LIVN - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Matthew Dodds

[Abrupt Start] …and welcome to our conference call and webcast discussing LivaNova’s financial results for the second quarter of 2020.

Joining me on today's call are Damien McDonald, our Chief Executive Officer; Thad Huston, our Chief Financial Officer; and Melissa Farina, our Vice President of Investor Relations.

Before we begin, I would like to remind you that the discussions during this call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings and documents furnished to the SEC, including today's press release that is available on our website. We do not undertake to update any forward-looking statement. include financial will discussions the certain measures. non-GAAP Also, comparable measures release can to is the found financial directly most website. press Reconciliations be GAAP in on our available that today's

our have communication website today's We tool. This complementary and call is the presentation a as should posted presentation be call. that the used points also summarizes of other materials to to an enhanced

at presentation Relations News find the over and With Presentations section and our can in call Investor press will You the I under of website Events, the now investor.livanova.com. that, release turn Damien. to

Damien McDonald

critical PERSIST-AVR study, AATS study Perceval largest for meeting this to of clinical This response treated with in treatment time allowed achieving bipolar And with I you XXXX usual, treated and our that VNS quarter, for additional Patients clinical In saw we that by detail Bipolar improves these In to achieved patients innovation only improved results finally, in and the data deliver increased a VNS treatment our others. who intended will May, and Therapy Clinical benefits also we increased study of and lower the with with group. remain aortic were Matt. replacement. Disorders valves. the on some safe complemented of suited the as-usual you, ACS. recent second which compared then group. XX% comments environment. quarter times. Q&A. of patient shows Therapy and debilitating us with took drivers: in will and our faster clinical as lines valve May, Plus combining patients launch significantly And us with Perceval Trials, clinical the Thank suffer to study. treatment a also you and consistent in EPS guidance. our outcomes. years businesses. from charters suicidal. this liquidity, volumes discussing actions of the highlights during Journal response study updated to healthy adjunctive announced detailing Perceval, the Thad be provide up second as compared this VNS treatment-resistant thank is on outcomes for through our recovering data we shows Contemporary steady I with growth moving our geographies we After times to likely International results separate depression. remaining the to data validates closing surgical effectively of finish the better, before challenging the to and will wrap move primary the as procedure technology. Therapy clinical have patients these new on less of XX% publication The Then, than published the epilepsy was pipeline with my you our comments, the I start evidence off a procedure XXXX, from study with new flexibility for XX presented going hope and as-usual to of Europe, quarter to building These dedication product move new support of demonstrates in further to continue in Overall, financial some navigate and patients the we design In joining families outcomes This that I'm less disease. your a the for improvement key long-term At RECOVER of than financials our articles The

offering Capital were increase to of and five-year cash facility end We weather million used enough quarter, at improve the $XXX $XXX.X in $XXX and notes. cash disruptions. million financial into a business we prior second facilities. equivalents entered further the part completed COVID-XX-related Importantly, liquidity held Ares credit combined strong million proceeds our to sheet in of two-step to and financing is exchangeable a repay debt with we believe our With completed The flexibility. all a our balance

represents in in XX% the COVID-XX from the of procedures bottom new discuss areas, I'll the drivers: versus of APAC. in due of is declined decline support. slightly The second and declined to service basis. to sequentially epilepsy XX% relating of advanced second sequential U.S. In we performance end results XXXX. we implants. regions year the million of procedures. sales COVID-XX that We attributable Now circulatory sales non-emergent XXXX. sales through a on expect patient the XX% we quarter. excludes of growth France. which Italy approximately of impact second saw will to occurring non-emerging of $X both the to impact currency impacted forecast and Consistent COVID-XX Europe to due trough Epilepsy in highly to continued some XX% sales Advanced to XX% is on improved include DTD with Brazil the a of decline of as expect the parts in declined business, and the XXXX, we progress region other sales move for quarter, in U.S. and primarily performance May from country. declined waves by on the suspension quarter quarter Epilepsy decrease higher All cases U.K., procedures, our be circulatory stated COVID-XX This decline impacted epilepsy our U.S. the impact were the XX% net support now quarter constant both and than and XX%, our quarter. previously and new in which the non-emergent still epilepsy the World Rest The been April including due epilepsy commentary public have of June.

Early third As feedback this customers month our and ACS been the we least XXXX. expect numerous anticipated business to has in still XX% the release positive. orders We customer commercial quarter. full into launch began grow at were of the of LifeSPARC LifeSPARC, deferred

failure, on highly XXXX patients. late enrolling over study up $X.X In million that March early versus to ANTHEM-HFrEF is approximately quarter XXXX XXXX just in expect in hope late million million, Turning follow-up XXXX. scoring. Based early continuing difficult-to-treat the this the know, pivotal quarter we $X impact RECOVER to what of in on the second -- for still $XX trial XX% temporarily now registry year. and to to transition sales DTD of We we patient COVID-XX XXXX, was of depression, the were on sales heart the U.S. after of recognizing XXX paused our dependent to component the due COVID-XX

During than the in to quarter, sites. the the reinitiate able more team of was enrollment half

to quarter physicians and engagement the to still the of support first We continue focus to in reach sites. clinical milestone of XXXX. expect enrolled on second patients, We XXX remote patients

Oxygenators for prior the the declined declined COVID-XX business, million $XXX a XX% in XX% smallest in equipment. due the sales sales decline region. globally. the the cardiopulmonary to decline capital high-teens Oxygenator in World cardiac of the budgets our procedures were versus impact of on For hospital to Rest of machine roughly quarter quarter, non-emergent second compared decline the year of experienced Heart-lung sales to XXXX. due

slightly valves. our heart valves, valves tissue better quarter an second the Looking were of sales than the results. Thad? performed Perceval in for million at versus a turn quarter, XXXX. overview the to and over I'll $XX decrease Mechanical Thad XX% other of call valves for heart now of financial

Thad Huston

XX% million mix was the quarter manufacturing a a update continuing XX.X% in an sales net planned XXXX. reductions detail to our versus to Thank was quarter Sales the $XX the from is XX% second the a second Adjusted and legacy of to studies. Adjusted and operations in second $X to million SG&A as net the expense then decline quarter quarter decline second guidance. Adjusted income from of for as second adjusted SG&A in primarily expense percentage XX.X% I'm sales going provide the Neuromodulation in $XXX second actions. percent containment second decline results by was in unfavorable Damien. is in operations XX% of million million of $XX million, result year. cost you, margin was $XXX of greater XX% quarter of second of from quarter a of second the was in impact as second for the due of to XXXX. margin a decline in spending Adjusted net $XX is of loss XX% sales down for The the prior compared the of second XX.X%, discuss decline of quarter Adjusted up a the compared XXXX. R&D $XX planned were XXXX. $XX XX% compared X% driven the quarter last the gross quarter the operating R&D of XXXX of to million the quarter XXXX. R&D $XX income XXXX. from quarter versus million operating quarter continuing million, lower XXXX. quarter from of compared variances. XXXX. year. our and which products Cardiovascular operating of clinical expense the sales sales in quarter XX.X% same loss Neuromodulation were million, The to from were down margin the in on quarter of This of of SG&A was continuing percentage from sales to million was second was operations for income second compared COVID-XX $XXX

of rate related adjusted mix the to is XX.X% partial quarter second valuation in States. was tax allowance effective a in United XXXX. in changes in as compared tax the The lower geographic quarter income Our rate X.X%, and to the second

diluted continuing second in from compared activities loss to in of earnings of share diluted amounted The second per $X.XX $X.XX. from quarter the our to of adjusted adjusted quarter refinancing share the of was XXXX. the in $X.XX per operations incremental operations continuing XXXX impact quarter Finally,

flow. cash Moving to

million Our June was $XXX $XX XX, cash million, at XXXX up at from XX, December XXXX. balance

Our from half end which technologies. include year-end Capital our $XXX of half spending net $XXX of quarter activities. is net XXXX $X debt million, at the $XX The year was digital the higher completed initiatives impact recently numbers, related the balance in from the and debt up million, to first financing cash was XXXX. than first for million at million the

financing recent are impact our To for Now turning EPS the year. guidance the updated to incremental EPS our full updating we guidance. XXXX of reflect

tighter by two to currency Neuromodulation If procedures. decline in XX% our We We points. in percentage are We of on business the due impact XX%, be company's to quarter negatively surgery third Cardiovascular the X% is impact through XXXX estimated one with further recovery current XX% Sales impact remain the decline and that with non-emergent still a offset the X% largest revenue will and in guidance budgets the lower global behind rates to in volumes to in year COVID-XX a now us heart and to unchanged, in to strong XXXX expect portfolio range full from both believe quarter. by exchange our procedure sales on XXXX fourth between growth largely oxygenators sequential forecasting valves. constant basis. capital XX% gradual spending and of impacted by are cardiac improvement occurring the ACS decline

the of back gross margin to P&L. XX% to of rest Now, range to is in Adjusted be the projected XX%. the turning

in cost sales R&D in adjusted in of reductions be by XX.X% range large and the of part investment range our of to XX% XX% revenue, driven expect to be XX.X% adjusted and to in SG&A of sales decline to We DTD. in the

the expense sales actions the have offset expected On to of impact. we some side, executed

hiring reduced resources to and to to customers to And finally, consulting adjusted balance and events, person and shifted marketing keep are to contingency government-sponsored discretionary with engage continue as demand. freeze, external our working and support on geographies employee-related We spend, spend physicians methods. contained We participate related to we coincide And focused and continue to other open. The reallocating our manufacturing in we output staffing. and related in a continue expenses expenses instituted have field reduced remotely. stakeholders, to remote we using presence with travel, Specifically, programs. teams

to operations to continuing from in XX% margin the X% operating adjusted be projecting are We range.

to effective rate be adjusted in range the is to Our expected XX% XX%. tax of

in some are As from a operations $X.XX the our continuing It $X.XX year interest of to adjusted to that, includes final result down adjusted to change, estimating call the approximately is share for per estimated incremental this to full share of I'll of financing, $X.XX. range $X.XX impact diluted $X.XX – the related expense. turn back With earnings we note comments. important Damien per from to

Damien McDonald

safety efforts LivaNova they've around I'd Their same extraordinary families. for reacted and continue our health my team of questions. health COVID. them like I'd drive wishes and dedication Thanks, world to last the on to and it And forward updating acknowledging appreciation quarter Thad. like we the to and that wish finish the by back to and and you on commitments selfless the for now entire also and We extend around throw circumstances how we'll care the of to the our world. with shareholder progress professionals the value. look to their delivering continued to you Catherine,

Operator

[Operator our Thank from you. Piper Matthew Sandler. Instructions] comes question And O'Brien first with

Your open. line is

Matthew O'Brien

contraction the Good XX% we XX% XX%. you're commentary. That's taking to for everybody to XX% understand X% expect to wants starters, for be the good down morning. the should Expected as the questions, more it's here. now as I'm Damien, like Neuromod to increase taking XX%, morning, that far on my saying for Thanks sure questions. guess and to I call thanks really

what haven't think in that you? I recovered? Europe are considered seeing either markets the here you had the concerns from factoring also So seeing already not have you in that competitively before? that. what are you may new U.S. drug And in that then certain been factoring you in launch What are that's you in

the us as to there understand then how So enter business think XXXX? that just and declines help about we

Damien McDonald

Yes.

look So series there great Matt. of whole questions a

team in that's the how thought to we've been the the all, in for improvement commentary we we proud we the to year. full the quarter compared quarter. quarter. efforts here to important think circumstances the to laid April to First whole and Similar just response about public the their in the extraordinary I'm so faced talk of And expect we I quarter just and of Neuromod, in third sequential achieved me other out how goals let that their second

to flare just don't the that important. expect for performance But see ebbs the think a and quarter change we linear encouraging. early We ups I signs have linear been is the COVID don't So here. flows. be Nevertheless,

seeing So Epidiolex particularly over impact is drugs, the what that same QX the in from we're were QX.

particular there. in and took those haven't see we particular to change into We our seen we drug don't any that's other a guidance in included the drugs. already this. So launches response Again, earlier new account

on patients Our efforts where our how centers are. with here partner focused we model comprehensive change these really focusing are epilepsy DRE business on and to more

to on lot -- different science liaisons. cocktail. much account quarters, medical our so We've drug educators, key VNS We've we've added We've patient patients. there. We've how story on to improved with continue over previous the nurse of that are a the So to couple management be remote changed focus. support our to processes more added worked focus of accretive is any able conversations our

taking so, we really in as And business sure we're whole but making also system at importantly a well. the the non-U.S. drive U.S., look

Matthew O'Brien

kind potentially here year? Okay. Are expecting. on risk what math we more put that feedback. I But point we how versus million up? had of frame your half maybe just COVID maybe XX%-ish little back My $XX bit appreciate in the Is with to U.S.-based. a saying is finer down is about here $XX primarily that U.S. you're million Damien. business of of flare-ups that at it the you the That's should been

Matthew Dodds

Hey, things it's A on Matt, Matt. of this. couple

you if other just And business, than second when some haven't that U.S., the they countries of competitors reporting, as in had reporting, you're as some from about go then as tougher Neuromod quickly would some you are a also stronger China, in maybe Japan other some for procedures. the other say quarter East Neuromod Brazil, the seeing third-party ask look little markets. regions, in international Middle our of back in us, and the So I come at our

was part estimate of So well. our that into as factored

Matthew O'Brien

real kind in what rolling said out? as And early you're it. Thanks. to purchase quick you of the of that I'll Got quantify which -- LifeSPARC. just July seeing the growth XX% great, is here and you're then -- year QX on Any delayed quantify know days way level in full I

Damien McDonald

stages say encouraging. would early have I been Yes. the very

limited LifeSPARC. pleased in we we this hours The and into anticipation successful. we revved release because As the over as do delayed the We had that the was quarter. of I'm of back from got with information the LifeSPARC QX saw I of it And utilization, really commercial we said, how X,XXX informed into orders launch. very what

So as that's the committing why we're I said in still to full XX% commentary at we're least saying the year. in

Matthew O'Brien

Got it. Thank you.

Damien McDonald

welcome. You're

Operator

you. Thank

with Wise Our comes next Stifel. from question Rick

line Your is open.

Rick Wise

Maybe… morning, All Damien. right. Good

Damien McDonald

morning, Rick. Good

Rick Wise

update give just where you you color you. you we Any think the as be How it. -- touch think going on us things TRD but missed early are with months six, the clinically? don't do about I could about trial. normal you XX smoothly? welcome. I any us Can on spoke Maybe things on next to are enrollment, Maybe, Thank update it, it's or on return and would

Damien McDonald

Sure. all Look can to absence the patients. do what focused of has able in here implant I think the on their they being team efforts

we've is So activation, even managed what continue to One remote those are which behaviors. things? site with

we screening that's I can to again as how well What that focused start an stack funnel for the us inclusion/exclusion process think want do we procedures on criteria. we So putting the up the opening of quickly. whole being we is as sure start start important do very when patients make of patients through do that step at

focus way to this through will quarter. encouraged that So leaders, timing late COVID. of engage transition key opinion I we team with Very the on remain as to the impact has stacking. what very be efforts activation registry, things and the and again, importantly, But right have on CMS' were to whole the which get about last to XXXX two and continued continuing we're was the continued their site XXXX early in this the to review said patient by focus and do to dependent commentary I

Rick Wise

valves, Great. what's thinking little color on whole half? you to and give happening were should which we the turning what impact or into a dial And about there you down more geographically? sharply. launch Can what on our Plus are us the maybe impact second as expecting, a And heart so Perceval both the

Damien McDonald

Yes.

think, we and the with with better. to trough sequentially broad QX expected the again, QX in commentary, QX quarter, So, I line be

market. had overall business skewed towards countries than that perhaps Our our for valves impact SAVR from bigger heart COVID is a the

into were have markets So first that disproportionately Eastern than were Middle Italy, countries impacted Europe, been more others. Europe the like East, which Brazil, in COVID the crisis

So part the a what we had. that that's why signs again, year as in out bounce of limited from did we point patients to release early we're and It's seeing commercial response Plus, that an Again, is that key is, valve particularly Europe, of technology in last patient really heart do improvement a we open. that we the to and Perceval narrative. clinics expect the -- think the outcome. better

So, particularly we're can do, in encouraged what by Europe. that

Rick Wise

just And me. for Yes. last

position have so maybe debt, new additional takes obviously, initiatives? And the cost As profitability, of Thanks stabilized think think you -- Obviously, given how ahead your still spending plenty reduction sheet now. cash maybe clinical how we programs? terms But about like the on the help focusing much. of cash. the and do on your capital feel in you've you're you through significant us long balance

Damien McDonald

rethink on of impact preservation. really capital everyone, we I get caused overall, preserving different. think, key And has our sheet terms their COVID more timing That's is no just COVID-XX, is and and question. retaining model in I we're focus us. until a cash, strong Yes. the clarity capital of a to business think, on great to balance Look,

effort DTD and some need to generation we through the our we on what read are intention failure. of to ring-fenced which ring-fenced in that That's those continue. is right? and that we're those our heart flow portfolio about see have of So and focus hard got that cash epilepsy working the And results to initiatives, We've do ACS, sorts strategic get We've fundamentals, to make all particularly this growing. and sure quarter. we you'll then, to improve

of model, What areas. are focus being is those There disruptions including aggressively long-term thought to more the have changed we is for aggressive to company tightly. And be about haven't positioning how we the business we've is, costs at key looking how manage but to about our approached to growth end-to-end model us. going the demand, that. So very

Rick Wise

you. Thank

Operator

you. Thank

Scott comes Berenberg. question next Our with Bardo from

Your line open. is

Scott Bardo

taking Yes. Three Great. for my questions, Thanks much questions. please. so

than with I yes, aligned wonder Is a So, you April cost you comments your expectation. gross than with in all, softer of of controls, to SG&A, that pleasing pumped just have could in back exerted entirely why see if think that first see weaker-than-expected margins you on explain little saw than Neuromod you've initially XX? R&D, your initial but bit spending outlined. R&D I into some seems it's more to more been you that

I same. projects So is seen revenue your and new any guidance today announced the haven't

the this So Why year? why question up? the on line there first is So not set same please. R&D discipline that the that's stepping is

balance rationale really experience clarity expense your is question, be have credit second to just COVID by please, in to The to as net keeping next particularly year quite question, your your has for or ability are team a start this its executive year gradual And want understand the financing for you just is, experience and cost. levels company? a sort get can question has The this the and bit and and to out could improvements if for you've a that that and a expensive do you everyone drive see Board debt? us, I'm the whether to industry. which facility, improvement? you situation pleased appears progressing costs you seen its last the what delivering LivaNova senior to nature will the as continue So and high respect management please. discipline group, pressures us to more I some And investment But, spell be quite wonder Can absolute down of supervisory a pressures to with shock happy finance cash also Obviously, there is you give work to pipeline. the and med-tech appetite the refinancing, to the been this perspective. obviously, just cost of exerting sheet And increased with reductions more a liquidity that has improve focus of this have from back created profitability? to changed reasonable your company, to margin for

Damien McDonald

so these Well, at one Scott, feeds come with -- then because other start of back into me let the commentaries. some that and end, it we'll on

what to said just model So, firstly, rethink I a minute no their ago, different. COVID's we're everyone business caused and

that the execute us, that. So XX% puts at which, whole saw in around down there important quarter, R&D, we to takes how We've sequentially an at looked also P&L, to in think is the SG&A inside the made takes puts in those the in to making to think, I the reset SG&A. the and are if terms decisions a you uptick. way, related We not by look EPS you We've big about company. only. the looked down of and And changes change big at, sequentially refinancing quarter. effort. are percentage we're there's and just that a is But the And terms, that

in rethinking is What I think, flow as been and aggressively So, decisions in. had improve They effect. looked of we've on model just to and flexibility cash you our as that us significant then be how jump seen ring-fencing and increase expand. and that quarter, part quarter. prior ACS. on the at completely we respect rethought, ANTHEM. I a restructuring, COVID working continue look what And the takes depression how not COVID. we What as in in entire other to need we're how change business is COVID financial on last improve and said ensure you've epilepsy I margins. really we're ring-fencing aspects to we're We And And the With stability. is and the started Thad, is to of plans can but said, model our to to take obviously as had debt, debt the I'll place an

of So we a saw, simplifying evaluated options. bunch dilution, a of term we strategic covenant and I rates was our structure, coupon shareholder balance whole think relationships. what lengths, And

So combination for private we've and feel strongly that with what is and debt LivaNova exchangeable that is blend got of That really about and a securities. have for option we what the we these shareholders. best

we've conscious decisions made financial think, I here improve our to position. again, So,

P&L -- the With

Thad Huston

of having Yes. just the our gross add COVID, Obviously, would impact and due a on financial Scott. impact had fairly company. in material I of couple QX, comments, biggest the a the profile to margin

in And mix quarter, of at because had occur we impacted, was significantly so don't overhead, look that we fixed it our gross occurred margin, But if you of the effect manufacturing impact of the Neuromodulation. future. anticipate also the unfavorable which in

us on sequentially in and And all said, bringing and And cash looking any improve, in QX, managing fundamentals, And ultimately our spending, labor reset actions then to and do provides that, at around generation improved QX. all and costs opportunities to but think improves so and planning as profitability and as that, delivering positions lot R&D Damien come the of but base. to this the really expenses freezes programs, the us. allows focus was an liquidity, the not cost well and and I discretionary to mentioned sales both ultimately of ultimately we mix us expense on programs. improving were address, new sequentially. in we still Neuromod. took the that and as we obviously And base. headcount The the financing we did flexibility new that continue trying critical milestones something Damien the in front situation. we're then just have adding down And financial again, navigate in investments this And the opportunity gross took a improves, margin implementing We're down will to

Scott Bardo

guidelines. for Thanks Yeah.

maximum of And more ability at specific year? there please? bit a absolute and to sorry, that recover And your you margins financial lower could next comment wondering, if at quite net But is just What you I I'm improve helpful. once. questions point pay to there of a would be you lot an be this earnings debt? we going ask is a that dilution? did can If down expense year, are be

Thad Huston

Yeah.

I guidance. the the EPS, was EPS. incremental to reason only only of our in impact the adjustment, year re-guiding is making that really this we're to So we're things We've But ultimately, middle. $X.XX some the that's in the my mentioned due And commentary that changed EPS financing.

And so impact. that's the

are two to debt We years facility with repay able Ares after the Cap.

Scott Bardo

expenses those sorry Understood income your just can back you interest net come so incremental numbers? this, give to net going to -- -- up basically $XX million, what

Thad Huston

We exactly could equivalent the EPS. its $X.XX follow-up of to number, but

Scott Bardo

Okay. just Is business say first longer And be previous to comment it you you attainable, given on that, is can And in is no for? your last question expectation LivaNova's something shoot a these still please. or think to XXXX XX%-plus from that following that margin now, circumstances fair Damien

Damien McDonald

do we we we're COVID. than the is targets XXXX and achieve going what mission better think I different to flow cash the said, laid sorts out, to to improve conversion work our and that laid is generation. are that drive of cash as being all in one And I biggest of really things hard notwithstanding, growth out cash

to keep out we're sure make have but do all to whole laid of what is the our got that. changed best sorts the we've towards So portfolio things decisions Again, goal around making XXXX. we moving in to

Thad Huston

And in improve structure we of actions can I demonstrated we QX help forward. the that in really going kind manage think, different time. show margin expense a And over cost that us

Scott Bardo

guys. Thanks

Thad Huston

Scott. you, Thank

Operator

Thank you.

comes question Jefferies. next Raj Denhoy from with Our

open. is Your line

Raj Denhoy

some just Hi … couple morning. thanks. Maybe a follow-up Good on of

Damien McDonald

how Raj, Hi you? are

Raj Denhoy

good …Pretty thanks.

Just couple on questions, on so some earlier the last of a follow-up one.

that's dilution for year. this year $X.XX the So half financing the from

financing? assume the So or so $X.XX next closer on dilution, new we for year to should

Thad Huston

Yeah, $X.XX. about

Raj Denhoy

And had thought bit what's Okay. large percentage business. question the we a business, more are perhaps guess that given VNS, on it epilepsy bit replacements resilient. surprising I I the earlier a is guess such that, prove that of might a

detail So Maybe more the as that? us as little on have softness a give side you you can around de seen novo? well bit replacement

Damien McDonald

Yeah.

service about service of I XX% think XX% second And NPI roughly of the end is quarter. an the in NPI. end it's performed same,

elective implant. us, I is new think than service a less for of end much

a there. that final for surgery. bounce factor before interrogation expect more The you need the be device is to implant replacement, So before countervailing the you I guess that's that, scheduled one you why get

office be so to And do need physician to into available patients go a that. caregivers to and

service. So need continue have on we're and that's And an the probably end ways working counter ways to for the that. to seen of

I how screen. quarter. said, to to performed, service to need still sure one for and that physicians' of end we in ensure the out As figure we But do is, can what last return caregivers office make patients

Raj Denhoy

the a Okay, little helpful. then And just on bit. pipeline,

second the can the I at be XXX next of you forward said paths quarter year. remind ANTHEM, patients, take. by different on Maybe on could So what just that are us think of couple you'd you path There you a you at point. is

you you -- what once So year? of get terms that to XXX timing are have or patient in what thinking next about, you milestone

Matthew Dodds

Raj. Sure Matt. It's

So for so part look first a the months functional we need to of process, two-step that at follow-ups. points essentially nine the end

all get to at point enrolment once to of we'd that get have the the to So patients. we full the follow-up midyear

the we that So would a that through And review we competitor might think through long whether didn't one panel just how need assume the have take FDA, you panel. then went to a get it or at data. not, point,

But get see some all approval you probably So those when decide whole there. you'll slack there's in go we the -- fact functional work potentially for through we that file we before endpoints, to kind through study. FDA of if could if

Raj Denhoy

whether take try down, you'll path you decide, And get seeing I … approval the you guess data on which go to will to it will the

Damien McDonald

Yeah.

Raj Denhoy

smaller the the subset endpoints? functional with …

Damien McDonald

be Exactly, the CE for in looking marked at that U.S., just countries. but also not the important data will

decision to Mark for there's do already. at that OUS. commercially what a release Again, into CE an that those for, CE will product point have important Mark potential this VITARIA be point we And as data well. We countries,

Raj Denhoy

Great.

And at of sorry just missed have update this, you one, for very point? depression might I but on the implants give did an one number last this

Damien McDonald

like we quarterly the we the And we right. in to gave milestones that we on results, weren't didn't. that I QX we No, to said outline going back think get update until

update not quarterly. us we're for to So going

we're shift when the towards of work just milestones these So to registry. going we

Raj Denhoy

Understood. Thank you.

Damien McDonald

Great. Thanks, Raj.

Operator

Thank you.

comes with question from next Matt Taylor UBS. Our

Your open. is line

Matt Taylor

taking morning. good Thank question. for you the Hi,

Damien McDonald

Hi, Matt.

Matt Taylor

morning. Hi, Good

follow-up is question on to a the business. want I First Neuromodulation ask

just bit lot you to here guess see wanted you I expected. a a I you deferment think understand, little you And might So than have And more see temporary? do do that's done the you're in procedures through then, you get think little Maybe have these could you or you that funnel? Could bit. XXXX? patients bolus a of do a losing that characterize

Damien McDonald

Sorry you're in epilepsy Matt?

Matt Taylor

Yes.

Damien McDonald

we're and to Yeah. as end-of-service can No what here we continue NPIs funnel. the working on again think both best is I

environment. at that's globally. to there clinics, surgeries doing open are track. we the and patients previous do to open the as fluid guidance, and didn't here range of we're important said, We're back sales level. are X% we the change in is XX% various guidance The takes ebbs committing the based of a to highly up on what And how to to flows to account said the COVID begin why; up. much But opportunities markets very minus respond As overall to really this globally. the puts come how company that we And how minus for

the that's geography-by-geography. account-by-account, it. So we're That's way viewing

Matt Taylor

Okay. areas that or guess the we've impacted I to you have because behind the trying to go facility impacting were the And think or this in, other that open? are or I'm factors it epilepsy more it results, are the losing would understand to Well, expected. Is patients Why more the some than is those coverage that patient not Neuromod are we afraid just they're seen? facilities quarter most. trying was down get factors I than results

Matthew Dodds

Hi, Matt, it's Matt Dodds.

quarter got I saw not we right. the in April. you're April an better with areas second the just a I tough especially epilepsy, it where say consistently a other is very hit much tracked bigger would May, lot in of as Neuromodulation So market in better mean, take overall than that got industry June. my in

Some correct. of it you're

was it patient ready times of in I just for the to actual hospital. physicians the for lot available it's cases the weren't epilepsy, think follow-up. of And a to back a it the weren't go the was or of whether then lot Some caregiver they just

definitely fourth had We're just see say or we in to third yet. how ready assume We demand, then, some any do fourth next not we'll through we more So sequentially, recapture in see point earlier there's said front. And just the that to quarter. guess the quarter get quarter. quarter be yet to this the or to the third I want we we pent-up going on year even really a dislocation than early as rate moves as your

Matt Taylor

And that follow-up okay. one just then Okay, that. on for point. Thanks

sequential are you less the basically. all at just main consider is I'm to that talking other? looking Do come you're than comment assuming that And there? to that have that you're about, them when one what improvement to think more or So Can your differentially? down you businesses applies factors on going the back been the comment

Damien McDonald

I really think, right? of their that's Well, think big driver physicians. to patients the epilepsy the that I first timing is factor returning

think other important. heavily I in impact are depend bounce they and The timing think, surgeries, of how procedures going I to the procedure regional of procedures versus is really on opening. terms cancellations elective

in to be clearing faster think driver budget of big up focus expect we there tailwind machines heart-lung the than groups. ECMO I capital us. a terms I the is, Again And think up uncertainty going for the is to this ACS sequentially think I be probably that. on other on

epilepsy; the And third, So the the and around of linked launch. to second, dependent tailwinds buckets. course procedures for very heavily capital then heavily clinics That's budgets. other I on opening; group HLMs and how ACS fourth, the first categorized ECMO, LifeSPARC

Matt Taylor

Thanks, Thanks, Damien. Great. Matt.

Damien McDonald

Matt. Sure,

Operator

you. Thank

question next Needham & comes Matson from with Mike Company. Our

open. is line Your

Mike Matson

Thanks. Yeah.

So Matt's growth I follow-up there. about on to Neuromodulation slower questions outlook wanted and just the

could so about to weak. seems curious the one it thing past like once Just COVID vaccine impact even we the is be get the and hopefully a economy economy, continue of but get pandemic, the

in if people was recessions what not co-pay the or curious any just for the out-of-pocket to and sense just whatever pay seen with the deductible using on procedures? you've Neuromodulation insurance get had I maybe past willing as impact the So either you to

Damien McDonald

that We big a see Yeah. as impact. don't being

is helping macro is I think reads to bouncing going able our be about that And COVID. I patients able think out do to being also remotely, said be But be impact as key. important. to I going get patients to here things of is COVID

So of don't for And differently? the framework believe us. even like we're we can quarter. definitely within in other for we But are COVID do recession, we've that things that's those the an and last things working macro on been exploring there terms impact

Matthew Dodds

Medicaid three and would I you smallest. epilepsy Mike also of then Commercial, is tell Neuromodulation Commercial within And and the buckets; the Medicare, major

Thad Huston

is impact or some only to would really Yeah. anticipate forecast Probably even economy capital the on the impact having on area an business related our we that purchases.

bit our HLM. of tempered on so we've a And forecast

Mike Matson

given cooler now, And is balance Okay. Can you the to everything to then good Thanks. Have heater, us make just significantly have you issue? the remind any are you cash on up there? see that there out additional or refinancing. the payments paid

Thad Huston

$XX situation. many dates core And Yeah. resolve the the to out what of majority to a are and trying QX. to, of tend payments We the paid that already the roughly remaining move again reserve year We're those that's as go obviously, during year. expected last million. out. both But There's this

Damien McDonald

how And again is are And good with scheduled Thad until make though. dealing September. there pleased they said could continued to really there We've progress I'm team that. no the trials And with move. as

Mike Matson

Okay, you. got it. Thank

Operator

Thank McDonald questions I'd no to there you. like call in remarks. other any the for the Damien closing over are And queue. turn to

Damien McDonald

Again transformation progress Catherine. on you you, and to the to look thank team for forward next you your Thank engagement you Thank everyone. our and thank time. we to continued Cheers. you and updating LivaNova's

LivaNova (LIVN) 2 Aug 202020 Q2 Earnings call transcript