LIVN - Earnings call transcript Q1 2024

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Operator

Good day, ladies and gentlemen and welcome to the LivaNova PLC First Quarter 2024 Earnings Conference Call.

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Matthew Dodds, LivaNova's Senior Vice President of Corporate Development and IT. Please go ahead, sir.

Matthew Dodds

welcome results conference of for and discussing and XXXX. Candice financial LivaNova's the you, to call our webcast Thank first quarter

Executive and our Chief Joining Makatsaria, Officer; Stephanie the call today's of Financial Director of Officer Global of President Chief Relations. Epilepsy; Board Shvartsburg, me of Gotlin, and Alex are Directors; Bolton, member Briana on our Vladimir Investor

could would discussions forward-looking recent begin, furnished I the like actual that during statements. available today's including call we you in the the release to to differ Before that financial to that on include this will Factors discussed documents materially is cause results website. remind our SEC, press filings are and most company's

any include most to discussions update stated respect is all can which be Also, We on limited found measures but with will constant undertake forward-looking certain Reconciliations GAAP website. available our financial revenue currency do today's will our the release, performance, including financial press to, be on in measures directly a to comparable not to the non-GAAP which statement. results, not basis.

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

Events You Presentations at press presentation section release News, and website can under and the of investor.livanova.com. find in the our Investors

track and of industry respected the teams. With leader I leading leading first LivaNova's at delivering earnings over will like Chairman served with business. results, LivaNova, as He's Johnson a company the in after recently global innovation his would Vlad. March a medical Vlad to & Ethicon to call call that, as to Johnson turn X. joining high-performance driving most I MedTech, Vlad to welcome starting technology CEO Prior record its XX-year Group surgery

Vladimir Makatsaria

for the thank Chief pleasure welcome as XXXX to first my call LivaNova's and and for quarter joining Executive you, you Thank LivaNova's you, to privilege conference of Matt everyone, Officer. us. It's

executive on our Bill leadership foremost, of and the express interim would company Board Kozy, I leading and LivaNova the for to job team, First Chair an of basis. on Board like behalf to of tremendous a the the gratitude

like serve the the CEO my for sincere and also of and would the LivaNova. entire Board to opportunity I future thank as Directors gratitude excitement for to of express

say on I my interacted investors with across mentality met the engaged first patient humbled medical global thrives to first our is It teams geography around solving be and honor needs LivaNova. function and colleagues with serving patients months, every confidently in organization cardiac that focuses for X work significant to to X health. and neurological a and I'm and work with role grateful at high-impact that this our customers, unmet customers. During world. an I exceptional in my the can and patient dedication to their fields, very

Over execution, the X coming business. talent. so, innovation will of listen, review on complete and comprehensive a to focused I'm learn I doing key and months, In areas: continue

provide each. additional on Let me color

cash in profitability most success sustainable is this view improving area above-market and execution First, of growth customers. flow on performance. delivering while and our to My achieving commitments importantly, and

execution. In driven the consecutive Cardiopulmonary, of and growth. consumables. high above-market continued of double-digit marked maintained disciplined our saw Essenz we strong quarter machine fifth quarter new both replacement epilepsy, first implants, ability revenue demand heart-lung driven growth, commercial growth launch fulfill in we for The our In by the and the by to

portfolio. and innovation Second,

reinvigorating includes appropriate program. resources, apnea, we core cadence customers' and RECOVER year. sleep Circulatory difficult-to-treat enable future focus for have actions and Heart the year, obstructive of This later in most last the and made the prevalent anticipate the well this strategy OSPREY portfolio, and Failure our These wind the business. and business in both us needs. the innovation Advanced Support investment of depression has unmet down Over refining to the position company including to drive In portfolio progress segment us meet the results growth our to and in studies

we ahead, of will those innovation. Looking possibilities all opportunities for holistic evaluate a alongside view

a LivaNova. LivaNova's of pioneering LivaNova, remarkable on we his Tezel, technologies. pleased Officer, unwavering. extensive At has Ahmet market-leading a welcome yesterday. at and will innovation our end, to to to commitment which track And leading innovation to teams Ahmet announced this remains I'm Ahmet very wide Innovation developing range drop experience guide as record Chief

is my first focus Munich met area organization from LivaNova, people. from of months I at great starts Any the colleagues many with to finally, our great And Arvada, of X people and Mirandola. Houston culture. in third to And have

As areas in by heart-lung epilepsy the in and previously I the embodiment leaders machines the are value. It first by we mentioned, surgery. of which their most patient impressed struck we also is no was wonder category deep expertise I'm operate.

We're foundation and to top will to talent LivaNova. and innovation we delivering on success organization. this to on build continue by that as improve patient outcomes each will in We value. areas, attract confident these lead an Focus and execution, talent create will shareholder of

then update additional remainder the portfolio and initiatives. will our wrap Alex the comments, I details my up guidance. in I remarks Q&A. to on XXXX provide the on turn results will will first to call, before our moving For quarter focus closing After and of results strategic

achieved first versus prior revenue in So we quarter, growth XX% the year.

strong our in XXXX. segment down, growth ACS demonstrated wind team's as quarter. segments. the of This Neuromodulation both impact in included the versus revenue performance continued our encouraged Cardiopulmonary and revenue double-digit performance XX% execution increased Excluding by We're by

Now segment results. to turning

increase by $XXX Heart-lung was versus XXXX. the than of XX% quarter million first revenue XX%, of segment, Cardiopulmonary the quarter. revenue the more Essenz. That's in increased For machine an driven

see to expect remain Essenz in track. demand to year and cardiopulmonary the quarter. We to the capacity by grew teens, continues strong We the strong to and our revenue placements noted, oxygenator grow now are for business X% pleased efforts price.as revenue driven X% mix customer price on XXXX. to continued Oxygenator full see low and in demand previously increase

Epilepsy continued the first growth growth demand and and in X% revenue XXXX. patient revised for U.S. the XXX quarter, versus consumables. incorporates strong replacement new prior year. new The epilepsy We versus implants implants, in strong with year-over-year We XX% growth HLM X% both Our XX% representing implants. quarter replacement of increased increased representing revenue the growth the achieved X,XXX prior forecast year. realized versus

rest world the and Europe prior in versus revenue the grew X% year. of Epilepsy

the XXXX, year global X%. expect For X% to to continue full we grow revenue to epilepsy

full normalized growth rate mid-single-digit expect the single-digit revenue in in a to single continued rate advance and the bipolar enroll We to revenue quarter continues now continue primarily U.S. Difficult million replacements. forecast incorporates depression approximately Our continues and $X coming growth year, in cohort more first we million. study revenue was from to the in as international the RECOVER the treat $X RECOVER And high to to new grow patients anticipate study. for low expected. digits. The

At full conduct continue the reminder, We of to unipolar quarter. we the data of expect unipolar a the second study anticipate XXX an in complete. enrollment the cohort As now is patients XXXX. analysis study time, the for follow-up and by will for late that publication results XX-month the

milestone final last very a visit, that statistically response a analysis for The continue work there with protocol, OSPREY we there X patients. result completes we the and a sleep will for study. and -- the patient endpoint, is to Now conduct this to means the study, a clinical probability primary the sites manage In accordance study outcome in moving positive will predictive implanted we follow-up actively once high with that are achieved months OSPREY clinical pleased the in obstructive to this concluded be achieved the which last study to AHI that the apnea. study March, will is significant have positive rate. enrollment

to over With turn that, me let Alex. the call

Alex Shvartsburg

Thanks, Vlad.

share my the a portion call, I'll provide commentary recap guidance. of of During results and brief on quarter XXXX first the

increase Revenue to $XXX the an XXXX. was XX% Turning versus in of results. million, quarter

XX% impact ACS revenue segment down, of Excluding XXXX. the the wind increased versus

million less had impact X% Foreign the revenue. unfavorable approximately year-over-year than of $X or exchange quarter in of an

in first XX% gross Adjusted from quarter down R&D million of quarter product the largely mix $XX quarter in year-over-year XX%, driven expense in of Adjusted as net was driven revenue $XX net XXXX. was XXXX. to quarter the by was XXXX. compared of XX% percent R&D in closeout increase by of the the revenue to first a first of million margin and pricing. was favorable decrease trial. XX% a first was the percent as of compared ANTHEM the year-over-year The The

with and reduction ANTHEM, the targeted investments by such $XXX year-over-year of by $XXX expenses related investments costs to revenues, prior increased was variable for first million the the the the Adjusted offset freight expense to Essenz, XXXX. Excluding versus driven year. increased associated in XX% million costs R&D first quarter ACS. quarter as was and SG&A compared The increase supporting legal commissions in our

was SG&A a percent XX% was Adjusted the of operating quarter million $XX compared compared wind in and of was first the the in $XX net last and in was improved This related ACS gross XXXX. operating program driven the to XX% first Heart XX% by quarter down segment. XX% to income of as operating first the to to revenue leverage XXXX. Adjusted quarter compared margin increase of expense the year. income million margin primarily Failure of

X% in in year-over-year tax in global the first effective landscape the Adjusted XXXX. Adjusted first was is the and related quarter increase $X.XX with was share $X.XX to tax of developments earnings our XX%, expectations. is diluted in quarter The compared of per to to compared rate in the XXXX. quarter line

at in was of $XXX million the year-end of debt year-end by XX million of convertible maturing repurchase closing up Our senior Total million increase offering was notes This $XXX convertible at of March was up a at $XXX in from cash million, private March $XXX senior million, XXXX balance total million notes. and debt driven $XXX from XXXX. XXXX. at $XXX XX

by capital for was restructuring Net prior restricted in by working spend million. flow at decrease needs debt, million the quarter driven $X $XX was investments. million The quarter was the the Capital key from the free driven higher was $XX year. costs. in including compared of in timing $XXX Adjusted down ACS million to the year-over-year was year-over-year period. the million, $X decrease prior cash March cash and year XX

guidance. XXXX revised our to turning Now

on and X%, will which comparisons, X% the continue currency when of ACS basis excluding and first quarter. exiting. quarter, flow. a business Vlad in first the earnings on expect guidance free XXXX mentioned, cash the maintaining per full adjusted and based XXXX our year growth adjusted on increasing observed our range the are X% in that now revenue between the favorable our the and while In As we portion between we We diluted constant share we're performance X% revenue quarter, second

we the While guidance, do to second be of XXXX of half half year. not compared we lower provide first quarterly in revenue expect this the growth to

to currency on Foreign X% rates. now exchange based headwind current expected be is a

range free range spending, is million. expected a meaningful full adjusted to in We prior approximately be XX million, to with an $X.XX continue range XX%. year outstanding adjusted million forecast adjusted of to at diluted which This $XX the year. full includes approximately the in million year. of approximately weighted $XX to shares rate effective project X% capital to cash expect Adjusted flow share earnings to of per diluted increase the now average midpoint still we be versus $XXX of tax a $X.XX the be We step-up for approximately in

first flow cash than in the as with million include ACS generation And half. From a flow quarter. our phasing the of pays $XX the prior in XXXX. the in the wind cash reminder, short-term LivaNova second free its a which a costs $XX majority As lower bonuses half of in year year of is down perspective, million, incentive approximately reminder, to second range occurs the projections the associated

summary, company's encouraged performance execution the the and by in I'm In first quarter. financial

operating continue to We leverage the to Looking in positioned the drive turn more over the we back of XXXX. growth support points innovation, basis remain I'll With infrastructure. year, to than call that, above-market and XXX invest in to will to rest of and Vlad. well growth critical capabilities

Vladimir Makatsaria

Alex. you, Thank

Cardiopulmonary And and marked by so first results and segments. to double-digit operating conclude, income revenue our growth both the quarter Neuromodulation were in

on year. ahead, Our to framework -- on strength will the we're cardiopulmonary in to remainder mind, in for expected innovation us Looking we the quarter we this investments execution, will above-market this drive build our and momentum positions talent. performance of and core epilepsy sustainable focus the well the of excited businesses, growth. With competitive making we build on Again,

allow will results the from clarity studies, to most us compelling OSPREY on and gain the also will RECOVER opportunities. strategically We which our target

unmet potential will Finally, we in of create continue areas with shareholder clinical markets value. explore long-term to high-growth need high to

to colleagues underpin warm health our welcome with their as the world. across cardiac I would organization. thank we to Their work the for customers for will improving hard for and around and passion grateful closing, advance And to like together, the In patients. my organization I'm neurological serving continued of success dedication outcomes mission LivaNova. an our patients continue to and conditions

Candice, I that, we're for think with ready questions. So

Operator

first [Operator comes of Instructions] of question the Our Stifel. Rick from line Wise

Frederick Wise

there, you Vlad, saw I forward the visible just, on outperformance. to help and us the growth on better of side, the are new you the the with as sustainability off, momentum it's both of look of that? to at year? unfolding full So about the person. year expansion? some fundamental about you clearly and back? drivers you we replacement. in to sustainability thinking could are understand in meeting where a strong about the implant that come competitors Maybe Oxy and you ahead the And level, again, the high Maybe epilepsy it your thoughts start first the the talked you you How And seeing side the look and drivers addressing capacity are and

Vladimir Makatsaria

And Yes. the I the person you soon. meeting said it's comments, likewise, above-market as think sustainable earlier business. for in thank look Cardiopulmonary is core -- in to a Well, question. think in in growth my both segments. and you I forward I in first Look, build business, Neuromodulation And in of to order I Rick, the

as sustainability a biggest opportunities. that market the Essenz which major that our upgrade the machine, from for I the to side, also cardiopulmonary and heart upgrade around And the but upgrade driver to the leader, the upgrade momentum continue comes On we continuous to is lung think growth itself. still have technology as customers we world,

a share of we On some the the to increase quarter obviously, in disruptions. opportunity this in -- disposable previous market the significant our with were have side, we helped And competitive still. with quarters

So we expansion will to are short term, on track. footprint we there our the we the of work And our way capacity, have will are capitalized improve on really momentum. be drivers which is key done. And be that using the current

#X. So that's

in following. is sure oxygenator that And is and our is then disposable #X going cadence innovation, in innovation other back to making business the

So that's on the cardiopulmonary side.

strength. is similar coming will in we On be interventional sustainable from driver and the currently the the Obviously, for of We're the key neuromod of the that technology, procedures, innovation. leader side will build surgical we're neuromodulator strength. position space drivers. growth The in procedures on kind there of

that And physicians is the and patients. so connected outcomes our will in better make invest step technologies and for easier digitally to first for procedures

the long-term be So our that driver to of is going sustainability. major

is And over the ] with term commercial significantly our improved. around leadership short really Steph's [ execution the about year, world, have we last which

look organization quarters to of growth. and I because now sure that. to is is momentum. it's, it's back this And role continue obviously, make my double-digit key And encouraged here our really So that's enabled I'm X

Frederick Wise

great. -- to innovation repeatedly. That's highlighted a follow-up, maybe Yes. And as just you've

What priorities? in with? to Maybe can if What Officer. little bit. think correctly. saying him the important you a You've are give said are growth whatever, XX%, you What I on I'm are saying you've made can see? a touched R&D little hire What Anyway, deeper we What Innovation you charging priorities? I'm do? it your with ex Chief perspective. asking to correct are an us his him expect you

Vladimir Makatsaria

you for this. highlighting Rick, thank

track background an various with can in can look just he not preclinical medical clinical, record. us. and it's with and technologies R&D led companies, a think And obviously, you clinical states. And functions his regulatory market I deal for a at comes holistic various access. incredible but you Ahmet just big affairs, innovation

So a Ahmet's little that's bit background. on

deeply addition teams for extremely X and team. go with learning is And of said, the think get what an and why been leadership with and I've and capability. just I I people I'm I been world it's on just -- impressed around My our -- to I'm of extraordinary a back talent me and assessing kind outside innovation is culture think LivaNova. of great and the like and pure engaged and needs to leader months He done, to and the

our ask our Obviously, see come develop so to talent execution LivaNova, is innovation, Innovation that my strong core to and accelerate. talent very And capabilities is Ahmet in you top at and develop the top is to and where this functions strength the surrounding results. really and one of that's current area talent in need bring #X. on continue top are in build for we and bring

on in And work. look us innovation we to market so on on spaces assess inside of supply make be have help Improve we our development, make improve chain, that I and then the with have from we our OSA how Short which to end-to-end entire term, And and at links product processes strategy. his process there decisions it access, generation, stage, to this. decisions end-to-end. be finally, will major some will important should DTD voice will think innovation

Operator

Taylor from Jefferies. comes line question of next of The Matt the

Matthew Taylor

I potential with year. first, cardiopulmonary outlook with for businesses. for ask a guess, the kind of that of your little your you're for gate. with in years? happens really do understand, the grow of combined to start capacity, through machine that's to done bit What question period? and launch. actually expect all us you when challenging share with increase to on and come the oxygenators some couple you expect business help about I guess to of competitors X launch? the and Oxy I gained lung you've forecast some same of It's Can dynamics medium-term kind What wanted the you this try comp the over going would well, back, the on of the have that growth heart out Obviously, how And to I next we

Alex Shvartsburg

Matt, it's this first. I'll one take Alex.

about really the of this multiyear We and all be for and midterm insights terms the cycle. cardiopulmonary to we develop on LivaNova product. we're the a we use in excited the going outlook for to is have said capitalizing in technology business, along, replacement So HLM we great that the opportunity the the that opportunity

to will growth continue HLM the accelerate the year. that think we balance the continue -- will So of into

that the next -- as years. for of that couple for we I So and said, -- project

As we've team capacity far along, sort as where oxygenators the the in job of of oxygenator and improving business, reached we're our doing programs in acceleration our good really all to that. a add half automation working as the actually manufacturing the processes is in the that. enable and those We're year. at hard been Mirandola facility expand to said peak we We've second really some at capacity some to continuing last seeing really

expect So in going see we capacity of we're to primarily half second benefits quarter expansion, some the some probably well. this as in year second the but

we So that there. feel opportunity have about the good

situation, sure market like but continue Now to what into the capture competition we're great back never share. we the monitoring a our of feel competitive enhance we and in market market to continue will position to have coming the opportunity do terms

Operator

question next Michael from Wolfe The line Polark the of comes of Research.

Michael Polark

positive a is here study. on trial update Obviously, work. sleep question program. prediction clinical first a the confirmatory My from This the is

maybe timing, just approval, You it, know LivaNova kind of of up team is set X from call year get on this to up speculate asset middle or this today. FDA If set I away a an XXXX, already. is lot about

want here, about you of imagine prep force, commercial field to some sort hiring I'd a thing. so think And would that doing

on in built in it sleep prepping -- So what numbers, view relates from the OpEx early is launch as have sleep maybe the that, state XXXX? you for And to XXXX do is an a what here perspective on prep? anything

Matthew Dodds

for Matt. through it's I'll go Mike, those you.

with took around patients at queue discussing XX the the look patients were going on we to program, FDA implanted. We XXX have stoppage, but we implanted. the for So all early as are were in to

well. AHI the have probably to in to going we the around a do data And at you're endpoint we're primary be we 'XX. data aware, point, X-year assuming X-month -- so in it's just would like reduction your data give safety year-end. to there the And That April. then, have as probably FDA file in is So early

approval on based we So didn't it's where much. that change today, still a are it XXXX

get of data In we're to data. will that directionally data, think data year-end. that's from, the commercial competitive compare companies, XX-month which will the be I we've not again, now X prep, the but very X-month to important -- seen terms really we're important the The until going

we I XX-month X-month until say, So the take data the this a, slow going would then; b, commercially, see, to we're and very data.

not of So terms in XXXX there's spend. really much in commercial

Michael Polark

be on launch, the is Essenz just mix? of Helpful. [indiscernible] what year? color U.S. And back half Any available it the the kind versus where And for then my the on how Europe, product might and Essenz Essenz I'm expectations curious this of follow-up what ramped is and this in unit has last that year? units

Alex Shvartsburg

placements Mike, We're I unit tell actual first continue is increase a quarter throughout anticipate the typically, heart-lung will it's we you machine quarter a we'll not sharing in have our volume year. to placements. the of for kind steady anyway What And lower that is, numbers. Alex.

Operator

line from the Adam of comes question Piper next The Maeder Sandler. of

Adam Maeder

to think world. nice time had U.S. kind follow-up. Essenz lines start up installed better the as we of a existing broken of replacement curve. then in machine I wanted potential the understand you for potential then is is and by I about fully And down could to heart-lung also to year. a how follow And base hoping the Europe wanted on talk and about the on believe, you're launched Congrats rest I was but geography

Alex Shvartsburg

Yes.

as is as occur markets. in of world to Essenz, So select again, the rest this rollout, starting far Adam, already

get limited out in saw kind we of from kind insights ramp the Europe customers. and releases U.S., as start with we the our we and As of and slowly commercial then feedback

new markets coming flow year, we'll the So online. see of a continued throughout

Adam Maeder

base of rest that heart-lung how the and U.S., And kind Europe Alex, installed existing looks the on of between machine color and world? any

Matthew Dodds

Rest XX%. Sure, Adam, Matt. it's Europe, World XX%. XX%. say, about U.S., roughly of

Adam Maeder

wanted got good the then X-part guess, to That's it. RECOVER And program. thoughts Vlad, your I for ask for I Okay. question. follow-up, on color, the And guys. I

successful push commercialize as Maybe you to the program. First, to and see define would want ask forward trial? what RECOVER the differently, do a question what to you

And then to want to the so I do community? the did like data line It air? you that that have investment to about you ask sounds still June, month. information Or next approval in data is in disclosure. the Do top Will see you'll that from CMS? up

Vladimir Makatsaria

Yes.

So will, of the the you direction It's us is opportunities -- some our of strategy only for RECOVER very kind more outcome mean, it for potentially trial importantly, determine Adam, not this will I patients also but make milestone thank of on a the question. available one. important obviously because, for

before quarter. important All the founded of milestone. the of you routed end results we decisions said, So anticipate this study. the will it's the like And an and be on outcome clinical the

make; And transparent once a, the them, and we it community. make have at we to will will analyze we level high the

will that's investment is And the based on clinical these sites then path community and forward. with determine with -- CMS, we path on the important. with the best So the results, two, what with clinical work

So level. we the transparency to at will data have to your be point, high there it as

needs a it's clinical a questions be various of the will scientific And complex hasn't data in we're year trial by the then answering And with because the within number it difficult-to-treat publication. then look full -- the -- the way of depression. end I available

with So the reimbursement answering. what we CMS to we questions clinical will depending together path have positively on are assess on

Operator

Group. The next from of Anthony of comes question line the Mizuho Petrone

Anthony Petrone

to XQ CEO guidance team congrats just strong on and new with the on versus on role, little and maybe guidance the math with beat company. a bit Maybe the Congrats outlook. to of Vlad, the here start XQ the

the guidance, And by guidance and of points look the versus is at revised up range is you top basis line XXX up $X.XX. prior midpoint so

sizable You a beat had a line top in point beat $X.XX XQ. basis and XXX

spread little there's of there. bit So a

on bit of XQ get color what's just guidance. the of to little hoping and the So implied a beat for extent

What And follow-up. tailwind capacity the then is a one guidance to X% to on in that reflect in And does X%, second be have revised in one assumed the oxygenators. there specific of would business I'll guidance specifically? quick for that half for actually

Alex Shvartsburg

it's Anthony, Alex.

a quarter low for So and profitability. typically the of first is revenue quarter in us terms

growth We're capabilities we comparisons we had XXXX. year. to So expect be remainder the still not second expect of same do of invest the we just in to -- continuing critical infrastructure. for and and to of innovation the spending favorable level support And half the in and higher we growth

we in quarter. and gross our meaningfully to saw pricing contributed product mix, which Additionally, favorable expansion the margin

at talked guidance. approach sort So look, at And way time, the Vlad have revised the about opportunities, end it's a significant this still we're the about, we think taking this the of in the year. we prudent innovation day, of -- portfolio, And point it's the to early as some in is, et cetera. I think

Anthony Petrone

ahead. very go that's And No, helpful.

Sorry.

Sorry, Alex.

Alex Shvartsburg

ahead. No, go

Anthony Petrone

ACS recap maybe words, cohort the back and be, about a just That's I'll from think process? decision-making in get cost for here helpful. here Alex, in. sort on depression, think One and just So we no-go would about to does when quick, follow-ups you bipolar there's how other option unipolar, a of here? that bipolar do the go, how savings cohort the influence

Alex Shvartsburg

I'll first. ACS take question the

$X.XX As and the we -- far about approximately We the on the at feel impact good of EPS the beginning about still guided ACS to as year. the that. savings

follow-up it Now I'll turn to over with your Matt. question,

Matthew Dodds

Sure.

said and and that's patients XX on we last had So patients quarter said June, bipolar for a we track. enrolled and XXX we've said Anthony, roughly we

data a with generally the different the group. the bipolar of that very look patients. one, And that unipolar this better For does you data patient historical could VNS but have on influence it if at some we've an shown, is

So path in our for ends there of unipolar is up, where still opinion. regardless bipolar a

Alex Shvartsburg

regarding Anthony, in original We're Mirandola. that And capacity well. just capacity guidance. I it's on said, the as that's, And continuing capacity. into our expand to question our incorporated really follow-up expansion your a program going We

as earlier quarter going favorable to were so expectation as of achieve growth be the We're some assumption. some a result maintaining there we that tailwinds success of And some capacity. expand that of the our half see kind back going anticipated. But second to ability some the is year the than there's the benefits, to we're able in in to

Operator

comes & next the question of Mike of line Needham The from Company. Matson

Michael Matson

Yes.

Essenz I a driving But the with getting really pretty growth. on so I premium strong launch, are big it's was mean you obviously, wondering, Essenz. price Just,

So, I up the driven is, how so us been volume is volume? going just has but Or know least. the at far more Essenz it it of volume guess availability not give of really as of picked how pricing? much much pricing number you're at And I upgrades? I'm it to has is getting

Alex Shvartsburg

Yes. Look, to strong placements according units we're with and funnel the have a plan. tracking seeing been to regard

benefit, of exist obviously, price benefits and the have here yes, effect we're that sort seeing SX. but right, the substantial of premium feature also with in taking customers are the technology we didn't advantage offered a Essenz So with price mix that newer and

we're acceleration So we continue of for placements. to benefit. are and the of looks But unit said, to balance strong getting some year funnel our of see going placements our that an for I the as

Michael Matson

any sort cost Okay. enrollment OSPREY, Got it. And there of of that. savings then is associated with with the end earlier in

on little said a 'XX spend more you $XX I in the expected you the call, that think on program. spent million you than last to that

would spending of as not that impacting it? a result So kind of Or it is be down that?

Alex Shvartsburg

trial because the -- throughout the majority patients the throughout with associated the It's study. managing the roughly of the is cost Mike, same,

So throughout savings sort and majority the the while recruitment reside the the costs of active of the management perhaps patients in costs, of trial process. there's some

Operator

of The next Baird. David from question comes Rescott

David Rescott

you alongside could you hey, the areas of trials that wondering remarks view And evaluating for of that holistic the Great. let's specifically line innovation. does hear of I when longer if wanted view called in holistic publication Vlad, top portfolio heard some RECOVER, about a to in up a heard the around to prepared RECOVER to maybe approach. the one a I more the the maybe earlier prior fit what little bit of factors think to of holistic we question some RECOVER, Or I term? the OSPREY the around for results? And wait for on on the make or what maybe I'm and a, start follow around around thought accounted comments is the comments issue about but get are expand then some you of about some

Vladimir Makatsaria

Yes.

David. you, thank So

-- I X team you investment the over think OSPREY of the portfolio. RECOVER made focus some comment. of that if years, really good and will on and leadership was last couple start to before the But decisions choices maybe I'll short-term at the look the

in of ACS then with core that So the business. wind Heart the kind to us results the gave and in improved down opportunity partly, Failure improved see decisions the the of reinvest core of the and execution you the outcome the business, and and

to short-term the kind both front, execution in potential of capacity So be forth. for front, will innovation on growth expansion short of term, reinvest so core, the more and

that obviously, if and directions, the bring RECOVER clinical you on So going to looking that's terms forecast, have we're the of strategic one what OSPREY opportunity Longer strategic of until at. because, be results see term, direction to company. will in we're wait like, a we

term, reinvest bit would about DTD So that's more what term long OSA. Short the core, a it. see what in -- and we're direction on how little the take thinking

David Rescott

upside other to think no the things infrastructure exits, thesis on for look to kind the kind levers year. Alex. leverage update EPS to the you the some the maybe guide. EPS moved If of bridge buckets? tax, Maybe I to remained be more cost and the is about If is operational in those relates there year or of Okay. for inflation, in the of latter contribution for growth kind ACS as this a same on to upside out would to QX, have to in that investments, is the after be latter of the of X relatively it's implies Great. leverage the the we guess higher growth to X relative the for all guide real X potential if bridge for EPS HF, growth where or there's more there's -- it question line, My kind pieces in growth what updated shift other, at relative laid operational that any had year, going those and remainder

Alex Shvartsburg

wind good managing the going as we I we about the Tax the we're feel but components into it. the we ACS rate, was this at Heart savings knew mean Yes. EPS, down. really a of looked from year and headwind Failure through

here about the an and there's ensuring line. level of majority growth really drop-through being super upside disciplined of our bottom the appropriate is on So the team operating leverage. And focused that driving and about

Operator

Miksic Matt the question from of next comes line Barclays. of The

Matthew Miksic

you me Can okay? hear

Vladimir Makatsaria

Yes.

Matthew Miksic

be helpful just process could the forward your RECOVER, of and up scenarios if on Maybe I OSPREY to those you're of and between would that which super likely Great. and decision sort with. programs follow move

Matthew Dodds

it's Matt, Matt.

both, is critical. I mean For obviously the data

each quarter. end with OSA. a then of that we said, of would time RECOVER, to data where well as But the difference OSA generally, and the for in we the lines product OSPREY be As get patients year-end. would play little those I'd physicians. And to say the value the we the component there's look unipolar, at. get show are around development, data in a and program, of when terms we to basically one with core for a the That's bit what by clinical

Vladimir Makatsaria

outcome decision. X of maybe Matt, principle don't make at have I how important the what's we dimensions. we I going it. And were on mean, Yes. think obviously, look the But just, And is we the to

That's benefit the that's important #X. what The clinical patients most to is, one and first one. is the

marketplace. versus create shareholders. you we the one, the business the like how and The our space of And then end-to-end model, competitive for value, third second patients kind at technology one how the in available is if can but technologies not for also is this other on looking just is

two. will kind to those those be decide we're parameters to to that X use prioritize between So going of how the

Matthew Miksic

That's If follow-up helpful. I market. could just the one epilepsy on

maybe competition this in in it it Is to of strategy? most current previous sort patients? factors just maybe go-to-market restraining sort general enabling your just we of significant can changes cycles sort that could your operate of execution implanted performance year? and you kind Maybe end the that are or look of of of factors there the to If what or and driving measure the is -- some talk at is your about ability biggest life

Stephanie Bolton

Stephanie Matt, here. it's

part you of our Let year. me this where is tell the focus remaining for

continuation be much in 'XX. that For the execution, on very to building U.S., the going foundations disciplined last of the it's commercial that laid year we

on expand those building structure in call, that, But large high is in force our the sales as sure on we'll strategy well. influencing base. talent we partnership touched last also to just bench our mentioned physician our maintaining than We're it's regards our a And I structure and as be our broader You sales combination design. force making little with force our for territories a that territory that, sales our efforts than with structure. but also

little performance accordance of physicians a of partner still all-important we and rest scientific insights based towards We advisory the patients of continuity by service, we of But latest year. had our full our end comparisons the so to service that's a great really successful get data throughout board, and on also recent of to the look with in more our XXXX that tricky our in care. are as end identify that do encouraged

we partnership really. structure So those main I key sort our that of base, with and can are physician Partnership expedite as board. territory our care, say, ensuring advisory with of the our aspects continuation

Operator

of Next question is a follow-up from Anthony Mizuho Group. Petrone

Anthony Petrone

decision, go frame? the Or the that the June, final July messaging to or wait will follow-up for year and at there. end the on RECOVER Is quick data not headline a the readout set be you decision? time on the go will Just in that forward make of

Vladimir Makatsaria

-- elements will if data areas, whether the holistically then positive, you in negative, decision. continue and working clinical or we the this -- for it's with just If has clear no-go decision. thank to no-go of clinical a Anthony, for is go define the then certain a CMS clinical data

-- that work scenario I the them to with best we where So is, for that. and continue to me, can evaluate

Operator

are like this the no over back questions time, there hand to additional remarks. at Vladimir Makatsaria to for I'd waiting closing As conference

Vladimir Makatsaria

Thank we to support you interest appreciate really good very questions. Candice we'll for and of the everyone, on for And company. you, your joining and thoughtful the leadership thank a and soon. feedback your the call, LivaNova, your entire at you, team in behalf day. Have talk And

Operator

Thank Ladies today's this and gentlemen, call. you joining. for concludes

You may disconnect lines. your now

LivaNova (LIVN) 1 May 242024 Q1 Earnings call transcript