ABMD - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Abiomed's First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Todd Trapp. Sir, you may begin.

Todd Trapp

Crystal. Thanks, welcome Fiscal and Conference 'XX Abiomed's Call. to morning, Year First Earnings Good Trapp, Chief and President I'm is Vice This Todd and Mike Abiomed's Officer. here Minogue, Financial Chairman, Executive President Chief with and Officer; format today's will as be The follows. for call

quarter release. the then review will to the After results, that, will financial operational outlined were your will and call first we Mike highlights. business questions. First, in our which discuss And I today's press open

XX-K undertake includes and call statements. the to statements future. We remind Chairman, guaranteed materially Executive let everyone cautions to of and a Minogue. differ XX-Q Before that in The in President obligation due press any may me we over begin, investors Chief variety today's company our statements. factors I'd earnings like filed involve that do risks turn SEC. are recent release the With forward-looking not Abiomed's any update and most forward-looking and identified to results forward-looking to call that, Mike and the with Actual uncertainties not Officer our

Michael Minogue

meet Thanks, and Todd, and have and to everyone. and and during smarter communities. has unprecedented customers risen COVID-XX crisis, harder by I these this to impressed our way challenges. given work had and commitment We've to patients our the and of employees sense health good sharpened our grateful their which pandemic and morning, responsibility The am best in

execute, education. patients-first but and improving sequential our principles, advanced patients Abiomed, goals, core in our and innovation monthly strong QX manufacturing while in including brought innovation especially manage, do culture, investing outcomes and challenging growth, QX, we our and adapt changes procedures has and we and our pumps, regulatory same, patients our heart At the the our We times. our us During to lead, our achieved innovation. life-saving supporting focus keeping for what safe, operations, and enable with prioritized of remains employees Coronavirus X execution. operating our to milestones

of my QX productive pandemic in Abiomed impact down with execution organization in of most in our the delivered quarters commercial million disciplined year-over-year. $XXX our revenue, tenure QX, Our in on one XX% delivered company. Despite the the XX-year

field quarter, and sequential May June year-over-year and supporting educating $XX XX% emergent solid patients. million while increased panels. the cases Abiomed the in by expenses, and and high-risk, and in urgent continuing growth in to monthly innovation. actively June, Europe we countries margin, physicians revenue the Within and operating hospital cases through controlled achieved and broadcasting U.S., April, remained live We a videoconferences eased were revenue year-over-year and growth productive overall. as on restrictions June driving and to and in reopen relevant X% and expert in began Japan, successfully costs patients research invest In with in

sheet our nearly with and balance debt, $XXX cash now patents million robust in X remains patents XXX patent Our portfolio XXX contains spending. and and

Abiomed X.X the For yellow into fiscal and red to in from phase QX I will our our QX cover today's call, 'XX. phase transition transformation our

investing executing connected clinical smaller, for our are along We products driving plan strengthening and evidence. training, in on innovation, and education our smarter, with more

normal accounts doubling the outcomes. X-phase use elective X,XXX our red, designated sites restrictions cases since completing We fiscal earnings on access technologies Connect, we for and broad meetings March. headquarters console on called limited the more challenging with year, of focused we last now environment. along online U.S. upgrades and rollout the and limitations QX, the hospitals realities potentially on have discussed and call, with QX on than Impella ease travel, the XXX COVID-XX In SmartAssist and We state number improve SmartAssist to treatment help of connected we most As of Both Impella sites accelerating green the of a of in-person operations. Connect. yellow, because with plan, red

activate sites Connect hospital in topics Abiomed the and Additionally, Connect have to need XXX cloud providers account. Impella alarm and the hemodynamics, remotely the hardware already monitor the allows interact the we personnel on to the capabilities. Impella as Impella medical with permission weaning WiFi console, console such and on only management

and our encompasses and connected portion large moving transition team's to format. Abiomed virtually. Our the providing reviews, online That of customer training and online a and to throughout customers connected X.X for includes stay to education An example education customers ability an X.X business doctors with in QX and activities service Abiomed was or virtual of training management employees. everything execution pandemic,

and the doctors education training. XXX through roughly Within quarter, we professional online reached

on organ failure. XX in weekly lessons patients with basis, surgeons connected anywhere Additionally, identify cardiologists and from shock, XXX-plus and to treating cardiogenic to cardiac a we myocarditis, with learned COVID-XX

COVID-XX. reviewing specific been on collecting with have patients and for and We case ECMO studies Impella without and support

our our in oxygenation. with this validates databases, Impella unloading for we able of adapt shock Emergency support ECPELLA further and to FDA benefit in for clinical receive ECMO Authorization track result a which of Use As ability data the to requiring week, were patients

world-renowned Europe. virtual the attended esteemed group milestone initiative in of establishing as and PCI education a cutting-edge We held physicians the remain Another faculty and and live cases and a on PCI best users leverages from proctorships United of focused meeting the important weekly advanced the training digital online training interactive was content, user CAMP virtual CAMP resource launch States PCI, interventional X, cardiology. as and cardiologists. in education CAMP and such in June from company X.X We by recruited platform physicians, on history. largest our successful an launched

Impella to U.S. half on Connect. with market pipeline. Impella SmartAssist At the Impella full our the surgical was of to quarter, the end more X.X X.X in In are organization. and online release we product Moving XX May, sites shifted and than of expanded with the

Organs, first explant year-end. of XXX% Impella Artificial consoles XX with SmartAssist of goal with ASAIO, heart treated or the X.X American edition to We improved the XX% Internal is nearly will patients heart XX% in impressive published X.X patients cardiogenic and data to the of Impella product which for on with the the X.X patients survivors failure shock. this the of decompensating having by survival continue see chronic to Society exciting rates July is recovery, real-world of the benefit found It unloading in on data launch a native with demonstrating of Clinical failure heart patients. of acutely survived for

early for The those in nonrandomized On prospective and study in onset feasibility validates to multicenter, to received Impella pandemic, choice has feasibility later the product embolism. the allow enrollment the study pulmonary Emergency therapeutic turning XX, patients the right heart the RP May May a regulatory and study assess patients. failure. to Impella year. this forward certain patients. FDA Abiomed, we COVID-XX beginning look with ECP of become the clinicians This Authorization treating this Impella safety value PCI life-saving right in patients test from received XX, U.S. the for On U.S. EUA calendar FDA investigators Now the the for treat Use RP failure the to early will further approval FDA suffering for progress. feasibility device We of the COVID-XX we Since heart and high-risk

Moving on QX. to

and to to Danvers, full Massachusetts Aachen, transitioned and moving yellow our production. have are We manufacturing phase, our back facilities Germany in

of the cardiogenic protocols hospitals patient and across impact peak have and said, protected safety have may April. the in procedures we to resurgence believe which return U.S., the and phase, prepared this access better Overall, begun due versus a treatment. to in in hospitals patients see geographies. measures the shock and place we PCI testing availability more of COVID-XX globe are in currently of and to seen in and in COVID handle the areas With we During cases the most that resurgence certain preventative

and agencies publishing statements and well death, cardiovascular societies, patients and with hospitals management European heart on agencies or as emergent and are factors. a addition, been at globe. in the risk, government COVID-XX guidelines of published CMS not government essential, risk In with high Extensive by other and timely patients the treated risk guidelines manner. physician failure and if communicating as societies of U.S. These without physician around have are

published the from cardiovascular of safe North For reintroduction services XX societies the American recently COVID-XX in guidance pandemic. during example, JACC summarizes paper cardiovascular on a

on cardiovascular As emergency increasing med with patients. I on acquisition, a to XX-year-old therapy provide for XX/X from in for coronary future, as our artery to call result, systems is per myocardium. is obesity, failure also respiratory and focused heart recovering and we With will uniquely tech Breethe to are in flu-like Devon hospital No population of U.S. company heart ECPELLA and diabetes, science the plus other mortality to XX-plus combination was to multi-organ to was from XX% continue both XX-year-old epidemic one surgeries quality some hospital COVID-XX. with the of recover. failure. care began Hospital the heart hospital at lung eliminates are unloading cost-effective functioning now ejection a XXXX and story and years now dangerously share to cardiologist, failure, Physicians COVID-XX, it difficulty address, both heart because and and X%, warehouse PA, providing XX the of severe XX% the Impella high-risk failure timely native The would is myocarditis combat ambulance by the most heart online, John represents mortality heart of the working months. and at a and the the failure improve These in effects respiratory a rest Blue and He more fraction positioned inserted remarkable great site, $X.X care Dr. growing and work to CP on back increasing and aches insurance a improved returned Devon's and on weeks also he or respiratory breathing. experiencing of type explanted. to VA-ECMO the XX- allow myocarditis Devon Pennsylvania. study, to placed Finley the story Impella Shield. Pennsylvania Darby, heart age about to This therapy where and worker the lower care, costs transported showed and like Blue outcomes He health patients, interventional symptoms, for life working X the after at Fitzgerald and recent of and while charges one forward the is With of arterial JAMA Devon increasing our was in support called was muscle Mercy invasive Smith, devices Shortly within most improvement and looks and COVID-XX. low Abiomed diagnosed and X populations. by disease, venous over support expensive well. XX% patient car. costing his the Devon's home EF. his which CP X saved ECMO more and and and on with after X hospital of in the in University were normally of dramatic ECPELLA, treatments to with the of ECMO Impella Devon weaned life his spending After helped Cross family time provider, now transferred days million with Philadelphia.

looking towards remainder of 'XX. Now fiscal the

on are our goals rebuild focused we We as Abiomed X.X.

advanced technologies market invest Connect, Sheath, X expandable in BTR device on an allows track limited market closure Fr the with Impella QX. Impella We the Sheath, a fiscal continue pipeline our for Impella the We algorithms. through that recordable ECP, sheath, in AI Impella to and and XR a bring X.X release remain to including XR new to

track Our clearance XXX(k) the ECMO end on year. a of fiscal remains the by Breethe technology for

can drive Connect an live for and Connect via server, streamed the Impella recently HIPAA-compliant AI provide will Impella be console, to which approval FDA information from to Impella of continue to future. in a the means accelerated data predictive streaming clinical data console rollout physicians secure where We Connect received

STEMI began trial We Turning our randomized controlled data. to in July. in DTU clinical reenrolling patients

have X date. reactivated hospitals and recently totaling XX We patients X XX enrolled to patients at sites,

XXXX data from The X,XXX publications studies ongoing year. Impella patients interim We of the advance in the to steering meaningful are patients. publish and favorable fall, continue will approval PCI and comprehensive In fiscal physician has from at planning report by Overall, study the FDA study PMA PROTECT was at TCT to high-risk committee presented approximately PCI. X.X on PROTECT September the PROTECT we the most X,XXX FDA present. high-risk years over late-breaking to multiple prospective III we and the series III, Impella been this largest for patients PROTECT the single-arm CP data XXXX expect total which The year. science clinical completed. represents recruitment release to for in is and for have of study reviewed last with now post-approval IV treated the of XXX final RCT

the associated want investigator-led XX%. as Cardiogenic have demonstrated with a I conducted Shock survival in historical on at of our shock our study's best rate are cardiogenic with an to findings XXX focus customers XXX In ventricle the council execution, pipeline best of recover improvements significant on the and Japanese professional hearts in practice days. use clinical shock recognize the QX to the and our conclude, supported Japan. of treatment related from and with multicenter patients, data that studies, increases XX of our societies use The delivering protocols effective I'm days XX% of is data XX Initiative Other oversight our Impella that the a Shock and Abiomed's each advanced XX at consistent societies the interim study Impella prospective found survival such lives. rate study use AMI, save We and I at published at our that Inova with National survival PMDA the Japanese included Before in positive red conclusion, XX% and and other the We therapy myocarditis highlight real-world clinical sequential to the academic for patients. commitments revenue assist with survival the device findings other, study rate patients. the from compared was study phase use in achieved about Impella practices for cardiogenic highly technology. maintaining and strengthened by hospitals patients proud The for by study conducted and

QX accomplishments to our in years Our come. global position the organization for operational span company many success and for

know my focused deepest environment yellow that our thank in progress ever-changing appreciation we adapt must to for support. Again, with teams our express I like remain and As our for the through speed also I would to would we shareholders execution. continued phase, company for and the QX across the we to customers. like their

will We continue and the and Todd. now X.X call build company, we smarter products I fiscal productive over most pursue transformative are for we innovate one 'XX of connected, Abiomed more studies the to as make and to turn years guidelines. that for the Class while will smaller, I

Todd Trapp

families I and Thank the you, everyone, you are joining hope safe. thanks, staying Mike, for today. call and your

the April resulted versus the hospital the pandemic of impact restrictions most felt on down patients and of Those the about revenue our of Mike QX while actions countries. as long terms in a term. the million, on were prepared and the limitations most procedures XX% We from quarter of served we last year. dynamics to us of During navigating we be talked $XXX the focus negative revenue described, the taking call, The challenges, intensely the in for in environment in preparations the effects COVID-XX decline we're near-term and in well, prior environment. keeping shelter-in-place

both patients and June of to the by Japan. we positive treatment into lift and had patients, and come May system. restrictions limitations year-over-year globally were we and as in June, we Europe of Mike deferred revenue experienced sequential growth began in delivered driven April improvement the As some specifically, as month X%, We U.S., in back believe in the May and who some eased. mentioned, lifted In in revenue global June growth saw

X.X quarter. Impella RP the a decline is in in XXX breaks is utilization. month from U.S. X% in down in your at now geography. XX been delivered investor SmartAssist reached end Impella most revenue XX% and of revenue and an California June, year-over-year, driven utilization June. U.S., For slide of in with decline declined patient in in reported by provided in otherwise reference, $XXX the X.X a CP The month X, the in million, sites. our The the and and performance The XX% the grew by Northeast X,XXX Slide patient sites the U.S., Impella placed by sites. we package, broad-based we have sites. the have out of has XXX X.X revenue In which In the

currency totaled X.X and line X.X CP continue constant data last $XX X% levels on the in from with the just technology rate positive innovative inventory due Average Outside XXX%. we reorder COVID-XX approximately surgeons was We real-world positive of quarter, to was the on hospitals across very units on all U.S., site, for clinical the down regions. per feedback revenue the at negative basically receive to as In the outcomes. this shy combined impact well of inventory the saw quarter. million, the Impella as

decreased currency, Germany, Benelux in weakness France and by revenue European driven constant Our region. XX% on the

German high-risk was by driven quarter, down PCI. in revenue Specifically, X% softness the in

For and month respectively, in flat $X constant Japan, and X% the and Europe on a currency the COVID-XX lower X%, QX, up up was year-over-year revenue to site delivered In impact Germany in June, of of due basis. revenue on openings. in we million

XX opened year This fewer than X sites, quarter, new ago. we a

the see XX.X% to a regions, first increased to Connect costs the Similar quarter incremental and by the of last The investors, primarily year-over-year. lower local as to site prior team Impella openings CP variance compared was was year. reminder margin other quarter to the year launch. the June As XX% post-approval accelerate some Gross volume a in broader month rollout. XX.X% in half recovery revenue in year-over-year to in production the did driven in study the to we a of within Japan focus on allow front-loaded the

$X.XX totaled the ECP In of invested and one year. QX As while specifically to the margin cost per to year. XX% by versus impact increase driven in share versus lower prior $XX invest of to Mike or expense was objectives performance $X.XX the clinical the DTU the quarter income in being devices, year-over-year Sheath and red volume small-bore to prior million, XR our PROTECT and margin schedules 'XX. lower XX.X% variance million an work continue our on Shockwave mentioned, driven STEMI GAAP first innovation, translating our investments year-over-year and a discretionary was The lower We phase net in the including was quarter, primarily the performance sustainable versus long-term responsible. FY support favorable was diluted of by $XX XX% income compensation of operating first lower SG&A our growth in by the was of R&D fiscally was and investment studies excess expenses, QX versus management versus XX% year. in operating implemented. for the XX% adjustment prior salary $XX in for associated totaled driven prior an the reduced on QX was quarter. $XX growth. despite million, and stock-based reductions, tax equity The our compensation. IV, reported QX lower rate benefits tax ongoing emphasis actions driven year, we down mark-to-market million, executive in The In tax QX, rate. expenses and with our volume, by XX.X%

over Our a cash balance ended no $XX nearly of sheet we in million, balance XX% last June generated $XXX debt. cash with operating the of quarter, very flow strong. We remains year with up million and

balance cash to fiscal acquisition. declined year-end the Our Breethe versus due

resurgence long across differently The experience focused on is have still based on We the of variable globe. COVID business innovation continue to that our very to We the across capital geographies. to evolve in continue we occurring necessary some cities in on pandemic are believe likely disciplined continues fluid term. stay to the is the and be impacts to and

this in year and with position last we're at Given the provide environment consistent our quarter, time. uncertainty comments guidance in to full not the

we provide to period during July resurgence, insight However, to will transparency investors our of this into our preliminary results. provide COVID

reported favorable foreign the X% and month growth augmented global potentially year-over-year, For approximately of mix timing July, of exchange. reorders, revenue we by sales

COVID month. was for as Florida, seen in resurgence which cases, resurgent by down approximately such California. However, in Japan year-over-year, X% U.S. select driven in areas, a a has is of indication has Texas by platform. by patient visibility month Abiomed impacting July and Impella COVID utilization, and utilization across cases and hospital, IQ our the also of and tracking benefit database for single-digit resulting on-call our in a patient on-site, the included by patient Connect through physician growth online

phase. while very We monitor provide continue will will sequential and as with take to uncertainties our control. we can we and a and pandemic, both We and improvement situation updates our patients are duration actions what was short-term the challenging on QX in revenue operational and fluid necessary. the given are as the can transition yellow to quarter, pleased we and conclusion, the we face unknown performance depth focused we of In QX the still

on fiscal be quickly will agile, continue adapt our to 'XX goals. to us remain execute We which allows year and and focused

in significant questions. We our now the With Abiomed. open strategy operator, for are that, please for in ahead overall the opportunities confident line

Operator

[Operator question first And comes from our Jefferies. Instructions]. from Raj Denhoy

Rajbir Denhoy

done? getting offer whether of maybe as impacts I'm if June were in deferral there that's normalized that of there's more could there not with just complexion in into catch-up of the a some growth patients can can And maybe July. maybe of then some demand. I perhaps additional drove Is the terms how and better terms maybe you anything back on you're was Wonder curious that coming that forward? previously the And in going June. maybe performance anything detail you start provide July, if

Todd Trapp

Yes, a good Raj, it's question.

of the, as in what I'd a bit say, So it kind in of of that lower inventory. rates April driven May terms of was hospitals some from reorder obviously, managed were June, part little and

of month a With the X% versus standpoint. fairly saw United patient and reorder mean, in our our X% was was June said, up rates of June. months, a those growth in little I there say, in revenue a low I we bit from catch-up, would States that So the in

I'd I of a things point July, As think couple out. about

translate to can First, think it's X performance don't entire month, right? the quarter. you I the And

seeing of really we mix those we and a CP One sales did are into some reorders X.X thing is July. and mentioned, as strong replaced is the a to are X.X. favorable finish being push by June, replaced the really I X.X the being is we seeing by As had the

So of bit we've would well was a deals -- little the July. is as a a X.X some say, in the year I a of selling year. last rate there. bit And We of of seen the little The in July FX a $X.XX little too, average Euro prices benefits higher saw more month this $X.XX bit tailwind. versus rate

make bit there's it's say, about and we So little was the September, QX September's rate month. had year. I'd way want of we I X long have in in the noise, people other growth that would to half go. the and a understand out month point We And of overall, only July. strong is, But a about have thing July just XX%. did latter comps sure some I of a really tough to the still

of So July. get just, bit in little say, ahead the month of I don't a us would

Rajbir Denhoy

like rebound disparate question was a terms one treat Understood. about to indication? the was shock of in forward? just kind maybe going down And teens. that down maybe shock It not one The PCI looked back? why rate. Why last complexion is is maybe PCI emergent risen very coming still anything of there's revenues. you of terms that of twice high as offer can seeing in in kind that so any whether versus kind of we're of still you're need such in And falloff

Todd Trapp

PCI how flattish. down and Raj. quarter, progressed you through XX%. you, was down I it for shock up for June, the But digits high-risk PCI and high-risk XX% tell month actually, was quarter, the look shock the basically of was Yes, at was can almost double as

a the shock side a stronger on recovery an saw but in indications, So we definitely RP. bit both and stronger in increase little

Operator

Kaczor comes Margaret question next Our Blair. from from William

Margaret Kaczor

of some the Just follow truly maybe up July, delays were who [indiscernible] couple and they some maybe wanted commentary. saw in to those the next of recently but rescheduled delays just July suggested getting for also again already were We weeks. on that

guys Or are curious early was you well? as seeing too to if it So I that tell? is

Michael Minogue

is Margaret, some I question. rebound it sure a delays? from in I want the So clarify -- to the make The of July about

Margaret Kaczor

timing of And of correct. Yes, the cases. rescheduling those some

Michael Minogue

Sure.

our Italy, diseases a patients few City CPR. in of unfortunately. getting So treatment much York in basic are New really was example, on April, in pretty for when systems obviously, overwhelmed, and were for And hold, cardiovascular

However, strong rebound saw had patients what in is, as areas. and in progressed, a positive things City and in York both New and months did we Italy see we in May June those

As mentioned agencies now in documents the guidance risk the in even manner. or the they of I are timely prepared are patients my or that societies cardiovascular in are have if risk in putting because remarks, high not CMS Europe, U.S. out like death government and urgent emergent a treated high

job. a they're So better much doing

they're able when still emergency so as overwhelmed And able get some rebound, the imminent that death to risk of than confident they patients failure. see is things feel treat those again, higher risk. And have have progress, organ in they're we profound that won't system to a they patients cases, broken an again or because in and what some we they're COVID

optimistic it. been about that's It's we're -- So seeing. trend the we've

calling are where areas or We're there overwhelmed interaction we having bit have that the as get been a there on Impella productive don't Connect the telesales in, into and those in to able places that However, the the ICU. well. very cases hospital, team as and helping little much is clinical having some the track

Margaret Kaczor

going assume yellow What should you comps a are referenced comps the making going Okay. impact to we that that is bit? the -- potential then in now you're commercially to changes there is phase. that Yes. wanted for a That's as had clarify phase? think you Or And your you're I I And growth? that -- helpful. to or in this

Michael Minogue

It's a great question.

innovation, both and providing was a really And we managing guidelines, bit in our and patients. pretty investors, by to relative of as preventative things managed year, phase we're can that we at how was the revenue care. was transparency look the and so to through red unknown, we've the less you can There we're less what truly And we that think driven total see The well. control. we're we seeing and there documented really invested

to approvals, the up just do to the the we publications move managing COVID but on of anxieties. to regulatory innovation, ramping advance As the with and product again yellow it lots now has clinical phase, not logistics studies, continuing moving forward our

the way experts so to become at want for the the doing -- testing, case. or is, And we're that we're active whether antibodies

performing And we're We're tests. tests. so buying

and is have We the to potentially but procedures sterilize go process a that office, have We week, their anxiety want send do saliva. a it. some we it, and globally. through -- our that their COVID We that They local are lower to the can once run drills logistics. tested, accounts We've cases them cubical, people invasive clean now upper process. or we to. we because people tougher where identified is that a of to not mock where just than test to these used get ask the person we We less had only XX not get nasal out I run nasal drill think

the doing we had hospitalized now. any that only one had fine had and person haven't is patients have We death, briefly, but

in manufacturing office. make down to had but want for in here crew again, a We've that we we So shut the we've logistics. the office, manage -- everything skeleton sure we and never

are do perspective, weekly now we're it's calls. moving virtual being And From usual. production. full Now a We back customer education cases business live they to as now. on bit and used to training a

much with are but record panel we from a on live every case where and later have experts hospital, everything employees. we've and virtual our people it can call we -- of So watch what pretty We right And blend we physician training, can both it we what in. influence that around we for our PCI, moved can endure. virtual now CAMP control, confident have we to people and the supporting customers for into education Wednesday, a what outcomes

in And is year-over-year but our growing and endure so to continue patients and we'll improving outcomes QX. main COVID-XX, focus again, revenue the

Margaret Kaczor

one. if And Great. I last one can,

commercially or the revenue about in spikes, was that Just Whether in or there? Notwithstanding June obviously, you should societal responses? we COVID think saw Japan, growth data oriented it's some the spectacular maybe progression spectacular. -- how guys any new

Michael Minogue

exception by We're but committee assist best data positive. rigor a interim native protocols. are in good in soon discipline was feel that primary with the that moving forward the And out Japanese And love to physicians X.X Japanese we usage. finish the is practices. is study, we to as fact They can. to we final Japan, -- ventricle the the we're show flare-ups of heart that the Japanese recovery. implementing and get We the their the Impella as focus Japan The again going of of lot tend very with of device Chairman the some on Japan in physicians the presented

Operator

Our next Pasquale Chris from question comes Guggenheim. from

Christopher Pasquale

A couple of questions.

and delta reorder June-July in better rates a us wanted then And on Todd, from to tend is catch-up July seeing really The you a make report in patients the you but inventory commentary or specifically. we than sense the wider reorders revenue treated in see the to from levels circle First, Can for I mix? decrease give back didn't between and XQ. sense, you impact guys. you're

see Why need of big a there? quarter? of more catch-up we see really you a dip didn't the how to So in do

Todd Trapp

Yes.

good -- So quarter a X.XX. actually for for Chris, about it's was the reorder of month the question. rate The

And the so over several little been past typically X.XX, X.XX we've in quarters. a

how So XXs. still mean, I in June. down a bit May, the was the look reorder But again, then through below in And little were catch-up you there of quarter, it And quarter it XXX%. was at an overall April reorder rates rate a bit progressed was slow. the and the a low little from perspective, as

at I point. when about, X just stronger July's I X from -- X probably -- would points performance, say, for really seeing we a just are U.S., June let's plus example, take was reorder Again, of to the and strong. lot So look a the

June, And say reorders of end and so the driving of I points the in push July, July. that's into probably did X of growth would of at those some month

business. our big mentioned, as on the mix other point, The I is

think first CP, CP was And if XX% down was you about over down X.X in XX%. quarter, the so

average the CP higher selling we see versus so price And X.X. a on

there seeing of So versus some obviously driving too. and we're as X.X our as X.X some mix well mix, acceleration that's our the

some nice nice we average has in July. selling we're had are mix which that seeing higher well the June, a probably month perspective, some of points other it's seeing as out price would as RP. actually I RP X pickup growth in and So X.X, our early thing because head in And from in of actually too say July. June a the Use of and came And the into month Emergency Authorization sales we is the

Christopher Pasquale

And laid based that we've green where it there. the to at the directly appreciate phase the May, end business I quarter. then, Mike, sounds the the detail basically in out like on all of transitioned helpful. set you That's just

You're still XQ. talking about yellow in

So green what seeing? are you not elements of phase still that

Michael Minogue

have yellow the we we're that in phase. and territories example, But up for red regions not Chris, we yet have positive. that we're the do are perspective not And is green. on and

the full and to some center some the very July that hospitals. territories not And we We're in every in moving reenrolling And manufacturing reactivated a the the we have announced. STEMI into into again that's back at relative production. again, back at back access office, new we products. we're are said, sites while XXX% of are have and we're facilities as We're you in We But pleased, are red bit do that the areas ramp into have so green. to both will the launching DTU but moving for being are not forward a I up, That study, positive. yet. you

green in access, high-risk and really have treated, imminent hospitals. green, that not quarter, processes that treat territories -- putting not importance the no that phase. look flip the center, agencies many risk societies We're the protocols every Most emergency at have the patients. this So seeing therefore, some red to longer pleased will it essential get as the stressed us constraints, we're have patients our the to to and call are ICU with hopefully to give managing we of of until to Impella room, certain in hospitals we're but we And out the time real until direct access death territories if cloud. can. and or government they're these of back the don't and and center. get an into end and if our territories will But we the we we we're the do Connect, and maybe able And we even they're have get the again, we as by fast monitoring of we're the in say, the the of flare-ups into of have patients also with

Operator

Our from next Danielle comes SVB from question Leerink. Antalffy

Danielle Antalffy

heart come COVID Just impact question impact was specifically, way appreciate of a the sales Any so left much sort month this how of in on recently, very the for to until quarter. sales the COVID there. with no More I or the EUA did patients? not potential the positive tied impact RP. quantify to

Michael Minogue

what approved indications or good FDA. reading a or we've already years, many the for From question. about organ talking track, That's XXX by those failure you're ways, we we were are myocarditis, COVID in XX about around COVID over patients. suspected But things have been that shock and

recovery. normal. that us heart Impella is happening I back So just native heart still to function with everyone his kidney failure, truly is ECPELLA to of drive that again, where the to chain Devon story causes and the but and survival And think element of progress whole point is The not the to highlighted out, heart ability plus now the remarkable. break visibility the it gives what's just Danielle, to we of native lungs

also COVID goal. has have then ultimate But the is is ECPELLA. transplant. increased survival And think the cause to so for go should done what's to looking that on of people that's has of failure the for increased The drive surgeries should organ death. failure, so either respiratory understand need ultimate failure. and the goal respiratory to other heart for I allowed And not it protocols what and And or failure, that or cause an increase it's death the has be it ultimate pump in a

those a and positioned of uniquely we're both where for of so now the again, with goal And solution recovery. native technologies, to heart that's provide

Danielle Antalffy

Right.

issues, ECPELLA helps. the COVID guess doesn't what point is, it whether So matter or I those not, or Impella causes it's

Okay.

sense. makes that So

other point... The

Michael Minogue

that. on point one And Yes.

at growing population. the look that's to you coronary obesity, these And and diabetes point all diabetes impact obesity If X heart challenges attacks, that other XX% patients the that causes of type that, disease and have. and could

XX grow failure. to population showing XX%, And heart also COVID. is is unfortunately, XX is faster a also So the rate between from heart continue at mortality of pace XX going population and an to failure with but growing now increased the

Danielle Antalffy

Understood.

COVID hospitals even And way hospitals remarks. this alluded actually shock environment, of Okay. Now establish you in the bigger this high-risk time and the crunched But a enforce maybe for in sort PCI? cardiogenic motivate does and to money. prepared in are dynamic and to for protocols

Or while get also outcomes. dynamic to Is any So am there perhaps much protocols I increase efficiency, too to you're there? stretching improving seeing that?

Michael Minogue

I think so.

the way weekly we about treatment. practices, COVID, we constantly doing learning think the talk It's learning we're that's at we what calls are I these about best why to are what also look it. about

You have inflammation, the also have which you lungs, risk. heart COVID COVID clotting on the the left causing side with increases but the and

a gets and lungs trying resistance, a is across can that embolism, happens or extra pulmonary if right cause heart what their clot overwhelmed ventricle patient the so gets to And pump in right failure. that

pump right take So to Impella ventricle, both for by demand the left and can or subsequent an up the the the suck putting allows over do by RP, it to of it out. work can ventricles physicians and an either it aspiration break the device reduce clot oxygen do to TPA themselves

cases. just virtual and to much as of helpful, trying these education So all as but do we're is calls and enabling lots now, that's can live what we there's tools we're through

Operator

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

Matthew O'Brien

month here quarter to number -- the some Todd, to beating is And a going got likely dead the the the patient Not on July. lot in keep But data in a of horse you've U.S. specifically. get sorry, on attention.

that? affected? areas, about How of of So areas do patients that Arizona affected that think they you in versus more then seeing between Texas, in terms the what X%, X%? are are other contraction up COVID breakout than down areas, July and we XX%-ish, are So some in areas less are Florida,

Todd Trapp

seeing about we XX% volumes. of mean, a great represents were, patients of States, hotspots was a little that the if to the for and down in example, you And of the of still as And almost every -- which question. physician. by bad it's And XX%. have California, month We X%. Texas, United do No, track close Florida Yes. Arizona do we're and bit Florida, our I hospital, July, the obviously, more declines by declines obviously, than in think not for California, Texas but day

York resurgence COVID that York, these example, the New is bounced would our patients of impact call, for an we -- right? I would The up in saw, not in were XX%. New New They saw were areas. York it's we they of in and April, some in New York, fact in XX%. broken, like was was, seeing are we overwhelmed, Matt, back So one down June, thing say,

be impact be for saw So at a and should -- end the the that, these we'll day we not QX. based of month, elective, there are know see an back a will in bounce they're on there that patients sick, obviously, we what but

Matthew O'Brien

like you that bunch that you in it, COVID that business. specific customers the a And Texas would lose explain of specifically Texas impacting that's Okay. or didn't really provided, anything it's example

Todd Trapp

specifically And related. It's Texas. in all it's not COVID

Matthew O'Brien

it. Got

be this provide? the don't been underutilized Okay. That's ECPELLA, a this a bit, moment? for to And Mike, et throughout about the that time. areas RP lot long What been really I is technology capitalize you going for this know want has catalyze on helpful. to What pandemic. in But a talked you've of investors then, kind difficult catalyst on here forward touching of really to cetera. call. at the underlying to Again, going cardiomyopathy, may you see a areas going little is

Michael Minogue

a patient. think the minimally provides subtle procedure invasive high-risk first PCI for a I is Matt, point,

high-risk to or shorter compared a hospital open a now surgery, it's because could stay. CABG patients it as be preferred for So heart mode

the want is component and done -- single hospital staging to revascularization need in these second stay, The than patients, they right, complete protect setting rather for a hospital so you get patients. you it longer patient, have get a don't to

June, mentioned, Todd growth I that PCI in areas, and was around we So think as do high-risk XX% in AMI flat. see shock was

was April, but where high-risk So that down was happened was of everything opposite the in what PCI more. down,

high-risk a aren't our there's in even procedure. urgent. elective. patients PCI resiliency our our technically XX% So are It's And not PCI technology of orthopedic patients certain high-risk because an

they're admitted into So to hospital treated. be being with chest the and need pain

shock what For of I the more think kidneys. of a happens when what's on that's the lack the and side, goes impact that shock causes the just and cardiogenic education oxygenation what out there heart into

for that's a about many talking talking it's a kidneys creates body heart native back the therapy FDA recovery. We've years and it been the the the of to myocardium, the that and our to urine we've it allows benefits rests make out in helps It the what also impact to on recover, about been this publishing impurities so get unloading themselves, And blood. label turn cascade. for is kidneys that has itself it's papers element the positive positive unloading on in allow on, the heart a actually

patients home got component is more oxygenation the be lot what So heart get trying new and for we're has there with just evolving do need news, with vaccines whole now And for drugs, the own in on goal used adding to ultimately, their there's native was ventilators the a constant because of right being of all and recovery. press heart. discussions these other to to reasons. leads But now end the patients that the for survival there's -- and of ECPELLA in

Operator

from next question from Our Raymond comes James. Jayson Bedford

Jayson Bedford

lot of patient versus discussion been a growth few growth. a around revenue There's here. Just questions

Excluding from we X.X X.X, moving the to CP, was generally X.X stable? the CP pricing uplift to quarter assume in can or ASP -- to tied the that

Michael Minogue

Yes.

bottom, we to see So you'll out, just provided there's -- the slide broke in deck, on we investor we that our clarify, boxes. third on X

lift. And you and growth. growth sequential transparency got June, May provide June and we for and everyone patient revenue also out the to broke complete and let June, April, the May then April, see So had

ASPs the growth can U.S. you the is as mix the changing, for The see, same. So the but was X%. patient products are

gist that's so the your question. And of

spike down, area COVID. forward move we some we an there's into with correlation July, As see of the when direct in a

revenue balance these patients a territories in outside now flare-up York feel be allow in high-risk some spike to Italy, a growth, patients confident think now seen we've we COVID and cardiovascular, we COVID, good a in these go that a have rebound that is we might and see to other New we moving we So in between have as order treated. for essential the these to including and these have forward areas, of playbook into in which of

necessarily a And the we not And guidance. price, by so last the that driven to COVID driven time being is, mix restrictions. give of appreciate by some purely then is it's challenging it's

it's it. we're So details these impact regions Texas, that even happening Impella hospital. can telesales time the specific not Texas, with say IQ to database providing going how physicians. as to managing and we're we that every Connect, And when real in Because all we're and in all there's -- have it remember an we the you so it's in specific not hospitals we're it's able see see

Jayson Bedford

not at was implying look of guessing again, revenue the I'm case. sort I up the patient some growth that was the U.S., up is But in Okay. as X%, growth price X% degradation. slide,

Todd Trapp

-- been really month I utilization mean lower of growth. the and and the end it the would've That it's patient is not at that's rates XX% deals. That's reorder not case. Jayson, case June, at the all. the would've the of I mean been XX% it less day, because

close. very it's So

little And price. of puts a no so degradation and there's takes, there's but bit of

Jayson Bedford

Okay.

a X.X, as largely fair. at in this to about X.X appreciate environment what to the point? do I I see this -- That's gauge market? But this. and growing cannibalizing you ask it suspected. difficult this point And Okay. Wanted X.X that's at is is X.X Or

Michael Minogue

a breakthrough X.X product. The Both. is

chronic acutely blood patients. allows are more compatible heart you Dr. have and for parameters. Clinic failure in, putting believe And Cleveland most it Ed Soltesz publications pump flow the that talked patients from really on ease about including it's are Investor compatibility higher heart If based made. talked shock the Day, it that blood about We that the the watched ever testing the of decompensating for patients FDA

Jayson Bedford

talk has the I been a Okay. time think couple today? line. versus just And X.X exact X.X you -- of Can just years. out use of X.X the I Mike, in Germany Germany in forget about approval

Michael Minogue

Yes.

It's has will the Germany, cycle. but it as point, is difficult working we to through price issues X.X bit X.X a reimbursement driving place. higher be -- it's to market. naturally point, into available. a of we're more lower the and go same a the the and little both in It's In the still So price products through a true U.S., are

the direct, that's you're LD, the X.X. the do and both X.X with to the So able

can it chest or with you axillary place through open the You can direct place it it or you the can artery. place

And term. market where is so that's think I long going the to go

Operator

question Morgan next from David from comes Our Lewis Stanley.

Fang Chu

Calvin on for is This David.

and July. Just on one June clarification

relative are to last And is rate inclusive curious, I how July year? you same So there And just the of follow-up. extra days? extra selling selling from quick question so, quoted And if the June or days for for and growth have contribution benefit just a many have July.

Todd Trapp

Yes. Todd. Calvin, is this

there. every have this and at a June workdays little business, in day weekends that's some look patients you at year XX-patient had versus weekdays, more versus in this there is Obviously, patient of the month. a treat difference June. we So last few we if June right? year, a the And of we last of days volumes So bit we the versus the how look

point the effect opposite the had that have we of maybe month of growth, but So been might in same one May.

nets standpoint, quarter So from a out. it

Fang Chu

timing. And a Got just it. clinical trials Understood. and quick follow-up on

PROTECT have RECOVER timing disclosed on said enrollment or for estimated -- readout? and guys IV Just you of completion and IV kind

Michael Minogue

on the times haven't We the especially in given specifics completion, COVID here.

running. study studies. on proper as we've had excited execution STEMI said our We're going continue but we and year, fiscal July, have enrolled that be we're the these the obviously first centers. we'll research COVID with that patient I And end at we patients anticipate X DTU very both of to around our to the that of is in doing and monitoring However, up focus experience said,

Operator

Chris next our comes question Stephens. Cooley And from from

Christopher Cooley

a can during to enrollment? this you just Could of follow-up I the riddled kind go of of the us last we environment. the the that Day, -- do DTU? just on challenges as now a can talk you in accelerate COVID what to to further one questions. I'll with these ways But and associated quick in enrollment Maybe mentioned about think you you know the here, that there maybe Investor ask lot about STEMI accelerate some centers ahead session. And up follow-up that are when my

did further during community heavy of XQ. technologies forward, the about while to the PCI? specifically newer Abiomed guys further and others I protected to accelerate accelerate we lifting, use When phenomenal to amount are in adoption more setting, also Connect significantly changing also think but or X.X not like fiscal You online just pretty now a kind of the Connect strategically, just there around education think, going opportunities

Michael Minogue

drive XXX% do and talking it now how think very cases PCI creates we I part PCI Every do user in, we're this -- So is will group. physicians the use And first. And Wednesday, helpful. in user that game this and one they PCI. around They to these as very Chris, world's these CAMP protected we're drive excited, and see treatment protocols. think log and of on are the for country, question. type from I very have -- the the expect and thanks awareness of Abiomed live answer the the like awareness watching us focused I I'll big the wanting second They pleased and X.X, been that getting for calls. physicians very treat future. because network, is network it of experts with about to it's the we of the cases. now excited physicians changer patients, calling will access creating routinely enjoy some the CAMP

it, on physicians, STEMI just DTU, We're our things to patients. STEMI we first working with do. but identifying your a lot are there For has doing with can question do the

a think documents recent more the And guidance and I influential there folks to hospitals. to the STEMI patients leaders the is the visibility tend are out With thought there, the DTU the that drive try physicians around be country. lot our to again to

Operator

comes question next our Marie from from Thibault And BTIG.

Marie Thibault

customers backlog majority and that deferred just sort at of of on sort through your from in come to many patient ask what the have And I'm emergent we patient you're April? from that your worked hospital nature here. this willingness of procedures, do urgent point. the of curious I'll you one think had might of hearing given you when

Michael Minogue

answer Marie, a And good yellow the is question. the it's phase.

risk far as the of contracting hospitals the the very the dedicated, are this is how of phase patients, with and guidelines confident lots that And anxieties. We're I patient areas, happening and are of fear. staying having question. So in The is Thanks through, more has to the successful risk there's COVID-XX physicians for getting home of do understand committed is with or cardiovascular that greater issues. is the with of risk and by the it they to and Part heart at with protocols of these understanding completely doing have there people and regional part, COVID-XX heart restrictions the other where think and the of having treat patients everybody that in well than areas at government. you progress. next they our for what's to the to sites staying emergency that a sites hospitals whether a But the most nature you the knows not, now are attack. people in attack logistics now at are positive COVID-XX. And have some making these has or with and chest societies the these worked even home been have pain

Operator

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

Michael Minogue

for today. Thank time you, everyone, your

If you follow-up any free have questions, reach and day. to great feel out, a have

Operator

Ladies participating does day. call. all This conclude disconnect. the in and wonderful today's you you gentlemen, and may thank Everyone, have for a program,

Abiomed (ABMD) 6 Aug 202021 Q1 Earnings call transcript