MOTS - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Motus GI Holdings Incorporated Second Quarter 2020 Financial and Operational Update. At this time, all participants are in a listen-only mode. There will be presentation by the Motus management team followed by a question-and-answer session. I must advise you all that the conference is being recorded. the to turn LifeSci Yedid to Advisors. like call Bob over of I’d sir. go Please ahead

Bob Yedid

company Operator. President you, for quarter Representing Officer; GI. Executive GI us you Chief Taylor, Operating the second Moran, Financial the Officer Officer; call. Motus Andrew update Mark Thank XXXX thank Chief Motus And Pomeranz, everyone and Tim Chief and are for joining of

that over to company. These forward-looking statements I and of minute the the could are call about differ. to as that only conference you subjects cause would to actual these to to Please date opinions turning their note statements remarks, risks results of that management call. webcast our Before reflect opening statements uncertainties and a like this take remind forward-looking will this call for contain the

We an will from results statements Moran, or on in of with XX-Q it’s discussed in the in recent reports most are on and CEO Tim? implied cause that or XX-K results pleasure these publicly or those to those light could any revise my future detail of statements release such to now over and Exchange forward-looking periodic differ Tim other Motus revisions X-K by materially call new outcomes information our to Form to filed Factors Commission. and to the our in remarks, Securities not filings With greater of Form forward-looking prepared the expressed obligation events. or undertake actual turn GI.

Tim Moran

months as our our start financial the over for second Andrew remarks, the on continued the call we’ve COVID-XX. I’ll focus we then open to most earnings afternoon. to commercialization of Thank their our business several all turn of unprecedented to you the you, driving will the prepared they’ve the second the extraordinary joining start at review shown update result the good call today through like Q&A. of a our calls. for thanking challenges Thank I’d XXXX System. Motus last for end At And for our by for Bob, for Pure-Vu to and employees GI importantly, us navigated quarter. results quarter strategy over by providing and

to addition of launch, key I U.S. providing a the on In topics our execution discuss progress update will product today. three

First, to the impact on while country. been now due hospitals, certain activities the of the U.S. in we operating environment current back picking challenging has seeing up are areas Coronavirus

role develop centered and first Pure-Vu there’s procedures market issues, on can of positive continue first UC-Irvine, in adding need has Pure-Vu, and saw In this a the a play approval demand Next, key our ensuring for around evaluations for a finally, And market the the our outcomes of can quarter quarter. efficiency strong we the we use In believe to during new new Pure-Vu. account, impatient the protocol VAC we technology. the spite pandemic of in generate are amplified colonoscopy clinical in clear and time impact of benefits. completed result and importance hospital economic the time,

our the it challenging the by was during to last As due relates to main two COVID-XX, environment operating themes. period directly impacted most business

attention and procedure endoscopy related was lower. to when XX% According cancelled volumes a volume conducted patients, procedures either dramatically U.S. NYSGE, Hospitals by by absolutely possible, unless type. First, turn GI all to of delayed for COVID colonoscopies survey the colonoscopy addressing to weekly necessary. XX% declined their

for QX, also we to and commercial evaluation. committee value to I launched in to COVID the In Most make Mid-Atlantic, any report to be already found salespeople were guidelines of and analysis, affected and In interrupted new their to unable and systems our also which progress. temporarily for ability technology our distancing, spite placed. team that drive continue support Second, solid had due that social new been both challenges hospitals existing Texas, our of placement these many the am meetings enter shutdown. accounts, our to utilization CDC successfully by ways to halted California, significant Pure-Vu pleased new us that trial continue restarting while roadblocks evaluation, system

in As hospital new a including QX, to Hermann that the have Hospital and through System In at I’m of aims reminder, now Health, our and in pleased interaction market. helped XX and Baltimore, Pure-Vu System, institutions leaders, also to to in leading earn the additional Health drive System. who endorsement of the Medical System started of the evaluations by experience target Health physicians opinion peer-to-peer strategy Pure-Vu Memorial the System Pure-Vu U.S. use report Sinai part Geisinger awareness at the we UC-Irvine use major and hospitals. we LifeBridge more than Center, key

and Additionally, UCLA Texas, several procedures accounts of our Boston, University VA of including began again. performing

of of Pure-Vu pandemic, when can patient a is Pure-Vu have in a delayed. market June. XX Pure-Vu of economics. Samarasena over Dr. has there and This a optimize the hospitalization. hospital serve dive at Covid-XX, him for aims to inadequate exam on the country on we to the implemented addressing needs that want protocol to on believe the prep the eventually problem present that now is believe they on Pure-Vu using is well ensure of be impact their significant Regardless believe Lab scheduled completion, than also at less Jason need conducted, key are successfully in based we for clinical hours I in to-date, a avoiding on prep and quote most regularly highlights which and not Health procedures hours light protocol care share evaluation nights Although, and GI patients. procedures our inadequate we began and allowed these Pure-Vu when even these quality they’ve Especially and our colonoscopy historically how a volume of provide to Pure-Vu see reported aborted has ensure quarter quote, and a of has Pure-Vu they than Pure-Vu other appreciate strategy a exam early hospitals lower across into would through XX believe patient patients. the Dr. gastroenterologist enables insufficient a I prep. avoid availability, has is of with less in utilizing Samarasena deeper to continue bit to extended that sleeves. therapeutically diagnose UCI Inadequately end patient their strive accelerate Their or technology. extremely protocol procedures. the across power patient. to to this we that only development interventional We well that overall evaluating patients U.S. high Pure-Vu is UCI on bowel this by of to work will adoption greatly will time. perspective process additional the and UC-Irvine as to we we that time hospitals prior in protocol a but patients and we patient’s patients delays and Despite treat appropriate. sharing in proactive a as before can This a with either has Dr. in a impact to developing hospitalizations get Pure-Vu working unnecessary of confirm his we broad has most due existing identification the been the the few significant commercial high-quality treatment Samarasena, I the inventory will bowel gone leading bowel earlier, our System’s of the were to us thoughts patients that see us delayed a with to shared his been colonoscopy following instrumental are as prepped experience

Most broader launch. building in our recently, are within is team into of to the of The see strategy after We This our to hospitals in expansion nimble COVID-XX. targeted Pure-Vu generate related System Cleveland proven just commercial upcoming changes of pleased a both our the has within health and effort future Mayo to to a to Clinic I’m we quarters ongoing part commercial Clinic our adjusting demand key the few this additional be adoption our System evaluation. schedule traction and for to use system.

of our well In feedback for the overcome our sites, Virtual issues Program access as positive order a The Some able our many perform new that pipeline ensuring remotely areas to training early launched by are we virus support Customer to sites. facing in been and order In and we’ve on the forward, full minimally we surge. that will a focused are continue impacted were XXX driving remains over currently now sites time procedures quarter. evaluations. has at we’ve previously approximately second salespeople we been our Support as execution conduct tracking to believe for

of launched effort, System part in new resources GI that a mobile a we As Motus this plethora for app users. valuable of Pure-Vu May, late provides

Specifically, provides System. and this the the the that chaptered video narrated covers Pure-Vu setup support of use and app

review a execution technology number We we at benefit have solution COVID-XX, remain We just a continue partnership new scale process make that gain the are significant for them our many continue a to customers can as an for through to to introduce commercial and progress, hospital and partnership our difficult we seeing our downloads to I additional strategic Andrew early exciting continue a economic the customers. to new growing a to well with pleased of ask From of that I provide potential technology This to a conditions progress GI pleased clinical second of associated financial commercial Andrew? quickly. the evaluate challenging, opportunities app as now seen in quarter. into towards VAC top am and the time, our adoption GI provide results over as could will couple and time accelerating months. purchase the evaluations the established perspective, more with market. Motus our the larger is confident Pure-Vu are that of for market footprint utilization. Despite and via we bring solid

Andrew Taylor

thank comment. the nominal, for us the in COVID-XX macro disruptions Tim, quarter ongoing in you, which attributable his Tim Thank today. and second were caused was for you by to which the Revenues joining everyone just market the detailed pandemic,

compared the year. share $X.X net a or June reported loss XXXX, $X.XX, we to loss of $X.XX a per million three last or a loss the net million share diluted same for per of approximately months XX, $X.X ended period net For diluted of

of second the activities purchase and million, net in a to cash for similar $X.X operating for quarter, period million same the During of XXXX. the fixed assets $X.X was used compared as

in take to shape cutting began the net during of previously our cash measures past As year-over-year and cost our results loss comparisons this spend early activity, of reflected quarter. announced

XX% $XXX,XXX, compared we approximately expenses resulting we previous Tim. the for of We And $XXX,XXX XXXX, to of with under agreement a implemented cash I’ll with plan, included The to second call loan million restructuring with million half cash costs Silicon XXXX. through XX, and program. in together this date maturity with cash forecast, XXXX only the reduced largely payments as plan burn $X our we with to of held total June one-time of previously interest and approximately June over the in June approximately Bank of approximately term provided this our $XX.X million $X.X This million significantly back XXXX. At turn equivalent. in have range this now under from other that, were $X are a XXXX and rate charges associated Valley GAAP enter

Tim Moran

Thank you, Andrew.

summarize. me Let

Coronavirus hospitals, in the the seeing on we country. been activities has are picking While operating the areas due impact challenging up now to certain of current back environment U.S.

call issues, we risk, System. believe is environment and this finally, which demand efficiency market in can time, completed Pure-Vu we role now can amplified and a the believe strong trend result hospitals to in for we of the key spite play technology, economic evaluations on need the favorable first I traction continue to operator The continues of there’s impact the and improved us will a becoming hostile hospital during pandemic the And newly we colonoscopy the importance our Pure-Vu to gain in the in benefits. for of generate quarter. and ensuring ongoing there’s Pure-Vu, acknowledge Assuming the Q&A. adding ask time, are with market for clear more open procedures for has positive and that the clinical outcomes

Operator

proceed Please Instructions] Thank from first you. [Operator with Sandler. O’Brien is question Matthew Our Piper question. your with

Matthew O’Brien

sounds is like Thanks guess for rev obviously my saw getting, what it attention starters, afternoon. for on existing number taking on utilization existing the quarter, because your but you Tim, side can Good talk questions. you revenue the working just throughout I hospitals the about are products. --

you an utilization are then of here see June, July May, from Pure-Vu did what April, in seeing you perspective? and far what so So, actual

Tim Moran

for question. Matt. Thanks, the Thanks Yeah.

in the down first prepared in of let early procedure saying, mentioned part I the the So, start as me significantly. by quarter, remarks, volume, the obviously, was

saw VAC for of of if bit most was new in the really halted And there not embracing mind also process new you We a process, technology our evaluation share will, a technologies. sites. refocus,

impact sleeves So, the obviously, consumption direct of part a of just on had that early the in quarter.

we have to seen I’ve would reorders were forecasted, now As move other that happen expected, them to internally QX.

volume call, in early our down, said, will cases was we planned in to it some of directly target the hospitals. XX% in. by I reorders some of procedure here, as start was to really XX% just of, of We’ve So, fact it but of already key upwards I some see think, and many the impacted in coming that seen the part QX

Matthew O’Brien

Okay. But with that see Tim, still are mean, so to trends colonoscopy? I pretty respect this of June utilization people encouraging at were for specifically, or you point, locked especially did down Pure-Vu

Tim Moran

Yeah.

So start see we It view, to think we from was to in. signs interesting. my I see, start encouraging

come So Texas encouraging. early, to was very start California, back which see we

we’re mentioned, up have open believe so down, facilities I we’re working search the like New in places things or As started things back but slow which that seeing York, also now it to Mid-Atlantic shifted has the and there, not. in Pennsylvania, some with

back of to procedures, doing signs, a think I slowdown in there’s think, are actively our half man, So accounts the certainly seeing but the balance. still I about we’re

Matthew O’Brien

you when doing those say with Tim, are employing Pure-Vu they’re Okay. or… procedures, they cases

Tim Moran

that’s Yeah. I yeah. Doing Doing -- Pure-Vu what procedures, quoting. was Yeah.

Matthew O’Brien

Okay.

helpful. Okay. That’s really

could How I now have hospitals third Irvine, How specifically, about know got this. fourth you XX be? they Pure-Vu doing many they impactful them even really potentially you’ve adopted quarter have For could think for quarter? where and here we to procedures over seem placed. a the the alone UC-Irvine in But

Tim Moran

So, of we’re Matt, UC-Irvine. seen pleased really all, from first what with we’ve

really, here identification He it’s Dr. So collaborator overstate I tremendous with mentioned, sees really where on coming a proactive the Samarasena as process I this up is how which the protocol protocol, need, outlined, significant folks and has a facility a important really coming can’t a actually is, have been a if patient out to to very guidance Pure-Vu and was important, I help critical. for product. the him because particularly are he and part servicing that we his taking remotely, which have now even utilize input really we was few where of tremendous. to of prestigious and in KOL that training in other use sites

said that it’s but in XXXX I’m at I I’ll call a going to look a opportunity, it, you there’s you tell year. range of, upside that XXX they specifically, inpatient not significant now If site, quarters to fall into comment it procedures that couple for -- that,

end of XX% call get Matt an I would would XX% towards say accelerate procedures in, that’ll of the impact. and think then XXXX, probably and we ramp it, start to that make to nicely. I will a would starting quite is to The we we like to as accelerate. So the to we as the each you with we the couple I -- start docs we rate on, know, quarter trained continue a physicians at are reason as expect start -- and of more bring just procedures, that doing lower can

Matthew O’Brien

partnership this for side rate on that still the quarter. you you I the burn down then to And target one $X just situation are the about capital in if last fresh number million capital expected company? Got said, the about of that Is the it. thing, me likely think, of mean, and most some terms then, get financing is options? avenue I feeling or can starting of other how you lower, potentially is you

Tim Moran

Yeah.

Xst. March think, the together, I pretty So cost program. mean, call announced making listen, a on I that I XXth, know, were decisions pulling it, the executing decisive quarter. here on, April you did second great we that reduction job as team We in The in

is behind us So that now.

$X $X.X So our be the a amount reduction burn being on to go-forward range, expect to XX% as a quarter about forecasted the from million I program is we’ll which in installed. a million basis, fully cash prior

So of we just over year that Andrew what look if now. on detailed, have you based cash at a and right

to We front. you it financing the continue have to continued have on strategic But a - the mentioned, to relates as partnership markets that dialogue there’s good we options us. to dialogue as different will of the available of continue are obviously capital have very company. to variety But way,

timing get some think to I that able comes that. to down and executed of being of So that

non-dilutive We are avenues other evaluating as well. also

I with for the company and we’re just what’s here time shareholders. and best our opportunistic think, got be we’ve going So, to for

Matthew O’Brien

Fair Thanks enough. much, so Tim.

Tim Moran

you, Thank Matt.

Operator

& question your with Please Oppenheimer our proceed from is And Lichtman question. Steven with next Company.

Steven Lichtman

I’m you a How Thank physicians hospitals many guys. in mind on been definitive to-date have now? say with. are the would many XXX commercial you. engaged you’re Tim How you your Hi, trained just more a mentioned, then, was now? in And wondering updates backlog side.

Tim Moran

Yeah.

trained, the regarding in GI outlined, the another training, Motus late that we part actually procedure. product awareness XX side allowing quarters to of we’ve I I of launched all market comfort is remote us the it, done a and that that May roughly the quarter. just that Steve, number do the training reasons pleased for the than am this on but will app about and with an say obviously we broad successfully. a Obviously physicians getting that in become important call to continues smaller So, we was previous note

They in has if staff the either protocol perspective, facilities. on and use by that have positive of very in there procedure. the these now is we’re be So feedback had away national without number been based in the allowed in our in things rep very, very hospital the of done pleased physicians of, From the not been continuing to of expressed of able QX, about we’ve we a types there. significant terms for When downloads want can’t in I’m large both to the easy a tool or pipeline We’ve be us the to we get one to a a procedure to launched last we prioritize have with with. of chop developing a grouping facilities being together spent market influencers terms of terms is, build plan interest. very backlog time we that backlog. hospitals. clear XXXX, But the that sites regional year getting that at lot that of of foundation And

I So accounts in before those of have when opening evaluation are their of hospitals seven is a facilities reps that we approach XXX the the quarter facilities out we already reported take, of new keep But pipeline. All methodical are third onsite the participate. on people through based there. the cost we year that the very did for in process. up have terms of think, and be to Steve, into timing number about our reduction, We we scheduled mind, of part as for to continue how reduce sales add evaluation we also in out. And

opportunities. manage trying number to continue right So we’re the of to

of experience So any these we have a sites. good with

Steven Lichtman

then long-term of versus important the placement, Got over in Tim. to are you it. Thanks, consumable. is you’ve know I said system placements terms obviously And

systems that looking sort in buy? forward I of overwhelming of in majority lease to guess would continue So near-term sort the model should of versus be think the we the

Tim Moran

typically COVID kind been budgets Yeah. that just that that. looking upon even We think we’re expected like. seeing constrained, That’s I launch of with very have where but the what capital more it’s of

back indicated usage facility, or lease to due a sleeve towards one to that of of account working just a a on been I larger going came of to and rental and to to had model. COVID go and dialogue either a that As from matter to revenue basically a they’re with capital the perspective impact is has fact, facilities now their commit our have today a

My capital So I start to these would be on next next over of some estimate over would of would two. of course programs to the they we expect best couple lock amortized the be see typically down as year that the sites. early or quarters

Steven Lichtman

next to procedure or that the of from start right obviously, then And lastly several from environment over months the getting look few Can podium me, out data next it. given collection others Got the Thanks. Dr. could mentioned are now. quarters? talk you you sort such volumes overall potential publication presence Samarasena the you low as just for or over

Tim Moran

Sure. Yeah. Thanks, Steve.

things GI that seen, of Pure-Vu but Motus media before podcast specific on social have launched as mentioned So the series. we one you the I may data,

launched podcast how the as specifically significant KOLs, So they’re about real impact care, I we’ve about cases both world patient had well Pure-Vu, three the into with talking am now market three utilizing it’s talking as on economics. and

to going that. we’re continue to So do

relates to up, we now studies. continue creating patient we ramp back to procedures collection, case see As it we’re -- continue of that some data on starting the work to

out I in digits use case in our that with now of approaching to as we drive high-single market double think the to key up salespeople awareness. tools are digits the studies terms that we’re of number

some KOLs have of come now. some we have of expect in presence back to podium we the more experience will that hopefully had -- will conferences these have of next quarters, a the several As with

are The the institutions here but other in we’ll healthcare work get we U.S. into most in prominent additional mention the some on more embarking that the thing of is, I’ll one clinical future, detail study

study that We be focused will are of working off with right stages clinical kicking critical on ICU patients. a on final most type the now

accelerating come So continue more but of XXXX. that will we’ll the part important commercialization XXXX, in that, I be end to something think, in, but of actually invest the on also to that’s

Steven Lichtman

Great. Tim. Thanks,

Tim Moran

Thank you.

Operator

from with Jeffrey is proceed Ladenburg question with Thalmann. question. Cohen Please And your our next

Jeffrey Cohen

and How you? Andrew, Tim, are Mark. Hi,

Tim Moran

are Hi, Jeff. you? How

Jeffrey Cohen

in about QX and separate Andrew, line thought million spoke a Good. guess, for disruptions the more question first on modeling post or I of when change a you $XXX,XXX so.

that expect and your in as will June within going any show well? G&A in QX further and is assuming also do $XXX,XXX, I’m you fell then up So disruptions forward

Andrew Taylor

Yeah.

charges, all. marketing payments, QX. actually - the payments is Board well. sales, $XXX,XXX and hi, in they restructuring severance the in little related bit Hope in of restructuring first The G&A, primarily any a QX R&D, doing personnel and Yeah. not across fell we’re or everyone So charges and

we low the what I it’s are of So at think expected us. was end and behind

Jeffrey Cohen

it. Got

you remember Tim, you the I other talk plus about can how about, And should XX users. talk Okay.

me Let on or been are talk you’ve to trained hospitals one or two or to closer average three four? per

Tim Moran

doesn’t It’s physicians. or I average I an closer start the way three docs. to with translate additional number. It then good Jeff, quickly probably But necessarily probably four. a between think sites that’s to eight typically early have in seven call it. think, like start that’s it or to more or that some to three about think of bring of and on We the somewhere two upwards

Jeffrey Cohen

units and you inventories the change about but lastly are your was the manufacturing just talk it process higher, and like could minimally currently talk on you. the a and looks And both Thank from build Okay. the about sleeves, assembly the inventory there? QX

Tim Moran

Sure. Yeah.

probably enough of build seems of we that disposable preferred. at our breakout, end of most look you have Andrew say into now and we think I’ll and expect this quarter between can conversions enough disposables. is a additional number workstations the we did expand and to to good for And large that hand what the probably on on XX. slim So are that allow But a first It of enough we right really evaluations our XXXX when and the now have the similarly if necessary. the

good we by ample to they’re have been directly up customers, impacted about on we our running of have both So serve inventory and not being also our partners feel COVID. and manufacturing able both and

Jeffrey Cohen

Yeah.

for for does Perfect. the me. Thanks it Okay. taking That questions.

Tim Moran

you. Thank

Operator

from is Please our your with Colliers. question proceed And next question. Bauser with Kyle

Kyle Bauser

get Good placed. one then Thanks how have earlier the on marketing then, the think, more not pack procedures evening. but many sales questions, accounts, believe recognized, available to samples. is of course a been Do Do I to obviously, drive than adopting following get to for Maybe mentioned, up place? sense typically I sleeves to virtually trying five they And of reps the for Hi. the the Pure-Vu utilization. been the reps sleeves in item, of enter here. be updates revenue, just counts present samples? get line the machine five expense I’m take new And haven’t a for to, particularly hospitals? early of secondly, or able Matt’s you typically need hospitals

Tim Moran

for Kyle. you’re Hey, the questions and hope Thanks well.

right? So needs to right? further that, the to some from technology sites, with become so the rep the new floor understand available these first continue, rep technology, done as the they on the part nurses group I large think there’s build of this perspective, staff, with along been early site, making let of there the But will, you self-sufficient the that how right so legwork we quarters support. sure perform about in perspective to clear that the about here, physician, and than wanting KOL it, they So that. the rep we’ve and don’t there From a do a overemphasized need you to reference accounts, latter the with the supporting be or me if process right, the cast, say, take part of key We’ve, would on if being procedure.

that that to So not we if all right? we’d is the be procedure do in time will. rep requires just of have answer over And of call So, you perpetuity it help question. on we’re procedures without what This of handful personnel that’s there your accounts to bring any a accounts, able expect Motus are these doing a site. that

Andrew Taylor

And Kyle remind the me the first part of question.

Kyle Bauser

samples if… about Just the

Andrew Taylor

Yeah. Oh!

Kyle Bauser

account. …new

Andrew Taylor

I am sorry.

Kyle Bauser

Yeah.

Andrew Taylor

Yeah. Yeah.

a the evaluation procedures. the done evaluation boxes try for site give will over get typically two and we of average, on So to XX we course

where can sites could way eight other, the but be or get some want third sleeves. that one larger potentially procedures, of it, input could go average, some bit the done, Now box, call they a physician seven or XX a more so little facilities it, on call

Kyle Bauser

Okay. Got it. latest progress nice the updates here. for on really burn thanks rate the And

me remind to to won’t you’re in in hospitals? sounds headcount five the been initial the if like that through you has at to or to likely near-term do XX adding envision sufficient the reps the cover needing take target back from down COVID XX you place Can So near-term. and still get

Tim Moran

Yeah.

we’re So taking has -- so changed. nothing

haven’t reduction We the program. did any headcount made the changes since we to cost

view taking demand We’re in very close certain markets. a on

way it, very the with so that a it’ll the that we’re be it rep as in we we commercial just number Kyle, where can’t folks far stretched, think, taking right do we’re continue now add about of cautious the and is back, places primarily looking we’ll But in So we view. I have.

team. you we’ve bit virus State and team of about the we’ll some in VAC from So analysis the completed this very, was done it’s that target for to to we evaluations. is and have accomplishment within was We started was committee Ohio value in where approvals this able able been quarter process know, size think have start quarter, a surge three All to a actually approval so today. we that couple I the the that entire which coming to taken And the difficult approved, that by a purchasing with place. and through see of been has quarter, of great if completed, a we new submitted that a get evaluations now right? handle, As moving orders terms were very

eye we’re and in think come very, So the that be will group on have sales we’ll we in, I’m accomplishing And close accomplish, for to keep very commercial of the that. working comfortable backs as we what but size ad a people. with I

Kyle Bauser

target regulatory some X indication. you. be just for simple Thank to And you’ll regarding potential too upper it think here, look Okay. you’ve special XXX(k) would Got a identified GI make the you natural additional the or How Thank pipeline for a modifications is opportunities, then lastly expanding paths you. version? would need it. Gen

Tim Moran

Thanks, Kyle. Great question.

remain organically. this on we here. fact I bullish and of market upper to So think, is had the the the for that talked The time last GI. opportunity really mentioned size the team I about the it, We emerged

the majority for in in So indicated using interest a for GI. technology have large working of been that potentially we’ve upper colonoscopy our facilities

a of internal terms be product platform in do expansion. development. We very can of we authorized on kind So the have believe interesting an a and project that funded

the I We’re a viewpoint potentially we’ll not but a closer. it a XXX(k), but is regulatory standard right path, XXX(k), little update get would as ready specifically bit now everyone the say, think to, we be

Kyle Bauser

Okay. Andrew. the updates, Great. Well, and for Tim thanks

Tim Moran

you. Thank

Operator

[Operator question. Instructions] Please is Our with Yi Wainwright. Chen question from your proceed H.C. with next

Boobalan Pachaiyappan

Hi. This you is Chen. Boobalan dialing in Can me for Yi okay? hear

Tim Moran

Yes. How are you?

Boobalan Pachaiyappan

Great. are you? Yeah. How

Tim Moran

Good.

Boobalan Pachaiyappan

So, few questions.

to like the might previous for change then first your quarter? thoughts the general hear landscape, versus remainder forward one, of or wanted and inpatient And this what year? not I outpatient The the especially quarter might colonoscopy moving about

Tim Moran

Sure.

about called per talked colonoscopy I looked NYSGE the at that procedure was facilities study by New that done So, region. York

the COVID able you makeshift feedback was to that many to there to our through course, significant as and were of I inpatient speak on. due In hospitals home and and been but I these to. Of they market saw inpatient at have both cases, COVID to GI focused colleagues elective, types. handle think, units from difficult necessarily wherever I’ll aren’t and procedures least in had really to colonoscopy overall units had kind think make we procedures been to GI surge patients. these we’re to patients that communicated, the last converted decision were I the translated related delay of working know the currently the More fact And that’s their And procedure initial reductions outpatient. specifically, what quarter, that

has that So few of to these here, be the lot to sicker a that’s we’ve need attributed do points patients that the been what I patients the we think seen. are decline. did and gotten directly But a feedback data

expecting have standpoint they to, important consuming. One from procedures to that comorbidities of, or are time going is issues bowel right? up, and through where very be ramp the very we’re these start patients and be difficult as other Pure-Vu they oftentimes to arduous getting will the So prep

the directly hospital they want that desired As if the implemented spending earlier at their related we UCI, allows in don’t more fact don’t than to, protocol XX that. obviously, need with to patient for being that’s the hours and patients discussed Pure-Vu that’s they any

about the probably we pretty the doing back procedures market that the it’s up. I that is some And But So inpatient. on resonating, would average, as pre-COVID have with types facilities bounced our think did of that on particularly they say in significantly. for XX% we the see volume they’ll message really of ramp procedure of be

Boobalan Pachaiyappan

answer remainder question, part or I might forward for sure I’m might change for the second the so, got moving the what the year? which And not of is not of the

Tim Moran

volume, have their get I not about many to would could the obviously, be to then to lost these volume to things virus, to markets, continue of thing to COVID previously try managed these their levels to well. impacted. I recoup So get up stable at procedure these physicians obvious if normal in not of one So, of the the volume, as the many the facilities think, a right? we is they above fact prior and of some in up to their higher start If remain that want our mind think that, many back revenue change, talked expect could us resurgence facilities

So moving it’s said, a of terms Yi? what it you’re bit we target next or the see for way difficult that over quarter looking the of the right of virus. two. now, a that was as in you it’s kind -- know, But I Is as that’s

Boobalan Pachaiyappan

bit, regarding some that’s what And think the gears if helpful. launch switching receive the and can, for a mobile areas then improvement? I did other little comments of you the early Yeah. maybe app, are of you

Tim Moran

Sure. Yeah.

a on to there, the Not comments chaptered and So but only the their is, or accessible, was in bit first mentioned full the iPad significant in-service the like is, of very probably, say, really So fact it. feedback is video, got But I right? download. from also amount that, as positive we’ve around resources it would come it’s it, one in-service have easy most beginning iPhone, high fact detailed about that, what narrated. end, that quality I the but of they

right? the go to as and device and at and and they’re they’re let’s setting to part time specific refresher. device the what new to So setting of it have and So look setup physicians XX-minute watch do they specific for a say, can of up, sit a example, clinicians can a these to they don’t the they go to video, can that So up part need they

to we’ve fact facilities. feedback I that the customize made also we quarter it easy, did some about the the app over think for So being able take

of process now making the the in we’re customizable. app So

specific on and use available say, have folks if only that it the at health would preference So be at you like approval you’re to system, type could a and procedure, access the example, that to documentation of for they obviously scope site. actually and input around that other tools physician

be on month. So app. we’re that, less this did that in COVID, working really team team will job together And on that getting go-forward. we think the the only a a making those something think adaptations marketing obviously -- during to I but not important just But is is than the important great a

Boobalan Pachaiyappan

All the And right. and the during I long-term? to like of approval near-term would approval hear approval have then, GenX in topline your impact Great. and this of Israel, what kind on will thoughts the growth on

Tim Moran

today U.S. we looking least for the way put of So, in opportunities the at I that that are of of kind outside the would category

U.S. sole our on with market So the our direct building team. focus commercially is out

also size those a partnership certain players to a least whether Israel, that as out the partnership opposed through with we’d well-recognized given We I and markets really Europe that in med-tech OUS bring that distributors in be accelerate team discussions, the other way environment. commercialization. near-term about think engage but think markets continue at could today, the But and large be access or may to directly, looking in to current scale building to our

Boobalan Pachaiyappan

will This Pure-Vu entirely long-term, System? by do Great. thinking eliminated the think maybe but the you bowel process prep be hypothetical,

Tim Moran

a studies say to several colon, and we of will colon reduced both you prep were Pure-Vued prep physicians are or that now would if in pristine get to the results high that shown able administer have in in so with a But significantly be terms is, a prep. and Well, rapid which nice. a significantly what fashion micro that the very I’ll about cleansing degree multiple reduced clinical

at quality first an exam So I’ve so without and device where urgent any our instances. a prep quarters able for all. and case were studies high that they previously few used a diagnosis those done patients commercialization in to And here have did procedure treated physicians needed they shared and therapeutically our couple get

opportunity a hours colonoscopy technology -- be reduce them will our sole So would for XX particularly our I to to is status patient. it quo. of the prep hospital forecast to clinicians continue minds, if think would seems bringing to it archaic longer and challenge get think bit just can’t that to in as our hospitals, think In do our procedure focus a but a I I that And both the than also an with start comfortable time. eliminated, they bowel of device benefit when remain amount for the a have bed, to the the but patient done. there’s

Boobalan Pachaiyappan

it That’s for much. right. Thanks All me. so

Tim Moran

Thank you.

Operator

question-and-answer turn end call will Moran Tim back of remarks. we reached closing And I to now the the our And for session. over have

Tim Moran

you. Thank time I appreciate everybody’s And today. Great.

right were to environment now. difficult share quarter. that operating difficult able even there able I’m of a we things But it’s the were some pleased very and very said, in we accomplish As hopefully Obviously, to some has been we headwinds. this

that on remain starting to some of purchase issues. resonate we time in as and of overcome to go-to-market accounts sales is us and these decision. access was put the process right think It a us the mentioned stage to the our reacted to allowing able storm. we And and the cost model through these support be ultimately each quickly now I then weather over We reduction driving utilization. our to has program with tools broad position digitizing focused

next quarter. and look So we’ll speaking continue to during forward everyone to update

So and healthy. stay safe stay

Operator

conference. today’s This concludes

may participation. your lines for you time. You Thank at disconnect your this

Motus GI (MOTS) 11 Aug 202020 Q2 Earnings call transcript