NARI - Earnings call 3 2023 | Inari Medical, Inc.

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Operator

Good day, and welcome to the Inari Medical, Incorporated Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded and will be available on the company's website for replay shortly. And now I will turn the call over to John Hsu, Vice President of Investor Relations. Please go ahead.

John Hsu

Thank you, operator. call the our acquisition conference financial quarter Inari's and performance of to to third discuss XXXX Welcome LimFlow.

related and Hill, over applicable current Joining obligation to to Drew as me to of releases revenue, call Financial Inari's includes forecasts as expectations except estimated Inari call Mitch law. forward-looking additional are within any that for Officer. Hykes, Inari's Any regarding which are update by December full closing ended Tu, potential available accompany Officer; and Chief projections subsequent Report information. President on provided operating call, Private historical LimFlow are or Actual Reform assumptions this The year number statements, call these achievements and statements slides from and expectations, Act press of by and management's A the forward-looking no acquisition, LimFlow on Chief year XXXX XX-Q SEC, on undertakes acquisition, Inari's and call required inherent implied benefits not recording XX-K potential forward-looking expectations on based are XX, risks difficult XXXX, relate fact and call Chief could today. on do website or I'll Executive to assumptions, This statements, Drew. risk that for be be the subject at the to performance to to the factors Time XXXX. forward-looking Statements performance, are a our of today's inarimedical.com. of available p.m. LimFlow meaning predict. Medical of turn the results, Dr. Pacific Tom today. particularly of Securities results expressed call on outcomes anticipated strategic Litigation and the performance for matters of the recent filings Form and should acquisition proposed quarterly Inari's reports considered this are based during made due materially our on the statements that, uncertainties, of Annual Inari's Officer; future of Form to differ Inari's of on including statements review X:XX Please With including the factors. statements by most will website with described in this LimFlow; today's

Andrew Hykes

Thank and We're generated us you, our We you, pleased everyone, for with executed across thank growth and third quarter revenue John, joining today. crisply all performance. our record drivers.

international business, continued for and strength volume perspective, underpenetrated, with First positive and meaningful along continue driven profitability and (indiscernible) VTE contributions Indeed, core in end from we XXXX. new was first QX foremost, income we products. VTE healthy highly by of returning our the to remain the growth underlying our our business markets see continue market. operating progress, steady since to time a make to procedure From and

the We consecutive also income positive net generated quarter. for second

RCTs of FLAME continue build significant study We on base clinical results. publishing progress making to the X across our evidence, while our

our and was can to need year-over-year. $XXX.X will we LimFlow XX% opportunities market have with I'd in ischemia, unmet importantly, to significant QX or like this clear the compelling. on the up the reflected with growth in our have address impact significant of future our highlighting is chronic patient-first million, market quarter. philosophy. never acquisition, the via This LimFlow CLTI. capabilities the no-option opportunistically start Revenue our limb-threatening patients Building which with LimFlow are on summary VTE, performance. story of QX a Back the will financial later Most our aligned new be we leader results demonstrate, more QX the in been broadening As call. in we to remain prospects strength, discuss

million $X.X QX, of QX. Our and in XXX% business sequentially generated year-over-year up revenue from XX% international

addition and our growing operating progress achievement profitability steady in bottom business while to rate during our leverage, also quarter the strategically invest for at also with operating quarter. driving on top commitment line of to the the our made This we since double OpEx returned underscores XXXX. In in to the performance, line the first time revenue

we across also During QX, our made X drivers. growth progress

first Our track year-end added in growth footprint. remain commercial expanding our headcount and on our driver goal. meet is We U.S. to more QX

territory operating and generate productivity leverage measured development. to from of continued more gains a We pace

expert. deeper growth hospitals ensure establish and very to of a drive Our we second in and and areas a approach in screened penetration to introduce VTE the positioning help well to and VTE results our VTE execute the evaluated comprehensive are identified, remain differentiated, focused We increasing see market patients programs and on early highly penetration, value us products broad to approach of commercial accounts. footprint to a penetration existing expansion approach by innings market and of therapies. new continue is and of driver, methodical programmatic our consistently tremendous coverage, to Excellence to repeatable

customers We where continuum Xx VTE of penetration continue and TAM progress advanced successfully to the is are to higher Xx more phases. to in phases along make earlier moving than Excellence development, program

on of advancing to Our clinical quantity evidence. quality quarter, third third data. both the clinical growth adoption our continued for the our and we awareness Inari's broad driver base is products and In building increase by of

the journal FLAME as the off, Cardiovascular study anticipated, "Circulation: was we published on October in Interventions". First XX

is over study physicians which to publication, of this and patients sick patient of on to that the further the patterns. population already larger. confidence With sick intervening data, spilling FLAME results build FLAME Xx into We highly enough positive intermediate-risk the is beginning less expect extremely we to change practice notice awareness a physician see for of taking patients, is believe powerful recent important in

in remains XXXX. mark Turning to FlowTriever therapy eclipsed and anticipate on our to lytic We RCTs, a data in readout enrollment PEERLESS during has RCT an the I patient update catheter-directed our strong comparing X-quarter QX.

with and expect commence PE activations site to focused the enrollment early II, we XXXX. for patient RCT FlowTriever treatment remain PEERLESS anticoagulation in For on patients alone, randomizing intermediate-risk to

we RCTs, enroll enrollment which clearly simultaneous to comparing alone. RCT our Lastly, collectively Executing data. up high-quality in up patients, X ramp to to DEFIANCE, reflects X,XXX will commitment generating ClotTriever continue anticoagulation the clinical to

these will to leverage change care VTE. standard the for of data We

Our is portfolio. to product our fourth expand growth driver

X initial are products, traction the and to of X and that make to excellent keep We've in of progress full continue these opportunities. and gained our revenue we across base. see awareness clinical incremental half add and tremendous We in X across are across XXXX. customer still InThrill feedback good direct second products all market products, release RevCore, building the ProTrieve, opportunity receiving usage

X have popliteal treatment to enhance needs now Those delivers Gen clot same procedural and existing a ClotTriever core with a of ClotTriever of XL in products addressing of commitment and our can the demonstrating clot products are the XL robust and stellar a toolkits, now recently FMR extends continued chronicity FMR, use ClotTriever Bold to FMR, the range X ClotTriever together are platform, X Curve Bold. performance pipeline ease of innovation target which vein. range tools. efficiency. cava unmet in for The from The vena in X with purpose-built TXX testament purpose-built These X products, the the the our clearance to greater Generation entered that most are which and the ClotTriever products other VTE portfolios. version

into record quarter expansion and Our outside markets. driver another revenue case international U.S. of growth is QX of last marked production the

performance adoption and Europe, growth by case our Western Pacific. in by Latin complemented driven Canada primarily Our early-stage was increased Asia solid in markets in America,

Japan China both to make in XXXX. treat progress and to of good continue and both in We patients in anticipate these markets beginning

share to these quarters. our more have on markets over strategies in the X important will We go-to-market coming

Given XX% I'll total Mitch over turn our business to it over And our financial now, in international time. the represent greater spectacular expect greater we unmet than discuss QX revenue need, detail. performance of could to

Mitchell Hill

the Inari's third XX% and XX% million, year. from good XX% other were period of to The in between FlowTriever of the you, are to split quarter $XXX.X ClotTriever everyone. product systems over derived Thank XXXX. up lines from afternoon, systems sale and our of prior and XXXX Drew, as of year-over-year, sale for same revenue revenue in with XX% compared the the compared XX% XXXX; similar revenues

In in Costa our strong commercial in a Rica. operations footprint with addition we facility to quarter, lease a signed the expand recently execution to our

location, our premium supporting take will to this expect time gross manufacturing also it Although the investment develop we margin to some while profile. provide capacity additional

secondarily million million in was million income average prior growth $XX.X of net operating of million the for share same period million of for loss $XX.X million, XXXX. fully an for due The million the $X.X million $XX.X $X.XX R&D expense a while the third commitment the share in $X.X year. was was to funding increase the supplies for compared in compared our disciplined commercial, clinical The and in expense expenses and remained material count diluted $XX.X with of third was Operating XXXX diluted the we for quarter fully the Operating $XX.X headcount.SG&A to period expense R&D and quarter and million controls was prior basic net expenses with on related and the spending fully by our on to $X.XX for XXXX and period of XXXX These with the personnel-related diluted increased This of headcount the gross basic based of for higher we year. of XXXX of $X.X count XXXX Net to loss of third flat due the $XXX.X was million as to $XX.X third the prior for was primarily of to the Turning increase margin same higher $X.XX increase of year. based income P&L, and the at reflects basic million and drivers. secondarily weighted $XX.X for period professional quarter and compared prior weighted million quarter with driven and fully share $XX.X quarter year. the XX.X% $XX.X and in with $X.X basic the in increased as same quarter expenses of million compared expenses expenses our net The of same of XXXX to personnel-related $XX.X million were same fully third quarter in a in compared third same the third period share loss compared performance primarily respectively. prior innovation fees. income per our due per team's the period XXXX XXXX. year. average of third a the million quarter the diluted

of end totaled $XXX.X and cash million end cash of million to of of our investments $XXX.X investments on of investments. as of million, and balance consisting the compares of QX the and cash short-term Moving QX with sheet, at of $XX.X This XXXX million. $XXX.X the

cash the $XX.X of flows quarter provided operating $XX.X flows activities for were by third million the million used third to of in in XXXX. activities cash Our compared of quarter XXXX operating

Inari's address to like financial guidance. I'd Lastly,

For I'd million $X.X million at the relative to full year that an million, range. our XXXX, are we revenue of increasing prior to guidance our $XXX to increase $XXX midpoint to note like

to Now LimFlow. I'd it turn to acquisition to back our of Drew like discuss

Andrew Hykes

Thanks, Mitch.

thrilled medicine. LimFlow Inari's We XXXX. investment patients and most We LimFlow, observer unmet Board which in a for in salvage early all in to of acquisition minority significant the one a discuss with vascular limb needs are is of a CLTI, became in made pioneer

work Inari to long welcoming full transforming the patient large purpose-built of aligns the paradigm team and data, into confident success commencing by novel we do acquisition so Most leverage can with mission in progress unmet supported ourselves is DVT. LimFlow have family. launch developed addressing clinical LimFlow the and respected FDA Inari's to We're forward a significant is of PE without TAM. our needs. in LimFlow's LimFlow the We're from and ongoing a approval, CLTI. the VTE core distracting treatment incremental to has competencies their can looking make We we've technology and importantly, high-quality in

a is a reasons, the a We'll Inari. of greater to strategic discuss strength. detail. of elements for this our For great all core of business. enabled significant position fit performance us business, each rock-solid milestone we these view for has as compelling this acquisition reflects on from the capitalize transaction It Executing the which opportunity these in

want IPO, transaction strong robust relentless business a thriving, OpEx alongside and to we've can to opportunity to the discipline is VTE this our of while foundation in in outcomes we're patients deliver continue allowed Further, cash our I a put work on to to balance of fully on QX this firmly CLTI has sheet. growth and Our announcing committed disciplined also a on in market, focused position exciting to us our emphasize believe this taking us that our execution robust That pursue we VTE enter remain of acquisition. improve being the control. acquisition. revenue on mission position been stewards also good the Despite while Since capital. focus maintaining we

to acquisition unmet this efforts mission this have creating positioned committed address equally that a patient is with to Our partner team's and needs. dedication to tireless pursue solutions us innovative to

calcified foot. anatomy by associated was The simple extremely desperate developed second rerouted option. pain a his perfusion provides tremendous at with with transcatheter clinical of impact platforms, This foot. purpose-built healthy XX-year-old to healed wheelchair-bound. VTE into like also share, to differentiated The was performing the of CLTI percutaneous and man pain TADV, for his with being leg with better to prognosis have the detailed patient a interventionalist this blood diving and patient's were the a his possibly treated novel look patient's intervention. from point effective patient unmet able dire Thanks this peripheral LimFlow, an delivers. and because a restoring leg his bypass dramatic new LimFlow, his that [rest] themes story for intact core arterial story patients also later, short the he the ischemic gangrene one for being life-changing we LimFlow always a treated. delivers arteries Facing or more completely. occluded In the of him. avoid A that he the deep or call physician I'd there Angiography LimFlow Before life. as ability Inari's profound a do, demonstrated a this save novel suitable highly option, options veins, amputated time need. underscores utilized venous common no no to treatment with same a The his to underscores to highlights had resolved Post-procedure, right keep system. to a the XXXX, available amputation, due first of solution technology address time, patient's a he improvement other to quite over and to him toolkit improvement left technology and, patients that foot our arterialization system, procedure with

challenging, disease each story, is impacting just to carries with outlined As significant I There of rates, high the living more patient than most mortality burden. patients. ischemia-related the globally, in costs. advanced other the which and solution options U.S., patients hospitalizations significant available, the in and was for are million the stages nontraumatic in quite a CLTI morbidity amputations approximately XXX,XXX annually XXX,XXX of is and no year crisis, CLTI lead global mortality X.X currently which U.S. medical LimFlow a repeated With to designed provide are approximately these healthcare

from CLTI where progressed XXX,XXX for estimate XX,XXX patients of the have patients have has they These suffering our system. approximately approximately sizing in disease the are XX,XXX to no each year, amputation. limbs XX,XXX Inari, $X.X TAM. we opportunity in that point the terms target of figure the results treatment against In the immediately that this other addressable than patients have a TADV ASP with billion Applying U.S. options

significant expansion. opportunities market, we for offer potential the this Beyond addressable U.S. believe X there that no-option are immediate

believe U.S. will see we about First, less which severe expand million. opportunities by with $XXX disease, patients to target TAM we the

longer-term, $X $X of agree internationally, billion. there pursuing TAM path these expand TAM to additional upside we LimFlow's would LimFlow's to billion. growth which to By a global the expansion see also a opportunity over is We commercialize avenues we believe significant further by device

blood foot. valvulotome proven to deliver and This like March arterial that artery-to-vein an the leg XX% by able I'd pain their procedure. purpose-built to with enable of overview generated PROMISE keep following is TADV to of catheters blood amputation. system to the was effectiveness this no-option preventing X in to the Of the of of save push procedure, and CLTI the The a toolkit in of published LimFlow Journal and the LimFlow The XXXX. Medicine has note, multiple into progressive technology enabling its system demonstrated been of differentiated treatment. and demonstrate significant England study technology covered wounds In were venous to used below-the-knee stents. New consists wound treatment. TADV healing, trial having clinical specialized Next, healthy oxygenated evidence the including safety patients multiple landmark has limbs trials to is across healing the already experience game-changing during compelling into relief LimFlow components, provide reroute crossing, the purpose-built back the many time

Now rationale compelling to underpinning this I'd strategic go like over the transaction.

mission has on from significant the equally ideals, reimbursement for a thinking Inari's same and IP attributes option Our focused is standpoint. approved the is in important regulatory, several perfect unmet ethos are system only device needs alignment fully addressing to LimFlow and with PMA The committed big. no and CLTI. on-label and LimFlow attractive mission.

that treat foundation, and make clinical and capabilities, significant LimFlow on faster. revenue commercial a a leveraging products. market core impact Inari's meaningful will and profit multiple new mover As specific Building an enhanced entry addressable IP significant established market portfolio, the area barriers entrants. for new market, with and to a transaction The path has an are with the total us to in to iterate potential. of our are place, believe trajectory patients there into of with reimbursement playbook natural ultimately allow development in in more expands our robust ability sites competencies The service. this payment to on key fit first expertise, LimFlow We elements inflows

execute sales a an maintaining focus organization on and LimFlow VTE. from on the Importantly, VTE. momentum integrate team narrow we CLTI centers. a deep pursue small be of completely commercialized LimFlow the and on opportunity and relatively focused independent number will separate while commercial using This same are will confident we high-volume strategy can

believe in and we a in approval we became limb between believe chronic the these there disease for salvage September, the LimFlow the sales centers does largely programs. Despite market and work all of every FDA significant effort, Inari Following growing differentiating must-add venous day space. development of excellence technology capable similarities LimFlow independent are

We limb next when we acute also with reenter year. Artix the synergies ischemia anticipate market

of could be will LimFlow effort, After in together, Inari growth and Framing potential years an compelling ramp use commercial our X% currently the Taken with to achieve approximately one our VTE mix. the VTE component $X in additional as penetration as commercial opportunity, offer similar for overall underpenetrated a U.S. accomplished is U.S. term, market. a opportunity we TAM important the revenue an equally has of needs. large X our we analog. We we can $X.X billion in CLTI reached similarly compelling VTE. unmet option what in to have medium have over No penetration believe, CLTI billion

to ramp. for the U.S. commercial are make on market. we considerations. concentration efficiently incredibly only option and honed drive acquisition our our beginning a financial relatively in-house. and device to offers We it VTE FDA-approved the commercial patients to we're unmet back customer address to of CLTI believe growth positive Mitch the The no right to an published will only In trained from terms optimistic patients may now driver we fact, number deal and The centers the small the not core toolkit sell. of able the clear leverage adoption evidence TADV ramp CLTI LimFlow excited the bring significant among conclusion, of impact, of launch. in given the I'll advantage to as will a of successful offers that fully and differentiated able no-option first-mover be more on-label fully start a an in technology is but be TAM, a high-quality ramp excellence. its to needs, mission procedures Sales base, will clinically over In the and CLTI. hired, also these incremental be team with patient faster we business. able discuss to turn commencing additional aligns and LimFlow's reps in given competencies our leverages LimFlow's we the concentrated are nature LimFlow product

Mitchell Hill

The LimFlow Thank of in you, payment on terms, in is from earliest consideration and occur commercial has the $XXX to a with $XXX credit cash just million agreement be under is million our $XXX million paid equivalents the of to in over at over up to additional agreement million of Inari access of with closed of Drew. cash and currently potential to based deal Starting the fourth cash the milestone asset-based payment and which in milestones quarter reimbursement acquire contingent XXXX, facility. years. liquidity potential XXXX. due next certain with achievement close, expected an the cash QX includes to the $XX plus in paid X

enable position various has us our fund relates nimble strong opportunities cash to be to it strategic as Our to us will LimFlow. allowed and of acquisition

will mentioned has Drew since sheet, opportunities continue we operate one the to core strong IPO evaluate earlier, our elements it. the and strengthen a strategy to As been further with of of balance to

Turning to per describe, of has to transaction, $X as operating you Drew approximately growth support of revenue million commercial million initial month. for the financial anticipate $X believe potential. LimFlow's launch heard We we highlights significant LimFlow the

XXXX into impact on a commercial will profitability, infrastructure. manner invest and cover increasingly our its revenue disciplined it LimFlow's will continue we throughout ramp to in operating drivers begins our leveraging we growth believe XXXX, reducing to our in the income.Regarding As expenses, while

Analyst sustained XXXX. to XXXX committed by a half we Day, of at September As income the our reminder, operating first achieving

of hand with In this acquisition the strong the with sustained profitability to to take schedule. operating based important over I'll the in half results, that, to on ahead a QX On to the for summary, forma a move we we pleased Inari in call now with LimFlow, position basis, financial that moderator And a pro expect technology. we're acquisition of continue XXXX. We bit and of are seriously, of reach the this is Q&A. our commitment forward second

Operator

Stanley. Kallum Instructions] our from first from Morgan question And [Operator comes Titchmarsh Thank you.

Kallum Titchmarsh

the if account you pressures in Could in X came versus understand And how additions? growth as a you into how relax, accounts on high relative these of can, you the help from seen new guess, color up much the any us, think drivers quarter shape I existing utilization could on competitive basis? maybe levels XXXX then,

Andrew Hykes

Yes. accounts this almost in comes existing point. at X,XXX, entirely from Thanks for growth We're X,XXX accounts. that, Kallum. Most the active of

We to continue accounts some that's to open new but plateaued certainly each years ago. compared quarter,

a existing in As the accounts adoption what continue to patients. focus will on and to that case that by developing penetration from is result, Excellence these and coming volume is accounts, going existing systematic forward.That, to only direction, tilt exactly is our trend a of designed VTE the program way, approach driving at programmatic, is

well-positioned even that we So you've up to this what feel drive to continue point. seen than to faster trend

Kallum Titchmarsh

may. you know Tom, compared competitor last whether in profile provide certain some superior any data on already [CDT] field maybe, week set And platform I a I wondering follow-up, thoughts that released any? your safety just had, doc then of this illustrating if potentially to in you've I one patients. was a PE could offer and the some feedback could FlowTriever data if a

Thomas Tu

Kallum. question, the for Thanks

lot It selection lytic-based mostly CDT clinical I of quarter to a a after think, sets something platform nothing of the from was non-lytic-based asked less a data therapies bleeding was In on the because that supporters questions technology, about questions bias. lytic-based a past already that's to quarter was provide over time conclusion mechanical That's very data of but lot that they've validity a decided a challenging unlike no thrombectomy. set, it's other for retrospective Even years. the The that of the firstly, several platform. utilization if you trial. analysis, does move market has experience. rates decrease technology than look because our completely of really at wasn't provided done time, that

we've So our I seen from so customers skepticism think incredible far.

Operator

comes question Wells next from Biegelsen Fargo. from The Larry

Larry Biegelsen

that's year for Congrats to I is quite of clinical the by on ask here. to want the penetration confirm X. here lot data LimFlow X%, just acquisition. impressive, a so The Drew,

million, So help and X, $XX I in correctly, us XXXX. sure -- heard year, million year per $XXX $XX call it, just everything million Maybe including level-set please. make

Andrew Hykes

Yes.

able right Larry, the were to that we So X or were see we've revenue potential into years some medium-term a point stands over there VTE, what in as launching what out, proxy achieve penetration the as remarks be believe for frame to trying And of which to for in ways, we achieved CLTI billion.In prepared be begin we're to TAM think what were X we now as using we'll we able the we out go than VTE. the penetration the all, in we concentrated LimFlow. $X.X last the X% at going patients a than no did to available to drive option us base centers we That's we've faced after VTE not to of able VTE. of in potentially we that to than these published England been of amputation. gate of top faster They more And on high-volume that, going in Journal the we're other because, have Medicine. It's what are evidence New no have account high-quality clinical option. literally much have

be with potential think kind we And going we're not we that's see good think a of revenue same to LimFlow. the to the the medium-term, over the proxy levels we've achieved able that. if in penetration, we for So that VTE, of drive north

Larry Biegelsen

The is think to in right about way $XX 'XX, that it? the million

Andrew Hykes

right it. I to No, think that's about don't Yes. think way the

U.S. the the right commencing LimFlow just is. we're launch now, So team

the established establishing for will I the year of getting year a a of XXXX. be approvals not in think, will foundation broader training, many It ways, have be a year revenue of a LimFlow of in launch.We building. VAC put foundation XXXX for number

LimFlow around XXXX some in year will our first more full put launch. this roll think it context a presumably guidance, next early their commercial here we out I think, year, try formal modest contribution but as we of relatively contributing, and I we'll be where see

Larry Biegelsen

just one you. follow-up then, for And Tom, LimFlow on

that hours, heard relatively we've So long it and long X relatively it's is call time. procedure, a what a recovery

So is time? over improve opportunities you for that you do you agree? see question And my would to

Thomas Tu

question, Larry. Absolutely. Thanks for the

technical success XX% procedural statistic users' that's hands. I think worth aspects the the is achieved other one in early about mentioning

that perhaps education, the early of well although more very in So come users Journal achieve technical experience see as pleased gate will time is of definitely the can the New with training, procedure improvements, right out as England we're kind article. down demonstrated were something that results to fantastic

Operator

question next Bill Canaccord. from comes from The Plovanic

William Plovanic

deal. the on quarter and Congratulations the

the granular the is, terms the all asking and over. trialing of that us we're a like was products past telling of in business, question it that from is, level the by all business is core What seeing was are the is driven standpoint?And think In gave we core is today? you you I are sequentially? international? from the that in trialing international, new Kind field competitive more just us then but up seems on quarter Or

Andrew Hykes

for question, Thanks the Yes. Bill.

see to business. That the RevCore, behind the and strong in some again, QX, and the of quarter, internationally to certainly continued of we that led the kind Europe. trialing growth anticipated, revenue. the think Western more of up PE had new And area.We as bulk continues well. from much by saw We did all core into products that make saw and saw the across We the spill TAMs, another business to performed across VTE. We InThrill compared I obviously the of and procedural And ProTrieve new modest and growth the much but board, activity really strong contribution quarter contributing DVT then but growth this us is bulk of we So in the U.S. over both in saw strength at point. strong growth

profitability our that And So some to disciplined nice path our all progress we really that, growth solid continued investment. saw across next on to top XX% board on line. contributed OpEx the QX, approach a to and to nice strength the really

William Plovanic

out the year-over-year. on is guidance flushing about then quarter XX% And guidance is at fourth

at year, fourth hot running into been process You've XX% head all behind What's quarters right and the up X the around combined quarter? as for deceleration reasoning or roughly, and thought but that we there. the down

Mitchell Hill

reach But we Bill, QX. confident obviously the that. our think, for the wanting end want provide fluctuations it's very feel as primarily, things I that and Street. in into comfortable that that to year, we just some we're sure the we and numbers to make some we holiday other provided there's just here there's of the the And about guidance factor time some to thinking with

William Plovanic

to And not remiss ask LimFlow. I'd on be

get you've Just on out? reimbursement reimbursement. side I need kind times chop of mentioned wood of What's couple all to the that the the think settled to a you

William Plovanic

Yes. Thanks, Bill.

LimFlow have both reimbursement, does outpatient. established as as well inpatient So

So that's U.S. where was codes in place the of today. in study inpatient here believe PROMISE here. There's That case, will procedures certainly instance, DRG in occur for the the the we X majority

sight in would do reimbursement allow APC. [NewTek] reimbursement sight foundation a to to build So for a for that's place as outpatient take an of in line via well enhanced and inpatient will next the effect enhanced for on. NTAP, an us a line to the We year, via of which potential potential have late as

be the would those already of existing top additive X both So of those of on service. established in respective reimbursement that's sites

Operator

comes question next BTIG. Marie The from Thibault from

Marie Thibault

bit to more here ask Congrats great congrats a a on I LimFlow little deal side. wanted well. as the on quarter and LimFlow the on

support, of month. And can a you operating million You on that ASPs to existing $X million XXXX? to $X us and sort sort you starting just profile Do device of the of assumptions? point? remind throughout ramp is So that margin based expect that reimbursements per on mentioned

Mitchell Hill

expect mentioned sure. the throughout that drop, that we to we Marie, million exact I $X question. a we're The XXXX. move as decline $X actually pace would million that The a appreciate month is of not number quite we

of gross XXXX. into and for best then a margin in cover can it's still their of XXXX sort And costs margin of they'll kind the number together of point Ultimately, I XXXX.From to guiding that's view, Drew that think some the a of so that's the and decline be would you we're LimFlow this gross would one number of profile that kind As for product. blended to that of still that tell about company. we're working mid of plan terms kind think of earlier, would mentioned the the inclusive and XX% percent sort own But in overall Inari, we expect. on putting revenue comfortable that of to I margin begin

did primarily over the margin time, to a as current decline consolidated we expect a gross XX.X% entity as in of we business. international bit the due the will of growth quarter, the Inari So

it a to have not additions of kind product some new but the So effect, effect. significant

Marie Thibault

OpEx business on and sort then outlook. the the second core of question And a here

sales of up Are holistically? a spend nice How you You've territories? to there you core thinking as done got both view controlling products. of do, market? a do you very You've and about How new the you a the job cutting Is think expansion more DVT of lot sort with of about that force on there. on peak are some force what nearing levels? lot going and PE sales

Andrew Hykes

adding Yes, we add we continue think ahead relative anticipate the added beginning pace think each and classes us through runway continue in out We've move of to 'XX those see well. And added quarter every think some certainly as we've of of to to at adds huge we I Maria, the to would least XXXX. I that as are I historically. do to slow, team. to

field continued But So of adds. in currently penetration chronic market with the it other InThrill reentering only the the VTE with also looking and we've of on or these some not over team. we're RevCore, venous disease all I to ahead be the focus but year, at points the next runway new we're need begin need the the begun and also work arterial Artix, that horizon I ABF work and think adds pace to think doing out the given modulating of to for the do the with around TAMs, doing those

Marie Thibault

Sure.

Sounds like you'll be very busy.

Operator

next question from Adam Piper The from Sandler. Maeder comes

Adam Maeder

some existing How to actually are there sales start on get How deal. over. much bringing with to the and detail reps is board? hoping you're on your was force many coming quarter on LimFlow want the on overlap and the that more I Congrats It base? follow-up a core that. X. not then then, or the have product? call expand was good I customer let could feels why And team point, LimFlow existing hoping you the like it's offer with a the And lastly, also on sales fit but

Andrew Hykes

IRs So commencing of a PMA now team is to number would the back got trained the we They've the combination approval PE. initial overlap the trained, focused of our to overlap we and and same and go LimFlow speak. exact in ICs, call historically. DVT start, performing the something that adding fully forward.The obviously you're right. dozen points on that in as LimFlow recruited just That with an neighborhood think sales anticipate has got historical group vascular with team. September. absolutely point, they across surgeons significant as It's We the amount and folks. launch approval, I on professionals the a call We U.S. been group onboarded, There been right in procedure FDA of and and is a anticipate we've are

your the the and some believe is of It's field there here focus gate concentrated of kind of excellence. fairly also centers limb nice question, procedure, of last overlap part of the it's non-emergent So high-volume a out technology dedication organization. that answer we of To and a salvage dedicated there. this a CLTI, deserves group

get in it So a think still scope I manageable dedicated have pretty the can done. we and be organization, sales job

think sales of from some we're market work focused on really this VTE. disease. LimFlow. I organization mothership chronic potential the with a now, to begun synergies there's We'll keep relative and I organization venous stay standpoint So sales on some think interesting anticipating doing a for separate efficiencies do will development focused we've the

of chronic deployed specialist we disease cared wound cases about care places for understand CLTI patients You've no-option who development patients care, heard Those us market where and team that to to how for. in the also are are podiatry. we've out being centers some talk the many in in same the are primary believe begin venous these to past being identify cared

think the organizations. will over that So obvious sales between in of you can work, X some synergies cross imagine some which I do

Adam Maeder

potential sneak for NTAP or you here, question, actually you to LimFlow I that. just And that came TPT clarify I there's and team I a third and a to for I'm those guess up, kind good wanted second in XXXX The and VTE my clarify going the think likelihood submitted clarification. the one wanted pace as next growth Have guess question, of effect into those of thoughts going year? look we market any to follow-up early then, that. being the for And for on the to the just category? of accepted ahead I and just

Andrew Hykes

Yes.

So on question on submitted NTAP. the both APC well for has first LimFlow as as Newtek TPT, your team yes,

overall as healthy that we of excellence and increased our come efforts the rate, or are next XXXX. seen already, have driving is that here. those some So through. as established market from will they in here Keep obviously, underlying growth, terms change do additive there. is But of They incremental I We're your market until you market we to growth. get question think top approvals, underway. those data have think year really it. some out of growth be those standpoint. in uncertainty would actually us confident most likely the And expect of look effect or the from on VTE in good robust take that.In for on Really clinical are as awareness, any traction lots submissions reason we momentum an on mind, No reimbursement second there that optimistic and would

around backdrop. QX out we'll our But market certainly guidance, nice roll as we here, really we formal market. context As XXXX the exited put healthy some

Operator

Sarcone Mike from from comes question next The Jefferies.

Michael Sarcone

acquisition. XX got on mentioned forward. going I've group, to anticipate LimFlow to follow-ups reps the you start, The X you adding the

a you reps is the reps sufficient And $X of what initial that wondering time, of expectation amount that to opportunity? $X address to to decline billion that that expect is U.S. Just additional LimFlow? does cost million over for million for $X.X incorporate

Andrew Hykes

excellence this think someplace and of limb the million organization. high-volume Keep are Like market hundred of or landscape LimFlow U.S., couple the the concentrated mind, the is of CLTI neighborhood, maybe in incorporates someplace neighborhood to there's $X today. in a I a in We cases. in field more than what $X in is much XX million anticipated reps we've our centers certainly investment faced The said, in these we're VTE. Yes. salvage non-emerging

VTE. put think on don't are certainly needing considering. I it early VTE smaller the this dynamics the So of much some as a we size build those be we to it have result, anticipate worth will process, would what established and to I think And the that of I we've Hard a on scope think certainly in anywhere number established in business. the built but near channel to in

Michael Sarcone

follow-up that front? OUS get efforts? What on, but CLTI the hear not patients of start those opportunity. we more or do contributions on ahead And ourselves for a and to think opportunities here, on about to incremental less just timing severe see could you when And the

Andrew Hykes

Yes.

severe those path, CLTI both sick, approval expansion patients. opportunities longer-term into involve likely regulatory The think would I are to PMA less less likely likely Rutherford-X and us. for study another a

an do own international, a us to require Some and population work clinical navigating may as for through additional a same path. there, we from work a would its for But regulatory off-label. but to standpoint, certainly get spectacular the reimbursement with on first some need that indication on-label look back of happen that certainly and foremost. Likewise, internationally, unmet

are likely I begin think, likely for will longer-term pragmatically So and those both us, of But speaking, assess work areas. of over opportunity both we time. them in a

Operator

question next The Securities. Newitter comes Richard from from Truist

Richard Newitter

the calls. for you modest me. how anything profitability? missed the couple have the I profit I've revenue? and mention about about deal. revenue impact in will I been congrats on LimFlow, may profile think dilution But heard this Did I it. Maybe A modest juggling with 'XX. starting on contribution just what

Mitchell Hill

It's Inari. talked actually This XXXX. caught QX. if sure we about operating it, of operating And you is the know, half reported in Mitch. profit not previously, We in first I'm as profitability you but for an here

business feel a upcoming. this business.When we of because core for of top, sort the little and second combined But half a some million the the month a schedule. cash couple to of target that's this acquisition to into of We about move have outlook fluctuations support kind current plan That's the operating of of we need $X like $X So you've LimFlow on during for heard million the QX out of call, the we us. XXXX. for ahead in we're sort bit times of layer that the been profit QX game may of

helpful hopefully, your that's to question. So

Richard Newitter

to that wondering pricing been you some models was investors different you've with work to I with what's products pricing add the think are the new then help are if think launched more portfolio. as pricing into what confusion into the of there could factoring more procedure outside maybe clarify the bundle. started bundle the could and recently bit mechanism community, hearing number about bundle, of which benefit the how model. pricing little just investment the And fitting there's I that of for a your products just out models in newer the the are I new and a of those products

Andrew Hykes

Sure, Richard.

likely the you price I always part understand, entire been essentially So think a FlowTriever FlowTriever has under historically of per-procedure in toolkit. our that the business, model that covers

majority side, separately. the the our On ClotTriever sheath and are approach the pricing ClotTriever of accounts the catheter ClotTriever where ClotTriever on still we're a SKU-based

of this some of confusion products our Some some or is straddle think the come both. new questions from, of I products, the new where

So RevCore, be some other pricing PPPs. accounts can of included be one our SKU-based standpoint, a account a that for and from in instance, can

the and the So where a accounts be example, can some as pricing others be SKU-based part same PPP ProTrieve as bundle. of it of would kind in in

the fact come X from pricing the that of So new these are straddling the I of questions products think both strategies. some

Mitchell Hill

PPP. to quickly developed Just follow that's the customer really that or VTE up we accommodation that, on a convenience

for basically something separately. developed is and idea a and received basis use clot to for on there the meaning have in the up a IVC. did charge the PPP, the really the up sometimes and ClotTriever accepted. of which and lot been well which around DVT XX% ClotTriever then that a And of feedback of a that's price portion the kind the it's of can we'll remove our rather part, the be that DVT then FlowTriever X, clot very remove VTE we to SKU probably We FlowTriever than complex, cases, the lower the hospital IVC around at to clot response much have cases and or are would than a more we customer PPP, be And

Richard Newitter

like combo DVT the is sounds Is of launched it XX%? some of what and curious, PE Yes, XX%, recently just mix that? those XX%, products. the percentage on for thing you're procedures, doing I'm the same that and

Andrew Hykes

of Yes, pretty overall modest a the it's patient part presentation.

XX% XX%, think is pretty good I a ballpark estimate.

Operator

comes next The Rescott from question Baird. from David

David Rescott

Congrats acquisition here. on quarter the in the

barebones around from of synergies revenue midterm could just what contribution First accounting as expectations the out maybe are as any us, medium-term the lot LimFlow maybe question a when there margin and the of type of profitability; with been? acquisition? the expectations assessment that there that (indiscernible) kind associated midterm are some XXXX of from or have LimFlow of any of Or the on the XXXX for kind assume for profit? do are comments even Or prior that these you're contribution this based well either you're cross-selling those (indiscernible) synergies calling midpoint more or

Mitchell Hill

for revenue kind be me on. yet David, to that acquisition. that kind But guidance the with may essentially, how our layered and to pile will let revenue, Yes, thinking the for get LimFlow want the example, started, Drew we've Inari and then of about craft really XXXX of

under sales there's the of terms other and opportunities a the company and then that of of feel business. construct my and continue kind Inari flow Drew are also those support having services to we'll support and kind And can the provide cash lot out develop terms As how essentially a about as we in Inari the grow of an capabilities the mentioned, business intermediate are profitability a type separate in business we time.From grow in opportunities as about the really part support lot of force. goal commentary for by of G&A a of for And other to core LimFlow provide look with a the of can shifting year, LimFlow. already opportunities the kind have is sense LimFlow. Obviously, that extremely we the we that of for term of period for having you've its over got excited

based to there the which market develop efficient. own But kind the So able market on we to there be at essentially be and and that opportunities their efforts we're development intended those focused are make. to grow opportunities, businesses are very pace essentially of

David Rescott

expecting you're grow or think, know guys confident and past XX% talked I about market, have have And to talked growing, the market level. the underlying you that VTE been leader as market in that above VTE then or so this in about actually I has

wondering So the expectations if hesitancy I I did that have? to any new and/or if or is sure on comments here just XXXX that growth the signals just that heard Artix want product And your belief you acquisition either that still make appropriately.

Andrew Hykes

more here months growth both the Yes, confident PE We of development that answer you in never great what correctly. strong the first did VTE Artix question, first saw We in the hear the I reentry XXXX work market X We're franchise. of like in the and strength this doing. in To think of core your we're we've we're the part across year. VTE DVT. momentum case seeing seeing been

of traction some is and and of traction from pickup course, new clinical ahead, taken really new nice products some the that, in healthy growth.So is performing. form international together, continuing a franchise We backdrop will feel TAMs, against is RCT well. data, really are the looking leveraging our be of of confident sequential of to data. and the show setup, the seeing and our core We're and that of nice strong how all And as we market in some

in our all into an acquisition and confidence undertake that add think LimFlow is reflected to I the So portfolio.

the strength core and reflects that the think franchise. in we have the I confidence

Operator

from Nephron question comes from Pasquale The next [Operator Instructions] Research. Chris

Christopher Pasquale

had potential LimFlow happening as looking business. the LimFlow, on move a and existing population. the Seems those the population getting you you'd to I on endovascular therapies? on question other Congrats displace curve trying Are deal. like in one the about great fit. to or On think to patients, that be then up to Just what's understand Rutherford what that X surgery today? with patients one

Thomas Tu

a the symptomatology that's option for LimFlow So for traditional current is patients. angioplasty, don't of patients call appropriate are surgery, patient. technology just is like the we class of level what The anything to Rutherford have revascularization, who that. clear, no-option These really any be

are opportunity who are Rutherford terms somewhat less their symptomatic, X in added So the still patients but of revascularization. are in no-option

conservative and we is therapy, So simply watchful what displacing be would waiting amputation.

Christopher Pasquale

if how whether procedures in, to the product then business, start. strong that would providing already? RevCore curious to better cases have or And picking been on off it's would up you think there I'm you're a is. not that in otherwise involved seems just that you understand existing a incremental solution it's like really in you be Trying

Thomas Tu

Yes.

tackle that well. as I'll So one

for to are RevCore I those option our think product incremental stents. the than occluded RevCore. patients who completely venous There treatment VTE patients no of is other have for is business. currently These approved

I an angioplasty or getting which think what know other fashion in is terrible solution relining therapy states. and those patients from to is might [stent], a be disease of off-label RevCore conservative lot prior with we a

I business we're that RevCore doing the think is So all of incremental.

Operator

session, in questions conference has queue. more no Thank for This today's now presentation. the are the concluded. There question-and-answer our you attending concludes and

now You disconnect. may

Inari Medical (NARI) 1 Nov 232023 Q3 Earnings call transcript