SOLY - Earnings call transcript Q3 2020

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Operator

Good morning, ladies and gentlemen. And welcome to the Soliton’s Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. today’s being that advice be conference recorded. is Please Instructions]. [Operator introduce for President today’s I firm. the would Carol host to like Relations Investor and now conference, your Ruth, Group, Soliton’s Ruth of Founder go Please ahead.

Carol Ruth

Hauser, Klemp, call President and of XX and on Operator, In forward-looking the Chief remarks be over participating statements Co-Founder call. broadcast to Lori Thank days. and Chief of today is Wally at today, the the you, being include the soliton.com welcome Brad also Internet available for With replay on Bisson, Chairman; me are company’s Securities Laws. Officer, and Executive will meaning statements everyone today’s States within considered website Executive This Financial our United that a the Officer. are will live call we

statements may In questions. addition, management additional make response your to in forward-looking

ended intends the company those over assumptions A on and to financial in business, from forward-looking hand any annual are Wally? file XX, the review to let performance. materially based in today. trends, Forward-looking the me Form Form uncertainties obligation its Form by differ September may And of XX-K, to reports XX-Q or on company faces XXXX of The day call The may report or results the forward-looking for implied that expressed on company by statements. update management’s no strategy, X-K. affect the or quarter which now, the current undertakes estimate Wally. statements. events end XX-Q is and quarterly statements projection expectations company’s contained detailed risks the the reports current Form Actual of and on future or discussion operations and

Walter Klemp

quarter you everyone for morning, XXXX and third Good Carol. call. Thanks, earnings our joining thank

made during We’re share Soliton the with you quarter. pleased progress to all

us quarter Rapid as an Brad of we formally organizations. and Pulse in the now true on Prior recently he both for AbbVie Brad in Zeltiq. There oversaw and Medicis, new at instrumental Director Executive held serving we is during remains aesthetics of Cutera, our the roles Officer. the Allergan at the Commercial integration of was General is CoolSculpting, CoolSculpting Company. leadership success launch as a I time launch. serving Hauser R&D Allergan, Medical. in achievements Chief industry Executive believe VP of most He at the Manager for commercial made to like Acoustic Senior this which veteran R&D Director this and Operations Aesthetics while Solta XXXX. of Marketing Allergan optimally the a device at focus the first of He welcome as U.S. the position Brad our of EDP served ensuring as multiple commercialization at President of planned Clinic aesthetics and our Product industry. AbbVie And to across in business the Managing and to Our

Our board his confidence successful product membership lead launch on by our to is reinforce directors. a Brad's long of of in ability standing

and insight guidance the products time our board and for strategies. excellent he has of his our development During provided on our

Soliton and more command strong Kaminer for ideal excited proven prepare who our launching his very we space, especially feel, support marketplace, companies. consumer Brad products truly than with aesthetics and as board next years our our will of physicians launch his XX directors. Given served Michael built also to efforts. Ms. invaluable year. Principal he general years us in in is products ongoing business track the study. leading President in and our Hunt serves already a valuable dermatology in in our Candesant to currently management record commercialization our removal asset Soliton. Biomedical and to greatly at person trial of we commercialization lead and Kaminer and Dr. commercial an CEO brings been the investigator cellulite to the and also industry, XX Investigator of has as of launched over was We relationships XX future, Niquette we has than experience She's to appoint of were for pivotal of the biotechnology and He product Hunt the more the experience in as Dr. think our tattoo which

served Ms clinical trials, Board. to device Hunt's Advisory addition will our role bring In as market. to Chairman leveraging tremendous a look Kaminer's we Dr. key has both to and and as prepare expertise continue Dr. playing our RAP Scientific to We in Kaminer of forward our

example, the the are be and fillers we environment, as most immediate throughput in This In dermatologists current procedures physicians really this our each quarter injections. social seen light adjust market neurotoxin and capital We XXXX. climate cash of of surgeons the our includes, on procedures the significant product strategy will the we to that discussions discussed, for advising launch outlay. through previously distancing can global requirements, year market demand that current meeting day. Now, for without like pandemic. focusing for treated current that have practices with continue patients the believe can Through we and remain flow fast number constrain generate remainder first these and into and by conditions of of decided the limited learned which plastic recurring

the sufficient we to be pandemic remain half continue XXXX. There our course, in optimistic. we of new Of will the first to and launch technology the recovery impact monitor of

broad ability stabilization our to their least at a offer of aesthetic We of treatments. practice a the in consistency afford array and expect will and that to desire of customers, prospective level see pattern a

pass and for upcoming over the around call Brad Hauser, Now, achievements, I'd to our CEO Brad? new like context our third milestones. quarter to more

Brad Hauser

in a organization's good Thank exciting And in is point the to morning. for team and at time pivotal Soliton. thrilled I'm you, an the us Wally, This lifecycle. truly join such

made meeting progress clinical more stage order will goal Soliton's RAP of limited nationwide industry year. XXXX, reduction excitement my pending have removal effective a demands. the device we to the currently FDA we as physician completely first fundamental first realize a two a member launching company which RAP to to the During launching both of and unmet build launch patient improvements key company half by device. to this faster device a believe to adopt upon experience. The tattoo a provide potential and rollout cellulite private preparing the the to successful removal, to the several during accounts key and has and several tattoo milestones approval of that in technology our of our with clearance. and the the a initial launch. innovative RAP the time new us and and disrupt We significantly non-invasive for following approach the phase design In seen our during ease-of-use launch from reach solution ladder board, These key which for commercialization. be optimally a that I support include positioned in caliber cellulite cartridge A the more hand a of for features may technology quarter, in strengthen several We reduction, piece the user-friendly will

should piece an issued new we production cartridge of the tooling allow the goods. production and design hand optimized at initiated of improved R&D the all scale and for Following for of to orders components, the cartridge, cost completion at which critical

Additionally, have these parts we tools. first generated of off new the

the our team help We distribution Aesthetics distribute with agreement Solutions inroads Solutions target in is Solutions patients team and for the tattoo into practices currently treat initial several selected to a will placement entered The focused until Aesthetic expected our national is established also sales rollout. Aesthetic at fully direct distribution Inc. RAP in made device the The that sales sell device the strategically U.S. and of volumes the removal. tattoo a accounts improved on high launch. of upcoming We focused force efforts. our for physician and commercial sales RAP service for

technology, the raise greater agency. in development one aesthetic as will and multi-channel relationship than brand visibility on selected believe marketing greater help marketing our with Soliton efforts. industry introduction to through of RAP than the device our the brand our group one We establish our we of integrated Focusing the support

We industry and also and a our partnership Customer Relations to create efforts deep our brand their the practitioners Group, both patients in clearance. cellulite Taylor Taylor Engagement and garners understanding pending Lippe with of tattoo loyalty Public agency. as removal our selected will future furthering FDA Lippe be paramount and reduction

with XXXX On FDA July the of tattoo device. filing Fitzpatrick Importantly, administrative we for accessory already XX, nanometer for cellulite cleared to for with clearance generation we that review RAP reduction. black our I-III. reduction for XXXX, our indicated as laser The update types, second XXX(k) provide RAP the our we an removal like our is an announced FDA the to would device on also for application generation Q-switched in skin device ink second cellulite

new latest in our is a with related application cellulite. for the FDA information is improvement technology, review. for the and clinical on certain of now appearance our substantive application temporary application responded of questions has request The to Our The data. additional to

these preparing in to questions the is plan responses to four submit next team six and responses to weeks. Our their

plans receive fourth XX a response expect formal respond may around a We the FDA believe receipt final timelines either in first review. but the we quarter or We soon XXXX, days as impacted internal FDA the late decision. submission additional quarter of approximately of potentially questions COVID-related aligned be These our have could within by to our with of as delays clearance we in XXXX. of

XXX(k) quarter. We this keeping Lori? company over are this cellulite. continued that, We and pleased With I'll And for our to pivotal pass launch certainly call towards point. application the we've posted the Bisson. to CFO, extremely enthusiastic Lori to the forward look our progress on our initial the of made I'm everyone achievements about treatment join at

Lori Bisson

morning and Thank you, good Brad, everyone.

of XX, as and For loss expenditures XXXX, million a for in per ended share due ended expenses or resulting trial and clinical were million XXXX. compared development lower on $X.X to from the $X.XX million the operating lower the quarter $X.X was costs. decrease third to research Net and $X.X September contract, for primarily quarter third was diluted quarter basic third expenses engineering basis. The September XXXX XX,

the was the loss million year, net same share. $X.XX period prior per in $X.X For or

is position phase has restricted into impact the hand Wally, and XXXX, cash, markets, equivalents shares were of the successful cash to expected and company's to The cash certain cash the allow cash, on call the of RAP fund As September back Despite and properly properly commercial XXXX, believe as XX, was of of quarter XXXX, million turn be company's December I'll third for closing to is to our restricted operations September XX, current pandemic our the XX, be Total financial as commercial expected the $XX.X financial $XX.X million sufficient COVID-XX million. device. on launch and device. to a support equivalents strong over initial is the $XX.X to XXXX. cash execute now of launch compared outstanding had remarks. will to RAP the of us we sufficient

Walter Klemp

Thank new CEO, positioned we the you. excited all for believe support. certainly to initial successful quarter the we Brad funded during and We're are And progress ideally ongoing well thank our that your with and made execute about a launch. you as

I'll that, the questions for and Operator? with turn call answers. So over

Operator

And Louise line Instructions] comes of with from you. Cantor. our [Operator the first Thank question Chen

Your line open. now is

Louise Chen

for on Congratulations quarter, the here. my taking questions and Hi. thanks

versus have I question for XXXX. operating first in XXXX is So, on expenses you

just did If present you then this how exact feedback some numbers, quarter-end. should maybe we data it? qualitative can some you And about give think and

the the any then especially Thank next And have head cellulite. updated thing of you. has data, product is, last into you curious launch on this as been pricing year? the that presentation feedback Just points physician your for in what thinking on do you

Walter Klemp

I'm Thanks, the some relative Lori that. the going may and then regard to And to Brad numbers suggest that Louise. want quarter-end to respond data to of discussion, Obviously, pricing in with weigh to points.

Lori Bisson

So, hi, with speak Louise. to you this morning. Nice

related should correct? to was expect in to where XXXX, believe XXXX on we versus expenditures more go I question, guidance Your

Louise Chen

Yes. That's correct.

Lori Bisson

Okay.

and salesforce more see interface to start costs you'll team development investment and side to business. in quality and service customers in And and the and in general, brand of hire bring deal the So with and an with as we spending team to start our we'll marketing train to account. began increase see

won't engineering an And see the development as and much. and will Brad, uptick stable, to we'll physician G&A So want you and costs relatively as cover area. research in remain marketing very sales feedback? well move do

Brad Hauser

primarily opinion with Sure. a in week. I some leaders, relationships so And very I've community want amount that had current as with, conversations. speaking other on the a the just been been obviously think space to market. lot cellulite, shown how to term look reasonable is we I board has our of by excited well continue only physician key physicians in to data coming be to of around long over But the for the that I've far. see a as will

Louise Chen

Great.

Brad Hauser

So very overall, been positive. all has data the

Lori Bisson

Thank we're to you, in question response Brad. Louise, last how your And device. the pricing about

from financing right be staying up our allow to number is specifics device significant year. facilitating payback designed to away a the enter achieve pricing will marketplace that, for our within that are But the we as where is gear to color We we doctors technology. on give to to now some to strategy the doctor them. arrangement with And

Louise Chen

you Thank Okay. much. very

Lori Bisson

Thank you, Louise.

Operator

you. Thank

on Scott with in comes Roth Capital. line of Our next Henry question

now open. line Your is

Scott Henry

on couple role Brad new congratulations, and the company. morning, Good questions. the you. A with Thank

to assume from correct novo I review. we comments it point? at regulatory a with this not regards guess I would that be First, -- Is update, your will the should de that

Walter Klemp

So Wally. question. is Scott, I this understand your

especially As that's it you in This know, active especially limited substantive an comes true to say. we submission And can -- is sometimes review. matters, in review. be we regulatory what could in when

so, is of And those one this times.

the the basically normal we're then most to do know back that the when this point we XXX(k). So limited XXX(k) sort stay course novo, that, been terms been novo that can't said of I acknowledge have if it course. a de would de you've said process, in beyond you've of and go we're the that is dramatically, -- business up guarantee versus probably of probability Having you that in pushed gotten to around status But far of conversions already the made We pretty the time happened. we we've limited on to in think enough haven't XXX(k) long what Q.

to And last we're by that their change pleased at so But latitude we're mind that. FDA the always mindful has the minute.

any So in can't make we certainly regard. that promises

Scott Henry

Okay. I'm very one question. And helpful. That's to going more ask

to was the a limited have questions you as did want may classify correspondence, anything ask and You is, which within is normal comments, back a forth, and not getting typical? events these I review Or but there you Would mentioned, has unusual? period?

Walter Klemp

had course, big would we the So everything been potential or are for I something that And the consider that specific in sort -- can ourselves of Obviously, given of representation. that limited. disclosure. think we have And in punch since anybody we problem, had if a to course unfortunately, normal haven't XXX(k) normal a knockout disclosure, that the conclude a submission. with I'm rise comfortable

Scott Henry

and launch helpful would Okay. of for of How six the to kind you know, strategy you about XXXX? I months? leaders. XX past, as we're to placements initial the That's the talked getting expect like about -- as have? as the months? thought to some Is you've a then, in should about there you in could think assuming about in what of into we far Can getting to approval well. early kind metrics first six talk talk number XX the And

Walter Klemp

think focus So might the start that Lori, you answer, just on your want model. to I given

Lori Bisson

Sure.

we like From will that are easier conferences. in that will so that we and a And present as working supporting in are to launch the of can Scott, ultimately with reach our as into marketplaces attract be standpoint, approximately we our the expect we month. around how devices metric key physicians to and or practice the to works learning in able some trying to building technology. their that, patients in to have intending their to operation. participate experience program So softer and most to patients include of be out and leaders new podium an around other technology. are the We're do to going office physicians that or time a rollout. opinion at in to bring help really interacting commercial concentrate lead would going still adoption doctors those place include, treat are we how to participate. markets, learn this have XX device And be how And identified period perfect adopters patients that to much a key and them in We'll practice things many technology we'll considered for of to use our training the new their to practice [ph], staff key country a ask existing to become for about we'd with help with be them, that be in we've

launch. is get prepare So we key But in to there's as focus primarily, us in out this out we lot roll will want XXXX. accounts launched these that things which nationally early of that with we a advocacy help of building to our

Scott Henry

placements, a you those revenue? even of or modeling those there? or from getting that you as And Will initial Okay. them more book will standpoint, XX will book out revenues just be the that recurring

Lori Bisson

No.

are selling We in the launch. devices these initial actually

will be revenue. it So

Scott Henry

Okay. because And expect about these we do rollout will you where think XX XXXX. when be to, expect XXXX event XXXX rep versus going to the we're know reps, sales of more you a

this trying about Just costs? to think selling

Lori Bisson

salesforce the cartridges. And are The very will practice managers. Yes, our several of it development ground, pull-through We'll in Several will regular the Scott. key not the a to support people. interacting Those will, that the folks XXXX. hire begin with helping be basis. on practice up ramp the on of

so be place. XXXX. to have be will built will in -- Sales we start out will team put in And that leadership

numbers XXXX. of will the up of be And sales infrastructure really start we'll place. people in also appropriate leadership then start some early to in put sales to And ramp to

Scott Henry

the for Okay, you great. question. Thank taking

Lori Bisson

Absolutely.

Walter Klemp

Scott. Thanks,

Operator

you. Thank

Maxim line And from question comes for that Group. with Anthony the Vendetti time have We of more question. one

now open. Your line is

Anthony Vendetti

morning everyone. Good Thanks.

Brad Hauser

Hey, Anthony.

Walter Klemp

Anthony. morning, Good

Anthony Vendetti

again welcome board hey, Brad. Wally, to Lori, Hey,

Brad Hauser

much. so Thanks

Anthony Vendetti

the So, you the as as you've identified on KOLs, depending well most cellulite. in rollout for those tattoo Is both XXXX, get of the XX to removal, and approval. when FDA KOLs

As tweaks you're protocol at for the this going are approval from the XXX(k) you device? are make just changes for point, to it Or removal? them, -- or already already be getting tattoo expecting you that have many because approval you feedback to to back you have is

Brad Hauser

So, just tattoo for clearly have, We you some regulatory initial the mentioned, clearance thoughts removal. as there.

that of Our been the context trial. it's well But disclosed than cellulite And clearance fairly that expectation we've launch procedure. multiple tattoo the by -- pretty have the is we'll through pivotal time protocol times. we removal has established is that course as different large of treatment the

So, we use definitely device. know how physicians the to we want

Now, having still said don't there are that, things know. we

For example, we haven't example, for procedures. to opportunity test, had the multiple

of reduction the -- an severity treatment. better But multiple in the single results from dramatic we how impressive. that treatments. cellulite with scores case that removal, be question remains, We've in So expectation a gotten obviously our there's -- are could cellulite much

that with own expect So improve their how those sort outcomes. KOLs, they in for use be experiment normal it's might them to able to we of fully judgment course of to terms

that additional some and we're the that expecting that learning these to along publications some often leads physicians. from definitely And of So KOLs. way helps other

It's So rationale we having behind take place. that of expect launch. limited of part to the kind this

-- and and part the of to -- it's process we want the people learning kind in of that device And that's it. know experience who to we background the the hands normal of take background and full So of advantage that that is undertake the development. continued necessary have

Anthony Vendetti

verify. to just to just And great. Okay,

for approval for for cellulite, Q-switched for removal, use? the laser. going is in tattoo been that's conjunction standalone approval with the you're approved With XXX(k) the And a

Brad Hauser

Correct?

Anthony Vendetti

Welcome. Correct.

Brad Hauser

be -- physician it the it's most entire In providing a it the got procedure is, entire tattoo there fact, because applying procedure. pivotal Yep. removal in was staff And different with case another the states a distinction involved in cellulite, with the laser, in and physicians trial of -- the conducted to procedure. involves involves usually the that

be the doctor's be by real the device staff cellulite a administered advantage not So procedure can -- standalone is the that up nature members it's take in time. removal and can of the

Anthony Vendetti

Then treatment just How long that, does Wally. take a for follow cellulite? on time up the

Walter Klemp

let's between, varied it minutes. trial, say, XX pivotal the and in XX So

And thigh. Now, that was people want would in symmetry treatment. their single obviously a most buttock or

So, a cover I that to to a -- think be that's XX be treatment if to covers expectation would we for session example, treatments. two probably XX our you will going visit, that both would minute total normal legs,

Anthony Vendetti

Okay, appreciate great. I that color. Thanks it. for

Operator

and closing you. call to session. the answer Thank to conclude remarks. turn for I like And does now any will Walter this today's Klemp back question

Walter Klemp

your Thanks, Soliton. today's interest operator. meantime, to In And again, call. have and the we update. a to the great day. want And thank everyone for really continued look appreciate joining forward support really We we next in

Operator

gentlemen, for this you today's call. concludes and participating You Ladies now disconnect. Thank conference may

Soliton (SOLY) 12 Nov 202020 Q3 Earnings call transcript