ABMD - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Q3 2019 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, Mr. Chief President, Vice Trapp, Financial Officer. Todd may you begin. Sir,

Todd Trapp

Financial everyone, Thank review earnings which and Abiomed's as to is and Mike will and conference with discuss Chairman, and Mike morning Executive outlined you, The good for operational and and press that, Chief President third Officer. Vice and highlights; This Minogue, Todd First, welcome for release; me format results questions. is Abiomed today's call we'll here follows: Crystal, call our then, call. Trapp, today's in Officer President quarter Chief open Abiomed's I'll fiscal quarter were to will business financial be after third XXXX your the

that to Minogue. of forward-looking SEC. a undertake obligation described as uncertainties a investors recent risks Chairman, may those our expressed due let future presentation Before and that, or and discussion I our that materially call to to and involves and performance. forward-looking the most not over from Actual under we The begin, with today earnings it press in factors. and Abiomed's not President any variety These statements release our factors forward-looking to you Executive XX-Q filed would Company the relates statements. With and XX-K forward-looking We statements Mike our do implied statements there's the are our remind like outlook. of update statement Officer, any me cautions differ turn Chief of forward-looking includes guarantee results to

Mike Minogue

everyone. morning, good and Todd, you, Thank

and in we treated the milestone quarter This U.S., than more as historic XXX,XXX a Abiomed patients Japan. Europe celebrated

Impella and XX create billion and patents compiled development technology patents pending. the XXX heart recovery over in well for XXX $X.X years invested of have field to We with the research of

margin. results growth with our to We clinical our quarterly are in revenue, up approach best while $XXX our and disciplined delivered before a patients sustainable than due QX, more commitment XX.X% ever XX% impacting year-over-year In operating improving ever to million outcomes. record

execution U.S., of cash debt. the We three growing allows in companies Japan. maintains the $XXX mission growth will with outcomes continue I highlight countries, million no lives and our recovering invest for innovation. expanding one hearts in us our sheet of crisis. to United our for On launch clinical improve to Japan med-tech GAAP Abiomed and profitable saving successful to States balance patient have today's call, and and a capabilities clinical key while fastest in and remain focused our strong XXxX stellar and This in Germany in remains on this we --

had heart match XX,XXX well recovering saving Japan where heart transplants enjoyed for because outcomes and Monday strong cultural both desire Impella and I our lives I a of patients. in an [ph] Dr. in the to physicians in clinical who revenue. returned Yoshiki and firsthand chest of going hearts team. is is recovery a discussed XX there's night had Japan. ideal penetration can Tokyo old Rydel Mr. total press quality opened on XXX committee. quarter, already strong approved with to perfect the and Impella of bringing shock physician own adoption the and the we $X.X from and hosted recovery professional the and a X% Japan recovery now He million continue education. have was to Temawankai hospitals It training the Impella of to cost in example Nakada In impact by Ju in my and We cardiogenic in Dr. first QX, maintain see So, Impella XX unloading story the the another from aversion The highlighted fisherman, his is January of home Japan potential launch with revenue of the survived from on around open the went have procedures of with recovery. Sawa. rigor heart. on rewarding mission the government Japan. delivering the myocarditis and years time heart heart. native a our life of interest we out with heart shock, we our XX sites, the field of with science on On [ph]. physicians hear cardiogenic and They Impella savings and patients benefits conference A with XXth, benefits

stated, outcomes. achieve on field we training our launching excited business comprehensive a in to Japan. best order controlled with the Abiomed to-date, become focused but the previously is do about lot standard-of-care As have patient We're the manner ensure more to in Japanese in progress a to

investing Impella X.X and Impella commercial Impella expansion to Additionally, the distribution short in we as Connect, prepare are in the the such and products of CP, for mid-term Impella RP.

a Our dying failure our XX% second heart in patient States clinical for XX XX% years five women highlight crisis. crisis of within XXxX United a clinical today's for their Today, and call men over attack. old improve years heart with capabilities is of the outcomes expanding of to is first

outcomes years this one recovery other cardiogenic on-site in No heart patients. investing highest XXxX to has and both without support clinical mortality all this Impella. rates carries in of and outcomes improve tracking level addition, shock cardiogenic of healthcare. help XX% the support company been to rate nearly commercial for space patient survival around for the on last outcomes. improve Abiomed In The shock and with on-call mortality XX native is provides

level cloud, our customers better outcomes allows real-time, Europe. live to Our support approval patients launched in CE has to provide new Abiomed Mark deliver a And, U.S. offers proud to patients. we that and Impella of Connect, received Impella tool another today, on in This hospitals, new exclusive support. Impella to technology called announce Connect for are monitoring provides at the XX

FDAs study. validate practices. or and total, extensive research clinical both data we to and further IQ U.S. audited IQ at complement more our on than definitions utilizing validated within Quality in On patients. practices in more the study Impella study and FDA have are post-market clinical are conduct XX,XXX than from study over now six the in studies sites. we cVAD In patients the The prospective best surveillance and cVAD is to X,XXX side, utilizing Best X,XXX database cVAD IRB-approved, database identified identify the

led His patient unload summary now a heart, For with recovery. protocol inotropic physician-driven expanded includes quarterly PCI stimulated the the XX IQ, therapy. to shows awareness experience is suddenly of recent an inserting Impella such Cardiogenic and from your practices, best continues included or and Initiative the life-changing a home. collapsed hospitals NCSI on National to improve in reference, Shock minimizing the benefits man at A of of immediately Abiomed's NCSI. patient as initiatives impact we of Rockwall, which research shock heart stabilizing on NCSI before old education having a story cVAD patient to began to best native power slides the our survival practice two clinical the XX-year CPR. Texas, Todd Impella on nurse, and has a Connect collaboration protocols. has [ph] and girlfriend, and Wasser, update.

home Dallas. and shocks in local in COMPARED, cardiogenic full After While to was in before followed shock lab, two enough Todd implanted defibrillator had In to they organ the paramedics Presbyterian survival immediately protocols team was days days XX% native on he arrest, NCSI and the ejection multiple Impella’s fraction ultimate placed with multiple goal Hospital his optimize of due by the his Todd support the life coronary to stents. in and spend of heart discharged Impella to Impella with as highlights support story hospital recovery. heart James achieve failure cardiac letter lighted recovered only an to explant Dr. with Todd's PCI received and XX%. blockage of Todd’s before cath was hospital six and and CP can participating heart his Impella Christmas new to major protocol his the and Park arteries family. support, pump how to a route

thank growth, into customers patients like put presentation we practice can we I to would grow slide Abiomed our with and continue as thank protocols. by in the animations focused a want Morgan turn remind release. have to of products around I and to kan around DTU validate heart FDA and and Trapp. on back will the disciplined missed execution automatic benefit Dai-ichi. even with JP world further employees STEMI In we of investor and over like advance recent studies our pivotal best we quarter's so Investors science well. would presentation our fields press those posted included are our day, the from new proud support concluding, summary, and partnering say website of use now our and Japan, continued who details recovery recovery. that will or pipeline every customers first I Todd shareholders identify And to call that our patient of The link who to the our as study. our pending I to world our outcomes remains presentation Before more our at ja-san includes section our the to on heart milestone. XXX,XXX-patient in sustainable for their real patients improve

Todd Trapp

Mike. you, Thank

our of support to XX placed at million per as by the to inventory collection X.X in the Abiomed. In placed sites. On rate consistent $XX SG&A the in the was The mix the well as represents margin. the higher the programs, basis the record U.S., sales quarter. from long-term increased gross prior in for QX growth due down CP their XXX constant year As quarter was utilization. marketing rose the the million Impella versus rose greater at than has prior slightly top with and roughly operating of XX% slightly income, was product This X.X of manufacturing XX% expense geographies. data additional Company. above $XX sites, XX% is support Mike and of Danvers million the also at another QX for study. $XXX both to versus of very in XX% in for launch. strength the third patient The year development basis, was with million, operators hospitals of the growth. of prior driven versus R&D we approximately driven of improving operating up quarter XXX%, third XX% In utilization. an to prospective controlled primarily in totaled the units the the in a sites X,XXX points translated increase our Reorder million XX%, for due consecutive performance XX% total. $XX been Germany commercial at revenue related due last revenues XX% to inventory increase quarter CP record the X.X higher XX.X%, cVAD now cases. for our at year. to into Average to QX, ECP, quarter, revenue all to our delivered rollout X.X patient $XXX and an margin quarter, was lay Germany the incentive last mentioned, $XX will currency delivered new third as prior and U.S., Japan. XX% and up support $XX Japan pleased opened quarter, growth X.X of million, with the solid sales and versus or with in XXth variance both Japanese The XX% year. during X.X XXX hospitals operating compensation end revenue in our expansion margin overall investments, carried be while due XX% an Impella year versus up combined XX in new strong, volume delivered year. U.S., performance last clinical $X.X quarter RP have saw XX% to increase was the These Outside ongoing the Aachen. we In outcomes line growth of groundwork Impella million, with a investments million, increase a by we been site was more quarter, continue sites quarter. and and versus expense for team, in In to our This Impella we as more Impella revenue a sustained and Revenue And across fiscal

year-over-year or increase due Our margin and tax $X.XX basis investments. diluted our The per XXX year prior operating lower rate. million expanded GAAP income performance quarter increased XXX% was share. which higher for volume, to than points growth $XX net strong more the over due to offset to effective a

per net million in income fiscal EPS a this As or for third $XX the tax result increased reform. charge U.S. of adjustment, as quarter quarter. reminder, of Normalizing $X.XX included a tax a XXXX XX% the share,

Our and the ended balance free, remains $XXX securities. debt million quarter cash and we of sheet with marketable

is to continue support Our to growth build advantage. intellectual property on and organic our for cash priority top to initiatives

turning to Now, guidance.

an we million, be a prior We to our million, from an approximately prior fiscal the up $XXX XX% guidance have in approximately This million, of prior XX%. [ph] compares QX of to XXXX increase year. where our $XXX XX% XX% XX% to revenue to fiscal $XXX guidance tough increased the million year, XXXX off range $XXX of to guidance year This growth. revenue projects increase reported comparison

XX.X% to guide record quarter. Abiomed to full-year also operating XX%. range to XX% We another XXXX of compared In to XX% be summary, in prior the our had expect margin

business razor-razorblade we growth, top that recover gross and XX% than hearts as XX% that X.X we in operating operating mind a XX%. was communicated to ago. margin us targets revenue years and an now margins, model the tier approaching Keep people's five-year lives Our save enables greater deliver margin

research and in team really and for expanded while capacity we also hospitals It significant potential STEMI. we're Connect, in and We've are able we're a on patients. Abiomed, future we now strategic provide to to financial Operator, continue making Impella What support Aachen and like great at business. been deliver performance. time our So, results like able drive and tier our be both new investments same what Abiomed with indications we questions. to on ECP. best-in-class new X.X XXxX top to outcomes. We're patient add manufacturing we've consistent in accomplish open the for proud SmartAssist, will the is time We're of projection, that focus commercial the is focused investing education all and support, of clinical at very products our Impella for Impella enhancements please Danvers and improving demand. to and And that to continued industry-leading makes ahead line to the unique

Operator

from And first Guggenheim. [Operator comes our Thank Instructions] you. Pasquale question from Chris

Your line open. is

Chris Pasquale

talk hospitals are use When more that XXxX the on quarter, the I out. U.S.? Thanks some Connect support? and the access of plans Can rolling to a that How of wanted in that experience Impella they Mike, you early that And have start congrats another strong with guys. technology changes? the you rollout? guys new How to about what Impella? maybe to are expand to limited full launched with

Mike Minogue

Sure. everyone's And thanks a to use utilizing system. transmission out us it Impella Connect their new is WiFi The question. for video for the of one-way allows the benefit, tool. Chris, hospital, a

secure. to whether And it's support. whatever So, phone it’s and you're compliant it visualizing, your HIPAA that the or on on patient an console replicates tool iPad of it's

ICU console. looking standing time room, as you at So, in the were real it's if the

it is secure. not make able thing you're and second any changes, to is that The

does security but the productivity, the of the allow patient. for So, also it

the used Now, we see we've being that the goes device the flow email moment, it. an can get off. bedside, at training. If If that the changed a it it off, we used is records you for an alarm rates, you that critical correctly, ensure to can way anything can any use that there's alarms, it is can text alarm setup is have has it gone that or

how patient’s back ability that's wean in to SmartAssist, the the the to looking to changed. and algorithms So, the the it with the start And on gives you us rates combination with how intent can at doing at see people the new look go off. and software flow when were consoles,

set with the the Impella to maintain in pump, capability, we combine can is I either want it's you plane. heart, now you a have either onto cardiac the the back power, patient recovery, believe recovery really ability hemodynamics, LA, increase flying you that's it look And you utilizing how first And their out optimal at bypassing if unloading. basically cardiac an of last we on to in and So, at want a draw SmartAssist paper Richard or the flow patients then, if do reload forward I you navigation about bridge before. take them tools the baseline or what decompensated where salvage have and the whether patient that landing have the didn't can or you're you plane pressures to attention hospital acute not But the author, ventricle an durable And to that or Cedars you because came and the output, to only equate ASAIO a do severely proper by and cardiac a talks Chang to chronic. shock a to transplantation. in quarter they're for acute and investors’ journal X.X LVAD in it that is

the you in procedure, And lot gives there's change are out give nurses they'll the example last shift the sheet then, And to real to that's to To certified Impella practical weekends everyone it. consoles itself. or not times on shift pump. and a routine patients. So, the sometimes see of Connect late some necessarily have or experts for information be of managing going call move of where as the when these that on ability ability to happens, patients. one there But is, a Impella nights, coming are time

the from silenced that patient that the few And watching received the our silenced weekend. did. to was did, on get nurse Monday was she monitoring a the the on and the on the them a device she sheets reposition the a and that not and using call, and patient, to ran console let with and alarm, the were a pressures call and outcome. and flawlessly They physician caused know device bed on-call to the on which a did to couple Friday weaned of months want just turned So, people through minutes night, the site alarm from which which our XX:XX, made they ago, properly, move, nurse silenced that changing we the within at adjustment device off night nurse successful Impella

with makes we again the coming, productive, So, doesn't the have have that able we care And provide it never that existed can fact in and like proper XXxX contractility, we weanability, really the are a us new to makes And output, it that this algorithms that allows exist the has the on and hemodynamic currently measure be service the more to more to focus on going in information console, we're really physicians to cardiac productive. all track things power ICU. us support.

Chris Pasquale

investment And the you can support just economics guys, year-end. service in you remind us this of that and so an for on there's about

Our it to customers subscription, paying is providing something of a to for you're drive them this as free utilization for pumps?

Mike Minogue

SmartAssist this our of on no gives the cost, information the the provided you contract. part that's and console, at service that's specific part of all which So, algorithms

For tier of of utilizing. U.S., requirement where around are sites the the amount type outcomes the Once looking will and model, in input. productivity Impella Connect based on pilot we’ll it certain giving the we that of XXxX, we're XXX some number, team that the we a have software versus their pricing be at model service hit us sites of and phase a receiving we

can And of patients better just are the remind they'll these expense. have hospital. with in patients some But main our earlier less costly the recover shared have patients And to of sickest investors, these system. some you these leave most And outcomes So, someone, for all the outcomes; improve when intent the ICU. is type to in again, are they’ll the also the hospital likely in readmissions. the we'll

see a productivity outcomes So, productivity our to essentially as has employee real certainly patients just hospital. and hospital, improves and And for financial the improving benefit improves the having monitor the well. time ability

Chris Pasquale

Thanks, Mike.

Operator

Thank you.

James. from Our next comes from question Raymond Jayson Bedford

open. is line Your

Jayson Bedford

and morning taking for Good questions. thanks the

expectations. on is It ahead seems your of like initial a couple Just Japan. tracking Japan

revenue you wondering updated can ‘XX? have Just from you as an to number think be in Japan if what

Todd Trapp

Sure, the I appreciate Jayson. question.

about So, was guidance our million in original revenue. Japan $XX of

So, million. the shy they're after about year-to-date of now right million just $XX $X.X in QX,

right And year. $XX now XXXX forecasting fiscal in be year somewhere so, for million $XX Japan we're to the that range for million for to

Jayson Bedford

you perspective, just a launch. that. it's accelerating a efforts more realize are that given And a I Okay. as follow-up there? headcount to But, your momentum? the from are resources, controlled you Mike, adding

Mike Minogue

of talked some We are, that products and we're about. I also the preparing for new have

Impella So, Impella RP and after Impella then CP, X.X. that Connect, Impella

the for deemed to XX our be investors, balloon we plus years. last means in cardiogenic Class the of So, was Japan care standard Japan is the which be also next To growing to not intra-aortic and a for shock, for recovery III remind plan pump significant it have ideal system. a option, savings and alternative harmful we because of has it's used. and cost And the the lot momentum, in April,

Jayson Bedford

And fiscal just to I'll in ask then on you drop. one expect come more countries new any ‘XX? Do and

Mike Minogue

We currently new have been seeing countries.

focus Europe. can Japan. we out unloading the So, infrastructure well. a as recovery. have in are it's to Impella parts want to other government identified of all on is new they we is build the own need the the dedicated a maintain what U.S., Germany heart recognize become see the that's standard-of-care. for recovery patients that also what's the that care can the that happened distributor means therapy and Italy in done going India, our been and from we with its and physician commitment in being required, our And that, is patients along And But, societies we can so Australia to a that's very-discipline DRG. get And we future

Operator

SunTrust. question next Bruce comes from from Our Nudell

open. is line Your

Bruce Nudell

cVAD trial infarct DTU infarct attack be could a you enough? prevention the use to evidence enrollment in the you the to about PCI. design about Any is sizes regards Impella how get comment then, or control development and point and any kind treatment in high-risk AKI also, the of size registry PCI? And initial will questions. criteria in With statement and size the trial, fact that had that of with expected during big heart for might secondly, And kidneys protective regards approved thoughts briefly to high-risk couple I to ensure arms? estimate

Mike Minogue

Sure.

So, we follow-up Obviously, Bruce, try I'll question. as can thanks for it. to well. the have summarize

Morgan trial about from STEMI while a the endpoints we on pleased delay and we've study. reperfusion, results First, it’s design, We're the the of the very talking JP XX lot moving to spent at pivotal. unload. and shown time minutes, we're And you for feasible met we've that that safe the on to the

have As not of but of week. government details do we and again meeting this because endpoint the moment, not the size, where in primary sample because storms the confirmation with shutdown, the FDA clearly next the DC on we're of

happy kind anything to we're don't overall commit of we believe, our So, yet give but formal have because we what we concept to confirmation. of can't

the and X. the used reduce compared at So, your everyone, see that we size that only potential or we're to when that that, as JP were in But infarct to X had there a of than trend had risk. area was has Impella greater. greater were for also at stated a as patients you handful the the but pilot we X you sum revealed Morgan, actually ST the or a ST sum same unloading in that study, remind but to We happy signal a it's feasible, X X; majority showed at p-value, that

of heart XX MRI standard, there days infarct to gold an still that or only infarct at patients. leads failure size is the for impressive with size in pretty and X measurement just to long likely believe infarct an the X term. We this that's So, reduction

term infarct around ahead, will endpoint a a this term So, would have a to questions. study have our heart up follow-up. for on follow will This intent you important be clinical failure longer and size if measurement. a shorter the study endpoint answer Go

Bruce Nudell

at other then only idea evidence any there? just The AKI prevention, PROTECT, about all the was Yes. for question

Mike Minogue

Sure.

time the data we in amount the II, showed on PROTECT first failure. the to could AKI, PROTECT decouple renal back II So, And XXXX. the actually for conducted that RCT we you of have from contrast that

had and actually had renal more, So, than women AKI failure. lower men. the Impella contrast arm more more statistically had And numerically

have published a and do we're that Europe that in benefit CP in flow of done So, well. U.S. demonstrating the to that data the using be showing reduction of the presented AKI We as doing studies and to the multiple higher a continued the And X.X. currently little compared we AKI analysis reducing cVAD have registry, Impella will on bit been

Achilles’ Heel, a all used that continue refer injury urine the an Impella for there’ll believe be this there’ll out is appears on this that publications; rolling the in more physicians unloading amount the But we AKI is period many time, that production problem be So, kidneys It long well. of for there more CABG also a on science TAVR, and appear coming for of of well there’ll acute there'll kidney connection does the a to to heart; more a as to urine. is science and as as between PCI connection be there tremendous pump as and studies will for to publish some be year; be hormonal a And between that. future.

Bruce Nudell

so Thanks much.

Operator

you. Thank

Ro Sachs. next Our from Goldman Isaac comes from question

Your line is open.

Isaac Ro

Good morning, for taking question. Thanks guys. the

leverage to with start wanted expected. I better The the side expense So, a came actually. operating than in little we

kind us going items, think gone through expense right operating the you help help of year, kind to of us out frame trying on rest for of leverage? the assuming that might any unusual if you're through kind the of sequentially of and Just things could and some there, have what

Todd Trapp

Sure. Thanks, Isaac, question. the for

points and for what first the I in higher was XX% in basis So, the think, were of quarter, quarter. some margins really the barrier. The time XXX offset it’s the we by drove I margin record which our improvement growth investments broke Company volume, mean, which XX%, driven the the of

portion our manufacturing good operators side, to the So, that Aachen and both to in we heads on top added, line Danvers were of invest really continued a our we growth. to support

support some X.X continue investments we also this as quarter as a of the for business. product commercial in the little of more to the team continue will lay spent well. mentioned, In growth And pipelines, to groundwork to add our expandable sheath. like term new bit I We these and R&D to longer the QX, the on

as we those on QX do As do will takes and puts QX, versus but the as have guess we guidance, clock I give I security business. year look some higher is typically reset. QX, begins have I on at say and primarily as formal taxes, our we In we you the payroll social taxes higher calendar revenue QX don't know, do in and of would the quarterly

roll going We technology. bit But of optical. margins. out that a to -- Impella we're really roll to be will our gross little that about continue something out pressure it’s on put are CP and to obviously, excited And Connect

I think to QX, R&D around team a in more level QX. also like similar continue bit on we ECP QX, and spend forecast at little And commercial add a project the X.X in think projects spend, and primarily support of party again third in our also to to I expandable sheath. some our to we’ll

margin to expect see year-over-year. I some nice expansion So,

and moved during you think a XX% started off QX. little with QX, bit of the in course we margins; will we If XX% progressed we the year, of XX.X%; north to about at up QX; how in that operating be QX,

rate. right So, exiting the year at the

Isaac Ro

If Great. for on I just pipeline key a as follow-up could quick events.

comes you. STEMI? great. be U.S.; next X.X, that Just would and ECP first comes to is then That men; in when Thank what

Mike Minogue

X.X patients launch. approved under is in The limited now this Sure. a We're is Europe. Isaac, Mike. doing

end we said, a X.X we X.X the of to as to this supplement have expect the year. coming calendar by the As

make need it from the to selection. just and as this confirmation everything we're proper the to first then ECP, year for get final STEMI do get our we in study, sure organized, man excited. site year. well. the really expect We For expect to FDA, we that this with the we start out And roll But,

We have and top that. working on all indications some additional of products we're other of

Operator

Denhoy Jefferies. Our next question comes from Raj from

Your line is open.

Raj Denhoy

just could couple I if follow on wondered of up I things. a

there trial? confirmed two-arm have in STEMI opposed that you going just at three-arm point as Impella the a that arm the on study So, a be and study immediate it's this to won’t be an trial, to

Mike Minogue

Yes.

a very differences that what because a discussion what be that and would trying protective to show strong after the was that. program -- to We reperfusion firm is the was so not both injury. was the when animals has that a feel that -- did that's the cardio X not is the reduce greater, harm we PCI. activate XX-minute everyone, patients is. we and pilot, to this in that's that intent. from we're the To to arms, both delay, the XX-minute patient, As we're the probably preconditioning only remind ST there shown or we've far as benefit believe that the that hypothesis XXX% what specific the confirmed appears can there the we and was measure is recommending during Impella confirmation, out done sum of Really in the PCI in We've the ability that’s

balloons standard So, opening now which which do just door-to-unload, moving is going standard-of-care, up. forward, of angioplasty door-to-balloon, -- a mean, sorry, the to today's is we're which is I

with plumbing And And be pump what only to a comparing so heart we're we're going to excited about. that's plumbing.

Raj Denhoy

trial the the pretty quarter, thoughts just, have then that field trial? the restarted PHP because physician heard Any from in that yet of be trial, that in trial. anything updates over Abbott would the on you And thoughts helpful. provided, of terms interest saw So, any I'm were any the

Mike Minogue

high-risk we’ll But advanced coronary and their of details let you Abbott like we study. have Sure. all Abbott, mean, patients the own give PCI support focus on added the that disease. I recruiting

got and platform and to publications the all the XX.X We make And show confident referenced for our that cath it's in. to that did for lab in good French and large we a of surgery. or very still alone. That lot need patients XXX,XXX head the down agree over and company are to IP, get being unmet a majority paper said, they're referred in patients patients they said, estimating an As one create for it year catheter. start. there's the We're We've per we’ve awareness. clinical these are never that have our innovation high-risk there's a XX-year they've stop turned of have study. education, They a a U.S. it's

Abbott to guy and a forward be having along. of is And he look So, join the great customer. we CMO to used a them

we So, luck. best of the wish them

Raj Denhoy

one. one last maybe And Great. just

had your this some plan that size you market give be to still think, the year? alluded Is year, in you terms I and of analyst that us sort updates of like. meeting assumptions might earlier doing later this an for later the for

Mike Minogue

is, Raj. That investors and And our essentially, on we our work of analysts. behalf

on have, versus the the then other market. a current information X.X, coming of updating also capabilities STEMI, new we there's of total our addressable the some and on addressable market so, lot And on the

want So, of these we do year. to us. that behind milestones couple a get other calendar do plan to We this

this more So, detail Investor later can give calendar year. means, which of we have and its’ probably substance, Day

Raj Denhoy

you. Thank Great.

Operator

Thank you.

question Blair. comes Margaret William from next from Our Kaczor

Your line open. is

Margaret Kaczor

thanks morning, taking for the question. good Hey,

First wanted the Connect to follow on off, U.S. up in the I Impella

guys hospitals that that are right kind this of backlog there trying you You where XXX Is you're to that the initially. model or of expense referenced hospital can get kind described, for have sites used to far demand that to? it clinicians you so asking the to described of those feedback the now continue a to what’s in launch into? And you to hospitals from are been then, shared the

Mike Minogue

that's good Margaret, a So, question.

is the physicians, night, and anywhere they the any exist the So, cool was can they I monitored there's of else. in is, it factor their that or change component can mean when at in see they it and their the an element or this amazing phone definitely look of have tracked first -- the that technology patient hand doesn't way that

output, on we second thing the cardiac top looking things at left power the The that see can understand. that and and put on ventricle, things console itself, of the console, around ability fact they the had haven't new cardiac to tools is pressures monitor also they the output,

them ability the with of the and we're the goal giving so, doing, happening And the off. patient weaning contractility to the how see what's heart’s

Because a best this that people is conjunction. outcomes it's it or own not focused that are heart. can putting that just that part demand, on then, the people properly, day And that with one their means to the manage death. or if is think the life in from are you go. the alive I And evolution these place, go necessarily it's patients may is the in less So, patients home practice going where protocols ICU, in

life the is outcomes changes the to the to are have patients mortality patients. So, that benefits I procedures. XXxX fact people giving doesn't at more standard care. massive the these we're highest and the the times the watch invasive, die them think save are or that And managing that them These we're huge on expensive risk more in to These in patients physicians and sink transform in for and information their years families. and hospital, to watched of patient's have the nurses these XX to go

is there improve standard out demand the quest the of a expectation So, to and sincere a care.

So, we're giving tools. them these

get understand as think get at out, model, coming I hospitals to expertise. to and native protocols prove the is information going time them intense sites. which where and other to us will XX% revenue, why have pilot XX% it recovery. that have plus to a the And But far that to wean these achieving survival shared over of to the But that the rates that the As their more rewarding doing with best the hospital looking XXxX, at sites from you other their that sites going support which we difference. require practice the more may are certain is includes this be that because having and the ICU. to hospital we're are handholding certainly, have And we're up a is have XX% heart that little back, what bit

we're the super it. about excited that's and So, model,

Margaret Kaczor

on Okay. hit P&L, two That's And in of great. to terms the kind of just things.

long-term Todd as get do who margin prior -- at you're and we'll you term? update you for So, your you or longer go assume look mentioned the operating on hitting Day. But, you at an do I your Mike, strategy, top kind of to market P&L Analyst guys guidance. peers that view how the or as

Todd Trapp

would companies The ourselves benchmark as company It's the of that well best-in-class that has revenue, as typically be margin. one we Intuitive.

well. that we that’s model at So, of kind company as ourselves a here

trying us, to So, based for and spent what going time sitting I few just always term now do that models the business. we're than again, think short-term business a right? back $XXX that can that we mean, that's not we invest and focus longer it’s We margin million top-line we're as we were that initiatives. you where that of expansion where can one and our to now, grow we great things growth drive between XX.X% approaching while we’re we're do. most find on I we're back both, can about close And that's further really right faster about margin continuing to mean, business. XX%, into I yet. done if Over and XXXX, to R&D in think period, And years margins of

the Margaret. going strive so, as both the on to And we're to well as on best-in-class bottom-line, be top-line

Operator

from David Morgan from Lewis Our question Stanley. next comes

open. Your is line

David Lewis

knits Just couple quick for one and for a Todd then Mike. strategic of

quarter. want placements to just side, it big Just financial disconnect this this sure this want for was one spend real XX like on X.X math very strategic The that just And drove to a That I seems -- number? What that I'm And that Where going? CP I I continues Todd, scale. incremental make the particular the sorry on have to number right. is confirm investment quarter, the margin the number Mike. that in then, R&D R&D number. deck. have I

Todd Trapp

David, first the can sites? repeat your question you just on

David Lewis

Sure.

in site very X.X was like incremental of understand I that drivers in just add the think, -- on deck site I what X.X number, a big the the that number. quarter? want to looks

Mike Minogue

XX and of XXX David, sites sites, prior did if we So, sites, new new that total which CP you're XXX compares to were doing year.

Is breakdown new sites X.X, CP, you're to XXX XXX. RP the number for of the and to? So, that from went X.X referring

David Lewis

number. consistent, Pretty had a we different

offline. up the last is And to Todd, scale going? million, helpful. that that's R&D continued that year-on-year, investment And -- Where then -- take where's I quarters. then, come three that we'll So, think just $X the investment incremental R&D,

Todd Trapp

It's going and the like sheath. the products, our in ECP new X.X, of pipeline Impella expandable Impella

data that you to know, cVAD for IQ out a has database. attain for as in indications us And expanded product. great been we as, our well study to As continue foundation our build

as our So, and study cVAD out products our between the ability I would to IQ well say as build database.

David Lewis

the And could the us XXXX, of for the international; scale outlook a geographic Could off as think give you're comps you growth? growth. about where we about on and Obviously, it countries ramping. Japan is U.S. of just just thinking sort then, harder -- Mike, coming new with sense

growth of geographic Just growth? well us give product Thank of drivers next sort flavor as year, a you. for new as

Mike Minogue

geographic, focus question additional Germany, in we I continue more Potentially in your David, little and in what on reimbursement France resources a Europe. or to is other on countries think, Germany. in the parts bit expand potentially UK could U.S. some maintained relative to So, the based be you'll see or of

I We consider also ensure full kind and had expect to launch would launch. limited in the be what now of move bit faster, Japan to infrastructure. We've this to the we little a get

of sites We to always it approved. us are give try see faster quarter bit Japan. each you'll ramp in the already little So, number a that

only but government. at So, and sites by XX XXX the we're are ready approved

to now hospitals. So, more and XXX, at there's the that's and the where But, certainly up, we the than Japan. we are to rate there, more hospitals pumps than hospitals XXX going XXX be pick balloon in go could twice could that

countries us these want I been bit And more hesitant them seeds on heart So, practices. we’ll Asia utilizing be ability discipline. in little patients new and the more Impella that audit push experiment before best ensure Connect audit Impella we’ll might gives the have the and they're us to that flexibility as around really a tool execution, just countries, that The check to see And are of we out plant and new we a some focused they're continue rest managing Connect areas to recovery, for and launch in gives Japan. of more build of the and way the that open to able managed, really to think them. to the the

Operator

Thank you. And question next our Danielle Leerink. from Antalffy comes from

is line Your open.

Danielle Antalffy

that Can year-over-year that for at is QX you guidance. accelerating given better But, tough least, step stable. you're a in feels down year, guidance I or a momentum the last in remind growth and Todd, expecting the like tough the you in the comparable. and the strength doing Can clearly bit puts QX this little it's comp? why on drove it's about that of us you're question takes Japan? appreciate very the first fact actually you talk a it year, beyond what

Todd Trapp

off took Yes. end time up million Well, it QX, practices, low past for million we and I $XX mean, listen, the the in the third reign end. with the consistent year; off this $XX was high

And to so, the million mentioned, big really come XX%. again, from mean, for down does we're -- as comps. XX% grew perspective. it a tough focusing up I on we you year top But Danielle, $XXX in bigger year, QX, last numbers line and

And so, we are lapping difficult course. some really

patient to think our to And with med-tech market. one Mike pace remains goal that sustainable again, profitable fastest companies the growing, on so, the a in at a we're as mentioned, grow going we be to most And focus continue is of outcomes.

think more comps anything I so, it's And else. than

Danielle Antalffy

cash, continue faster deploy And doubt. generate it. in you said Mike, can start you’re no what you to focus you elsewhere? over spend but you're investing do at a $XXX is cash business, point just from feels now organically appreciate it I than the like flow; the into strong to At you million cash generating cash capital perspective, Because

so deploying that on So, just over curious view years next how the your to much. think Thanks about few capital.

Mike Minogue

having us position, very-focused position to allows our Danielle, and big continue on invest We cash that we as innovation IP we're to stronger as and to execution. continue our create plan organic growth position. well enforce IP very a in a like and our

are on are adjacent. things that We investments placing

we the Shockwave. So in $XX million placed --

I see hearts lives. in recovering have to And fit investment to where selective in think leverage $XX million, and X X doing arteries. potentially or where disease competency core our what path. made allows technologies continue upwards new with and to to Impellas other we we'll people million we're that place patient it's areas of years clever a vascular we benefit us also might our We've can technology of be into out that that the helps a femoral investments, and more $XX be saving

Operator

further closing showing back over turn conference now I'd Minogue phone for I remarks. our the Mike questions from And to no lines. any am to like

Mike Minogue

want to feel please time follow-up Have I their questions, And you Great. out. great have day. to if any a reach thank everyone for free today.

Operator

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

may all You day. disconnect. wonderful Everyone, a have

Abiomed (ABMD) 31 Jan 192019 Q3 Earnings call transcript