PROF - Earnings call transcript Q3 2021

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Operator

Welcome to the Profound Medical Third Quarter 2021 Financial Results Conference Call. My name is Hilda, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note, that this conference is being recorded. the to turn now will call Mr. over I Kilmer, Investor Relations. Stephen

begin. may You

Stephen Kilmer

you. afternoon, Thank everyone. Good

factors reimbursement in by assumptions or implied start results, reliance will not the Securities on cause Canada. are statements me out are other only forward-looking known as statements forward-looking future as to a that obtain efficacy statements. may of publicly acceptance future expectations any required whether achievements and include the statements company’s Listeners within regulatory States or undue statements, of regarding coding based Laws results to which relate All be those applicable from ability by and can no among the performance forward-looking unknown by than this forward-looking other of different current strategies, update of Let such meaning pointing third-party statement expectations, involve financial cautioned forward-looking clinical things, and call anticipated the place beliefs, other technologies, trials, materially that of or Profound’s law. prospects, No actual statements, United and new and Such uncertainties guaranteed. to these risks, be on to otherwise, undertakes Profound of events result the information, payers, this obligation performance, speak from conference to, as call. and revise treatment conference date future or the business commitments. market and developments,

Profound incision-free diseased the moment would to of who develops to business. I Profound take new the tissue. a are to For of our customizable, ablation like therapies markets and those the benefit for story, summarize also

to patient’s functional the and TULSA-PRO, urethra while combines surgeon-defined CE-marked, customizable FDA. preserve protecting commercialized the robotically-driven and to provide prostate a and rectum technology abilities. currently Canada designed volume, and natural closed-loop is are real-time is MRI, a transurethral by radiation-free that Health of cleared approved predictable control. help feedback The ablation temperature ultrasound in actively We TULSA-PRO technology the XXX(k)

commercializing the fibroids innovative palliative bone platform also is Sonalleve, of uterine of pain marked metastases. treatment that for We’re and therapeutic an CE treatment

been also for by FDA uterine the Device osteoma. National has Exemption of non-invasive and fibroids approval Administration Medical the treatment the treatment of Products obtained under has Sonalleve China approved Humanitarian the for osteoid

material not did revenues launch we in FDA, for commercial While a this near-term. we preparations making XXXX. US milestone approval impact and It the a HDE for our have its to expect significant company is are in later on

company company’s Chief the Arun Aaron now Executive President Davidson, call said, Profound’s I’ll Aaron. the Development. of and With representing today Dr. are; call that Menawat, turn the to Officer; the On Senior over Vice Corporate

Aaron Davidson

quarter afternoon, would at and third your to you everyone I and call. for management conference thank Good Profound, our XXXX the everyone our welcome team interest of ongoing in behalf On to like company.

For in who those your update the commercial continued interest call moment are to a our we on turn shareholders, activities. for an I support. Arun over of will appreciate you and

financial results. brief I’d provide third XXXX on I like do, before a our However, quarter to update

to rounded, been dollar. we presentation so our US things, refer a Canadian we To reminder, As from to they have the the of approximate. changed are currency have all streamline will numbers the

by the approximately to Breaking $X XXXX down XXXX. were distribution increase million of and of G&A a selling consultants utilization, trials, in further, clinical million expenditures costs compared to XX% that consists in primarily XXXX, lab XXXX. restrictions period revenue by the basis the XX% driven clinical in options quarter additional expenses to Germany, million, G&A initiatives, XX% third in Total assist on for the trial million the to $X.X XX% ended R&D additional associated from offices increased and rentals $X.X up and at expenses with continue restrictions. expenses to million, million. an with new $X.X general $X.X increased existing with due headcount. costs third year-over-year and For from overall to was expenses and spending employees third to XXth, employees, operating awarded options which $X.X increased being the MRI This quarter, three-month as an reopen increase increased September company recorded of increased travel COVID-XX awarded insurance of on to quarter R&D, lifted,

company with approximately $X million and same a $X selling the loss by share Finally, in or period common XXXX share, $X.X expenses $X.XX of $X.XX loss increased the compared common net recorded quarter XXXX. per million third million. distribution to the of three-month or XX% Overall, net per for

As at that, I’ll cash over now million. Arun. of had September With XXth, call the USD XX.X turn XXXX, to Profound

Arun Menawat

Thanks, Aaron.

into quarter of isn’t less explaining the over from pace disruptions volumes Japan any international of volumes focused continued new from the TULSA-PRO trend many to be States, markets Delta sequentially a by two and US of We calls, in increase being our the independent you Today, our phase the my of imaging quality end-users, the additional by the translated companies China installed same laying are United should in high As as to the the have variety that the throughout the compared bode system and MedTech grew would with even on to of sector the know, treated early XXXX but unrivaled and COVID believe the utilization in teaching we with a why respect targeting steady building how high of quality had is in types to third that rather and This translate and have procedure business like as XX% negatively year beyond. testament second been are installations of mid the adopters, remarks as revenues base, COVID-XX strong our faced in percentage I future. QX. major into grew by we the XXXX underscoring base, center last both pandemic. opinion-leading disease seen I we XXXX. well our generated prostate of most have well developing and installed impacted in COVID, blip, procedure the bullish hospitals. resurgence variant On a been on quarter. like and being technology, however, patients long-terms. for QX a exciting Unfortunately, reiterate With in this three headwinds TULSA-PRO US foundation

variety agreements sign the have in have leaders, and Akumin With two continued RadNet treat adopter companies, growing patients. industry already number an agreements of Our to to and the with respect increasing imaging early and future. we center TULSA-PRO multi-center sites signed additional hope to a

Mayo I also Stanford, and institutions MGH agreements Cancer our Johns we call, Finally, Prostate in UT with highlighted last Advanced Yale Center, as Cancer renowned Southwestern, Rochester, Antonio. Cancer Hermann Center, Hopkins, have WellSpan Mayo and Memorial San like Jacksonville Center, Methodist UCLA,

in the we will total from than sites. operational Recurring three of We end. to to contract and time have a expect months. XX contracts United install in being was have revenue QX generally grow as total States continue the move a of of signing year in more sites XX to around a sales to Initially, the typical more hand site forward. list from was the by expect that generated We already sufficient

administration’s experiencing the delay lack our parts of MR delays of period, to hospital shortages to uncertain however, months. a from time X.X labor During during a new to to been from due including we contract have this at and partners, desire variety technology times. have factors, increased hospitals, COVID These deployment delays installation of average

estimate installed the base that a US we as XX. end, of by year will our now result, previous expect to As approximately XX be compared

While not had hoped, there what buried new headline. are actually stories this two in we good

that we the XX of now anticipate point, February. site two about only behind First, we at goal by believe achieving this are months we such end

Second, will pandemic in cautiously year diminish delays once the optimistic even begin three will to continue is the achieving less goal the optimizing times on we impact that are onboarding behind of the process, focus the months And to team than of meantime, by with installation us. end. the

our COVID be for pace the is due not treat than an challenges. envisioned to TULSA-PRO first While to somewhat, we if what on as market flexibility installation half available is The of utilization all larger unrivaled even to of call, to from variety cancers, of the low a ranging likely ebb shared patients. large, flow Tulsa without first in and grades risk last of its used analysis in was on we XXXX. that patients the Based risk highest

with that the Importantly, categories the treated with universities of population the patient’s a prostate those distribution. patient ablating can population other first cancer, and therapy the roughly than prostate the Tulsa, the with risk Tulsa more to what we XX% kill outside percentages and patient that respect see major upon patients patients. with Tulsa, being corresponded nodes Recently, metastatic of with we world one real radiation prostate. even patient treated in in believe to following remaining cancer cancer treated with Based up lymph of treat is

addition, Hospital, considered the show named, trial one show which patients AUA as Oslo University continue urinary incontinence or effects, FARP, Interim to at include, in European presented was with a outcomes treated be is results conducted of Tulsa were most University erectile publications Europe. to such sites severe of continued in widely credible Oslo superior September. In at the that to minimal side that dysfunction.

more prostatectomy, degrees. or focal dysfunction urologists. This study, urinary poor site, therapy a design results compare those where attention Tulsa. single for So, robotic garnered HIFU for interim of robotic with prostatectomy two with or analysis trial they X Tulsa using XX% erectile therapy the RP The for focal short, incontinence either or Their of this quite used than whole-gland were interim bit of or only various reporting patients is Level a arm. HIFU

after superior subset there we summer. So, therapy focal will of results completing purchased as with believe look the won’t full us be were in takeaways study, recommending until a trial, key it, TULSA-PRO is as was is accordingly, But, possible. data could patient how Tulsa from us Tulsa patients, focal include patients as without in which and instead reported to joined technology the results that study. And of of returning to therapy choice use. use, from imagine, wide to To treated late that even are of relatively site Since published forward therapy the RP. we for for reported telling the informed results, this the it certain the clearly the significantly is a be for Oslo the system performed, data, next variety of they commercial indication where full recruitment, two Tulsa there already the was of can rather summarize, Tulsa you this localized we it technology while easiest

between first FARP pocketbook their Tulsa comparison study the the in and HIFU direct Tulsa. was favor First, of with voted and investigators the

to that X CAPTAIN in our been there RP similar our CAPTAIN is Second, outcomes even is to CAPTAIN believe updating we non-inferiority FARP’s has arm in planned, provides what Robotic potential That if you strategy. the the point. demonstrate superiority, though FARP, a end with Radical designed was Prostatectomy match trial. a on good clear Accordingly, level in segue to trial reimbursement seen

We code environment. we And coverage in continue and operating process. couple coding to grow the for In to are pay to years. plus the a we payment we of think three-year continue as fee a view cash can medium-terms, well ultimately there next short and

mentioned I American randomized to study, Society to year, this time. end total X:X to progression-free RP. be will may the patient American the end meet XXX the we the including to later from meantime, anticipate, prostate side survival Urological effects file Tulsa application we anticipate believe our upon year. measurements will that year. that procedure likely adoption of we clinical or we In endpoints to this those, cancer the support recruitment The relevant receive over need If in patients in of sufficient the based requirements CAPTAIN In feedback expect of the this CPT-X trial be in and the by continue the Radiology, increase of College including as primary initiate we efficacy, include for call, XXXX. the societies, As safety continues will usage publications including get non-inferior, of procedure, the our the and on to last we before and Tulsa

CAPTAIN run CPT-X So, the as filing of to the parallel you is with can see, our strategy application. in

adoption. payers, that CPT-X To insurance also the a has data to rationale Our not team significant may obtain coverage critical trial is the by to provide CAPTAIN is though code, execute support to will additional our requirement well. continued and even summarize, support

the including some building teaching of install with large are high country’s We of a and companies early mix quality base imaging center an prestigious users, most hospitals. adopters, attractive

in both adoption, Tulsa broader of of see terms procedure treated. types to patients continue We volumes and

the large a prepared a points specific to might take in progressing providing and our data opportunity. are ends determination. to CPT utilization becoming with reimbursement conducting TULSA-PRO’s reimbursement finally, Our to by code With us we a apply happy today. additional treatment any strategy have. studies And market a remarks US, that, for for Tulsa This you mainstream we’re Operator? questions ultimately,

Operator

Thank you.

begin first Anthony will session. from We now ahead. [Operator Petrone question-and-answer The the go question Please from comes Instructions] Jefferies.

Zach Weiner

taking Zach for for This is the question. thanks Hi, on Anthony.

you an one, TACT provide First on can trial? update the

Arun Menawat

Sure, Zach, trial good much completion. The afternoon. pretty is TACT near

and in have trial point, we yeah, we probably anything, patients that after which think a looking this number dysfunction erectile or month X by And one announce there’s data, if Grade there’s – And to thinking also another to that left. the either guess patients improve. that think have this are do maybe I end trial, reduce low a double-digits. the incontinence about I the TACT nothing few data continues three-year close that nothing there think are year patient two of to I continues three-year to unusual we did At you’re I that. was or of on had

in all would So are And patients and the procedures, effects, dysfunction. where we of nothing there’s the, side to no erectile double-digit at stage. that it time there’s show severe this secondary Typically, moved think terms procedures with double-digits. secondary requiring it repeat, continued on basically I requiring unusual, be in mid improvement there’s

to kind the months, in XX of the that continues in getting of So, cancer-free fewer we it the future likelihood that a decline. predictability the think

we I think be know – on reported to data II So, have TACT previously. clinical data the general what you TACT track in the continues or with on

Aaron Davidson

that said and where the I you results. presented, find the can that key people Arun, data publication believe was that AUA

Arun Menawat

published. is it So

presentation a moment it’s So, the – at

Aaron Davidson

Abstract.

Arun Menawat

to I that – abstract, an actually you, that Zach, can to so if sure available you. make we you make can with think, available offline, It’s connect we I’m me There’s

Zach Weiner

great. And then – Okay,

Arun Menawat

A can Dr. we you. presentation Klotz, that to by available presentation make

Zach Weiner

on at expectation that great. Okay, – any – XX that XX for was end the same the expected early And end by year. when XX drop next install installed in year Is by then was out XX? there got on dollars XXXX? the and The year base XX pushed

Arun Menawat

Yeah. Yeah, Zach.

increase. prepared system why our contracts not increase is site site that not So significantly, that sites. the I where in utilization continues there utilization, to even increase. And defined, we installed are is you – every the talked you or That that is no using sites the is There you’re that that know, for timeframes number are like know, defined they we’ve though dropout, is it there are no whatsoever. is every the these did the remarks, seeing very, looking to about of site

XX I than because the no by on. I of know, contract. our in You will there’s uncertainty some more and still delivery so – there’s that, partners finish this mentioned We, be fact. has these mean, year, from the we canceled the site issues MR – that But time

Zach Weiner

helpful. one question that’s that, procedures. last And then on Got just Thanks.

the through XQ volumes shortages are impacting hearing across procedure staffing MedTech. We’re season, earning

side. well You procedure the guys obviously staffing. performing But curious are on is volume

volume You on Thanks would if guys in seeing even hop for if back that had and know, any queue. have it are not higher front? impact staffing procedure number we’ll shortages, been that been you

Arun Menawat

you year. QX. you we. hearing [technical sequentially I remarks, QX in – – And in there that. there’s know, from QX if analyze is think if absolutely difficulty] I in Sure. There’s in prepared doubt XX% no we about were Zach, no triple-digits. mentioned COVID, COVID, XX% we my to growing growth annualize the be so would over about were And about grew and are No, that if that QX – these there no We mind doubt know I my last to XX% from numbers everybody’s as mind

at we’re hospitals. necessarily do large yes, you but large staffing at that seeing the Zach. centers, asked, we Thank don’t at see shortage you, that imaging those see so And I issue that in particular issues hospitals, we think,

Operator

Thank you.

Raymond James. Rahul ahead. next comes from go Please from Our question Sarugaser

Rahul Sarugaser

Aaron Thanks much Arun, afternoon, my Stephen. Good for questions. taking and so

you recognizing, COVID. of course tired we’re quite hearing of So all that know about

you to not on and to are sense you’re had do quarter you in follow-up likely more could QX, in your that speak your you capacity then, so, know, such installations? accommodate know to you And into And to than of now to capacity the horse, you that a that, sort install per team’s ground was beat maybe seeing to teams have their you just we previously hopefully entering capacity? throughout is, this dead the then QX it’s that X what as of in hospitals XXXX the a backlog terms for know, your indicated question

Arun Menawat

all know, Yes. respect people that of rapid install to in we’re right COVID. in And at we now. you’re be capacity, sense right enough pace the to the a With pretty to Rahul, able you tired we, the company have

high imagine, a exceeded terms you frankly, can priority. in contracts. As this you know, very as quite you And new can of is sales their goal team our imagine,

product. And may so, faster, little the from a bit base, going, – the we them once know it install will get are one bit but sites of that they and maybe installing also slower them and a every our take get product, use already the

so anxious priority. is are there. we And get absolutely And, to high it a

that one, you issue, have we it issue, to is will the number assure can let it. not I two, be not number do an So, capacity an we And that.

We this The really will devices have level. enough bottleneck is the hospital the at installed. we and get people

we And change I yet. hospitals? not you a first – have in are to related was question to, asked seeing big are honest, be we the have change The seeing we

patients these who like generally where belt, that tracking, is certainly we’re patients and everybody have We for which the the of seeing where And warm we we a hospitals. COVID-related And been know, number the are at issues severe. are significant drop. else, are example, most watching you the are is COVID

related to it at We’re end we feedback think be we a is the still on that XX time I guess at is shortages. we to going best not resolve. some know shortages, by to is significant get is take think I able the it labor part the you seeing be of part to And should But that, the our able of moment. based change to to to, parts should related And receiving, moment we’re of February. –

Rahul Sarugaser

Thank to you. on that thank clarity. Great, then you moving for And reimbursements.

You CAPTAIN sort of missed were and tandem, reimbursement this. trial about and the I in please speaking forgive me so if

in your You everything previously next be application get have sort to indicated year. this of you you that of by year know end to place would able in

to you could hear terms you and things we should elaborate a bit being the responses CMS? So from timelines maybe in expect you know of expect should little submitted when are when

Arun Menawat

absolutely. Yes,

So, and is finish pay a line to And at did we the should not need you which process the but only And companies the is looked sort line. basically different things to actually we complicated modularized basically cover, get also that CPT-X to we convincing should finish that know, they getting done looked procedure. Rahul, the they at of the for process. what when means, codes, be reimbursement insurance is,

smart you or years by total think to parallel. But time, smart so, it’s strategy, do separating able this them, take it’s it to strategy be still the know we because will so. And it three reduces a in think a we

results So I back confusions. any the remove so to let can me come statement

competitive we we right. publication to tends I’ve of CPT-X have another for of the And typically year, bottleneck, that clinical absolutely need we objective. this file terms reason which doing been are next very we So, filing publications, much it by and using and to in will application. parallel the what study, providing procedure”. companies the be saying, trial this to quality would meet end to will application to able that’s that the should The data, be for is qualify clinical be for purpose then which we biggest everything Level that year, purpose do in But for CPT-X make high extra insurance not would of – the easier X pay data, “Hey, for of for say, the

way on. future, goal. CPT feedback the decisions that recommendations planning very really it have also And will easier get know study started, community, look longer-term this, we data” this now, they for credible study, code, that, at not CAPTAIN company, later – that only than positive So, make we’re pretty will – the why those the we you to it’s lot the our because received – study, say, seeing using coverage from if and from That But our rather have “This it our starting them study Level “Hey, having and that’s a urology they where are X then be we the help a they the design, ultimately is technology society”. drive a about as

So really us I is at say, this and also”. the do think to trying thing “Hey, clinical company look they the they perspective from right

But as will so clinical can the So of are file the it objectives. XXXX. meeting and CPT-X application broad meet the start in definitely objective the we providing I said, requirements, for those that we

Rahul Sarugaser

you very one much. for question me, Terrific, And just if more please. indulge thank

recognizing we superiority RP, timeline Tulsa did about see we’ve and next readout superiority the study study, for separately that summer You Tulsa likely seen that HIFU. that FARP HIFU over in over of talked and of

So I probably think, pretty good confidence there’s know you there. and

readouts that CAPTAIN? initial you data a bit timeline looking the it. pre-readout And as the summer, you as the in maybe on see we the be know or do So the you you that should CAPTAIN? that’ll little be for from of FARP And study can next timelines as elaborate these, far for beyond, you what on – portending terms course, on the see CAPTAIN of data know, go will readouts study

Arun Menawat

Absolutely, Sure. Rahul. Sure.

of single-digits and So, design be in has I this treated goal. year, think that’s of terms study by patients our end low will that XXX that we in patients

that to you three it know that or look for how about the recruitment way ultimately at timeline, at see to look a five and TACT probably in patients patients. we compare it trading if and is – patients about we, with a And TACT best of I you we’ll will have know, rates, compare, So XX kind two were started month. month and

look And have I able to complete think recruitment, able I we should if recruitment. presented we able is it from once to at sometime Immediate at just study. come again, data So, be TACT finished to very in every as presenting Information are be perspective, data as so AUA we know we I that Level at And such year. X XXXX, be AUA, Incontinence well, should should start like and on such PSA, these to on multisite should out. begin you

when best investigators know, investigators the that will in we be the my we able guess and the But should be information. start information. to to, XXXX, publish – meantime, the So would to the you on decisions should we ultimately In make will Rahul, able actual be the lead sometime sharing

Rahul Sarugaser

I’ll much – very thanks Okay,

Arun Menawat

so begin talk Rahul, Yeah. the when definitely meantime, begin have In idea start we’d much you’ll we will of go, reporting. we recruitment the to about as rates to better

Rahul Sarugaser

back And Great. the queue. I’ll very much. Thanks in get

Arun Menawat

Thank you, Rahul.

Operator

Cowen. from ahead. comes question go next Our Jennings Josh from Please

Neil Chatterji

Hi, the question. Josh. this on taking for Neil Thanks for is

got of answered. several think my I questions already

the and have know, sales partnerships just know you, your imaging maybe to shift I – that’s updates terms you in the and and any terms the just of expectations RadNet? of kind channel center you funnel when Akumin Could from So with do you your how of in tracking? focus

Arun Menawat

is that fully the have at operational, and MRIs. add good they of to they RadNet increase two are are point, identified patients. site The Neil, to afternoon. this looking has RadNet sites, we the other continuing number Sure.

our those these not the year. place. XXXX mid increasing moment, is track much estimates those operational. is Again, to that uncertain be think need given I the, sometime to are we’re pretty there best will commitments the So, take types But on at likely I RadNet estimate the the are think But with next are you that environment. I construction sites some best these think know,

the you that by the in everything I we as site And if of site we I track, expectation operational. certainly able first, oncology. our our will get we’ve first in should there, – is was think year, oncology be been that to know, picking company should this in – before, identified, a should on you with certainly acquired Akumin, get have as For know, have we able – end we know, we February have operational not in the additional be they have to first sites. we them – dialogue mentioned you with And site

look actually makes be So to to take where those some we advantage sites, the at and the it sense to so if are on. sort some of than sites additional they rather can able original see to going use of of sites C-code

continuing. Imaging there’s The I think level general So dialogue is is in that interest – by Center Company quite good.

mentioned, more and you this. We are which the have may agreements know, in remarks I Center we talking why prepared Companies, additional Imaging with is like

And been limits. up they’re have the really access know a you technology they’re understand and also you relatively they, bringing how a simply they replacing in able urologists, one, And they in shift processes And place get anesthesia, we’re technology. by In of easier you you easiest ways, whole Imaging was technology. to to challenged and the know, paradigm some know to So, operational they ways because they, the sense know some of they the these the have know, its adopters also in early get patients, kind that are a Company. for details it’s design the are know, that running. a in Center they hospitals

a low to For diagnostic bit Companies, them. not a it’s been Imaging they’re of Center – - you business. know, margin high And it’s a change used for they volume, paradigm because shift are big

it got long-term they volume, businesses. you – for there this sort like is of think us. And but started, very attractive So – are I high a when looks RadNet know understand margin you know, low there’s

Neil Chatterji

that’s business, Got it. the been may the acquired was Alliance had alluding you – already of on curious just you partnership? you kind think And already, have have terms you’re just that Akumin think talk the I this you about I know impacting of if kind the impact in know recently I of to could but Maybe dialogue. just it like already what sounds

Arun Menawat

– because use think place Yeah, perspective our a complicated and these relatively perspective, and C-code. from right, Neil to be preface infrastructure are it’s – our from this. But an going move, to I are hospital prostate all sites, to manage they to oncology hospital been and in can able already positive like that’s things. have it’s new I’ve I cancer they’re sites treat that, patients all There’s then the

So they do help will to that. the staffing

think So positive from really forward and our in perspective, is oncology side. that are we a I the relationship this increasing to looking development

Neil Chatterji

That’s me. thanks. from it Great,

Arun Menawat

Thanks, Neil.

Operator

Thank you.

question comes from from Frank Lake next Street Our Takkinen Capital.

Frank Takkinen

Arun, types run becoming my layer the February? I bring into resolved different to things taking are to Aaron, for the training what shortages, us get XX main or asked installs the thanks by but actually a to heard installs things getting what I a just back staffing many bit of those more. you number to on the counting from active holding differently, deeper all specifically up wanted maybe slightly little questions. things, are

Arun Menawat

little Unfortunately, that tell just could your It is that appreciate Frank, case-by-case wish case. is holding is there up. you a that one not basis. I question much. the is things I issue very I bit

it’s not of I’m heard my a by staffing is And You to all they’re like And their the companies operate staffing an administration of that we’ve weeks, something know, operating shortage, of even because to talked not delay that, operating that I this number issue. even at I able you us – having to this they’re of running, there sure shortage in a about first translates not for saying, are start want where time, staffing rooms. hospitals “Look, don’t it I hard If a keeping shortage do new rooms really few stage. know, the sort current to that”. time can I’m able would

order modems MR in, existing to us imaging parts partners certain able are there to to and think for need that be from communicate I MR in our and unit. the with you be delays know, there

hear know, from X.X go get signed now. right companies these these I you prepared very it’s for say, that as But on, you’ll able little months. be there you our and time all be originally so which And ours three given things, remarks, relying to to the small analyze in months, goal you of that, back And goal measure could, the And are was you to series would the we are contract this original at are our point, At mentioned we I number we we are calls, a in these which if these things. frustrating operational. want know, everything. our why analyst like we

of installation I certainly that you that that, of that even And increase the delays. hope an things up. new early, Why is I numbers be should to expectation yet. that And though seen in that is are It’s based a won’t they see But that think delays there normalize, where real we’re so seen of saying February. think have not normalization starting that we see in terms haven’t add end is and we do data whole can upon time. it we our is lot normalize

not your But I in give at way. the I specific as very question think as have So answered a specific I moment. you this is can I know may about

Frank Takkinen

to kind this helpful. you utilization I that’s All as quarter. of two speak at Maybe right, occurred you’re couple out the But getting well I speak users in heard to quarter reference earliest two activations the that this as as your don’t or new of think utilization. what well? rates

Arun Menawat

on significant no news mean there’s Yeah. I that.

number sites more the site. – we user are That than that per will that are XXX confident think very procedures hit is number I year very much XXX intact. they old, of that a

XX sites. quite I these beginning about – the newer are number, sites. name see the than original be also one of we at number. we think I beginning sites think our very our more rate. we I sites about early, per getting of see again, per was procedure run that’s to continues procedures confident at at year, couple of the I excited I be – that are some now big goal And feel site, that a that about to XXX are think pretty some solid to happen begins neurologist but to And to think there a And I should think more solid and sites commercial to as the hospital,

of hospitals I they’re think in name not you haven’t the those somewhere some yet. publicly between early be we But installed and announced We could types, necessarily think big know, because these adopters.

So we may the go year. you XX in first know beyond

So, pretty feel I think know, from the utilization overall. perspective, we I are – good you

Frank Takkinen

of opportunity what to level circle this And base Okay, on back that the does looks me one base, specifically wanted for questions like installed what to Neil’s Akumin directly Maybe applicable of that’s Akumin last the just Profound? installed acquisition set on and helpful. Alliance. to more us to the just

Arun Menawat

Sure.

think under So we fact, we what were a I agreement. were, negotiating, confidential that in

managing. fact sites when – not are – said you XX something the aware imaging imaging I XX not this service service centers my be before, that – fully Akumin exactly that, we you way for about And originally it what thing those PD already high focusing provider actually the versus as what synergy which before, C-code, necessarily many, we is, think the stronger, they the how volume, in per and do you an is device, just cash mentioned practice easier as that. how I it in margin to now they The know they’re they certainly not and acquisition business that that is oncology management, was, talked before, provider. know, think know know number by interesting was I we because and there The a but them you included because is have it in so So about a help that the low they’re know ability But you certainly the on that the use did dialogue. I can utilization defined, will even you of have don’t XX was to is place beyond I mentioned build becomes number need defined I so sites know But broadens they to I and up that infrastructure startup. sites. there’s

And so, long as major mid to we positive. that I a haul, think know the you in see

than at the as haven’t quite be companies. of than a defined haven’t level I sites it that those that, which we both it or defined less But see be we positive think strategy, We quite that, for can can XX yet. more

Frank Takkinen

Got questions. you it. for Thank taking my

Arun Menawat

Frank. you, Thank

Operator

you. Thank

question McAuley from Capital. Scott We from have a Paradigm

Scott McAuley

Good backlog. on for afternoon, my contract question. put I taking a lot finer guys. point kind Thanks the just wanted maybe a to of

As signed mentioned sites. the than you you kind in know more for XX contracts of

kind just but been not And new of Akumin you mentioned signed, that So part kind kind just reiterate, have that as that of that’s installed. net to include that’s sites of not are does of sites agreement. the multisite

plus if you So, plus, know those, you you XX actually is is that correct? know XX include that

Arun Menawat

I in the it total, is Akumin, that because sites contracts or includes total one this was total includes from number of number site the the that have that also. So But defining year defined. existing it’s we signed

Scott McAuley

so see, that sites been far this have that I installed so XX year. includes

sites So potential of net, forward? total it’s kind net moving new

Arun Menawat

That’s right.

in talked as goal that So the about has particular of their you XX, difficult year. number you range sites sales of a or metric, before. exceeded this that our team have actually goal for number in know we our on of contracts But for was year know,

of point in can that was if team from I Profound do, that’s have would So, that to exceeded no I we’re wanted really And make is, perspective the fact. the we COVID, there the well. what think executing goal, XX

Scott McAuley

not and the starting you plus that know the that looking in line kind the clarity. revenue kind kind that you that’s XX% at to for in And volumes, procedure to Thanks just know of of revenue you that you increase payments. I relates highlighted recurring quarter. quarter leases there, you great. but on procedure how things Definitely, in kind saw looks, other that you’re revenue? the volumes and of but level that’s know you increase just about of know, that disconnect believe about can equivalent you in between that that procedure just volumes report There’s of know maintained to it’s last talk I procedure and And the per that

Arun Menawat

that in that the – X,XXX relativity that think talked those quarter, No, that certain that the things. and that said, plus about to – is a X,XXX because is next But the want can where we’ve we and that revenue our those lease and to, numbers in – if being higher recognize in in cases. in the there’s XX% numbers there. Yeah. there’s is number I one you small you ending the were is are from is granular, because I don’t know, I in at get things why X,XXX quarter yearly it range, price to be most patient, absolute of numbers, doesn’t that you look treated as But point sticking never comes to the patients exactly

service is So revenues, the dilution the that the global some from think there. there’s of really dilution recurring on you’re on no no else, seeing there I pricing, international the anything shortage, market, the is and particularly number

think – So that’s I what seeing. you’re you

Scott McAuley

trends their there IPO me, that’s utilization, And in of seeing again touched BPH – PROCEPT’s focused you BPH? technology are of terms any lastly patients, only of you that’s cancer on know you recent on and kind on kind great. but for you kind highlighting Definitely, versus just of the know of

Arun Menawat

On BPH –

Scott McAuley

comments know, You that? comment – around any

Arun Menawat

for And not treating patients of that fact, Sure. Scott, they are patients is every BPH most are are on US sites few focused a large majority are prostates. very site a our There in prostate in and for BPH, today. cancer treating large either. but

may one think, have was recently, You I done was like treated. XXX one heard about that that CC they shot in

on been And for-BPH are explicitly is look the United diagnosed patient high that have had the not who surveillance. and PROCEPT, have with population this of actually we at So, – patients for we BPH. prostate going prostate percentage where important business, we only. for cancer, PROCEPT. cancer-first. our to you they million XXX(k) will where if patients very active area approved extreme is it it area over to not we In talked not are compete don’t there who call our be the And And with market a is And one have clearance says really that like a is with States we the prostate. the in particular, compete them, I cancer, X as where extreme before, it early-stage also think

them And take early-stage also we the that of that so cancer, BPH, provide will you and application a have care we in we can they of do care with an a done who us to where both be of particularly really cancer market, population. design can And know these. sense also BPH think the of for but the early-stage can broaden have also. with take for put BPH this patients for the allow our scope that twofer subset so And and are clinical that trial, Tulsa trial of likely that I completely to additional we

you to the already for see right know on. good of long-term, sense. company working in going another now. we So, been will half you CPT-X anesthesia we area, of things year, and sometime one doing. you using the know, I cash And in and covered I PROCEPT so ahead are that us our part, stay on, But we – know on know in know the and C-code have incision-free they they’re procedure But think starting come overall with think that that are you in see you already the process I that’s it’s we’re first type next think with excited of the imaging to out,

good So the know sister to component technologies of it’s of kind you technology that it’s sort actually. in, see coming

Scott McAuley

you Thank great. very much. That

Arun Menawat

Thank you, Scott.

Operator

turn now for final call to back remarks. Arun the Menawat you. Mr. And like I Thank would to

Arun Menawat

the so to time. guess we with end our that be again much. connecting call And I next you you. really forward will And you Thank year call. at Thank look

Operator

Ladies thank you concludes this today’s gentlemen, Thank participating. conference. for you. and We

disconnect. now may You

Profound Medical (PROF) 7 Nov 212021 Q3 Earnings call transcript