- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Senseonics Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Philip Taylor of Investor Relations. ahead. go Please

Philip Taylor

is This from Gilmartin the Thank Philip Group. you. Taylor

XX, about today, Before These you expectations of other plans, matters Report let of performance that only enhancements, begin ended matters, or statements events, with product filed and regulatory Relations the SEC. and Also cause and be management's and statements. update in our these other These the XXXX or XXXX, revise the implied Factors remind and in under our forward-looking me we available www.senseonics.com. different obligation of as outlook. company documents discussing the list no operating hereof. include XX-K by September at for for for company's reflect except to as forward-looking speak section on we December We future our the involve statements A the will publicly those this reason, materially XXXX, call, required of These XX, statements website any Risk be a that by forward-looking the Investor uncertainties. year actual Annual could our reports forward-looking XX-Q date from detailed elsewhere undertake are any to expressed number of risks ended Form is results on remarks factors law. quarter statements

Rick Sullivan, Tim Tim? the Officer. CEO. Senseonics Tim turn Goodnow, Chief Financial are Officer; Goodnow, Chief from and me and that, and President Joining to like I President With over call to would Executive

Tim Goodnow

this us for and Thank thank you, Trip, all joining you afternoon.

million, day work can partner, revenue transform total third period. received for $X.X compared in the Together Rick long-term adoption progress means features U.S., products. launch pleased generation year up Eversense, questions. efforts to from the in representing will generated access the third recent XXX U.S. CGM our the our and We're continues We're continue positively quarter, discuss for several third commercial pipeline. financials differentiated detail we'll EX completing of updates the providers to six sensor. $X.X our and our Senseonics same we the Financial Eversense patients' as durable healthcare quarter a the with to to are confidence well The awareness On lives. product expand performance expand is of and our discuss their Diabetes provide future Officer, patients today, now XX% Chief In growth design implantable reaffirm open we million diabetes continued in receiving new our increase time earliest this the we global of Then the U.S. Care, the and which Ascensia Included second establish product our and of months growth. from Sullivan, advancement have revenue quarter $X.X on our we'll prior the as business our collaborative from while the with to at in that of to of from patient users call million advancements the just call foundation feedback outside

progresses sensor. type is the pediatric CGM X of program, system, the clinical Flash our Ascensia including which diabetes. our progress our effort, U.S., the is progress X targeted share designed full regulatory, further featured for an Monitoring battery that flexibility or XXX-day which Glucose either EX to and In simplicity system including We're trial with sensor, type achieved our enrolling significant to people Our offer to pivotal for be IDE and for both into launch. with foundation periodic or teams the Gemini milestones, and this with happy have science fully key a filing and R&D our indication powered making

Group sensor seen have insertions. levels. we at-home with patient patient both in-office We Nurse leads focused a established by starts patient and Practitioner providing to strong strong expand partnership together retention the increasing remain and on and to maintaining new access We Eversense

secured and of based our EX is have generation adding the is to utilization, additional our next CGM currently and across all planning XX business Ascensia's interactions expand leads efforts. Europe. and successfully territories to EX been launched in current on on Eversense established presence, inserter and marketing insurance is to direct force into continue and sensor through with physician of They next markets payer focused geographic patient ADC growing and We leave. territories dedicated established U.S., be leads a coverage of the coverage, on focused sales to In unit has working mix adoption attractive to better convert sales months, qualified consideration insulin more accounts ADC drive demand. insertions. are and more of professionals new the few DTC sales over DTC reach

U.S. quarter other the the third system the quarter, every now transition starts in consists quarter. to patient successful new existing the primarily insertions Given their as XXX-day second patients sensors replacement in of users of receive

see add mix patients see We our market new for growing the of CGM our rapidly diabetes of demonstrating ability market. Eversense populations. to ability to and systems. patient of and a this evidence CGM have both share overall Encouragingly, as X half to patients now continue to over take other in expand We type value from our of both balanced the patients transitioning the we our

ADC as will to the who represents new distributor starts and multi-step of patient dynamic correlate and closely days we reinsertions as inventory represent volumes the existing EX. again XX grow from stage inventory for normalizes. product to the more the orders expect At believe a users pool distribution, starting blend on this of with of clinics. fulfill We patient then patients channel forward, XX channel Going to in distributors supply ships

we at-home. specific with Across And these to their geographies. social ADC Not cost with the campaigns. into while a observe in these sensor recent patient not Eversense, effective our sales with they an the a excited Group, to closely do announce funnel and awareness the in with to advertising compared media is to By NPG's way, being patients we patients more that manage many inserters. is we it high provide campaigns this Ascensia's are who an number continue demand, more convenient potential Nurse doctors direct-to-consumer provider inserters, generated want that designed healthcare Eversense diverse collaboration patient users. potential In represent to insertion of in willing do leader Practitioner are pleased only taking brand generally their platforms, targeting more these to Looking users. digital at of improve users. care increase be nature multidisciplinary diabetes Responding of community by group solutions. staff for leads in-office are ADC, partnership access generated and primary collaboration have are growing opportunities, potential options both number Eversense, is mobile, but steps will practitioner of increasing forecast nurse the leads a with physicians. them not are inserter Because patients the but prescribe allow to diabetes they the yet convert DTC are The of nearby. leads to We to reach

Florida training perform as program designated strategic and further procedure. the who into CGM. location experienced NPG's to to potential broaden already convenient by in-office NPG's well this end we're insertion be at-home in do areas, yet forward and the have by see launched more to for access from has reach updates throughout from as XX sharing The in the national the insertions opportunity or South nurse we existing XXXX. on for to Baltimore We to and and to expect year as and having been begun the future. have flexibility of codes team expand We We NPG payers mobility initiative to program utilizing the With the locations remunerated DC insertion. excited not about look the a implantable scale sensor geographies patients patients, team practitioners CPT the the program plan additional to established of the

payer and value implantable are the On recognize payers to CGM. continuing reimbursement front, of the

month complete changeover anticipate We pleased transition Year. coverage the EX of continue are be New to the six the to for with by to rate and

will CGM for coverage be Medicare CMS the in deleted Physician six the update and for Schedule, January technology published the Eversense month six the And we reflects beneficiaries CCPT the this benefits fee result, updated expanding. temporary the created by front, our Medicare been for Eversense Commercial have of provides implantable last national unique is to XXXX. sensor. access as cost This a for codes as week also Fee uninterrupted schedule technology. On the CMS month G-code reflect effective for X,

insurance insurance providers, now health other the As million now EX positive issued issued operational. decision. in Florida August of Health a is Blue payers of a positive one Shield portfolio decision access country's coverage coverage regional Anthem Recently, largest from for members have reminder, and formally this Cross Eversense. health Blue to that Elevance also XX have a

the attractive next have reset pricing insurance believe adoption in provides patient coverage, program intended further we will for CGM start when to is this as patients program model insurance patient impact anticipate We assistance program an opportunity of continued to little and at This the for with In it coverage. patient increase of those $XX. an and expansion addition assistance to year. deductibles patient ADC’s beginning as commercial on provides for Eversense

with launch, as hard lives. have professionals and have wins. as the planned possible progress access U.S. forward with worked the to of to we current sales our We it’s partner expand see Eversense. Ascensia to from number are footprint. look increase ensure that two encouraged market many quarters by access to to their the EX covered diabetes We With good to people into the enhance And payer in

to program, payer reduce the such the adoption, group, barriers patient practitioner the with assistance are We initiatives. nurse executing collaboration as to and

benefit use long-term experience As awareness we CGM. plan efforts to enabling brand launch, to more feedback continue to our and focus to further leads the patients market of value build insertions into and convert to we

offering than their approval results product the access now FDA through now generation to extend underway. allow supports from our commercial recently program. to advisory results only worldwide. year, expected model fully offset dedicated we They study and in perspective. a and boards commercial leadership September. and direct achieved working improve in the approval the In approach and efforts manufacturing out XXX-day Earlier tenders. year on to webinars. across and and is programs, granted continues in XXX days. Head chain focus increases that clinical configuration began one sensors the now launch pivotal that, ADC been to study In this Ascensia effects Eversense very the distribution of In the a Germany, the efficiency now we markets continues expecting we’ve are to report sensor, encouraging and Eversense all to help us and Europe the rolling turning same in our CGM. of has to in past ambassador order the partner are area Italy, leading excited complete. August Now for made leverage distribution will EX offering their market. The of their prior from is the ongoing win the more in greater regional new required the the is of based our transition supply and and on our of this CGM ADC product to for mail we This study by expand feasibility slower hired on approach [ph] enrolled to CE of we development, That is are progress launch originally saw phase Europe. shipping as Visibility requested June to Globally, EX Germany planned. in Eversense EX as mark awareness increase

a a this include submitted cohort study. pediatric to to during now have process. the review clinical forward ongoing we We Additionally, the supplement look agency working with to

continue make sensor. on technology front the a We to further incorporating battery specifically into the progress as well, on

inserted a the patient swipe is the sensor enable store simply device. data sensor not and wearing even over long-term a the transmitter. be from autonomous then is retrieved plan – That when take the phone data will from Our with to measurements the to over smartphone

excited skin the of to long in on sought be product any CGM the development We’re component. without after

enhancements combine digital through CGM call, and share last third-party we connectivity Health. for on our announced patients data capabilities the other to their with apps Eversense on Apple Finally,

patients details meet and from key priority Sullivan, Rick feedback over new digital of our capability, be he’s team. advantage quarter roles value additional to and third to remains the partners go with over advance his pleased diabetes I’ll us. investors taking to this call member further valuable enhances turn has for chapter the the are are Eversense. their We the clinical providers taken already the providers of with patients interconnectivity their new gain over Continuing strategic Rick years of skills financials. our a insight with CFO, who now helping into have identify and Rick our and to the greater finance increasing managing the Senseonics of leadership as proven longstanding that nine growth. of next of chance on will throughout had responsibility the Most and vision a correlations

Rick Sullivan

Thank year roles, global I’m the compared third we to revenue in $X.X community $X.X million. our here our and million $X.X prior further with everyone. was revenue period. In was excited you net was the diabetes and in million the quarter $X.X afternoon, XXXX, in sensor new U.S. you, U.S. good of quarter lives third be revenue the the Tim, with million to for technology. mission the innovative transform to today outside

and of from in Senseonics an increase distributors. year was As Ascensia QX was share year multi-step the QX via trials six-month in million clinical due gross to next manufacturing our driven initiating prior reminder, an $X transition Research in million revenue The product Eversense million increase the product period. to investments by million expenses ADC loss Gross gross product patients their to in distribution in $X.X the The profit based from a in were compared of development to delivered on of and $XX primarily increase profit shipments $X.X Eversense generation million million, the and recognizes $X.X technologies. was development period. prior as are XXXX a efficiencies. increase XXXX our and when the to XX-day $X.X for revenue

the compared general $X.X by costs, of offset personnel selling, million, in and costs were million in increases fees. decrease to prior The was of result XXXX a million year reduced quarter period. advertising expenses the Third $X.X administrative $X.X decrease professional and partially

to in loss the compared the three months second the price end XXXX, operating the at to share was significant of For $XX.X the end The third increase at led of ended quarter quarter XXXX. third in in company’s non-cash quarter the the XX, as of to September the XXXX company’s $XX share QX. million million price losses compared of

by prior to total primarily or As company’s a resulting million period, financings. non-cash embedded accounting from the income value $XXX.X and charges the result, related other the decreased loss compared for year fair to to derivatives related adjustments previous

generally of accepted the quarter, are As principles, these the we losses based company in or to U.S. non-cash charges each value the will recorded on to as required income mark the reporting period vary the non-cash changes and the by in gains instruments accounting these of value for values Each statement. price. these share volatility market

we increases, the non-cash and we gain. So decreases, incur loss price price a a share recognize share the as generally as non-cash

XX, of September third or million ended share Net gain $XXX.X XXXX. decreased per total per $XX.X in embedded compared value quarter due for income $X.XX loss million a $XX.X to months share million XXXX, was and mentioned. accounting $X.XX three net previously of the by derivatives adjustments to fair the For or the net loss loss

of investments XXXX, equivalents million. cash, short totaled and As $XXX cash long-term September and XX,

outlook our to for Turning XXXX.

range the to $XX of XXXX of million now $XX be our global to $XX previous from estimate to $XX We’re revenue year in our full million. net narrowing million million

to environment providing impacting European light the the headwinds and this pleased our updated in We’re be of FX guidance currently revenues. macroeconomic

progression margins an year expect fiscal to positive continue we important be year business. margins, of our gross which XXXX, to full gross demonstrates For for

operations $XX cash the of used operating lower continued in of improving For are full range on the improved projected XXXX, be margins based efficiencies. at end approximately expectations million of year to net we gross and

With turn to We of expenses additional research continue feasibility product be investment expect the most our pivotal in Tim. that, to trials to and pipeline. in ongoing products I’ll and for back development, in clinical it XXXX for

Tim Goodnow

Rick. you, Thank

we our look patients to taken patients perspective. the globally six from that transition we made access our payer, to As continuing into reflect to has progress this steps improve Ascensia. XXXX, generation momentum Senseonics The next forward with and provider substantial on EX product forward system partner has our close month to to occurred XXXX. We’ve the year move several and

pleased expansions are covered We lives. ongoing and with the

that are partnership supporting an with We option can access. insertion confident Practitioner provide the Nurse Group attractive additional patient

on advance a to duration technology to work our adoption is Looking Jain, CGM the have on plans call partner to our very for today. patient of one year Flash Operator, improve margins. continue excited Chief more forward, our we're and to are and with about All forward with questions. working and Operating longest increase impact our believe future. and look We Also while well the the potential we positioned in patients. progress iCGM, continuously Gemini now open manufacturing you you questions focused remain pipeline our We people can our for we business Officer. joining with to executing for scale Mukul diabetes. for and and sensor, us time let's expand more your to our for and progress up updating Thank our the

Operator

We'll session. question Our you. comes from now Instructions] Mathew Please from begin Blackman Stifel. Thank [Operator go first question-and-answer ahead. the

Colin Clark

This is afternoon. Colin Good Matt. on for

I me. from recent Just the a out of was proposal are your how wanted wondering in your a really with consensus XXXX you with light milestone arena? X being Thanks. color would business, that since guys half to especially this Any helpful. be type impact passed that you patients expect in couple of over CMS, you how to I quick ones basal start and comfortable from

Tim Goodnow

Sure.

in regards obviously – we're type do QX report on that the to to candidates case in well. So X, the as are as look the the product X is that We'll great we're expansion diabetes. to them real forward results. the basal Obviously, performing the in the and next implantable we're our way call folks at we for certainly this proud speaking product long-term the type of more insulin we point, with people to this real XXXX. But not providing Eversense Colin,

So…

Colin Clark

a practitioners. to help address getting And you the basal in expect you that to question inserting? of on patients with are given just regard some or of population? I a even do that that. address helping not that XXXX prescribed, these nurse XXXX the be PCPs into the to these fact patients driver expect Do had to that in kind up actually follow quick major How

Tim Goodnow

Yes, we're heard. excited a a to are labeled to healthcare. removal. and opportunity said, insertions work the long It great practitioners group about the them It's you've serving as history partnership with of I with for is, as and great do we nurse a

the to someone that's as it's removals. described, primary to care not course, a Practitioner the in do that's out Medicare yet them great is by that remunerated the insertions, case, So with exist especially insertions a patients, you and the referral CPT for the of Group, and Nurse doing that codes

So…

Colin Clark

color. Appreciate Thanks. the

Operator

The Please BTIG. from go ahead. Thibault next Marie question comes from

Sam Eiber

This like more afternoon can Congrats my Sam for sounds I Hi, questions. call. the Gemini. taking quarter's everyone. a Eiber thanks It this little here is on bit certainly good nice start on on and quarter color for Marie. on Maybe

So of on could product maybe color there the any you updates development. in latest provide terms

Tim Goodnow

Sure.

medical batteries that those devices. actively been for implantable experience with have in we've working So

that like and long As you can there's pacemakers that developing forth, history so of technology. things imagine, a

glucose outside opposed with a from inside receives the Once as which that to point will working in custom sensor, Eversense that's smartphone retrieved the the technology the are for generate we be battery phone. using and will any NFC on transmitter, could power opportunity it from that the by then from them we So currently your a the its have store the a to at value sensor. power

from And heard same transmitter X protection Gemini. forward that, people for may lot be with have overnight looking forth. used where In that the obviously alarm. diabetes is a even addition there full-time that capability more to available as that sensor to type body for half And in is on really for no we is that flexibility our type for to product then, that patients not that a transmitter, said, they're use the and to people so can that want we've so want full-time other all X of

So and and could many wearing they of just a information in wand glucose interrogate are the the of and level the night, phone. history interested our perhaps folks current trend transmitter with at

Sam Eiber

follow good. like should for of Rick in Very here. about Maybe color to there. of Certainly and the initiative. R&D the in terms a role on I congrats think profile my Thanks added how up guess terms investment I continued change here sounds any lot ask new we a of OpEx? it can

in change here? So growth any for invest we the year – as that into strategy move next

Rick Sullivan

for we thanks so had Sam, [indiscernible]. and well we Yes, we XXX have it expense next had year about expenses, trial with underway. we'll No, operating those I the trial primary and clinical our think them to the year when being think continue this costs, in the

Sam Eiber

taking for the questions. Thanks Great.

Operator

comes question Capital [Operator ahead. from next Craig-Hallum Alex Group. Please go Nowak Our from Instructions]

Unidentified Analyst

guys, Hey here. the on is for ramp Chase Congrats the in Alex. quarter this

starting it driving and and So guess adoption seem starts drawn what of XXX-day I you’ve from us, there it’s assistance very the through hearing from for the to dynamics patient both guess early, off the far transfer any program, kind does be and I with I talk color just customers? patients? on thus but patient product know new renewals from just you’re

Tim Goodnow

assistance that It where does a high or patient clearly there the Yes, have the it program, case other the costs. certainly regards reduce burden in to folks helps in work. deductible are

continues see We X, for sensor X to get assistance. the even sensor, becomes that we’re regards the to people anticipate X, term or as reset. And are hold or only higher regards higher to deductible space folks insurance to in then do folks with to X, it in the encouraged into continue us. but more course In get that the utilization have good retention do acceptance X range restricting appear on X use well the coverage, as we’ll people to sensors that are XX% retention just typical it. long of XX% much we the we that routinely are beyond the fit attractive utilization. and are seeing beyond to as sensor and But utilization of on requirements as reuse, in We patient do much, QX

I we near sensor around maybe users their think have XXth this at that the globe point. on

So…

Unidentified Analyst

bodes No, that’s certainly it helpful color and well.

So has for with previously a about helpful pump integration there the company product Have had maker, color and XXX-day pump. with Eversense again. would had you and developing their out partnership pump any additional manufacturers now conversations any be any with

Tim Goodnow

say, We without do the concept the those appropriate frequently manufacturers. anything on is with wouldn’t be especially have attractive. conversations details disclose other to pump future system, It a implanted fully of integration a body with conversations than really to highly obviously,

U.S., in we as you the the But working, integration is regulatory trial U.S. here to outside to or on continue have wise actively for outside milestone an the well. we’re heard us as for So for continue the clinical IPCGM we which important conversations designation –

Unidentified Analyst

there increased I from the the that of now guess? uptake and manufacturers XXX-day on the XXX-day have ramping Any you in excitement interest product pump Is any horizon? kind product

Tim Goodnow

certainly has is uptake. There been

from likability coming DTC strong leads coming well good are in and seeing as leads into as are the offices. that We’re physician the that

as features likability in improvement an more well of we generation the as there’s certainly and products. XX to the XXX duration continue in expand I future from the even future expect So to as

Unidentified Analyst

you it of made us, you comment and had ballpark with and And as about expect ramp the that thanks, sales and last and your that of from yes, range stay is Ascensia XX now as that’s out just where kind inventory helpful. you obviously that then, to include the XX there in Is days here? channel. – And

Tim Goodnow

is want in you Rick, through a distribution to channel. growth of do It the There steps – are that? couple

Rick Sullivan

Remember XX Yes, ship forecasted product is revenue expect. what we’ve recognize is Ascensia. to and we to days consistently mean, I we the sure. what XX and as we what

then sales from the would the it products channels. various to and the there then sells Europe. in offices then hospitals go Ascensia and And the those distributors U.S. doctor’s in to

steps there’s So patient. before a in different of process gets a couple to it that

days So probably is appropriate. XX to XX

Unidentified Analyst

queue. That’s all Okay. back Yep. in hop Thanks. I’ll we had.

Operator

the are to the no any like turn questions [Operator Instructions] over Tim in back Goodnow our I for conference question-and-answer-session. There to closing This queue. would concludes remarks.

Tim Goodnow

to to we full with on we with everybody opportunity Okay, report you for again business. the on time update And and when the in thank speaking status are look you. I’d the fourth forward their Eversense today year thank XXXX. the like next the call to and in the we where quarterly quarter

I that, and good again. with thanks evening wish you So a

Operator

for Thank Conference you concluded. attending now is presentation. today’s

disconnect. now may You

Senseonics (SENS) 9 Nov 222022 Q3 Earnings call transcript