SENS - Earnings call transcript Q3 2024 | Senseonics Holdings, Inc.

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Operator

Good day, everyone, and welcome to the Senseonics Third Quarter 2024 Earnings Call. [Operator Instructions] Please note, this call may be recorded. I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Jeremy Feffer, Lifesci Advisors.

Jeremy Feffer

Thank you. from Feffer Jeremy is Lifesci Advisors. This

product begin company's number risks remarks we expectations speak future regulatory only today, matters the and and statements forward-looking let the that about statements matters, plans, operating hereof. you as remind events, company include and of management's performance other me reflect Before enhancements, date forward-looking These of These statements. a involve uncertainties.

other or different implied available that could any the cause These publicly forward-looking at results to required from XX-Q of any for those statements the or the list quarter quarterly in materially expressed www.senseonics.com. law. obligation reason in these except our ended of our forward-looking Risk these factors filed these Form annual documents A We under report SEC. reports ended year September report our XXXX, are Factors update by December Relations the elsewhere revise and to XX, section of Investor our no actual Form website detailed on on by for be is undertake for with XX, XX-K and statements as XXXX,

from Goodnow, Chief Officer; Officer. Care, our President Rick for joining are me partner Executive Eversense, President Financial Senseonics have us. Today, Sullivan, at and Chief Brian also Ascensia Diabetes Joining and we Hansen, today CGM Tim of global distribution

CEO. to Tim? would I like the President turn call Tim and that, With to over Goodnow,

Tim Goodnow

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

Eversense monitor. for only Brian, the a for responsible and the X-year We'll and quarter been pivotal begin is our Senseonics. recently of first continuous During our world's exciting call from hear it we'll recap glucose approved rollout of an with XXX, what today, also has who

quarter financials, Lastly, Rick take have. any then and questions review might you our we'll will third

the working the research prescribers products, FDA and X received did what goal were We Eversense We these always CGM for accuracy designed with When many significant a accomplishment a interruptions common we XXX, towards flexibility time. deliver goal years we XX, and XX-day and XXX-day imposing the for knew CGM people seemed marking X and making. and year, approval the traditional in patients to help short-term we the and September On our of to out overcome convenience, of at all set market experienced CGMs. frustrations things longevity, coupled reliability. with wanted: that

we've first saw launch of seen and feedback have month in clinicians and the extremely we diabetes lead first in exceeded Eversense embracing history, patients received from influx week is has alone, positive, of XXX. is company's highest the community the that generation that the the In leads well Early expectations. the we indicating the

And type heard and type weeks during Ahn people diabetes, as of and Eversense with for XXX you also endocrinologists Ciaramita Eversense have opportunity X couple KOL the Doctors call the see that XXX sense. ago, makes our across only that CGM diabetes. X agreed may a some is for

tend common expiration their to with before with patients end materials and patients and are physically short-term allergies alarms, date. example, who CGMs sensor lose adhesive to of with difficulty For audible used stated active patients hearing sensors the

patients patients Eversense enter During We will similar with into we of a the Mercy outcomes health bring can Mercy to other that believe well part for additional health a as system system-wide year. event, systems follow, a and we collaboration overall as hope from the costs diabetes from in to hospital to collaborations as systems model to care. other decrease over Eversense with adopt that believes heard the the care related coming CGM Mercy, KOL first XXX XX,XXX solution. could also improve who for benefit

management. CGM patients more device Eversense our alone patient systems providing a remote XXX to monitoring who to patients counselors lifestyle. decisions. leverages can advise support insight its And program, can into allow coaching access to patients health to RPM arranging that intended better levels, inform offering will to are things and and on impacting as make personal offer medications, provide diabetes data These such By than and diabetes professionals improving informed exercise as their participants foods, proactively patients' ongoing glucose

loop to And the is patients interact the to program physician is intended designed receive. with coach patients shorten between and visits. This information feedback of

of health for is to and improve help reduce Eversense the goal Our management systems offerings CGM cost RPM and care. diabetes the

is well On Medicare, U.S. covered the all insurers private aggregate. XXX covering as by nearly XXX lives in reimbursement side, as over Eversense million

continue as work possible. regional few strong coverage payers to seen by commercial to We smaller expand with insurers a adoption and broadly have as

so of and first put work stop our team but world's into delivering here. all and Senseonics only the the proud doesn't I'm the CGM, work X-year hard

Our with continue integrate Gemini Eversense the making we patient improve that mission sensor to power patient's the cause. programs pipeline disruptions continuous and and into as life sensor, the enhancements incorporating communicates exciting directly in the readings the these battery includes with which well XX/X for Freedom no monitoring can system, our transmitter We're reduce as to experience progress required. our glucose development phone

and has granted integrated insulin delivery designation and be integrated the Lastly, of accuracy been its continuous meaning that can an recognizing it system, communicate systems. into XXX glucose Eversense monitoring with automated

the developments forward work the systems, to the a seamlessly the pair the pump necessary in with creating on quarters. coming care. manufacturers providing diabetes X of to insulin for loop these closed developing We interfaces updates continue interface ultimate towards pump We to look

President information from date. our on Diabetes Ascensia to Eversense the us to to XXX additional provide making strategy Brian pivot like is launch the today available and Eversense launch Hansen, and we to XXX execution Brian here as at with to patients Care. as as CGM many you Now we'd of execution U.S. hear possible, Brian?

Brian Hansen

is example, providing call me XXXX, continued of they breakthrough for in Eversense we novel thanks product products. today. and portfolio. XXX significant participate your monitoring equally Since At we have in offering technology our diabetes to Tim, Thanks, be to the disrupt with Eversense recent as Ascensia, with landscape partnership are in began asking excited Senseonics and management. to most the a this the XXX part glucose differentiated

you of unfamiliar lives Diabetes of those XX and in in Care, working a Basel, global we those countries, employees improving company are dedicated approximately entirely based diabetes. the For health X,XXX with Switzerland of Ascensia to with

Ascensia's products are XXX States in sold in Canada. channels multiple than here worldwide, the and including through more countries United

Senseonics. manage be people helped to for years have partner XX and proud We their global more than diabetes the for distribution are

approach Our building XXX multiple been has utilize Eversense channels. launch successful to a to marketing

very dedicated only experienced team a group to XXX Eversense promoting system. United exclusively Eversense States expansion. resources have the We drive that This in here lead has independent the I

patient network approximately build nurse we the sensors with patients have This created certified sensor on to inserter This grow to and XX U.S. with provides network plans clinic nurse for currently XXX approximately Secondly, who a placement network in support with nurse plans to created of prescribers patients is group practitioners we network of and practitioner practitioners addition XXX. Senseonics can to Eon adoption. help U.S. doctors drive X,XXX the Eversense has Care to expand established. as which in geographies insert by access start in-home and approximately access Services, the

educational XXX direct-to-consumer ad We traditional enable mentioned a we to Ascensia multipronged experiences. Tim marketing strategies enhancing provider earlier, customer tools. We our future believe resources sales hospital as campaigns reach to And this health Eversense employing care are are also digital as with base, will brand while for catalog of as building well awareness integrations. potential broader patient approach comprehensive a system driving building and

drive include immediate granular a and a bit more priorities prospects our high-quality Ascensia To for increasing cost the moment, our effectively website. efforts creative to to get through optimizing awareness targeting

reach Our are cost insurance capture designed updated to information, to for processes website and These training has improvements high-scoring and them end-to-end experience to to optimizing nurturing easier leads expanding been access navigation improve product outreach for help increase fully and to training education, qualified details. prospects, allow approaches customer to and and drive and conversion. better lead better

increased X the of to weeks our direct-to-consumer provider XXX XXX% result more health prior post approval weeks care compared approval. than and a As we efforts, by the to these leads saw X in

field. of customer want with what I hearing experience, been Speaking some in share you of the to we've

is the world, our in excited their have and primary First bag. and XXX of Eversense heard believe carry all, We the tremendously to reaction product the we in enthusiasm. are reps best seen we've

we Secondly, real are seeing enthusiasm health care from providers. our

of has little us where have than patients As addition new those doubled using more is earlier, access. doors their to transition referrals encouraging the X-month opening sensor XXX-day to XXX had I to to expired. This we've to in mentioned the no when sensor

not many around I've this space, as me and Lastly, excited. well successful the certainly has one in so successful as buildup buzz diabetes seen some and the launches

every I physicians, a the and transdermal marked replaced research a market particularly XX will necessary once-a-week short-term previous XX offering, will should Eversense XXX reduced enormous not more are and Eversense calibration convenience benefit benefit Eversense to is XXX is requirement There now extremely know confirms both sensor. calibration much aspect much of generations insertion our the calibrations. one the well improvement early that believe adoption, and that resonate make feedback year-long with days. patients competitive the of calibration that CGMs from other differ given a Once-weekly over Eversense does with I reduced

improve the for Eversense Ascensia both potential globally. is product experience patients with diabetes. As to mentioned, make the in available outcomes Senseonics to believe to its XXX with partner patients I to and proud the We and

With that, I'll hand to it Tim. over back

Tim Goodnow

It's date. Brian. invaluable you, and to have thanks here, for great Thank your efforts to you

actual to place that more are into in took To to commercial Brian's ship sensors channel follow terms XXX comments beginning on the first want early October. launch, the remind recently. Eversense I of And everyone we insertion XXX of just in commercial the

quarter shipments see all result, As we of XXX will full its of be of the until EX today U.S. reporting revenue revenue quarter will XXX, in and U.S. we XXX. sales meaning a QX not revenue from final pre-Eversense are Fourth the mix initial XXXX. a is impact shipments the third

the its serve in European continue first EX the CE for Eversense XXX Europe. submit market to to in We mark and quarter with expect

XXXX to guidance you that response successful earnings physicians looking patients the we can exciting While and with an early far. be forward And are not year and will providing I received we XXX our from next revenue that to until ahead. tell ecstatic we we've call, are thus

our our financial I'll it activities that, recent who to over With efforts. results, financing details Sullivan, and more on our Rick? restructuring will turn Rick provide CFO, now

Frederick Sullivan

anticipation where third the for outside to quarter transition associated with in the dynamics XXX-day revenue we've was the U.S. $X.X reduce Thank U.S. afternoon, the to was product sought today EX and revenues product. to the business. XXXX, $X.X to net the of launch, inventories due U.S. XXX-day $X.X on million. appreciate inventory you, the the to update We $X.X compared million and was In of quarter revenue prior everyone. the opportunity in our period you good year third Tim, million million,

As our annual via the they various patients the begins a levels. manage Ascensia Ascensia, are distributors. collaboration for take demand to our with title the sharing multistep is on contract Ascensia increasing inventory. Ascensia revenue based portion XX revenue from duration the to manufacturing of We to agreement of recognize and reminder, targeting with and revenue the distribution based to of patient their percentage revenue ownership delivered of when shipments XX and across generated of commercial channels. This and activities, days our inventory We on

are Eversense. shipments during quarter future our intended Therefore, demand largely for Ascensia support to the to

launch We support in levels reach Third quarter. planned the fourth to for systems. through quarter inventory for to in the inventory shipments We first file of transition target half XXXX. product began were the and expect will product U.S. demand to target the increase levels XXX-day XXX-day not the to quarter the do fourth the XXX-day gradually intended

million, of to This EX charges QX in decrease gross $X.X the loss Eversense XXXX transition year with a decline from profit was driven $X.X prior associated by XXX. in Gross period. of primarily was million a the onetime Eversense

clinical the due and XXXX expenses a the million decrease drove the were of QX the trial, costs prior of $XX.X study was $XX.X compared in decrease a clinical completion $X.X ENHANCE period. year in development to Research year prior over reduction primarily in $X.X million which to The million million, period.

by general commercial $X.X to were and increase driven expenses to Care the to XXXX administrative personnel and million $X.X Ascensia. related prior support increased in and an Eon selling, primarily other costs of year compared $X.X efforts consulting quarter million Third million, period,

write-offs X compared product, million trial For transition the XXX-day associated of months million in by third inventory the $XX.X costs. due was XXXX, to loss XXXX the operating September to to quarter reduction offset $XX ended in a the clinical with

of per due For months net share X Net net third expenses. $X.XX in September to the income the $XX.X loss reduction million to per by in $XX increased loss of loss XXXX. a a ended $X.X quarter total million or R&D the million or share $X.XX loss XXXX, compared was a

totaled our runway notes As interest cash due into nearly debt XXXX flexibility million in $XX sheet of million QX our early improve $XX of In a cash year also us expenses the balance million. XX% cash, operating in planned next September These we a reduction executed $XX cash XXXX. $XX.X over and These XXXX. was gross of in more cash, reducing we current year, provide million, restructuring and the restricted late equivalents more that a In $XX.X than a early target reduction investments million, of outstanding October, efforts extend and XX, raised our expenses significantly to for than short-term announced a reducing XXXX, and in October. debt. offering QX, by accrued with in repay financings and the proceeds included operating including and combined force

also network assets the subsidiaries. Eversense acquired have begun to the We recently of Eon nurse group Care insertion our the transition practitioner and

over that code self-sustaining efficiencies, economic opportunity experience. focus we influence ensure we anticipate of with for and cash drive a the CPT for this our will this process increase to QX throughput As further a believe the move grow patient to the impact financials. payments through model insertion excellent continued The an this have insertions initiative. will will work acquisition enable minimal associated insertion strategic network, the We having

began increasing QX. remainder year Senseonics base expects installed patient XXXX to net doubling as XXXX. million we the XXX-day accelerate Inventory approximately revenue begin in year on in collaboration. product to with initial the for inventory global Mercy initial as new U.S. XXX compared of transition in dynamics third of our by XXX. the anticipation following the approximately its XXXX financial to are XX% full reducing associated ramp the outlook late to launch quarter of $XX our Sales assumes in and product anticipated transition we fourth and outlook The global the Eversense U.S. XXXX. to in impacted demand the expected product based XXXX the Turning sales Eversense XXX-day quarter to be to starts full more products approval EX the than

that early in Eversense only based yet growth lead the for XXXX, providing U.S. in should guidance will revenue not we're While we're confident product it sold be further when generation, the on XXXX XXX accelerate

XX% range We to million to associated XXXX about $X.X margins also Eversense continue immediately, to excited margins XXX really of to the expect meaningfully transition gross approaching with gross expect XXX-day economics the year. XX% for We're excluding onetime and of profit charges to be product. our improve in the of the almost next XX%, unit the

$XX.X for expenses be $XX.X to operating to range million the our expect million. We XXXX continue from in to

staying efforts. operating work cash expect recent and million we'll result restructuring the the For Eversense expected contribution, a in With that and is of expenses both pipeline. $XX as progressing see the decrease positioned capital XXXX ensure of to use our organization the on adoption to margin and market of in our disciplined positive to driving remaining compared XXXX, our work Eversense commercial we important by our XXX support to while product partner rightsized

I'll to Tim. turn it that, With back

Tim Goodnow

Senseonics' feel I future as And Rick. the mentioned trajectory. of in call, start we at confident the Thanks,

capabilities. the year continues growth into We We enhance of a operational the we our executing strengthened approvals, while development initiatives. are drive momentum quarter delivery our foundation of initiatives, new through sheet. of its head Ascensia and balance well strategic opportunity commercial see positioned with the the and as to final to a launch We're solid

front a and we opportunity of the a large a the technology transformational diabetes continue are people building next-generation There simplify and growth is of are and lives of build with the foundation of pipeline year as catalysts has higher differentiated and XXXX strong for The products. represents to that shareholder our and XXX-day successful more clearance we and looking to most product company's we us the work history, our company. value. in for in the advanced of to be from now significant continuously launch one Further, the

today our questions. Rick, all Jain, In joining call up addition and your Mukul Thank questions Operator, open Chief time myself, is today. you for to let's now Operating Brian for the us Officer. for

Operator

We'll a [Operator Instructions] Morgan take Brian question Stanley. from Langan,

Brian Langan

is, question what My do United is the also Europe? in States in you an of idea and potential have market the

Tim Goodnow

something XX%, the be in and of We absolutely the billion billion, Obviously, to huge Thanks, the is $XX market. had Eversense that in be for $XX market this the participant can XX% growing. We Brian. Sure. year. a calculate range. like majority CAGR CGM

as patients segment the type Xs even aware, we of are are be are And market insulin. significantly the that for with coming indication underpenetrated. insulin our may We of basal you seeing -- is most -- from

So that's even a larger opportunity for us.

it that are that see roll today we as So the product generations folks we'll here. out meaningfully as an alternative the participate on for CGM and

Operator

move to We'll of H.C. Bernardino Vernon Wainwright. next

Vernon Bernardino

is, gross have just you, had to Question margin get in to I your what would you think improve change was who XXXX how -- could it might us you after remind if XXXX. would your that mentioned said I and Rick, margin gross

Frederick Sullivan

to great the from Thanks hear for question. you. Vernon,

XX% with XXX-day the product, economics and increase unit the by continue in margins gross to year-end of profit that So expect increase, we improved XXXX, then the thereafter. approaching will

think as the the partnership that's have today, margins that it gross revenue partnership. the and Ascensia get could sharing XX%, we after with we profit the With to

Vernon Bernardino

how of XXX, switch as at Or Eversense, can X-month those to a occur will of a we XXXX? switches into patients who on rate of slow kind going be quickly? so you that regarding that And the XXX, will think the anticipate that look majority went do do you

Tim Goodnow

Vernon. Yes,

a little We're is up it's right? In sensor, switch, quickly. to market So if Europe, going XXX. we of will bit you're much are coming take transitioning that's -- a patients. pretty go to But the course, anybody it's sensor light the next are be for U.S., essentially longer the immediate very going of But obviously, you're for, approval off seeking we because to the new to next a their all there. XXX, over XXX. commercialize

Vernon Bernardino

the results. on Congrats

mean quarter quarter. meeting to third the I forward -- this Looking fourth

Operator

return This I'd for Tim happy our Goodnow to you. closing to call be session. does Thank conclude question-and-answer the comments.

Tim Goodnow

on forward look and Well, Great. We you in speak. QX. appreciate for you. call the you to Thank thank opportunity next we updating to quarterly it, our

Operator

Senseonics Earnings the Third XXXX Call. conclude Quarter does This

disconnect and lines, a You great your may have everyone, now day.

Senseonics (SENS) 7 Nov 242024 Q3 Earnings call transcript