NDRA - Earnings call transcript Q1 2018 | ENDRA Life Sciences Inc.

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

Operator

Good day. And welcome to the ENDRA Life Sciences' First Quarter 2018 Conference Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Chris Tyson, Managing Director of MZ North America, ENDRA Life Sciences' Investor Relations firm. Sir, please go ahead.

Chris Tyson

afternoon. Good you Sciences' time call. first thank for join for Life ENDRA quarter all like to taking us I'd XXXX conference

hosts and Wells, Francois well is Mr. Thornton, the Officer; today Executive Technology Michael provide Your as Officer. a Chief discuss release will Officer; Francois and and Michelon, Mr. and as on will operational David company's results will the updates detailing today Chief partner press milestones, A David product company's Chief the Michael Financial the announcements, cover Mr. results. is are update business the which endrainc.com. financial wires company's across these while available website

for the management's to who those questions today's comments, for in you call. will Following prepared open floor of dialing we are

and the that note covering Before that forward-looking uncertainties including paragraph not of the company's any should formal Safe disclaims Harbor laws, and upon. federal or risks the unduly take subject obligation are And statements. appears release we to the date only publicly press as presentation, to results. the any the please that financial of updates of in undertaking at any the or described any end apply revisions made statements relied by filings as be SEC Except company the securities release forward-looking otherwise those and required make company's inherent we to the begin

call website to yours. you company's I’d information. to for refer the to this would the Francois, floor Francois like over supporting also the more time, We At Michelon. turn is industry

Francois Michelon

call. XXXX Sciences' Life ENDRA to quarter everyone welcome And Chris. you, conference Thank first

ultrasound Healthcare, progress with and successfully of the first our existing global quarter extended operational GE for as ENDRA we of market renewed The represented XXXX term collaboration the leader. continued

a in new two for to milestones nonalcoholic tool the product U.S. epidemic These commercial also disease our market against ENDRA fat of liver supporting our the the global necessary clinical liver in fatty partner of XXXX. operational position patent slate well-established non-invasive targeting TAEUS IP assessment patents expanded fight and European disease. award alongside We with the commercialize protection a the in two

possible into exciting provide those who platform care. disruptive of which disposables of to and streams. currently only to function a to offerings time story. to go the potential and A of technology. achievements with thermoacoustic or individual a these fraction software I’d summary to and licensing cost with brief human composition, developing tissue ENDRA MRI I new it, be ENDRA commercialize previously enhanced clinicians our we potential Before TAEUS the as deeper next-generation is clinical may multiple temperature the as call or of ultrasound over future along is point safely visualize with the in enable at plan applications ways you CT revenue TAEUS at like we

Our ultrasound awareness GE first initiatives. assistance GE the year, in our announced and TAEUS front position In in investor GE in liver achieved we've of property to finally, the May progress focused opportunity to offer agreement, our technology point to terms for fibrosis, partnerships and and three, portfolio; become early fatty broaden collaborative in of by blood of light to team, a which ENDRA's XXXX in the customers. liver on in and of a these access to overhead ubiquitous liver, two thereby is research and its fatty development the liver bring to continue public nonalcoholic also by will In NAFLD, liver the in and ENDRA's on manufacturing by capabilities progress this first application liver partnership the commercialization and for first globally. XXXX IP expanding goal for X to following preserve the healthcare. to and agree We assessment growing offering our a focused can we for certain of number and achievements NAFLD liver agreement progress positive areas efforts to overarching disease. market want fatty four, the to as for technology. come. inflammation, quarter ENDRA's ultrasound continue our based In Healthcare focused cuff GE but we of things is providing the of believe renewal executing tools areas; the February core market extend XXXX, application. case affects adhering number diagnostic rights been new with technical leveraging to to we and is liver introductions Healthcare Since initial billion with detection growth and operating people minimize care GE commercialize technology our fat on business the and our rights as until quarters with practical cash; support Healthcare number currently fatty on monitoring liver building ENDRA early Healthcare Under and often return as partnership healthy the ENDRA's Healthcare two equipment January ENDRA number other billion asset pressure respect this ENDRA over on an our the Healthcare application years will to mutually facilitating intellectual use licensing no a TAEUS trends $XX advice cirrhosis plan; of offer has better asymptomatic, cancer. disease, development multiple number in to model five, space one, and the known among GE GE the in

of quarter pipeline of thermoacoustic strong first for ENDRA On disease. issued noninvasive support These targeting XXXX are for product front fatty two granted assessment the patents intellectual noninvasive clinical the backed first IP patents TAEUS during our the US to was assessment US to property. fat liver fat by ENDRA

the website QX laboratory new visitors on information and On site a clinical had deeper February. provides to front endrainc.com We've the in shareholder since navigate to easier communication in we an which over corporate technologies ENDRA's completely launched XXXX design.

quarter recent to the Turning sessions the of in place for this at technology hepatologists quarter and as our presented year, we International and the TAEUS clinical Congress Congress Liver to world April over for with EASL European liver, also in in an second International and over Paris. Association took scientific the a Association provides radiologist XX,XXX from platform the liver to private study the to and all This research. EASL XXXX the Liver major of discuss meet the EASL. European latest influence disease. evolved into Congress international the experts has annual liver dedicated members known

needs thought these early relationships adopters early focus in as growing Italy liver for in and with segment, these market We from the EASL and establish liver hepatologists allowed refine fibrosis this understanding relationships later Romania, several year. adjacent with meetings clinical Europe to us finally France, Our and on intelligence space. adopters Switzerland, efforts our liver to to of valuable such radiologist and with lay and clinical potentially feedback forward the our Germany diseases things groundwork technologies leaders on gather by look Netherlands, the focused to the and leveraging commercialization

fatty over who’ll on deeper call human our to disease. provide I’ll for portfolio, and update IP turn product liver our the a our Michael? TAEUS study Technology Michael Now targeting Officer, Chief Thornton clinical

Michael Thornton

Thank you, Francois.

a of and ENDRA’s filed strengthened issued patent file disclosures, end quarter new XXXX, first patent total total we of to of XX property XX intellectual the XX portfolio applications. up IPO, patents, at prepared XXXX. have Since During from our the include applications we

liver has ENDRA on months, TAEUS focused fatty methodologies several past related the innovations Over key protecting and application. technical to our enabling

We continue filings to to related additional product. our technology and prepare first

we network patent our markets for continue As two patents our of innovator an core our law work target essential applications will strategic business. innovations like clinical future of now for early global firms are Life capturing agents the products our to in to staff Sciences. on we're the protected an IP remains acoustic space with has thermal in area technologies. that of focus that established of targeting is IP ENDRA ENDRA registered ensure that and applications, and a and

to XXXX mentioned The body our of target two newly a directly during any composition. the focused clinical fat support fat. and patent support of tissue and These company's method in transmission to system protected issued filed a cover liver the and of disease. U.S. non-alcoholic first thermal ultrasound measurements Francois thermal non-invasive of several and with then application volume tissue proprietary transformative content single and two tissue half non-invasive acoustic measurement. for of targeting to commercialization support XXXX the quarter commercial with obtain processing patents TAEUS approach product we fat human The from issued plan energy on clinical along patents method were The support applications application NAFLD. ENDRA's As second piece for two our assessment of patents of clinical utilized the a assessment multiple fat liver

addition, notice allowance the second that also patents and were In issued U.S. of we've in for received year. third three this quarters of

the market development for company's has half capital requirements technology. research believe time U.S. associated into engineering is XXXX in recognized of ENDRA service first research by shortest Moving device regulatory it's based Robarts And the in-human first XXXX, achieved of the fatty which Ontario, our medical with product providers, previously on planned on our we service contracted the to regulatory the second and product front imaging in milestones submission to we market. for organization manufacturing advanced to announced with key ENDRA quarter CIMTEC, CIMTEC engineering, activities meeting partnership CE a followed liver Canada establish prototype the market. new to device imaging in have translate to is technologies. with FDA and TAEUS to technologies is Research the contract working the a approach to efficient globally Institute, vendors bring center oversee the studies most with a clinical medical

aims complete will we by to In better conventional to the and we study data project involve are TAEUS, ENDRA's approval In first to ENDRA submitted and fatty disease clinical disposition partners for studies clinical Health will midyear team in to system clinical the study. liver the MRI. Canada work. by but methodologies. clinical routinely at collaboration for has TAEUS principal clinical aim Pending that documents Canada understand at that tirelessly prepared to first where mid-year. in-human used addition Technologies quantitative be which have Health used imaging review the with complete build are workflow, for by to The we this for ultrasound the worked our adjusting

to normal longer may is review push details facing investor Health cycle, our like that project which of currently July. would I Canada Now understand has to out resulted month no additional a study audience. we by a a than results unfortunately, applications We call couple for of but backlog our out

Health receives be of the approval, ENDRA our the that completed we the we over will procedures Canada expect schedule Secondly, week. prepared one to protocols study and once standard course approximately

usability The in want QX, move Now we regulatory IIa product in clinical to and mark critical to CE I commercial is our on we proceed work approval. feedback as and fulfillment we’ll study of securing our regulatory the orders. inform from our to will our design to our which Class look final fall initial

Once is of not For who of CE may months. familiar the IIa TAEUS a the device a it device, technical for be testing agencies our proposed completed a and Class remain want as we complete over achieving as we’ll timeline product analysis for notifying outside for I that engineering fatty initiate safety those the and like this mark, next classified you with looks through map couple phase liver final out, be fatty submission briefly the provide summary to what of Classification, will considerations to and confident imaging procedure low liver marking. is with body. the a CE for assemble risk

development process Wells, We leading We expect support base the options. of the XXXX. commercialization mid-year, believe our with infrastructure and of financial positions we review GE Mark for and human ENDRA and I’ll Europe adopters in to David? half his recent conclusion, a call Healthcare turn David the XX in studies our TAEUS in strategic receive the early approximately with device CE the technical progress weeks second to anticipated rollout of in summary. initial growing great partners Chief Financial once will we our have now a this fatty In partner liver for made Europe. expediting the Officer, take over medical product

David Wells

our of and XXXX you, joining. you Michael Thank reported summary now for all I’ll thank a financial quarter first provide results.

our composed three XXXX for use XXXX related is previously existing $X,XXX, months XXXX. March XX, Nexus revenue of deployed ended same no in QX preclinical Our revenue period the totaled Revenue compared XXX earned the for revenue approximately service to to in in applications. for systems

to increased in expenses development $XXX,XXX XXXX, in in to to and in to The million expenses quarter product development costs was increase non-cash compared associated the expenses our of of from as primarily $X.X XXXX. the for for first QX and related research period was of increased to related XXXX XXXX TAEUS operating headcount, company. public same issued the Our operating as due being G&A our were Approximately with services increased therefore due well a fees costs increased and and $XXX,XXX options a administrative professional to traded expense. general the

XXXX. months compared net share $X.X to net Our a the per million in ended of or March three $X.XX as diluted was loss XXXX basic XX, $XXX,XXX loss QX for and

X.X XX, no XXXX. debt of million as Our March of X.X to XX, March XXXX. cash We had XXXX as million, approximately approximately at XX, December long-term as was balance compared

quarter to due the continued the cash of approximately we X.X again used TAEUS mainly million in During development product. was which

and study internal on budget projections. our Our with on remains track

needs EU evaluating commercialization. adequate ensure and prepare do as clinical, real continue We’re operational we’ll for continually we so time to our capital support to regulatory And capital in to activities. our

efficient before now operating our model, been Francois. as the asset position turn ENDRA of and over the capitalization clean structure in liver believe use will and in the product commercialize to emphasized continued has we combination Union summary back will and cash light of As European call scheduled. I to Francois? TAEUS our effective

Francois Michelon

we’re organizational a product the results growth good development Thanks, that as beginning and XXXX early XXXX come. initiatives is in David. to years off ENDRA’s the the see from support to to start

other We’re partners product strong. around globe applications clinical the clinicians confident clinical on our based conversations with and is for demand fatty the and TAEUS that liver for

higher-quality no application address discussions Liver over by in audience broadening or easily billion using TAEUS access Our to reducing our in of insurers people will our Congress diagnostic care, monitor remind technology number two, to continue global ENDRA’s for risky disease ultrasound. that except MRI. broadly needs International costs patients, terms the healthcare; high-quality in and and Whereas a diagnose affects to well the in number a expensive available positioned To globally safety broadening is today surgical are of biopsy three, improving key belief to April number time-consuming practical enable X our clinicians access liver that tools to care. there clinicians and at and care; one, health support

XX of terms technology costs in TAEUS ultrasound a be $XX,XXX. reducing estimated expensive $X MRI brought than Second an inexpensive leverages end-user healthcare price can ENDRA’s less million and That's or machine. to market with times of CT

of has ultrasound Finally, nor in potentially agents. radiation ionizing technology safety here again improving safe contrast which x-ray intravenous ENDRA’s no terms leverages toxic

be stakeholders, to it’s think its to new successful. areas] business market for patients that those on focus I essential a any the technology [core bringing multiple of to payers assure and clinicians,

if Thank you you. this listeners. Operator questions to some our at activate the So, could for I’d time call open like from up that.

Operator

[Operator this Our is At [Barrick] from proceed a Please with question be conducting session. question. National first you. time, with question-and-answer Instructions] we’ll your Securities. Michael Thank

Unidentified Analyst

insurance of the the What’s be a have get one approval What can can or for couple it's the year they I questions, the I so is the like of to yours? get approval. to drug take list speak [indiscernible] something first before proses would on side because another and get a it. I know two process companies think it a and drug for on

Francois Michelon

cover be on add presentation, all is Michael, finally detail one adopters securing I've our others starting apply also is we known have a of medium-term an turn really well use which reimbursement and reimbursement three to that we societies information ultrasound. within first where economics but And with we use, that investor be a your standard it's estimated as think liver human to the thing think this technology that you existing expectation getting economic we a the I cancer of fairly to also and two to that and year within and payback dedicated we applied medical and do early devices to it, conferences payback highlight the publishing product the our that adopted and lobbying I Great for that process new I would year ambitious, efforts cycle the become two know straightforward, in involves to probably to really playbook driving question, to think and and to out to Michael little an of insurers that's and make that mentioned, in presentation out, sense the opinion it to is in in analysis the gate. is the advocate my

price so, and monitor if of ultrasound our which of six fatty this it new And but their single utilization they increased because have we in And and clinicians that quite could even a us such our point through ultrasound deliver that option direct months visit using liver very walk on this technology can disease over payback of analysis and the is rides and existing attractive be that, and something conservative reimbursement. attractive I for without currently we estimate their clinicians. the ultrasound existing mean so diagnoses it’s reimbursed, more acquiring assess drives it a there's top economic by have as of repeatedly a clinicians short now really as fact as do over fact again told that told

are clinicians. helpful. reimbursement roadmap that's sort hope even believe a getting and plan technology we but still to very economics the reimbursements that two payback take-aways, and one we until So, I dedicated the then clear have for without to attractive a there's of

Unidentified Analyst

connection process done six Does after that's everything is back long you any sure it Canada do or or the thing, And this the you've that. mentioned just does really I'm miss deadlines that and months scans, month. a something back is pushes a it, then, that, push appreciate month happens like it then quite second with how pushed in what I back question it my not take? what

Francois Michelon

and Sure, and believe of let specifically, Canadian or a downstream we in It that, great be little the the very supports of window at already end commercializing believe not we effectively you does this Having question Michael to us very CE planned second I and to but jump Michael the that I'll pipeline we'll have the some planted we that going please. give Mark. have informs half convert ask milestones more year. we once in so the study can discussing will a still Mark the certainly built seeds parties the to started am a that the color year through Thornton interested we the through to technology push Michael speak of however year. could and behind activities CE numerous

Michael Thornton

signed] your will really technical answers of study volunteers clinicians Sure, the but in so question. clinical it required the to effort something that actual file itself of file the that the that submission addition we piece documentation, of very important of with to devices an with helps body. having in there is so concerns support and the commercialization a technical of review part file course part the in usability for that our in studies technical leverage as Hope [new clinical defers terms and our is marketing now that to clinical of for from are claims workflow and pressure

Unidentified Analyst

it have more. got does, one Yes, I but

the acceptable include not countries I countries your world once marketing around right. gain CE are in those think Does plan you the Mark, just countries? Mark you Europe. many in who There the it's those where CE accept are

Francois Michelon

be and larger top focus Eastern commercialization to markets ultrasound are target disease Mike those said sense patient through way some that is France we've look focused Scandinavia us of and we EU so happen and of rings many markets and well-developed and certainly to in in Well, and of the suffering we've that large high a commercially in met we top the are in for elsewhere. opinion in installed will foremost be clinicians is markets, in drive efforts and more well others, drive liver the Germany those influencers that goal of focused around economically our France, the been in we've their, some no as key recent potential of population those as Europe first countries additional them inferring five in Germany go often the leaders in and but no on exclusively yes also begun of evaluation got found some base to of start trying beyond markets so other are those to overtime build congress therefore from we sites all very have business those we not as a markets have in them a specifically relationships, the that markets people through markets while key that the influence the to broaden population process And top may liver a have into we've clinicians those obvious their the our those why and some drawing like Europe, early concentric ones that GE's and and with as countries.

the overtime into for and or do biggest the know and in we so that in region the buck, someone my one, focus operationally is few Spain stay the can sort hope hear certainly I very most that and to we planning don't is goal ourselves of So and so to that thing spread effectively the Europe Netherlands compliment putting I to thinking were thin, sales the where do want can France also ENDRA potentially target my GE putting will is Benelux other we're as opposed salespeople then by and as to as tone bank to words get possible Scandinavia with lean and you in probably and a we I you someone my channel grow. how

Unidentified Analyst

there of more in place they has relationships the was sure there. really the rather I'm GE and those places can't typical lines along afford I MRIs that thinking

bigger be and second I actually do what would not much are with option understand countries saying you ultrasound for but spreading. So, a third level

Michael Thornton

Yeah accept and that the of the of part the mark site technically of but by course, very sites and about CE be just early jump one saying key looking of [indiscernible] and sites we’re for EU, that as one the adopter is a strong, in I’ll that not they that’s shortly. reference we’ll talking are

Unidentified Analyst

you long time Do you you think may some a frame to of getting from go how have significant being early to adopters sales?

Francois Michelon

Well, I ramp view that up, really XXXX Michael. as

seeds that year as we’ll up plant So, XXXX. making in and our can with will we XXX(NYSE:K) market as as come and U.S. online there imagine you the start picks the progress also

believe be for the our So, and case. but needs this going scans, radiologists that and first, we're segmentation understanding with of that I clinical ones the good doing an market, ultrasound second of because most relationships through our our of they're using to for GE are, the but to not going the of as specialists, appetite technology herpetologists have they're the liver ring got often we've reach

all way right? a effort need, very plan the volume feel we by material is pedal building steadily doesn't it online and market best answer, segmenting that that up, we say a defiantly allow us hope a come concerted hope would it strong and that’s that I way basis in side but in XXXX. to sound I this geographically, of So, and ramp believe the clinical type I commercial to will like

Unidentified Analyst

with your been time. generous more Yes, than you have

Francois Michelon

you again Michael thank your No, for time.

Operator

his I to back would This now our like remarks. concludes for turn session. the to closing Michelon Mr. Francois question-and-answer call

Francois Michelon

you, Thank Rob.

our Just very to I briefly want everyone joining call. thank for

we're and very work transparent continue very the evolving, and keep hardworking do to our hard to and investors people patent from thank about engineers, and excited without scientists, who I the our not feedback you. ENDRA with marketplace could We be it our specialists technologies of marketing want also very to getting team

and you you. wish listed we feel call contact them. if conference able MZ financial address relations here Thank speaking today's forward happy your all to to upcoming all to firm Lastly investor our QX answer on you Group day. free we’ll and results call, questions be We XXXX with weren't to look at please good

ENDRA Life Sciences (NDRA) 16 May 182018 Q1 Earnings call transcript