ABMD - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Q3 2018 Abiomed Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to introduce your host for today's conference, Ingrid Goldberg, Director of Investor Relations. ahead. go Please

Ingrid Goldberg

to Mike morning XXXX Good Director to third Bob here Abiomed's Investor Chief President Thank Officer, Executive conference and call. fiscal and with I'm and earnings Bowen, for and from follows: Goldberg, Abiomed's operational The Minogue First, key This quarter for Former will Chairman, Relations and you. and then the call today's discuss Abiomed. Financial to Abiomed, Officer highlights welcome third Mike quarter fiscal will Minogue, is of turn Chief strategic objectives. strategic Consultant format Ingrid be and as

Next, today's details press provide on in results outlined Bob Bowen release. the will financial

for will questions. We call open then your the

call may forward-looking the implied begin, actual to performance, to forward-looking progress results to forward-looking about I financial that or contained relating materially like and the Company's those subject are cause we These regulatory, certain other you matters. would risks statements. expressed and in today's uncertainties from commercial, that statements litigation clinical, remind statements Before on to comments differ made may

or We except Report Quarterly risks XXXX, uncertainties these Additional events XX-K these Report the on result as no filed Form of earnings recently update required law. March morning, Form undertake developments, revise our a and to subsequent of any issued most regarding are Annual XX-Q. on the described for by or ended year release and information our we obligation XX, in forward-looking as this statements

investors are are President the for financial Minogue. the from us. Section I'm Company's performance. to pleased and today Executive the in you During at Chairman, GAAP per to website now Officer, and available measures net release Investor earnings introduce, joining www. abiomed.com. Chief Thank be Mike filing diluted the in income today's measures share financial regulatory our and Abiomed's of help which non-GAAP adjusted measures will comparable reconciled adjusted financial call and used These with income net understand

Michael Minogue

Thanks, starting morning, In Abiomed everyone. up delivered every quarterly QX, $XXX metric best in with Good revenue, ever nearly Ingrid. million results on XX%.

and our patient protected set Our history, and which In records utilization QX. respectively. months three Company support, all Impella PCI robust XX% U.S. increased in new driven for growth top utilization XX% by and both were was emergent U.S.

We XX% by also Europe achieved records aided in strength which in Germany grew year-over-year.

manufacturing operational gross margin as XX% our and discipline from and both to brings margin best-in-class facilities best maintain in $XX XX%. cash Aachen, With to no and which are in Our Massachusetts our investing portfolio. education, additional balance ever execution our and sheet, allowed own now training and and We we generated in We innovation, operations, achieve us of million. an operating million position patent Germany debt $XXX a cash our company. of solid

additional milestone new we a an as care and marked our we XXX quarter, patents This patents with patient collaborate improve pending. an and of of the XXX It outcomes is standard support. circulatory for to awarded time exciting customers

opportunity is and of while positioned markets. billion in global capture planting to As $X the heart market recovery result, seeds field growth the Abiomed U.S. growing, a future the for is well

both For with new Starting support established quarterly Impella indications today's the cardiogenic clinical call, I need shock the U.S., awareness Germany, the and and will of heart in with growing highlight U.S., records. and recovery protected Japan. PCI the

XXX,XXX of total Impella Our and adoption patients. XXX,XXX X% high-risk emergency PCI a increased the of to

long of for benefits to have growth our FDA continue runway a clinical approvals. We and because

publication independent the by company spoke like Board, combined about on continues CHIP improve Our Healthcare. acquired focus consultant the awareness adoption. independent expert is National and with Advisory I Last training initiatives data from on and an physician-led impact and United having a CSI to time an healthcare quarter,

publications referencing Advisory the circulated quarter, additional two This Board Impella.

Meeting, protected differentiate Annual market The cardiogenic Cardiovascular first and enable themselves the hospitals were coronary opportunities. that as capture PCI, publications artery programs innovative disease shock to advanced and complex Roundtable new highlighted comes from

reference are TAVR a and As mitral valve list. also this on

mission The absolutely growing burden. is tactics TCT population. XX% and in is shock rates outcomes shock comprehend this second necessity report this patient not clear, for significant the programs is patient aligned to from benefits care the aged outlined to a the moderately therapy What ranging to only recovery underway cardiogenic quality and with today. heart recommended of a major need success clinical population growing with Abiomed and is To heart life mortality timely network of it survival This is as problem publication of XX% year's improved quality to Native cardiogenic and across goal. survival. addressed outcomes. next transplant for clinical is cost It around to call about just in Impella superior publication recovery that hospitals United aligned support The this to piggybacks and initiative shock has improving improve of for support building costs. on the such shock cardiogenic the patient alleviated physician this to population. States. stressed The ARMS is a establishing be the cardiogenic care We our Advisory improves the critical Board's recommendations lower and protocols significantly

major are influencers awareness from encouraged crisis. the the by As a attention shock we and Company, on mounting

also RP a launch, record Impella for for we supported. of and Moving hospitals patients total our opened XX new to set sites XXX a commercial RP

patients. now of STEMI IRB we our halfway have FDA to-date, randomized sites study, that For XX hospital approved have feasibility point patients XX the DTU XX surpassing

the our and annual the in fiscal opened in enrollment on made set and penetrated significant are Outside in complete also patient records new XX October. we track have U.S., of $X.X have XX% million progress. we within In Japan, of potential in patients. revenue ending QX. year XX,XXX for sites the projection we ending Germany, the We our XX-month March In generated nine projected to of

optimal had story of first to a share the like pacing of old history chest artery at ambulance Mitsui and Upon he in patient hospital, the arrested treated and We This required I of Tokyo pain. one severe coronary leading in the Japanese one our Hospital, an a centers outcomes experiencing and would prudently CPR. heart arrival patients are to called ensure after to Memorial recovery. quality cardiovascular XX-year launch of around Japan. disease

XX% the One lactate in he was severe of arteries lack with his XX, coronary of in blocked the was signifying cardiogenic and profound oxygen shock body. of

cardiogenic a when shock and the demand patient and remained elucidates heart the approved. XXX X.X application XX stable views it have of heart he and inserted a of submitted physician heart. of clinical successfully shock the of three native Impella hospitals strong have XX his hospitals After are normalized stenting a with the cardiogenic throughout Japan prior lactate six. This initiative weaned protocol the accordance people Impella surgeries. initiated the was days country To above date, transplants Impella. family his This to of in two that story currently with greater the like with process. in limit the Impella returned patient of home die for PCI the open the hospitals to reference, support, most and The best clinical As is than lactate practice one patients national characteristics procedure. is Impella application, cultural and

surgeons. in outside heart remain Impella Before and X.X U.S. concluding, needs studies on believe heart calendar interventional on to our cardiologists address a year, in We first for the would of like clinical pumps. half Impella and first track will products man the I provide update further the of the ECP and this brief both the

our For including missed Turning to presentation website product we those that our introductions animations January, our Investor new and at Presentation guidance. Investor under at the on JPMorgan recent in Section have posted abiomed.com

an increase $XXX approximately year. to XX% prior revenue This from We $XXX of the projects to $XXX guidance million, fiscal an QX million to XX%. XXXX $XXX are This year increasing of XX%. to million, of be up increase fiscal our to compares revenue XXXX XX% approximately guidance our again approximately million, prior

We best XX% XX% revenue, results cash the for operating summary, approximately Germany, and XXXX compared patents, and U.S., margin, in In the this to XX%. Japan. fiscal operating quarter's utilization year margin guidance are increasing in again enabled execution patient to also prior to generation, our

will our their Consultant, As Bob and and one thank improve the work Tech proud build now continues in over dedication continue be of I companies our patient to to Abiomed confidence outcomes. the turn customers. a of and former to express Bowen. for of patients to to with recognize I hospitals the with Med our want growing CFO our call Company, we want we help our fastest also current are to ability the recovery. together the I increasing heart field especially as to team to future profitability. GAAP

Robert Bowen

the on morning, to Thank Today, fiscal everyone. quarter Abiomed third continued growth during like Good details the achieved I of share strong would XXXX. you, Mike.

third XX% to fiscal increased revenue Outside rose quarter XX% to $XXX.X by increase revenue driven $XX.X or was a XX% totaled Impella revenue the million $XXX $XX.X As utilization. in U.S. patient U.S., and million up million XX%. Impella mentioned, million.

targeted Impella sites at versus at approximately Impella versus X.X rate of was X.X versus $XXX XX%. was the penetration per XXX%. sites, a XX%, XX%. U.S. has at of and inventory in has for at the at slightly hospital been the year. to $X reorder been year penetration X.X X,XXX of XXX rate Average penetration prior strong Impella for in Impella units CP rate third service hospitals rate reorders XXX penetration million and fiscal placed revenue rose sites X,XXX for a growing combined up and Reorder of units placed quarter Impella of million for at prior the site prior the hospital been per sites X.X performance CP XX%, sites In has placed for QX of X.X rate X,XXX and approximately the Impella the at worldwide X.XX XX%. the and Additionally, site U.S. a with was of end placed has quarter, been RP XX%

the volume placements, lines, training favorably impacted carry sites the production safety a higher by XX.X% given history. was from favorable backup demand. introduce Because were manufacturing training new the R&D to manufacturing higher of Aachen, offset area, to console the invest inventory additional higher products the have XX.X% was manufacturing features. study. and requires margin support We pump. introduction margin X% in year. compared as plan study more investments related in of in products of prior each in a increased ongoing and operators of recent and pump busier by the of expense way, this most an STEMI more DTU hiring its particularly is levels product related initiatives levels and new from year. enhancements capability The prior Our Massachusetts of Germany. product at period Gross spending pumps full and in the of site research to for in bulk quarter costs operators Gross Company The and effects totaled both for as manufactured years of same cVAD feasibility third Registry adding well to patient growing of FDA investments to we volume fiscal the must new quarter as higher In partially $XX.X the start. have million the production the continue R&D our new with as or

future. million expect investing the prior the of clinical initiatives the $XX.X $XX.X product increase from third to million SG&A totaled an XX% fiscal We quarter and expense continue year. for in or in

additional pace our to of hiring and We field expanding industry-leading team employees U.S. we commercial per continue XX quarter. a to expect up to expect maintain

revenue discipline, business commercial to the of due million in in or increase XX.X% The country. year. third and expect to spending also $XX.X which the strong Operating XX.X% XX% confirms quarter leverage for support of the grew in Japan launch in million model. in was to operational revenue We as to we income operating that the increase prior growth margin $XX.X compared or revenue fiscal our

We maintaining growth will while new a continue revenue invest enhancements to our prioritizing new markets operating and product discipline.

for net million We per or quarter was expect diluted be to QX share. $XX.X $X.XX margin approximately income the XX%. GAAP operating

act $X.XX or reform $X.XX $XX.X per share Third was $XX.X year before million for quarter recently per diluted income net share period. to adjusted million the tax diluted fiscal the compared prior XXXX or enacted

Act which X not approximately of applicable due quarter adjusted act $X.XX by awards excess prior tax tax expense million the tax diluted keep deferred benefits on are believe totaling XXXX to per income period. were Tax mind XXXX. fiscal than that cash excess share Third of remains cash debt share and net $XXX Also recently included activities to based points not $XX year currently or employee reform due fiscal to enacted benefits end adjustments tax effect cash. Reform we $XX in sheet will of which we in XXXX our believe with income excludes XX compensation effective We in the have effects impact generated tax reduce This a we the beginning income balance tax fiscal million in quarter lesser the payer will free primarily our the fiscal million. in in rate a tax $XX.X assets The the million operating in and to XXXX. from

During we also for headquarters purchase the Danvers, global the million. quarter on our of closed $XX.X Massachusetts

to continued priority with intellectual to top product manufacturing execution our support build Our forward the growth quarter. our Abiomed is innovation, substantial and advantage during fourth use to for of organic cash looks to property. distribution, continue

Impella roll-out penetrate the launch industry-leading product with execution. clinical continue pursuit the please and studies. and we for as questions. markets, will We now Abiomed tasks would Impella recent have cardiogenic protected PMA invest PCI and important in and growth us development open call of front innovation, Operator, market and shock the of RP Japanese in approval its further you

Operator

[Operator comes first Pasquale Instructions] Our from from Chris Guggenheim. question

open. is line Your

Christopher Pasquale

like how quarter. out of terms of a performing be fiscal of this in encouraging of us number Mike, that you're the gate. Can get any be guys market in good to the the big procedures, that off is year? candidates congrats on and just Japan's raising great progress given are here end Thanks to hospitals hospitals started of the you sort think number that the before early start you you would your thoughts the would of here to these and remind to

Michael Minogue

Sure. up Thanks, XX,XXX call. Chris likely We market think to heart hospitals. for the and is the in patients XXX Japan

Our year was March. the the goal of XX would end we by for that open centers

this the incremental revenue initial in So XX revenue, million schedule in placement revenue right QX. is we more - Of $X.X X we're of do with anticipate of but of ahead now opened. much some

time over months for we of XX continue but a We launch, pace that get outcomes. sure want ramp, will to training great We've rigorous as first we got at to make faster our grow the Japan just because CP device into and everyone, other new to also RP, products the as excited and And the and largest as remind market. medical compliance bring Japan Impella to second soon we're is possible. we

they for a also astronomy an them transplant environment reasons, cultural population. For or and not they're that have unfortunately smoking

impact we we patients. to currently heart in think we So employees in recovery XX can to have Japan and the a we country have major bringing and continue the ramp with

Christopher Pasquale

impact XX%. thanks. tax that very the running underlying helpful, to And benefit your of last reform, compensation rate, to last That's go clarify the then stock-based couple close I excess quarters was been benefit the probably tax XX%, closer to if of excluding year to has just on from back from

So reform? what do post the underlying you looks like think rate now

Robert Bowen

think quarter - mentioned, we're be benefits XX we will Well, the tax XX stock excluding points employee excess year, from the the lower, compensation. I for XXXX the blended rate for tax but the of beginning fourth to because effect the to on excluding as in fiscal a time

Christopher Pasquale

clarify XX%? imply what trying just was closer to your that So a true…? XX% or I sense to a of just number to get to closer

Robert Bowen

Closer to XX%.

Christopher Pasquale

Thanks Bob. perfect. Okay,

Robert Bowen

could It be could XX. X, it be also

So that. expensing of it your of will additional then and shares you range have independent

Operator

you. Thank

Cooley from Our next Chris from Stephens. question comes

Your line is open.

Christopher Cooley

quarter. record me, I Quick scale Mike, just year. of taking only topline Appreciate full for on about the organic we the think topline with the morning. question you questions congratulations XX% guidance the the company and Good for fiscal think

sustainable all very there we then the one. which was you year bit see margin. follow-up the little a about being international you're a Germany? be about coming us to ups drivers markets, fiscal when I'm step in a That just and think assuming And to of sizable the row, going two, talk how how in primary Just on a

You we obviously receive? fiscal XXXX, as to Thanks. year. the what XX% about to full a margin is get that But look bit talked of little about ahead I think can you what well for we enable us for contribution a little when type XX%; to there bit saw guidance the fiscal trying realize

Robert Bowen

had our Well, a Chris, quarter we was it relative our margin, ever. best to operating strong

the will gross that's and best-in-class are Company. pace in but we've largest methodical, invest which the are second to razorblade continue to that recovery-only innovation market, XX% and patients enhancements QX. is move we And some are But and the outside of each business we goals the are be we this we growth of one at Relative our entering slow, the us. to ahead a in like, time, continuing of you clinical QX be we environment and studies mentioned, we've rate discussed we for very we've a believe best-in-class five-year our some that operating plus as XX% going likely Japan be razor for margin are probably the Germany the will - in to year pursuing product vision, and XX% of for a guided of your market penetrated a are that margin, that operating frustrate a into it it year. up. are incrementally we heart it We clinical on not with But confident and rates model, way to our we will because and margin in but ability be as we can really a billion $X question our little we that growth investors XX,XXX next XX% with markets, in has only only

growth have we XX So as heart then plus we into new country years some new Japan. bring products and the think sustainable of these in failure, around we products

in government. the own or hospital in all thing indications, the usually able of a home patients, in to insurance is no clinical and be to with PMDA credibility in There reimbursement. haven't get really So at company amazing the our is had their charge are and patients spent the them as Japan. send front, before and I with up these And they an where time. want why time MHLW mentioned tremendous past patient shorter with have time again, died new these stories period all have patients died an and would of amount a that we like to all it the to want that's in organ establish just they to heart option a there, we right of such continue

So execute to we'll we to metrics. in continue continue will and deliver best class

Christopher Cooley

Thank you.

Operator

you. Thank

comes next Our Jefferies. from Raj from question Denhoy

Your open. line is

Rajbir Denhoy

Hi. XX% Good the Shock the morning. in I start wonder if growth. could results I maybe quarter, the on

Given you rate in the that Impella sustainable of sense is see the some you that a patients, made now a around necessity maybe of is that these of commentary absolute for growth becomes we're hitting the in of a bit use of the or market point? of an that Shock it of lack of of becomes unsupportable at inflection use sort it this sort the

Michael Minogue

rates growth other that the time And is fact to accelerate that and we this growth. our overall our general, five seesaw and take patient PCI Shock protected between that would is past there continue and for approval even of believed in years, we on but the would bucket. a on we in the and Shock patients plus bit really focused a Raj, happens always next said

but the to collect sustainable data, have best the we and practices. what pace, so on that right outcomes, So best look get continue we're growth, for focused a

that the is bigger penetration think do rate. question the So I

is done. to accelerate to improve are great at best year actually only but and way believe a that have to outcomes outcomes we've the go, have so way which X% We adoption we each to we blended, continue long

pleased to Shock TCT. a physician when for a into We you if that next essentially outcomes toss. be we're the only feel certainly guidance we're on but the how to the giving year, the very at it's hospital very coin and poor that at patients Shock And arms XX% you think about happy on call are see live, of more we call of fact go will next

are years we on have young lot of old, heart. outcomes. to a patients and anywhere they again, their XX with relatively a own And major from these So left to have life XX we think live can improving impact

Rajbir Denhoy

That's for brought the up helpful. you something that of XXXX? so And mean XX% XXXX. XXXX, in guidance into is mind doing sustainable look then fiscal it XX%-ish you're I range plus, as in in question there XX% since your you

Michael Minogue

the subset a Over you're growth we're again hospital die overall that, Shock patients a of to ready thousand we in on. ones - XXX,XXX are the focused failure. having year or into really couple hundred getting specifically it's our benefit hospitals or that's protocols, getting heart of but think overall why If go. the patients system about

X,XXX which do do XXX,XXX do So week. means a means the have each to of they that our population heart hospitals that which targeted they they means two of a month, XXX, X.X

the So two we're market. XXX,XXX is of $X.X penetration patients billion a about a talking week

we the and have So and best ramp, collecting so to practices. really definitely outcomes the we're has it why focused to on get that's continue great data these and potential to sharing

Rajbir Denhoy

kind That's of at the guessing a overall in of fair to getting that yet. XXXX, but for address I we probably am place I not want guidance was company you're kind

Michael Minogue

Correct. Thank though for the you question.

Rajbir Denhoy

the last about you effort other on one putting one markets in you just into do start pace geographies? start the ramping. up other thinking opening Germany, Japan is international given When Maybe just

Michael Minogue

and We U.S., make want and that sure the three and importance there. we establish understand the and of Germany bring for of our Impella MedTech, the new we Japan really standard products true countries as care to top

influence influence Germany U.S. that has understand Asia rest on the Europe, Japan also We the in great the great of has and great in influence has world.

like back countries in but around are next we're to and are give get Japan. man in seeding the started doing just there We earnings look China those used to and where that focus, everyone to other many working our countries Germany at conference you focus what on India countries. that those next are more to forecasts some will bring last and through seeds it, mentioned the those in some our where have we've investor experiences U.S., but adoption call we approval first now and we're So fanatical new planting of intense to outline to that will people

Rajbir Denhoy

again. helpful. That's Thanks

Operator

you. Thank

question comes Matthew Piper O'Brien next from from Our Jaffray.

line is Your open.

Matthew O'Brien

Thanks far morning. notable that acceleration XX%, the out from National that's within the growth way seen taking CSI the XX% kind questions. way the there emergent doing? out what figure growing for in Are much the you've CSI quite here? you a seeing Good obviously XX%, is so the protocols is to Mike parse so group, of group new to National

Michael Minogue

if a country question relative at community Matt that's just and great to the of the profound the Impella cases the treat have for likely focus that's right better need are sites. is initiative to you going their one going see at They some that's hospital to their the a locally. reasons shock physician want XXX device a you side around protocols again in own that demand you and patients RP,

coordinator our an so have that's or emergency Registry second where their coordinators You that row ongoing the patients but shock data working sites and feel initiative that putting comfortable own a CSI have it do in their across that CSI a they're that spread well. worth the then working to protected other volume is those being drive in asking organization Impella it's general the hospitals National directly quarter think physicians and drive in the we're this also protected switch it's the or as trained we and well. that's to that to physician XX% kind strong submitting Detroit is to and to and more sites and as group. it's in we exceeded with board adoption a more think noting FDA PCI to We to audited are patients, group study protocol continue our the this with get also which And as PCI and growth the is are and we're the very cVAD

back them there just are hospitals these types TAVR all want can. to are are in we emergency outcomes patients really out these patients of soon So understanding be patients and as our to market PCI comes able are different like to different we capture protected the and great as getting

Matthew O'Brien

That's fair enough.

was sites kind starting The I and had of other mention the question RP it. on to

hospitals each talk and have bunch of that have HDE of full the a older using utilize of the the that the the that just centers starting in approval been that of you got number little you've bit quarter the as have got trending under to like nice this you that been clearance? newer QX centers kind a how of you fiscal then ramp about get RP? have contribution How of is last they're kind now did they're and So Can as HDE FDA quarter pretty using RP now well in terms you from ones, of what in product where ramp going? part

Michael Minogue

revenue year-to-date RP for there's exceed X% is up applies the RP in of making The RP time and of was the the of for demand your in biggest the training tremendous contribution. our to revenue expect will it it. data question XX% formula mix who's product well. On and X.X, The I as

the They sometimes protocols the where they're it the really now out publishing patients had to active. transferred around and establishing most are papers have longest that their place to ones sites are the that using are tend be there So that the technology.

physicians XX and trained in the this Recovery also We at continue we quarter quarter. each courses around our headquarters Institute have to Heart and country

Matthew O'Brien

helpful, thank you. Very

Robert Bowen

Matt. Thanks,

Operator

you. Thank

from Bruce from comes question next Nudell SunTrust. Our

is open. line Your

Bruce Nudell

of to addressable of rule get out the group able to and/or only little sort so today Good with XX,XXX counted we be just get that a question. it them it's years treated think you the morning. of go kind geographic are gas to about in Mike, and percentage do my mechanical Thanks any shock of for actually XXX,XXX cardiogenic support. may they being taking some as form of patients, hospitals hopeless? because admissions, ultimately with and lower end-stage, what geographically just XXXX, my that because Of

Michael Minogue

should So many today, Bruce, age of XXX,XXX the Impella number your moderate do support. how in that on hospital are believe relatively are of receive question a patients believe the we addressable? We

or sampled a that when reports has that with these On you're third even the a that they sites accurately report pulled always third support. had support all you are the intra-aortic don't balloon of about deaths, correct pump. But someone or any relatives or CMS, getting from XXX% can are or at patients are the a of look these

there's from the there. of four. many the that at and well one predictor three receive XXX,XXX Impella if how be used could well probably hemodynamics to failure is hospitals, over are you in adequate order or upside more two hospital left. young look and to die of heart are from number relatively So on there's escalate a shown at inotropic utilize both net multiple on to to year improve the death looking inotropes with in tremendous is patients deaths their a just failure been drugs that and again net in stabilized inotropes as three The benefit being that patients the a or XXX,XXX to numbers effects and that the over organ right you And have

conservative just high number a bigger is believe do today number we proper funnel, the risk PCI. to proper treated believe the we XXX,XXX that and like a from for So appropriate XXX,XXX is be

Bruce Nudell

What and a My question, perfusion we another kind standard certainly, to study? be your we be or XXX,XXX injection you're growth. significant in in Impella what fraction to kind will Perfect. of counted deemed clinically study, being sparing of of change in tissue? pilot get around degree either viable XXXX boost pilot method or I STEMIs of as whatever to had able care once And is market measured looking ventricular huge or the using at question by again are

Robert Bowen

will you into have today's for you're only is study, reduction a Impella these at door limit and not that how safe are at level of can precondition for infarct will growing that all and the used the CK-MB this the also unloading, you'll reperfusion the images For side the remember the safely move they myocardium the minutes what epidemic heart in study where we Impella can injury They're is survival. five because failure, and doing unloading the you a people of by heart the in it By be from show just up or have heart so which they've cardiogenic of the technology in we're show blockage. that on stenting shock. testing as coronary But failure then by that or the thesis stats with cause really population can attacks infarct a the amazing also have where of be and can the people at have hit innovation suffer unloading is doesn't Impella this that the stands the in reduce And delay caused of from can result the XX% process. of to you the to not study, Impella And opening if XX call, They've improve patient we'll is and that look pivotal apoptosis feasibility - issue for mentioning years. it that delay well. and patients, will pacemakers electricity, troponin the follow-up we also plumbing not showing on size show yet. concept we DTU, of that they looking MRI within

will it applications. So our you in can clearly adds credibility we population. And there other this for this also can population, as and we this here but do I patients, think if with show benefit be better new more all mentioned,

Bruce Nudell

so much. Thanks

Michael Minogue

Thanks Bruce.

Operator

you. Thank

Antalffy question Partners. from Leerink Danielle from next comes Our

open. Your line is

Danielle Antalffy

much Good morning. the question Thanks for quarter. a and congrats on so taking fantastic

quarter. should to this if I just know about I momentum-post any on acceleration momentum TCT. similar How based shock qualitatively, hearing versus growth wanted it numbers drive on I came between anticipation a didn't the we felt amongst notable the following was little our whenever you And outlook PCI a few the on amongst away that quantify, that even and the KOLs I pick physicians different up years long least force you and of back that growth saw then a we at qualitative the both? Just cardiogenic mean risk meaningfully much TCT a what high how talk maybe is that Sorry Is Can cardiogenic numbers? bit? about to how about CHIP when balanced TCT accelerate around cardiogenic in that, it way in like to sort Mike question. follow-up, put sales talk back, was think from asking implemented shock. There more shock saw could first on there was balance a was we I'm that cardiogenic that is right. in and and shock initiatives you around I

Michael Minogue

And crisis call rewarding can we that arms with the opioid There a the population has community last arms the So great and crisis, for by for the to should mortality after And better the XX%. these be education was live. than cardiogenic more a company outcomes life as coming the of is lot U.S. very attention rate can olds that again, mentioned. work has to do that shock that physician TCT Cardiogenic acknowledged and lot Danielle, for responsible out of to done more we've in momentum there call and deaths we the more are was a there opioid shock XX%. also and The is you XX than for training. is been do. there's is year the the years immunity to XX physician and the XX the to have this crisis

a think to incredibly we is and thing starting focused So and time. survive but period heart survive your another where go not it's it's own home of this and within native transition, I to is just momentum shorter go to with thing one survival in on because recovery are home the heart and

and first native adoption. And to approval So that's is year as also FDA is for for had understanding Shock exclusive PCI occur usually shows the FDA heart high this the we've what recovery. and science market catalyst a the is ultimate where full is strongest approvals and DRG. risk goal History the that fiscal momentum in well around dedicated as the starting that's

education, the And high changing risk that that's do can always Again, around go point question growing be both, PCI. is while why overall was there best our doing campaigns, we want our and end outcomes companies share we and referred things your right to grow one data have like Med find fastest time. to that of best in the get sustainable data them high last publish at of is into a practices. pace continue So is collect to the population in PCI we're we balance we great and our and we the we're focus them medicine patient to on how that want of risk and and is back the to the why but practice awareness challenging Tech our function out of training physicians, referring centers. get That's

Danielle Antalffy

talk at your are is force, the follow-up, we And on more docks as hospital? a existing I continue think scale you it you about rep place Thanks help productivity, monitoring, reps add just know you the Okay. where device maybe to on do guys curve rep the and in innovations have productivity put the of get some for communication sort but can to remote like you guys say - rep for of about, but that. of remote should the and that whatever that productivity or out remote you how

Michael Minogue

Sure.

combination investing XXX last team. in are we our in XX members mentioned, and of added and you heavily people. field sales the We've field as months the that's So clinical

continue Going more of XX we've forward well. XXX U.S. adding and right to up people and we've to in the in to a going add quarter the as exceeded for Germany people we're now been

and call from use will more PCI hospital ICU are center to to swing moving future. hospitals phones are independent the our when we patient to those see perspective and you have the the because where think at do on protected into the help hospitals as we're be and most on of also We or needs hospital or experts console protocols with patient but our weaning interact we we'll the with the the mentioned not the likely many we for working in the model the physician with I we able cases into in we protocols have can standardize ICU productivity physicians. need a XX/X the identify think them anticipate a to we be more help more the person nurse some a the is own from more the interaction when experience algorithms

Danielle Antalffy

Thanks Okay. much. so

Michael Minogue

Danielle. Thanks

Operator

Thank you.

Our comes next William from Kaczor Margaret from Blair. question

Your line open. is

Malgorzata Kaczor

question. Hey, taking morning, guys. Thanks good for the

is that First comments it's interest Have Board had Advisory whether one from made a here shock Advisory for towards program. doubling guys for something on program? seen the existing kind from push from that an from follow-up or aren't maybe publication. the Board trained you new you this down centers Impella me any you or kind it for or And of the just for morning just example as centers the new on yet continued are existing guys impact of

Michael Minogue

has coordinators of and are Advisory push it. and with that and and think looking subscribe PCI hospitals is organization CEO's familiar the I them Board CFO's Margaret, programs, shock to to many it's are hospitals COO's establish continued credibility to of or it the protected most well-respected all a

point we and validation it So it's further a think current adds to momentum.

Malgorzata Kaczor

nice utilization guys XX months Okay a really CP XX have that across mean broad larger us months? the is the driven pretty regarding sites? base installed last seen pretty to and Thanks. other and Impella give you clarity look guys rate any some I by we a X.X you at at increased if then over of larger Can the the

Michael Minogue

want make I little understand I question your sure could Margaret a could more? to explain you

Malgorzata Kaczor

your add X.XX guys I ago something Yes, units maybe you like X.X so CP. of think on shipping from X.XX that. months like that gone we to as ups existing average in XX counts That's are so

specific larger some curious adoption of drivers versus So the your I was kind what of study of were that base. basis across if just nice was and increase more to mature the pretty comp it

Michael Minogue

PCI. are they centers comes lab cath are Impella longest do continue the the around and more formula have it the patients doing to data sites patients they clarification. Is volume for the utilize bringing ones to pretty The continue protected more that works across tend and increasing. grow, The much to had sites to growth lower physicians from the also our Thanks new highest in into board time also are the time. or the more and top favor, adoption volume steady growth training our in

see So much that formula, out but and it's the to spreading it's the everywhere. continue on pretty we're longer staying they grow have the country across to nice

Malgorzata Kaczor

hospital and more and now one but steady and understand of near-term nice are the as sneak for slow out each XX at to case of volume guys I be able could decisions keep some the to you I terms of if early on Japan, kind or kind in support. you expect then it Thanks. what And into XX right you which saying momentum go

Robert Bowen

year still of accelerating specifically Margaret, and the we to ramp the is an at But look the next is next kind we've months year for on guidance as call. outcomes. approval months the look our more XX year and of year and really six fiscal this at next towards and we'll give year grow guided third what people We'll revenue. as continue we be to of get add in more good

Operator

Thank you.

from Lewis David next Our Morgan Stanley. comes question from

is open. line Your

Jaypreet Chadha

shortly. Thank - taking for do you and think can you the on do ECP What David. questions. RP accelerate surpassed X% Hey and year-over-year basis? guys. Chadha a X% we This Recently my PMA for coming X.X is above you a penetration penetration Jay think then initiatives, in for between new shock rate year-over-year you online

Robert Bowen

in Let penetration referring we're Jay, shock. in X%? just me for PCI high-risk clarify, so are from to at X% you U.S. What the

Jaypreet Chadha

this last at point year, the increase, guess X%. Yes, I maybe were year-over-year you

Robert Bowen

Yes, okay.

Jaypreet Chadha

two basis, just coming can was I think added accelerate everything looks you like Do to of year-over-year on wondering you points it a points So three penetration. with online? that

Robert Bowen

That's shooting for. we're Well, hope we so. what

and patients, of almost majority right. an you acceleration. enter somewhat You're early that is the up been we each It's about of quarter going believe X% there as

number age that again And with we heart. that and numbers in patients have of be benefit intent and to our will Japan. overall rate, that XXX% bigger, in XXX% home of that's a appropriate obviously own patients, XXX,XXX go XXX% patients scale XX,XXX ability patients much the U.S. an get from relatively are but to the our of to XX,XXX their and are intent growth Now of Germany the and the today is the

really we're focused So population. on that

when bigger tremendously and numbers You dive can that a again failure they organ failure. are in hospital, heart a failure, find person dive they pump of dies

recovery again we're heart make need has the focused to a devices. which therapies, we you patient to side have the allow and are hospital alive for XXX% means and Impella device between to We should be of those to if it able to right trying essentially left hospital growth penetration, stabilize drastic rates. So the on but that we'll in get and others improvement that

Jaypreet Chadha

adding, one Okay, existing reps penetration can and new into on versus regions? And the about quick you're follow-up you deeper additional you. thank sales split ads talk geographies between

Robert Bowen

industry mentality And not a split we hospital background. volume U.S., continue scrubs that's then and a to support we a then we've worked which the but who person's that as a expert but and a add leg have the as and much also threshold starfish formula a model that very augmented as where of and person grows, more of new over we people that territory clinical a as well a with as account somebody and clinical certain all more new pull in have in expected senior person to it more clinical have a has grow role, So again. is you a kind of that conventional It's clinical have and the at grow a a you sales add one. and may sales person's team in quarterback, that experience,

Jaypreet Chadha

got it. you. Okay, Thank

Operator

you. Thank

James. question next Raymond Bedford comes Jayson from from Our

open. line Your is

Jayson Bedford

for the question. morning. Thanks Good taking

Just had an a impact CSI in you quarter. National the few. The effort, mentioned

realize regions part of not many centers that are it's but today? I your wondering are Just how effort program, and

Michael Minogue

goal they country go XX around to website, if you hospitals to their have a to The have and - the them for submitting analysis and goal - is publication. their data

and going XX% group recovery. These MedStar other submit to data. own showed they like presented to their are this are organization. with native that who collecting then System with you there hospitals Atlanta are this around XX% heart survival working [indiscernible] their are who the survival However, it may XXX% Health they're it but in from with down And many group, protocol, have meet to and places in or nearly that also collect they data that Inova not improvement but believe groups the the with TCT, implement

So That's have best on the again, concept impact continue that specifically the about have with we data to not and demonstrate model to works. under that and best whether survival our National up end, cVAD focused Registry study, practices. of also CSI. aligned or we it's FDA document on with so And to protocol collecting type the On recovery publish data they're us of and very the more really them. so Registry the heart and the we're this program, or can

Jayson Bedford

best talked about of what before, in have, Okay. guess? protocol We your a hospital customers may but place your now, percent have right this have

Michael Minogue

you enforceable protocols, there. kind this They're what with but protocol, the informal have XX% that protocol. ones established absolutely to the it it's XXX% are on of If think have still call, the kind of what those a compliant most Shock Jayson Detroit, binary a have a of places that's harder But XX% to a but but RP, they're our answer. folks Is where and not at have them But call is clinical hospitals looking aligned. gets criteria of a judgment of documented. XXX from of what don't perspective is of an data. a of is doing more it it sites is little we'd bit can - it sites protocols, we there's have have concept together. in we putting thing that different see physician groups all do team established are

Jayson Bedford

That's helpful. Okay.

can. Just I couple if more a

that Just anyway? newly of in on utilization the result impact one has or terms last late in back established year, an reimbursement had

Michael Minogue

We really sell value. the the way, don't on we a focused we believe has system, the impact that compliant we're reimbursement don't to before clinical after, major but

the make But And sick you outcomes, back are or a more readmissions failure, study. patients. to an shown can can be of can are way heart better if the that get PCI on reduce on And hospital. up lose that break hospitals lower for can in comes and for system helps so quality, very length can is set their These Some of outcomes, it the hospitals a stay. this four helps do majority money; it any the we some margins It make the patient. all protected the what ranked impact time again, is money. money two the little hospitals efficient FDA is be we with even hospital, as of items

For Shock, native lower length again, have stay, and to of the we've shown heart ability recovery.

measuring And so helping we days, reduce new be hospital heart where at reform, of quality that can native are metrics are significantly out adverse hospitals really do and tracked quality improve their with you recovery. to shifted we XX hospital tends that discharged with CMS. best the being from And to those because by events

Jayson Bedford

Thank Okay. you.

Operator

closing for for Thank today's I back over conference does Mike conclude you. to conference. session that question-and-answer now would And the turn our like to Minogue any remarks.

Michael Minogue

good Patriots. go, free a time you, Thank your today. If follow-up everyone Have and for any is Great. feel questions, day. there

Operator

Ladies participating today's thank for you and gentlemen, the conclude does in This program. conference.

You may all day. disconnect. wonderful Everyone a have

Abiomed (ABMD) 1 Feb 182018 Q3 Earnings call transcript