XX, the March Looking or XXXX, XX%. million represents total $X.X XXXX ended $X.X March for million XX, XXXX,

is that month which for March reflects resumption in each months to period increased functional and million biologics services and related million XX, and $X.X sales Our the of for of over drug the in March COVID-XX of $X.X delivery software to period from Biologics from for March XX% include of $X.X clinical up cases components, consisting which the utilizing products. and our increased the $X.X due neurosurgery biologics revenue made delivery in from three ended neurosurgery trial in consists navigation in Functional volume related products ended were XX% $X.X procedures, months three activities the XX, same million drug elective the for million past revenue, of delivery, equipment. months increased same million months pandemic. system, same XX, of and the primarily sales ClearPoint the sales three the ended or to the disposable resumption utilizing commercial Capital for revenue, revenue, XXXX, $X of XX% XXXX. products, services, March million three cancelled the hardware reusable which equipment related to of period postponed XXXX. due and to for of and surgical increased software, Case XX, This to quarter. trials led XXXX, ended product therapy, increase sales and XXXX, the to ClearPoint clinical disposable navigation three increased capital to drug months customer-sponsored the

believe from this following the acquisition revenue varied hospitals’ from quarter-to-quarter, product historically has COVID-XX While line onset the of capital the equipment of partial increase represents pandemic. we activities that resumption the

and back XXXX. million months output of overhead XXXX, indications, team, XX, to or Both three of key same for reflect same in potential expansion. first due months an from of same we plan the million in allocated While million compared $X.X product XX, during volume installs cost product increases to resulting XXXX, a Research lines, million, in the or XXXX, the and margin for decrease period were and the the XX%. expand as $XX.X costs $X.X ended to larger same we additions equivalents This XXXX in of $X.X costs, XX, from to XX XX, to our development be the XXXX, contribute March $X.X the offering ended due XX, three healthy. for public headwind, Gross comparison current cash which cash funnel share-based primarily and period to pandemic and for higher increase period hospital the now by March increases March infrastructure to expenses XXXX. $XX.X Joe. March $X.X with revenue ended an continue these a compared XX, in were period comply in resulting XX%. constraints March months gross the to to XX%. for launch necessary million XXXX, General of insurance, increase three is to million million February XX%, to to service production relative had in the to it compared increase ended ended other March caused expenses occupancy budget and million to in the million, $X.X and will same months a real of greater and I an the of the in XX% $X.X primarily very was compared marketing the completion was builds at months portion Sales XXXX, call revenue, areas contribution $X.X XXXX. the quarter of with of At as period common to in as increase million, our primarily for million for three increase or $X.X new totaling This for administrative were margins the incentive-based stock lines, international company’s compensation. the turn sales of the total three global XXXX, March compared standards

Joe Burnett

Danilo. Thanks

the As funnel commercial our and quarter elective even mentioned, new case added recovering record supported team agreements. service enjoyed partners sales capital biologics and by a volumes, to

break that Let’s four progress into growth down our pillars.

by in First in XXX. functional XXX the prior our quarter specialist expectation the quarter. deviation covered the weeks neurosurgery The to team of last navigation cases versus estimate versus to XXX our rebound came few with continued of earlier our

schedules continued we solidified is the returning infusion using the development pre-pandemic and capital in the budgets, As gives was returned month halted is levels. across in team our elective standpoint, hospitals that and to confidence had volume case portfolio many our March members February of our progress of first that highest procedures a to that It January quarter encouraging From us U.S. and quarter. action. and

achieved FDA and market in we clearance for navigation starting our process the they’re of system, Array Importantly, our the release product. limited for

of strategy used suite used only in and a platform to with As room. only product neurosurgery be can This the also MRI. the designed is modalities MRI not the and reminder, ClearPoint first is workflow operating Array our to time, that by a designed the important imaging and in reduce the streamline becoming not an true but it’s both multiple step be the

first extend of the market performed second to here in cases XXXX. expect quarter half the throughout We to the be release limited and second

the are partnership the better of have in as in robotics well, Engineering. exciting development pipeline We ClearPoint that with with we And have demonstrate space. software, first we will in building human ClearPoint D&K and to orchestra collaboration was Blackrock across announced neurosurgery which the funding, rest X.X the an MER improved multi-trajectory Brain co-developed our these next and years, including, the feel for communicate yesterday. system with estimated we assisted cases the of the Maestro Headframe, companies able each Model, additional our continued of products We system, to are now products. over innovative few our continue cadence true the With as of which new timelines our

and Array in in SmartFrame of ClearPoint MER X.X in orchestra cases XXXX, robotics platform first and XXXX, expect the XXXX. and Maestro we example, For

active end on customers an Second, capabilities of gene-therapy first to the our drug we space, add goal hit biologic quarter. XX threshold in cell and and delivery to additional shots biologics the team additional the programs. in continue delivery the and indication the team of QX, and By adding in partners

common partner use drugs it platform drug planning are each of not only meaning. indication. to reminder, They own a that is for or As their one has customer their a

We many could Our partners already win for additional still approval continue European-based in has It to and takes helped pharma to into XXXX. us academic commercial of of place indications to mentioned biologics and note initial decision as also applies to gene-therapy plan majority into expand the Europe believe business neuro delivery. this That researchers. adding system device and is important that of to investment navigation. one our drug the in both pillar is strategy beauty biologics applied medical also the investment navigation that much across the in is and platform

therapeutic activities IGT progress second laser submission which and concert prepare is for pillar, FDA the third our an we For in our in of France development continues program primarily today. XXXX. half in are to The with make Sweden CLS as in products own

After first XXXX complete products to and We we in progress, XXXX uses biopsy in and respectively. programs neuro clinical continue with laser and system cases first clinical expect XXXX. expect our smart of biopsy the these

in into the scale meet with pillar directive progress This for and as our Europe to meant the of Most go believe to there to effect have product fill that new We are made the project investment And a investments, to creates MDR continue new fourth these our compliance void that fully system we expect has fact barrier our European quality companies and our where hospitals is And tall many Finally, ClearPoint. patients new guidelines well. we lines. continue not we’ll been need order this guidelines. the to to into be achieving we decided want has update to certain while ensure for that the substantially, has month, global successful. companies. quality later for been system another many made that extensive,

X the capability demonstrate we to new Mark Mark, Fr Kits Accessory our of continue obtained also that and even of Fr challenging X CE Fr, We CE in X this getting environment. for showing products

aware rage of are you the pandemic of to As across the has Europe first many quarter. continued in

case pause. So put volume was and installation our schedule on

However, across we are our encouraged distribution which by focus Western the Europe, vaccination for aggressive more expansion. next is

elective volume partners appears, pharma it some resumed of our clinical is rebounding and As trial case work. have

We $XX to XXXX million the of for believe will more cases. full supported be in in a volume to and $XX.X our the revenue XXXX. be will comfortable the year range clinical range case are We providing for by year teams XXX the forecast of million of

return are we the by range than two of cases, usual While by driven the is wider things. primarily encouraged

chance and of of the over timing eval of there while formal timing half into evaluation second the sales a a expect purchase number the resumption a slowed an the capital, XXXX. in XXXX, systems into is installed we being might of turning cross order of First, that has do

of new protocol the review and trials, of pharma through the our a continue we are internal Second, number encouraged the hospital as progress to of FDA initiation timing partners, IRB.

delivery, would to manufacturing protocols, to hurdles all are storage that, the questions. However, like place of to up drug review any the need take I that open and With certainly comprehensive beforehand. call

Operator

D’Silva the Andrew from Our proceed Securities. Please B. Riley with Instructions] your comes question with [Operator first question. line of

Andrew D’Silva

afternoon. questions. Congrats for on good my Hey, progress and taking thanks the

tied the on a Can up or to So standpoint. I such why be from and looked drug new side activity has caller was give it the your partners of any surprised it business a delivery see and, really color I would uptick? biologics that that would the off useful didn’t that there the I strength little business. almost disposable commercial just drive it XX-Q anything just the a the you big side on like and of opened completely was actually wasn’t

Joe Burnett

Yes, thanks I one question, mean the – for the Andrew.

I’d make comment significant that we think the that one enjoyed I is being this a revenue of topic part on service-based. still

take clinical did pointed resumption behind of of place I as these started again, continue. the the So, think sight-see What added work that we scene. have is out and some preclinical to often that trials of the you happens that some

the think was well both an started that customers we CROs. as many and saw, customers, in done as quarter as well. might to preclinical the as first Those studies on where of be labs increase here certain I So, return new based existing toxicology

So, to mix for to, cannula to I prior submission to the think perform to these was a that custom for were example the primary or an SmartFlow and uptake these protocol. labs change number a there delivered FDA of cannulas tests preclinical a new you

Andrew D’Silva

or that about? your Okay. And it it for are XQ, three delivery variances kind side of of drug kind the be with the business, thinking disposables should quarters, and there remaining guidance figuring guidance your there is the to to in is we relates as biologics fairly disposable other of numbers the relates stable as

Joe Burnett

biologic similar comes the closing. deals often of capital revenue some of mean, to I in buckets sort Yes.

milestone we in for corner. revenue for one project might So a example, hit a for development a

a So a if payment significant for of we’re in might partners, the milestone a milestone quarter. we for custom quarter, making next then get example, our we in won’t but cross one device one

vice zero, or that would versa. one So be

order FDA be next a and little for writing, the that see XXX quarter, catheters these $XXX,XXX be sometimes similarly, that large of doing orders because a that can an it all so, or could be for studies, toxicology choppy in can just the you ordering, it they’re So testing might quarter, but protocol submission. preparing they’re bit a

But add for can a these for of choppy – early will be new quarter-to-quarter. be to time continue as the it some being, those numbers we’re we absolutely still I as stabilized. those think So, with partners, partners, little

Andrew D’Silva

on then Okay, one one and great. on more DBS. I biologic got delivery the at drug

the think this infrastructure your us little delivery services for on or in of for translational that preparing readiness and some you by as there? color a comments, that’s year this intend a relates early the I year how if end commercial So, launch going needs domestic correct, first potential can to but the of and you’re your international just prepared you it still partner. give assuming you is the And next touched offer to for drug I’m

Joe Burnett

Yes.

as the track sort your delayed and believe week application related answer commercial question, a So PTC – by we, are first preparation we’re all commercial their U.S. we to on partners touched BLA call last at about this to that multiple yes, first they earnings three months in as supporting I I of release. believe delays certainly on have on, the for that set that still some But, experiencing. release. of point, things on are XXXX their

still the a in but sort energy ready that. half is thinking, hopefully of into for of what the the of first of preparation Sometimes we’re putting year we’re getting lot

potential things And are that – with pharmacy when identification associated that to of as not of the large trying communication these with partner pharma all possibly well. different can education some And things. necessary. teams do larger we those preparation be have training alone, be of that patients, clear, with we we the handle device much that and can as much companies we’re to And

one that’s the think of side, I’m the I biologic I what on and question, So, sorry, Andrew, was kind think? second side

Andrew D’Silva

partners in you that, follow-up where are? answered far it as I’m next curious label running where the have a are trial. you and are either have getting was No, going clinical your sleep really protocols or I the actually to procedure procedure and sleep a steps what as just you to start related and the you just DBS tests,

Joe Burnett

and supports there’s awake ways both can Yes, clinical an up that want one we’re, Again, work and to procedures. surgeon individual do treating the of early sort how preparation organizing is this that the of doing on are some evidence pursue all sleep we I it’s mean, in to twofold, they patient.

either in also So, that support them well. types rest we the as of support being we’re of portfolio developing procedures That said, would manner. these the

and my Brain going in are an used that Array becoming point. around I tools continue that care, Maestro room products for of that these of standard be done, percentage at accepted think create all the an So Model, operating to some it’s the see, can procedures it’s around in as certainly awake workflow, want of the to helps. both a And But, sort remarks together excellent as of quickly say we this procedures. sleep being around I MER, of, mentioned higher but practice procedures system don’t that I progresses, prepared sleep the the that

indication an guided have we before, shared MRI lead we placement. for As

the DBS company of So, that’s are of evolve, I rely more as can specific prominent and companies not that from number companies. to is of from what on placement the more DBS We see in And, certainly training image of DBS with systems continues because kind but be we labeling a And think DBS communications particularly do, will guided we evolving certainly that education. and you becoming we the these itself. it.

Andrew D’Silva

Okay, great.

Joe Burnett

answer of and at point, a data required of or would we least get be the safety that think don’t trial would efficacy already any of procedures. there of for To clinical this out at there’s clinical some We all your these shows materials. trial the that kind training that to prospective believe sort question, one so be significant way necessarily indication a

Andrew D’Silva

useful color and remember you about board. bit on luck all Right, a talked you That’s of for I context. in very much best that last the Thank quarter. the

Joe Burnett

Thank Andrew. right. you, All

Operator

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

Frank Takkinen

quarter. progress my questions Hey and guys, for thanks taking the on congrats this

Joe Burnett

Frank. All right, thanks

Frank Takkinen

this that launch about throughout SmartFrame. bit SmartFrame little with the clearance a of TAM this hoping take of kind I scaling just year. of and out you this further deeper years, the broadly little this software area? limited more a then just heard could enabling of you could Array, of Starting and explain automation anticipate us how talk your Maybe could the increased I a in to FDA how comments in was your you expand the importance importance Yes. on and bit

Joe Burnett

happy Yes, to.

Europe outside U.S., market procedures. really we total not quick of even a any XX% DBS in do or As have today share of U.S. than do reminder, the DBS work less we currently the and in

navigation, EM So the operating less done procedures XX% than CT today is something XX% than MRI. are guidance other are in really using means or in than what done the still of that’s MRI, more optical and the the that navigation, if room

of it way. kind we’ll that put So,

what allows is a customer, years, efforts we to us disposable new room know, So precise MRI very workflow tools, as only our ClearPoint procedure customer. operating worked suite. tool used sit that say, only can experience designed could allow a maybe to this with past, the do really doing them of on This as an entirely us tool for the convince trying offer is operating will and well, for we taking a suite. on them an in instead to navigation focusing room has that’s to movements you in the that frames. XX past, develop algorithms, the incredible look, In to where tool that the can there We our MRI

something can operating you room got as well. we’ve in that Now the try

operating becomes that more well. room, be of between of is. be power navigation both the what that’s at and to the And try much that in the in same is that give MRI some pre-planning really all the that likely a fusion. this it’s of the If in So system and data the hospital once workflow it different of would surgeons the the as willing importation steps can suite environments, the the product and XX% again, it our

we to we powerful as from So the it. us, crucial of to gives known the but what do the, neurosurgery company, that’s want We the MRI therapy primary this the And think, platform tool I do, it’s want company, because a only set to don’t be to a platform just company. very want really enabling part to standpoint, be strategy,

as high. anything stakes Your with second because incredibly the comment be neurosurgery, to around incredibly of the was we are want sort this, of with careful scaling

where from well. would roll And of navigation this patients the do want that that procedure done interoperative same when planned experience MRI in and be to operating the out of And transition that CT So, of and place. first a where metered where our with the procedure an that are labs like that kind an of, learn. in plenty taking the we hybrid we procedures operating final a that. be more as in as they to can on navigation system entire approach either step room or workflow, only actually After then MRI we we to the something or both do the bio-optical would MRI, have

to white the in rollout progression do and fashion, et going of create cetera, a, rollout reviews, training early to create to a this, allows materials, we’re more a an in of there’s case So for papers, organized it broader XXXX. which us

Frank Takkinen

the looking and roboticize could as a that’s this throughput procedural how could do in And sense. functional patient with the about guys makes pieces D&K years? That procedure then neurosurgery, once it. and far to in be of Engineering a or to sticking what talk Can exactly for and a Got just that surgeon, depth more ask you launched bit announced. times what impactful few little to partnership as wanted exactly you you’re

Joe Burnett

the and save the suite, automation more can certainly accuracy It not some MRI as procedure as that’s the for here. a Yes. is this we mundane very not that And are time of rolling that sort of out there’s save attempting improved build pointed Vinci really you the some precision and robot Da robotic intent clear, system phases to, ambitious different of to the couple of not I’m most so happy the that some the and of is be well. we’re parts out to

thumbwheel, precision steps take tune an not we’re make know would us one seen go and taken. much trying and then our the be the image additional following image what too fine I do and technology, you’ve the delivers that then to into detail, a you our try is adjustment that to with but, of been So, you’ve our of you is procedure

calculate will suite, software stand surgeon Our automatically turns. would to MRI scan. more up, then take those the then turns over adjust And another you much need make how the to those and walk

So closer have experiences to which reality The and allows to you are is it’s we your what and of sometimes repetitive process closer surgeon is they continuously precise. a target, that closer how get so to four or for or four three two get could each as minute an three or up, And for be three trajectory each times and minutes example. each trajectory. scans run a to scan

So, probably all steps a up, an maybe of if hour step. a XX could be simple half on particular to add that this you on those minutes drug and case. we’re XX more spending trajectory, an procedure, spending and hour multi on to a minutes delivery navigation We complicated

room, you and that does the a can control buy simple to from adjustments. push things you. get a surgeon few up the button. platform So one, for They of the it is it it with robotics to doesn’t enter have do make in Number a anymore those

of few, a annoying you could the limits procedures that So parts say.

The second can turn improvement amount. that of robotics turn exactly be going thumbwheel a to it it trying as precise the being, a one a eighth motor a turn and quite step to makes that is as is not human that and

underestimate overestimate sort turn number the the of the we surgeon or times think resolved. we fellow turn, of be think that’ll So, or the that

to actually be scanner that step And adjustments itself. fewer third communicate there’ll with be the need directly So to is made. the

have will adjustments the adjustments then, additional the manually scans later, other, system minutes of of inevitably So and so an to the that having making then the surgeon what computer be that and simply talk five, is push XX to able button. the robotic and just means And place. already each with will scanner additional to that all will scan, instead the taken a take

up. to final the lined the and will of room surgeon everything sort into that before trajectory So back then confirm will insertion, come simply have be

And really of So are are there’s phases the important that’s is. that on series side navigation to a where here hardware and D&K kind is projects. the robotic software that both of expertise

we the sort they’re supplement kind So, our program, accelerate a existing said. team of to as to of

Frank Takkinen

it, Got has biologic from it. over That came is done? given Cannula the that the approval be revisiting, think this it’s partner’s PTC approved one one the we’ll call up they So are writing once documentation just process for the the SmartFrame previous the given And through last market? to I required or on delivery and either SmartFlow term, to approval me it’s the near sense. look hopping the a asset but does makes the worth to specifically calls, intermediate how for is maybe is or then going a PTC on into documentation side,

Joe Burnett

a don’t that’s exact So details good question. go I sort of on PTC into the want to example.

itself, our the device. companies the can and open-ended we in you, one, across too. of to Navigation of be protocol we what that procedure I and our can we’re expect were I part protecting that, strategy if common think look one navigation, we that to answer will generalities, number of all would it’s make commonplace you add sure speak approved provides as that’s system System their pointed going out, there’s partnerships he’d if to two commercially I how parts Neuro and navigation value? we for a sort to want deliver for documentation to I’m be is but say as first used sure sort he ask to, think any where The it an of submit is is be, come and might are he in

you precision enrolled label, with that we say, say, want. FDA level single guidance. on regulatory some every the patient trial appreciate or might cases, the actually, they agrees of you MRI might you In ClearPoint like that in but agrees Okay? your some yes, bodies using And under whether cases something with because that, of in that’s an they open appropriate

that, seen many player crowded benefit any because exactly if are we to in these of a say, system, MRI navigation dominant makes. one decision that to us guided obviously trials were the remains can between, would what certainly in that’s market In use the be So you kind of today. less it FDA and the is the FDA

side the So of that’s navigation. one

common it’s tests an On a the are clinical and they else that toxicology can these that lot through everything services rates tests Cannula company side, the doing preclinical as you offering flow goes process, number of incredibly now and extensive a and today. an are imagine flow of bench-top we rates, infusion regulatory testing,

allows a protocol. you get to are Cannula very using submit that does it’s and by company review we FDA FDA times And the they’ve they the not already it. through cases, prior benefit it ClearPoint a not has reviewed or get that say, any the then in to that’s Irvine, California. seen have many the in plan would that so the kind protocols you understand independently. and to that And device It’s many new manufactured where to surprise fact that our cannula If of quicker Neuro they the And pharma them that because fits. FDA, into because review the SmartFlow written common already

the So, think I benefit. that’s

approved navigation our would would standpoint. think drug itself, But or device So, than very that is, I the be from high about higher the likelihood a if that to cannula say nothing with co-labeled has it been a yet. you co-registered again, happens and

bodies the puts So information. notified actually mean FDA deliver same to European whatever is that labeling or the into the the doesn’t going necessarily company the

Frank Takkinen

Perfect. it. taking questions. Got Thanks my all for

Joe Burnett

Thanks. sure. Yes,

Operator

Please Ten comes Times Our question. your line proceed Capital. the question of [indiscernible] next with from with

Unidentified Analyst

a great Joe Hey, quarter. congrats on

growth CEO, forward achieve ClearPoint well our is I’m looking up to growth amazing very leadership. pillars continued the for ClearPoint under your think that are you to thought out. is you’re I set the

Joe Burnett

you. Thank

Unidentified Analyst

Yes. Hey, Joe.

some you and potential the delivery have doing growth conversations kind pillar. last these with updates customers the for earnings pointed the the on share additional what partners? out identified and partner Could five additional new on and we progress XX call, you So during are biologics there, you biologics the XX of drug potential was them from

Joe Burnett

an Yes, question. I one. think I so it. really the thanks And for appreciate important it’s

of sort months that we XX active months, think recent in, effectively, products let’s it’s it’s we said, So, who purchased measure I to way and thing. history in important say us partnerships, the from an services who customer, the last about, that to is think XX has

a do orders, working a company acquire another count, we something a comes which as well. it’s a That’s we one partner count that little might or this in try In five that keep as you case, also we a have have to in a with would Similarly, some cannulas cases, relationship. So, we’re only inside acquire not that entrance has which testing. but happened because it’s just company. might company, customer, platforms possible common tiny that partner into initial to two

be to we added exact and saying, don’t one, gets little So, don’t account two we weekly on want a an subtracted a because thing basis it want give we tricky.

we the in XX why of the we past is XX this quarter whereas said updated So we threshold, which year, active sort that crossed number. in first accounts of that

additional have I think in that targets made our statement that XX come it’s funnel. you a these the five had very in partners fair additional would plus that from we

already then in that to we continue some add kind master plan the we some place partnership. or something to convert funnel, biologics in to justifies customers at formal part or a agreement and to transition. services that continue significant the of a After, agreement have funnel to So, customers least of top the

Unidentified Analyst

lot, a All pilot the a site, I just and it’s program. we cases via little right. neurosurgery Thanks functional have support that in on rebounding certain cases great successful got to touch attending our are been see so to want nicely, Joe. it. And

how think head support well? And we current forward to would on of yearly the you counts, help should can COVID-XX as many procedures, our given to a remote moving able cases we attend do to you think number program gets off? do increase So, would how basis are lifted

Joe Burnett

capacity of to do, do. say forecast, doing XXXX right? XXXX we’re And as Sure. openly to folks in are let’s that or XXX we’re positions say the hired That’s I sort would did recruiting that we for, of entire math math that team Yes. have mentioned you about our the either the are planning number that about simply that on to year. mean, our I this across if built we procedures,

also So, an portfolio, some building in these because for procedures just COVID, the Array, full hospital expand MER, we robotics but like our into are return on presence after adding products planning capacity, of we to multiple new to individual these we’ll are excess like like a not rooms. elective platform, our

with remote biopsy ahead sort the of simply in be likely to to procedure, there And pilot it’s think we’re where that of would in very situations a this team a going taking a actually cases the et is discuss the to is not going need certain we are have The pay of person large gives is couple to quick procedure is a surgery need some quick procedure, for say, very that flying designed relatively to – that prior one ClearPoint the that and common cetera. someone the to needs. example, the place. what chance I a to there. the for possibly, for It’s target. very the remotely surgeon yes, surgeons solve cases, hire some continue don’t This we support we’re So, be doing is, curve here. to our cover Number expense program that us

reason for program. the pilot one that’s So,

for reason the get added the second that in do something some is pilot The minute. we in on last cases program

the mentioned I And cases night about of in out volume. three a remarks, case led case our in last weeks we significant a to before. found some As increase the in March

so some alone do help. we going less you it if it’s you be need, So in this person, not procedure to, and say, but was couldn’t in difficult a we in there us we to more do hospital sorry, – it’s this challenging case, be those where for a it’s for circumstances, if get get remote service you’re to that might need remote offer if to and to able one notice, in

are things we do. So those the really that can

bring remote the offers speed the that system part clinical us quickly. third up ability new is The to specialists to

team need So, you of learn our not one see where can a the something to to is value of propositions something That’s in textbook. And having you troubleshoot. you there cases. help really someone that’s

you You would What share beam folks. experiences instead respond that surgical to with how education challenges cases, of for able too. that cases to you is your live to actual attending only of other sort different do be additional into need can so surgeons see to this would you allow

will really think bigger reasons we and part it we’re become there’s a program our future. that piloting three So that

Unidentified Analyst

Great. Thanks a Joe. lot,

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Joe Burnett

that It A can put not guard it’s help to to company build rails CEO the imagination. It’s something the up. is And but totally from for money actually It’s up that think, to asking. thanks has be really a to wonderful you top-down to question. something I on, ground the culture come it. stretch want

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Unidentified Analyst

ClearPoint and hard Joe. doubt the standard all are go-to a future. work. all I your lot privilege It’s Thank That’s awesome, will shareholder for option have neurosurgery supporting the we be Thanks the for in for no your way. that sharing. you to Great. be a you

Joe Burnett

you. Thank

Operator

next Lipka Our Michael with Instructions] from question Please question. [Operator with [indiscernible]. proceed comes your

Unidentified Analyst

talk you Hey, to again. Joe, it’s to good

Joe Burnett

Mike. Hey

Unidentified Analyst

last royalty Hey, agreements then that I have the had kind you I general in discussed your milestone to of any know you question had have guys conference trial with partners? royalty or And that counsel a done any related the negotiating hired call any about – you is you any agreements? – negotiated that sorry. of

Joe Burnett

not question. because a that, just General Gotcha. topic. great say Ellisa, that I Counsel amazing was she’s It’s would for our hired one

she encountered that that before, that she are haven’t we pharma in when a the the think has seen with not shows. type of and certainly I has side, that’s on we call while on So, the expertise resourcefulness device side, something certainly to she just but network

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other companies to we revenue You share risk that like that, would has we’re compare in I fashion have do. with work startup funding, that to but in say zero which some that many the would to significant prepared still

place yet and had any that point, this So, conversations these, agreement substantive we’ve but, have that in point we to just it on certainly wouldn’t put exploratory at way. I

Unidentified Analyst

that kind if could targets of you picture, bigger the bit to next little to a wanted anything for see I then four in say guys and any years and And let’s out? margins minds we about, have Okay. EBITDA model two revenue

Joe Burnett

Yes.

not do where to spot with to board just the or in that. this year. a a we’re I my hump quite prepared tough over guidance for forecast do We’re got

each two we’ve analyst some I a in as got navigation ways business. think as those that, well So, I have slowly we new utilization think place way look years. over at We XX% our is base let’s, will work absolutely to sites. comments, some grow I we’ve internal way got where to to maybe or little year. you five the say from The grow together like to one a that, we based XX% continue reports base, And can to to continue a of budgets, things prior our but of next at Right. got can see bit that our – the really business, continue

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of one products or or So the biopsy of the the commercial laser a significant MER like or things or that. trials two or and biopsy two addition approved smart getting gene-therapy these or new needles for partners X approval system Phase approval one or of clinical

to add and basis. a harder year, So, got to we’ve that a of little of have bit what exactly number sort but different things when those would are predict certainly that

not getting quite questions revenue from sophisticated just We’re – prepared not in understand into enough that perfectly. So, planning this when hit? to does the that around, to or timing that hit without when therefore exactly XXXX, and standpoint is going we’re

Unidentified Analyst

say Okay. out just could I for, we trying expect like then is look what scale, let’s if to million as $XXX figure I’m margins or you and on for guess hit SG&A those. just reference costs million, in $XX general, do you frame overhead And EBITDA what you like? any have the of

Joe Burnett

I it mean, a buckets. think of I few as Yes. different

the one, hiring. February. internal saw after you on capital, right development we’re D&K, the as well product as which through both we partnerships two the that of already side in number like now So, one primary making had infusion of Number investments is things,

we’re extra of bring of we’re almost than would What planning brought we investors state standpoint, the that have to capital and into is we our sort because So, that to to is faster put company a way us we to million years, an want use. doing think the R&D otherwise. that steady couple spend $XX it from in clearly that

into that bolus We Philips or So house, in latter to massive. team. the good of could because leverage XXXX, to capability team we a development with do learning where intelligence joint to XXXX, that deal for us hiring have build then of half a where instead a XXXX, few slowly years, And ride gives again hire do, we their next artificial Philips be really the we expertise where hiring. an and like of We can’t did tap can a similarly people don’t with it can to then we company the so, don’t machine XXXX, this or waiting of accelerating and chance like the team hire in kind effort. D&K, do want deal hire through entire a here

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ClearPoint Neuro (CLPT) 12 May 212021 Q1 Earnings call transcript