CLPT - Earnings call transcript Q3 2021

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Operator

Greetings and welcome to the ClearPoint Neuro Inc.

Third Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. call of statements securities this within are on meaning the laws. made may that include forward-looking Comments These forward-looking and statements estimates, to and anticipated may and or include, without trends; projected; results company’s limitation, projections the regarding plans, of expectations, prospects, management’s strategies, future preliminary industry both beliefs, statements operations. related trends could or results materially. Actual differ new events. future The no to obligation or company revise information undertakes forward-looking statements for

the for XXXX, year XX, and from quarter quarter Annual file the September Chief information, the XXXX. company's SEC XX, Report the floor on and ended Securities XX, with Executive before on ahead. and company’s turn Joe please December the to obtained you, Please intends been All for XX-K ended of company’s Officer. over Exchange Commission I more go at XXXX, on XX, At to to For report the Securities ended have the be sir. company’s Burnett, quarterly the the the or the Mr. the quarterly with may which this Exchange XX-Q Form XXXX refer Form and time, for on www.clearpointneuro.com. the report would November filed Commission, like which to website Thank or XX-Q both company’s June Form filings company

Joseph Burnett

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

progress therapy four have quarter help is disorders functional we biologics growth, scale. the and our neurological families and neurosurgery mission achieving most of delivery of continued XXXX, and of third drug global to our to are of In priority quality some pillars access who products, patients the imaginable. life & including from Our their restore against navigation, to suffering make and debilitating

August case September, revenue variant was time still overall. the impacted once achieved we this again While in by and elective volume record Delta

biologics billion our and ClearPoint and have portfolio. two medical platform, review on our both and distinct device we more These navigation performance will call financial add are I of quarter they in the to will added Danilo? market Danilo, CFO, our same over in new strategy. which the each our that years details $X ahead. both our partners, the to also markets now categories some pillar each drug I four in the addressable estimate than We portfolio delivery by to annual total growth turn served after

Danilo D’Alessandro

joining Thank you, Joe for and all you us today. thank

third to third $X.X quarter the an at XXXX the $X.X revenue XXXX of total in in quarter Looking the million compared or $X.X XX%. increase quarter results, third million million of was XXXX, of

sales from for disposable of is preclinical customer components, of by product equipment three million of includes and This segment deliver related services software, trials XXth, these in target. & increased quarter. the capital medical process exciting investments disposable Our for through million device is same versus period Revenue sales proper of This $X.X for quarter $X.X from increase XXXX utilizing XXXX. September attributable three $X.X Drug $X.X quarter and stem revenue and increase to products drug this both biologics period Delivery reusable same has XXXX new XX% & consists existing the services and million products regulatory & or XXXX. XX% was and as Biologic we've of in Drug third XXXX. Delivery a to the Navigation to to system to related functional therapy million and cell and of and the made revenue cases revenue sales utilizing new commercial delivery, software. navigation therapy, the quarter, up Capital increased Neurosurgery Functional ClearPoint and same gene Biologic ClearPoint neurosurgery period therapies. months the clinical varying sales for in our equipment sponsored XX% from revenue ended of products. the to revenue services the third software progressed the increase $X.X in and to partners, million of related together consisting line hardware for historically to

in to compared development to both increase third million increase see of to XXXX. still the and an the months XX% XXX%. $X.X to due increased development, delay decrease XXXX. started was lingers. Research use sales and caused our reflect have This the for three quarter of financing were million the compared We margin of was $X.X to and systems some quarter. our costs to capital $X.X period million third a efforts XXXX our personnel excess for million COVID, in during for was increases contracts, product due costs in development primarily ended in in on the to in XXth, of capital in obsolete allocated increases primarily pipeline increase of or spending period cost communicated and reserve headcounts of in the XXXX including summary an the February overhead as costs, investments service increase same Gross software last $X.X our This proceeds acceleration and XXXX, uncertainty an spending in for same although return inventory XX% during and September by

reflects insurance the our expenses. an This quality We compensation, The and share-based procedure to during expenses occupancy clinical to to personnel primarily were third quarter expenses, new team, and hardware, compared hire travel million software for IT have the period for of General volume million the quarter XXXX, $X.X of for and activities compared past in $X.X period marketing the same costs, $X.X increased engineers administrative in attracting grow were professional increase Sales third successful million expenses and of $X.X million $X.X was in clinical specialists. we level or in continues as been of talented XXXX six XXXX, and increase train our an $X.X and million. increase very to increases for costs, due XXXX other same marketing XX%. expenses increase the months. million

financing, benefit beginning I $XX.X common to the turn totaling last we efforts, expansion. company's XXXX, our with resulting public at of the new the and cash like to offering now XXth, in from XXXX, million of as XX employees across of the round of since February, commercial At hired $XX.X December development call million September of product primarily As have support we a a to accelerate Joe. XXst, and year global the to compared organization the the equivalents increase XXXX. have back cash would stock completion

Joseph Burnett

Danilo. Thanks

quarter device and team million our development, revenue a quality, successful across growth for new the pillar quarter drug clinical strategy, businesses, and our in even announced board just successful member talented new product employees headlined has by The for quarter, four both last was hiring week. record of delivery medical and the a partnerships support, across our third of $X.X new

Let's break our that growth. XXX $X.X neurosurgery four record revenue million achieved progress team. of supported cases with during We down our of by pillars Starting navigation. the clinical into functional quarter and

have increase hospitals elective in August Delta to second our prepare declined see for procedures been in at While impact The that and quarter, about scheduled purchasing variant September. quarter. disposable versus did slightly fourth replenish and here the to of did we our procedures record inventory case future volume XX%

the and patient. procedures. enough resume new has at same of saw hospital hospital nurses of may procedures, in October, that symptom somewhat plenty of hospitals elective and the The staffing other staff procedure hospitals ICU majority the been where a unforeseen recovery support we that those shortages of across elective However, COVID impacted may not hospital and have beds have for members to available the country,

to patients. families about brain patients and program stimulation their quarter, third of launched the speaking our options for In their first treatment. Now, we educate designed deep

first known placement At journey the Susan testimonial featured Our we DBS always first. as DBS. put sleep guided anesthesia, MRI O'Rourke under ClearPoint, an patient a otherwise patient general video with DBS

the ClearPoint ClearPoint. for using procedure So, or patient. under plans options, and allowing awake performed devices each could to their individual with to match guided be room we future which alternatives, the directly MER technique every would each operating the offer about to In appropriate an an encourage MRI general treatment in patient hospital each procedure surgeon anesthesia both guided DBS physician speak for

portfolio, solidified budgets, and will From have them. surgeons development the to options our the With members this and across quarter year. and a the available team portfolio both progress schedules using first hospitals standpoint, infusion ClearPoint of we in capital continued significant

is and which call, did the Array, the to workflows help into across streamline FDA operating room. on over meant SmartFrame mentioned As to clearance receive the for we ClearPoint

our of continue track for in the second will on and of through remain half half the release release full XXXX. market a XXXX first market We limited

X.X our the system across as We in co-developed rest head the multi MER Maestro Orchestra ClearPoint the in Model, our the We next an pipeline robotic-assisted development Revolution, partnership including the Brain of trajectory with collaboration space. well, ClearPoint and software, will one of our Blackrock, as and frame have with cadence system called over feel years, D&K that we true to neurosurgery the the companies Engineering. of few continue exciting demonstrate products improved new which innovative have in continued

SmartFrame completing Maestro Array, and Revolution after first MER the cases XXXX. and remain to software with accomplished continue ClearPoint XXXX X.X clinical second our quarter, intact in we timelines and cases which previous Our of was first and expect Orchestra, in in

a a is place and across with surgeons is first to implants similar the to with work brain solution exciting do the this platform in custom we very cortical in partners, and This the this are can but repeatable placing past similar. the we and computer companies, our one build recent the the There's purposes is BCI BCI disposables cannular, completed where leveraging existing infusion human our very instead around interface future drug. you SmartFrame as tremendous system, software more hospital as navigation Our by centers. segment clinical communication are precise, example, the make we to more one. taking and XX the and ClearPoint most relationship implementation during a pharma In of very of both infusion enter the target support partnership we significant faster, of Blackrock this a is Under business Neurotech the the multiple years. BCI a provide announcement of potential seven with investment over experienced for subjects agreement, medical BCIs, space. to implant Blackrock and today tell

intention hospitals disposable as to Our platform. spoke system ClearPoint and see navigation the through hub sell is on to channel our directly commercial this another this

center the of that neurosurgery reason have modern ClearPoint in Another excellence every should future.

the Importantly, place room. while BCI operating in itself applications, designed surgery the for used are is all many, if MRI not to images take

on we room. is not that technology an additional rather but application access, for is this MRI the that So, are on another operating crossover into focused reliant ClearPoint

excess navigation neurosurgery deep our you both MRI navigation, If for operating navigation, platform, of modeling, all addressable add brain room, the potential believe the brain and including for this total brain BCI, the addressable microelectric in as includes in laser up and ablation, movement, stimulation we interface and applications, the annual markets and $X future recording market computer of to being well be studies as planned an of both even including new billion. existing future epilepsy depression, communication, site. hearing, and DBS including restoration This

to a Our continued additional second We team just individual second pharma have approximately pillar approximately in in quarter. the here indications and partnerships up XX Biologics academic ago. currently & and across partners services multiple Drug XX our Delivery, quarter from add

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

us therapy expand neuro could win partners academic to take an Europe still approval adding decision researchers. business plan additional European believe helped based and place XXXX. gene has and in that pharma continue to to for initial commercial already Our into We

navigation. mentioned seen Phase these in beauty strategy, important ClearPoint a from in platform you into much device continue and trials to half system As and XXXX we our many standpoint It releases, across majority X Phase preparing to to That likely one cases case in expect of well. to the investment note XXXX. the is itself pillar them in patients future. second new restarted of biologics is crucial have indications Biologics the throughout of navigation from of This Every as multiple & case, applied the our trials case, ablation is do applies to Drug medical and today initiate of after also the is both Delivery in that does biopsy X and the enrollment DBS well. biologics as trials has fact a in investment press partners with as is recent laser the training COVID, into or enrollment hospital training and

system make data. and important For agreement XXXX drill being in second installation at remain the Rothschild is previously elements. patients XXXX. development COVID have schedule our ClearPoint of solution for in in Sweden the Hospital using we related solutions data CLS couple executed in timelines. of enrolled delays. be to laser leader ablation in and This quarter, IGT also adeor, in In still weeks in third continues pillar, an We the our ClearPoint half access based on collected Germany. expectation to we submission and some and a The the pediatric exclusive therapeutic two of with clinical are communicated The third a will our collect our devices, partnership surgical an products and be in with for first the progress progress to has with development a on France And half partnership clinical planning Paris primary continued FDA, laser the we of did announce despite complete tumors that ago. CLS IGT will that

and distribution impressive portfolio drills year. in a States. gained of successful an that this products the been is of allowing power sell across recently portfolio room clearance and adeor Europe the for operating has United ClearPoint designed the FDA here First, quite support agreement earlier This to just

release release XXXX, begin in in full fourth XXXX. We market quarter of first market expect half and of to activities with the training limited the a

trajectories. anywhere and the time on hour eliminate is is conditional upon trajectories penetrate Blackrock build could with their for minutes need addition development drill especially of common. provides second device from the the another drill. the that worldwide This and ClearPoint ClearPoint and of The depending our also more are distributor a designed surgical infusions crossover design as technology XX multiple of Velocity to the the conditional for to our agreement drug exclusive is This an is important successful room. current in Like each than drill operating of Alpha MRI procedure our be save as during adeor partners relevant element this on it quite help based slower adeor MRI an hand-twist will this numbers to agreement, will an for delivery to yet portfolio

our Finally, global of has progress scale pillar made fourth achieving as well.

and Europe European into updated This they to system sell compliant may be the a products MDR went task of to rules some that these in not not has has regulations. new quality enough that successfully with year. new is been Our been in effect to companies under daunting this small have decided certain

Although, compliance challenging, our And fact present procedures with clinical of the the our our and one. that have believe that compliance we surveillance. at specialists one market us is simple we is right investment helps

new biologics, important there and be full performed therapies ClearPoint. drug a We Israel. and devices have using a of across a also achieved innovation in navigation to enable for approval our and is delivery Israel an suite products products with will and for presence market having trials

challenges securing challenging. far the have of We additional supply ahead and have chain real inventory very been very that in successful been thus

which can on by used however. have base materials our the capital to We balance ahead time, existing of sheet. our The majority purchase investment you domestic vast inventory see of expansion is supply our of

practicing the as of forward. procedures, any Chair We the our is guidance impact is led administrative have XXX surgeon point, tumor highly full XXXX to Chair Board specializing to call strategy I our of reiterating programs join and are questions. our biologics up will clinical her Linda this X,XXX also drug the and And between are Dr. experience she forecast we open neurosurgeon, only of UCLA. absolutely by are but inside a our our revenue of That to a to not as practical Directors, related moving multiple $XX team. Neurosurgery million covered delivery and regarded to has beginning the range this and with a neurosurgeon Liau, With we Linda UCLA. of delighted who corresponds of and would team to At add in at a to responsibility $XX.X year which thrilled consistent million, from like year. cases that,

Operator

open Our first question. The Takkinen. Thank now from you. Frank for comes Please is floor your [Operator question Instructions] state questions.

Frank Takkinen

my thanks on Congrats taking Joe, solid Danilo, for quarter. questions. a

can give starters, For you …

Joseph Burnett

Hi, Frank.

Frank Takkinen

for into us you well Yeah, for baked up more of shortage as hospitals mean little give the at around impacts, give So year. the some COVID-related from as QX color assumptions top at bit sequentially that low absolutely. a range? guide as into whether Can looking type guidance the end is I'm revenue? as staffing results. to And down can both guidance maybe the what of sequentially a the be well full end,

Joseph Burnett

And the you thanks Frank, it there. right Yeah. I for question. think said

forecasting go rear reasons yet the could certainly somewhere And in math again. we're of deeper little the year in I its we between a for is is the of quarter. that head assumes COVID would doing $X rest $X.X fact hesitant think the to it fourth right. One absolutely that, revenue the in and be But or million your ugly million

it's today, in forecast. range a given probably expect where are assuming think have $X.X we does significant I our we fair or not to so expect COVID million something given the that, impact,

Frank Takkinen

on no guidance thought give Got the to maybe you're speak try but realized company. yet, growth helpful. a little more thinking I'd the there I That's And how how of about just profile out about XXXX. color it. to thinking you're bit there's

but this should COVID just think is we thoughts to about some give we XXXX look a into XXXX, on As us start how in obviously growth. maybe variable large situation,

Joseph Burnett

of kind And demand. there's it I have September we experience all of in growth there the be been a put number Starting hold staffing of from hear August, pillar let's expect their of is shortages our not or far in treated. We are XXXX. really been do talk functional some was pent-up patients variant that from surgery that going in waiting whether into Delta four able been to that to significant certainly would that customers, to think some go numbers, with who from of have you see neurosurgery, these Without our But for here. on in backlog patients some Yeah. too pillars pillar. a the by

parties ClearPoint the mention Not So, we out certainly able flow to system. in those the been to interested to purchase expected start have to of backlog not XXXX. that

have we here many we year this And at expect to well not systems all. XXXX. accelerate that placement placed quarter, the throughout So really as do as start that fourth in

for X partner, and preclinical more inventory Now cases unfold And in start regulatory like for already, we typical much that. process the that trials, opportunity we capital devices do starts the one in they ones benchtop any biologic on partnership and see Phase And starts but XX as I for XXXX for do generally that come well. to studies of our continue testing know the consulting growth fourth the security the to to say, the timing as -- We've smaller evaluation, purchasing given begins of as some and grow. then side with year believe, will queue. and quarter, partnerships around added, our in things, a additional an Phase then, in expect don't of number a in, And in a have things additional services this let's significant each that we mature partnership with and investment certainly pharma the I X, for capital then partners. to

of partners number we do new So, getting us. with have that started just are whereas a

X other think Phase we're next where last things think and are Phase point was, huge many that services therapy Phase expect and didn't was I side additional the advanced a don't XXXX. revenue in trials I year. the from even therapy I to touch be have And that on I more contributor of access expecting and have to X, X coming also We partners much development

in that and as second able our our the adeor we're Although, XXXX. start expect if own our would with we we of sales, be our stay about system, should seeing timeline seeing start partnership next pretty first year, then well intact half for to excited something is sales to that laser throughout

that the in collecting zero therapy that I believe XXXX segment. first was whereas quarter, So, in we'll our in revenue here third be really number

Frank Takkinen

for Got it. different That's of That's helpful. lot a growth me. color, there. great opportunities one Last

maybe PTC, a in get on to there submitting I frame FDA call, your reference the how was trying sense just be approval has of goal? for partners partner for could correct? on potential the Just XXXX? only think a XXXX approval. that two, And some was that last you One, shots many to up isn't can

Joseph Burnett

both. category disorders. Yeah. three a they a a or I would fall it And few cannula that describe say navigation using are you actually could that there's different the as into system there, two in either stretch or across or

I them So, on believe the which in still is it's European is are likely I different have of the believe a most clearance ones. indications I potential XXXX BLA XXXX still ahead in too. FDA clearance mentioned recently the go clearance. information, three in a also could next U.S. It's the PTC they've believe or have year. FDA CMR mature. early of for could expected track they that to recent most that here their QX

the advanced that's most So, think one. still we

go are no However, situations, rare in alternative could really these all three these that where these there's there disorders a others couple of And for -- in. genetic are childhood again, very these in patients.

and do a bodies folks. to any market just shot got the patients feel of tumor of tremor, instead trial. number help small through to Parkinson's to want it's it even and regulatory a opportunities like disease So, relatively essential massive clinical because like is and easier we've in track surveillance a commercial of And compared patients these to setting the these

that for flexibility. think why potential we that's some So, there the is of

still do inspections lot However, FDA and the very to have notified of or of will these have the sites manufacturing of well. to a that bodies examinations the processes go

still work there's lot So, of left to a do.

Frank Takkinen

Thanks. color. all the Appreciate helpful. That's it. Got

Joseph Burnett

Sure.

Operator

Okay.

Our state from Please Ng. your comes question question. next Bjorn

Bjorn Ng

way, voice Innovation coast on is on good the Training an in by Center outstanding again. congrats the love Global and of opening Congratulations the hear the Joe, and & I grand Beach. Hey, Mueller story quarter it. CarePoint the behind to it Solana

Joseph Burnett

you, Bjorn. Thank

Bjorn Ng

Thanks two cases and our of times call, you shared up In that revenue makes cases. Joe. to total Yeah. ablation an that XX% opportunity three earlier it laser about

of see to So, total cases percentage with do a ablation spine SLSP cranial an partnership and IGT make up cases laser account opportunity you higher the of and into CLS [ph] taking opportunities?

Joseph Burnett

do. I

have I to it good procedure growing as or seems a percentage that grow faster very market market the say opportunity our the I to a think of does ablation is a DBS cases. the And laser today. reason the believe be overall I than bit

from XX% than XX% a DBS DBS. is to X% smaller to to plus much fewer market to be that range. what anywhere closer we it's Now versus XX% from but procedures, the seems There's many growing tell the can market market

those So, a cases we and overall as of to share also that percentage grows products launch in and ClearPoint of market as the cases grow. that as participate advanced more should

very about well, including that pace these as like neuro things a And markets much few the drug being also chronic we're of larger number more are are clinical cases done DBS being potential stimulation. depression, epilepsy with deep said, system, as are that being that well and more with a work excited a that's trial There's done Medtronic Now on systems for horizon. brain the new and going that also many too. Alzheimer's disease, resistant more after as of

develop, the clinical go whereas time community great embracing trial to the have those research take through a solution. some process. to to going real they as DBS to very potential So, see are It's

Bjorn Ng

Got it.

on clinical in year? remember shared in of as two expansion So, that to next another this for expect you you have you pipeline some installation well. sites could the installations of U.K. for enrollment Europe, terms to trials the to I colors CLS share year three

Joseph Burnett

That's Yeah. correct.

of we install strategy the every on again continuing hospital, a ClearPoint focus place are in and not to but is at centers system to push Again, to agreements. local Europe try to evaluation agreements really excellence. So, our

country going is or two per we're that the three So maybe direction today.

some because So the month takes commit to an of that hard construction where needed circulation. it's place, air to sometimes install for is exact

for additional suite. anesthesia the that's there's Sometimes MRI equipment required

expect -- Israel. things vendor by So, would have the year, next we those just installations five to from I but that across have Europe end delays, and anywhere of XX typical

Bjorn Ng

Thanks. That's helpful.

on So, think question Board it's solutions. sign definitely validation of that ClearPoint's Dr. super the is last I Directors. Linda have I of joined ClearPoint It's a Liau

to she increase and So, how amongst has use ClearPoint solution neurosurgeons? adoption help

Joseph Burnett

going to be only Well, arena to of team. for one training also neurosurgeon, of and number input provide as some responsible she's the a I for how to from not do think she's of neurosurgical being able Again, the us. series a training of excellent fellows attention is get things Number on the of speaking well. a but a

I some of think that functional dots the introductions And too. helps really to partners of what is she involved Similarly, that drug and able and nice that the understand able to share out as number to inside and there drug into she world, tumors around on but beyond make, disease surgeon's has someone the being the the the department, So, individual as connect been primarily experienced of of able would needs we're biologics is to also developing central tumor on it's administration the working benefit the can something our really with be researchers parts our to the she's from even system. of from different reach side routes nervous perspective. of navigation, have well needs to on of I things, cannulas, new spoken some a from or that that delivery, think

with and technology. benefit her being from to our circle work and absolutely think ClearPoint will biologics able highlight sort team I of that the company

Bjorn Ng

questions efforts of your There's must the commend just you to variant. all navigate Thanks, I and be it. like over not Joe. have Delta the easy It on the impact I and Got the quarter. to would your team

for long-term. Looking on the this forward together to continuing with you journey

Joseph Burnett

Thank you, Bjorn. That's great.

Operator

back That was to I'll our over turn final Joe remarks. it for closing question.

Joseph Burnett

the All thank we're greater once take Good being We to for work the all treatment that our you first, of very here we'll interested and greater their as a and put doing right. again, our everyone. family part portfolio. important across on patients we ClearPoint. story team's and Well, at responsibility believe for everyone and being night continue

Operator

conference you. Thank today's We participation. concludes for your This thank call. you

disconnect this may time your a and have at lines You great day.

ClearPoint Neuro (CLPT) 10 Nov 212021 Q3 Earnings call transcript