ABMD - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Second Quarter 2022 Abiomed Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Investor Nicole would to conference Relations. I speaker your Nath, Instructions] like the to over [Operator Manager of Please go ahead.

Nicole Nath

as XXXX call and Relations, and The and welcome quarter here Vice with follows. is and President Abiomed's Abiomed's I'm will Officer; Nath, earnings Chairman, format and Minogue, year Trapp, President Nicole Investor morning, Officer. This Executive conference for Chief of Good Manager be Financial Mike today's call. Chief to fiscal second Todd

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

between information results are we our the superior your considered will accordance with our financial be results understanding for enhance earnings not or discuss Reconciliation and isolation substitute current call, of in This overall prepared a should The additional tables accompanying During in information a non-GAAP this provided in the presentation is as of GAAP performance. information non-GAAP to financial on certain to non-GAAP release. or GAAP. presented results basis.

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

Mike Minogue

morning Good Nicole. Thanks, everyone.

hospital U.S. was our August driven XX% made XX% Delta the and in and record growth our progress our by leveraging environment September. impacts and shortages. in expanding Japan delivered continuing The $XXX revenue, respectively. quarter, shortages and team second we up In growth by year-over-year, clinical and of and believe commercial million with driven Abiomed patient field in evidence COVID challenging staffing business. in QX, and on labor revenues in premier a innovation, During hospital advancing utilization of regional the had We surgical strength beginning Europe into higher U.S. and XX% continued XX%

a year-over-year. As U.S. grew of XX% result, only regions our

XX% impacted, we hospital the believe on regions For the the regions recovery see those new a especially In of that was the future. not the negatively we we had pandemic. experienced experience, nursing prior in based shortage dynamic QX, during of will in staff, COVID

the advance on patient a support the to assist which hospital high patients gave level to on our margin caused with some and In our reduce support of quarter risk to the to emergent regions within or managing our pandemic a quarter, ICU close in new growth. included and the we monitoring the trends us Overall, ICU phone investing achieved a Impella devices. adapt from patient in the research specific operating capacity. the the cardiac recorded these health staffing capacity the Connect. Abiomed faced $XX COVID remained in ability of by to temporarily Hospital with treatment Playbook, quickly resilient As better, of hospitals continue Operationally, cath expectations. XX% still the missed we today impacted and result, QX but ICU Impella are the to in limitations. an U.S. July pipeline or development while hub systems is Abiomed representative shortages spoke revenue and procedures headwinds within bedside lifesaving by or or This record usage X.X internal facilities. lab of leveraging majority million cases adapted U.S. transfer QX, Despite

On our Our will balance field on in challenging innovation, our is it during the leading continue X,XXX technology, pending. with in in industry robust portfolios today's patents landmark innovation highlight and we hospital one continues clinical to medical call, portfolio studies XX/X heart gain device with We and the and strength we patents strongest zero to will providing and a and sheet innovate. X,XXX million and cash and how and add technology Abiomed At I time. as four Abiomed's one approvals patent remains principles. advances to over believe breakthrough is regulatory of premier debt support progress team teams $XXX IP has of Abiomed

very quarter, of with X.X pump the our PMA in the approval for enabled heart survival XX and than minutes. flow minimally unloading game-changing designed technology fully than ambulation patients or invasive for the in U.S. less anniversary minimally sick for patient we achieved shock with with cardiogenic two surgeons year a forward X,XXX This has SmartAssist. This more is population. greater than XX% Impella FDA implantation direct in a heart implantation the axillary During has celebrated the invasive

Impella heart year-over-year. invasive the enabling revenue the is a Furthermore, adverse we to the to hospitals. culturally technology in market U.S. longer-term invasive native XXX to grew believe result, us X,XXX Japan QX, in in We transplants to Today, hospitals approval. XX% recovery bring of PMDA X.X sternotomies. is As this or minimally country of Impella and have XX% given surgical the U.S. are ability for heart Japanese already X.X, for provide eager heart support, unloading applied ideal and

surgeons been portable with the interface for this product The and feedback expanded from the Breethe a cardiopulmonary of We and system on use Japanese clinical seven treated U.S. intuitive concludes on expect XX patients, PMDA of sites to we System Phase allowing X Abiomed by for total site Impella a to have this launch. light pilot primarily heart XXXX. simple, which of our approval based receive has patient OXY-X ease of design compact bypass April also QX, positive X.X ambulation. In our

our this ECMO introducing will We the data measured and and bring to clinical approach to innovation pace continue device space. a disciplined at

On front, the we multiple regulatory achieve milestones.

generation This launched sensor pump is RP capability. smart exclusive with sites the Impella FDA and and a weaning the we within right-heart treated at of with next quarter. approved First, our device four SmartAssist patients

continue neck progress in surgeon allows make to vein or compared on the IJ to heart ambulation. the and early This with as preferred patient the jugular through Impella vein the surgeons, the internal insertion RP is for placement also the for We leg. – heart femoral in

PMA end We supplement file RP fiscal an expect to of year. the the at Impella

and EFS August, date, we've Impella’s processes, study view ECP granted Second application. enrolled to will Impella FDA prioritize the device including PMA designation FDA To in XX This regulatory iterations, clinical the protocols means breakthrough designation single-arm four pilot ECP. design on patients believe the the ECP in up XXX approximately Impella study hospitals. pivotal sites. patients require a we the the FDA, study will XX to with PCI at at Based interaction with high-risk

this first our March to pivotal in ECP quarter the lock-in April details FDA first study. and patient expect early our these enroll same around patient and as BTR feasibility in time our We Impella

options my model clinical with engaging underserved premier as cardiac company our this validated commercial last positioned direct-to-patient and patient the XXxX us hub-and-spoke landmark to also Abiomed’s the breakthrough studies We're highlight, Moving team with and treatment referring actively to leading clinical disease, technology, support. community has awareness to and our initiative high-risk population. bring heart recovery

we Outside patients resurgence more been U.S. on European the company of majority Our to expertise. allowing cloud Connect XXxX support level the strength. be the with call this sites software offers support live in our Connect other and software Impella as healthcare U.S. of the the our of XX% now Connect shortages, Impella our COVID-XX and U.S. our the because Japanese monitored patient Today, labor live is remote no during our is ICU's valuable and for XX% this field, now or the Impella has of sites. nurse of assist the in to monitoring, providers support XX% customer. and at by become and center management space sites than of

deaths share I number million remind to year. cause live story, want disease, patient U.S. and with XXX,XXX with Americans in cardiac per Before is a death it that listeners of the the one I XX

cause the in remains disease women. death cardiovascular of Additionally, leading

Now, paramedics at husband pain is experienced in Virginia. grandmother our Henrico Argulus, Frannie’s Frannie Frannie Earlier stent called in a Impella where works Mary's St. removed in XX coronary cardiologist The XXX, placed and collapsed jaw year, at mother, supervisor a cath right her from Virginia. and the Richmond, and then blood she transported clots Frannie's Hospital lab to home. nursing artery. in patient the the

Peter During cardiogenic she procedure, Rowe inserted cardiologists Darren and into left support SmartAssist CP and her Appleton, Impella to the with the the ventricle. doctors, shock went

and returned normal weaned later days left and as and Seven Frannie’s technology biventricular CP home. was function, RP later the support alerting with is and of EF heart SmartAssist suction with right was function confirmed, support. physicians removed, living right triggered for failure, testing supervisor XX% an a three Impella While RP check an heart work days back Today, to physicians provide to lifestyle and improved active to nursing her alarms, one has removed. ventricular After failure grandchildren. day and further inserted Impella Impella Frannie on Frannie ventricle

remains best come growth to conclusion, call progress for in and To shareholders, in are you As and for our as and I and the putting field procedures the innovation a and of will continue Playbook you Abiomed sustainable team we transplant. to support. standard focused disciplined most the first. milestones made heart and the customers, commitment lifetime and now thank for leveraging X.X save In of dedication that invasive continued global recovery to to recover care your regulatory turn patient, challenging our while our employees expensive goal hearts to our QX, on will with Abiomed patients over industry. product environment. And mutual her insurer becoming the avoid lives. medical you your and Todd. Thank LVADs pursue on in a paying heart commercial we execution the

Todd Trapp

the utilization an cardiogenic and reported and the morning, growth everyone. and million $XXX of the U.S. and versus patient U.S. high-risk with in Despite utilization geographies increase Japan. year-over-year continued of record PCI the double-digit delivered patient up labor prior in hospital, in of million XX% by X% increased versus Thanks, revenue shortages, Mike, growth variant we driven Europe and higher in delivered year. of By quarter, surgical revenue shock. double-digit our prior growth year business. strength XX% revenues region, $XXX challenges we In with all Delta across good

Mike we to impact us labor As within quarter, Delta more utilization on having which patient goal. believe and the significant miss internal our caused mentioned, shortages

and continue Abiomed X.X environment the assist ICU’s. will to adapt We hospitals in this to Playbook leverage our

X.X sites. all following our in and summarized CP at details quarterly adoption X.X Our market quarter. product And Impella the The of investors with placed penetration well the U.S. and of been of Impella year-over-year. versus in continues is X,XXX a revenue sites. The XXX has XXX deck. base reached to X.X with release SmartAssist slide U.S. on as revenue the the is have reminder XX install growth, September, full drive the Impella sites to Impella up XXX% end in product prior the X.X In continues with growing SmartAssist to perform now sites

RP rate Impella we the was inventory the combined hospitals site, above XXX%, In quarter. slightly levels Impella in the inventory reorder quarter, is the Finally, per XXX last above and approximately Average X.X for saw sites. CP the was units at year. X.X the slightly prior

delivered favorable impact million we in record four year-over-year. about $XX in U.S. points sales see from XX% of resulting to revenue the a up mix of revenue growth. the continue Outside We U.S., on

increased million sales of versus mix European higher driven and XX% utilization, $XX orders. by patient timing revenue year prior Our to

strong physician versus our Germany delivered areas. However, was record select business in we these shortages headwinds extended impacted in despite also with second year, combined the a of million vacations, Despite XX% slightly record utilization up year-over-year. headwinds, prior remained COVID Impella and quarter. quarter revenue by Summer $XX Japan, a In our resurgence XX% Olympics. from revenue European nursing delivered up

out a quarter, the we our of potential XXX total sites XXX hospitals. to new opened Within nine sites bringing

growth million sales In variance margin failure by and BTR, small driven quarter, quarter, protect as randomized was like $XX growth Gross an the was for volumes. in to team. income additions lower of quarter by advancing compared $XX another focus the versus a premier to million to year. year was of million in distribution such operating versus investments quarter a STEMI metrics. This distribution in driven devices by effective for prior for the prior as versus or our driven a further improvement XXXX. reflects investments $XXX training prior operating non-GAAP of innovation, versus second and on million The heart X% year-over-year financial income Year-over-year expense interest production XX% of million was and increase $XX lead year-over-year tied evidence income down higher solid up mix our cash totaled QX quarter share and in driven We key to XX.X%. XR SG&A team. flow. margin ECP XX.X% our extending an translating to expense the rate. board higher with prior or R&D generated had XX.X% $XX In continued trials. and the Future control we Non-GAAP per year. Sheath. preCARDIA and was $X.X diluted in The million, operating direct-to-patient tax and net Impella Moving $XX quarter XX% enhancing was DTU second totaled customer initiative, our Impella and technologies year on $X.X cash by our investments clinical

sheet balance marketable ended the of cash we as quarter is securities. $XXX million Our with robust in

turning outlook. Now our to

on With upgraded the October. record revenue guidance and solid Impella growth of staffing August, new the give continues investors. versus After want to billion on The XX% the second Delta variant the to range volumes challenges in procedural to XX% our with impact insight in shortages XX% for to expectations and a to hospital we our U.S. a Abiomed growth July, billion in We pandemic prior with of to year. hospital to $X.XX shortages, $X.XX billion the fiscal transparency to pressure the the conditions of year in half of put September, XX%. impacted provide in to million of order $X.XX a labor full remain $XXX year. QX with started a with uncertain

We up December. to an in year-over-year, hospital revenue our approximately of to XX% XX% now range XXXX November prior growth revenue global billion, and above $X.XX which to $X.XX staffing QX. October, improvement expect the in in revenue and expect XXXX QX some Given year high slightly our slightly This fiscal towards be be of current guidance. visibility in rates from original year assumes trending single-digit appears billion to to versus to we fiscal increase be year Delta

in we and we confident expect to operating to lives. margin achieve our recover fiscal for focused summary, in outlook we on for remain XX% to to while research hearts in and operational We execution line year questions. XX%. the clinical XXXX non-GAAP of the range be In goals. continue the the through investing uncertainties, navigate innovation improve outcomes, Operator, long-term We as Abiomed, remain save please now open and

Operator

Thank Instructions] from Jefferies. Petrone first [Operator question from Our Anthony comes you.

is open. line Your

Anthony Petrone

Thanks A and good questions. of everyone. couple morning

of guidance couple hearing First, and on shortages just we'll calls we're on quarter. this and be a this

is at then the As nursing you're look to XQ the allocated the just guidance, pipeline. $XX What's Impella wondering million of in Delta pervasive and of specifically for and headwinds quarters? of downward allocated in splice at a how are sites? shortfall shortages? shortages toward have ICU toward Impella way And sites revision between you we'll again a the And sort XQ and next Thanks. the couple couple into maybe what's of there on follow-ups Delta the nursing when the

Mike Minogue

Anthony track. thanks that call. a for we question. the It's good It's something

What shortages Delta. said little sites adapt we our of we U.S. of a here XX% so bit have in was to playbook to a a As is grew, the call of the new staffing.

they at shock, about metric or use, XX% So regions that surgical of have our be If we that physicians or the just same The techs that engaged, to grew. ICU the capacity limited our the but so XX%. for the look cardiogenic techs want cath impacted procedures lab are done. if don't

to little ability the think help we've with about next support, plays ICU So can and that got think there more anything resilient we're and a and the to I to the help patients. Delta somewhat be our allocated of the relevant of assuming variant patients ECMO, and which beds Delta. V-V of If I ECpella. also Use patients for sick forget Delta the that or training, They're bedside. to treat ECMO, just the severe do that RP online the we CMEs, the with or part have majority we And continue our Emergency And Authorization those they're as nurses else for do this know with year, going most is to with managed hospitals some how our Breethe the better. don't

providing support. So we're there still

to think going will And Abiomed of that's sick happen it's Connect, is help. I training where the – sickest of incremental. to shortages, patients. IQ going hospitals transfer Impella team going between our They're the to of, most On going hub-and-spoke And is, as need which well the as I the the and the think, continue the what's prioritize or patients, and some but helpful. to be field and be they're are networking resilient, to Database the

Anthony Petrone

quickly Mike, Quick the deep I would for And specifically the what XR Sheath for you be think launch be, do transition crystal into using pipeline, you for calendar watching from Thanks guys your fix timing the And you're expectations on pivotal will nursing study? early in And on you have year follow-up to do on what how just think last? what the CP should will and any feasibility again. the to next XXXX of XXXX? there, the ball mean, we ECP into see, just issue – if shortage of be? you

Mike Minogue

Sure, Anthony.

and it's variant the ICU Delta with the remember the – capacity So nursing shortages.

our think XX% we that back. and back do come seen have we impacting less of that's hospitals, currently that and comes So than

them also I And going now. shortage. our field doing that bedside hospitals center augment think that So help team, that our our goes more call for think I because we assist an support will Abiomed resilient Impella think it's expertise, can better. And I and of minimized. time opportunity and they're clinical I think get in to get what Connect as are on, it's

So allow be well that us we as to continue process. and see this will nurses that we'll train probably they continue and to part we're positioned something as to grow of new

relative On the XR Sheath, nothing prior. our to has changed

As you new and the new call, list products we a approvals. of have heard on

for happening prioritize important the are that to what are next here trying ones the we're months. most So or call ones ones and six the biggest in the

progress. ECP So is great a

sternotomies schedule of which approved aversion We have here pump like through surgeons and I that March from is to there's the has expect minimally think I April, Japan physicians in it breakthrough by be a patients wanted There It's in to the and there The first-in-human the is of world. think nothing and was LVAD. heart because and And in been we in stating. have X.X been culture everything doing it's we've – the feasibility today to on. April. XX dischargeable ahead what hadn't it's that expect be product for X.X a transplant. announced BTR – going invasive in the commented early we years. to U.S. the And Japan

preCARDIA, that on We continues to about the haven't going but with commented forward ECMO. the the we're X EFS. to Phase And looking

just to for landmark of we have that product, clinical studies the in Essentially, the team. surgical or cloud. we continue fact that or all single the data what every up now as control. the And have it Abiomed suite, in execute back the with control the the is there working to points So ICU, the to we out leaders lab, cath well. with team heart on the are And heart technology, the we

support we'll more I future, happens And and to And that. for see going continue we're think to well excited we're our hospitals. whatever be positioned we'll momentum. the in So

Anthony Petrone

Thanks again.

Operator

Thank you.

William comes from Blair. question Margaret next Our Kaczor from

is Your line open.

Margaret Kaczor

for Hi, questions. morning, taking the everyone. good Thanks

Mike Minogue

Hi, Margaret.

Margaret Kaczor

in into little maybe quarter, was seeing what the things bit how you're go for and based proving not October detail were I first comments, hoping are October. improving expecting from but of It on full then the guys to you a necessarily something QX looked. more sort similar like sounded on

implied then So does not for a) kind of what there dynamics some read fourth anticipating? quarter implied referenced? And you that What's we're is fiscal is that similar maybe or outlook? those the that right that – the comps

Todd Trapp

this So Todd. the is Margaret, Thanks for question.

I mean, QX to read prepared October that we QX, perspective. and growth up to it said digits my us remarks, your X% up a right. I Obviously was we're was in top-line single in is – X% from for somewhere be mid from growth. think that slightly

December. some get our sort expect expectation get next Delta from the we're look as recover of the it to again, And that's do think range, and we reducing QX, to I on team. a when from we subside some as into manage, two headwinds I'd a we ICU you into I low shortages, lift we at October We So are hospitals the the able improve the see assume what business to and capacity. to modest QX. QX And see that – we bit from over end as as think say as and little the gradual improve a which of from continues labor at limitations some of or are the look manage field but cases that's better of November their QX, months, from hearing Delta

and seeing just to month your be provide as And the think October. I what trying is of we're transparent so of again, right. So in the investors read we're far

Margaret Kaczor

Okay.

does I as then be a seem launching Now in that's about Japan Breethe little useful. then as a wanted to well and to Thanks. because bit talk moving just that And nicely. launches X.X follow-up, the

it launch? in any it demand from and any guys. a pricing as guess, U.S., on perspective? accelerate is first that both then the something surprises any Japan for the X.X, could rollout I Thanks in So far, or material there potentially – And that additional Breethe, details be as on that so could

Mike Minogue

that clinical And on. Margaret. working team are questions engineering Thanks and our the those both are

clinical space XXX(k) been So is starting require any The the tracking not patients. have It's Breethe, ECMO data. we interesting only. because clearance all does with a it

is so and collecting combining PMA the practices. and optimize a We're as and under perfuse best we space We're an that each approaching are we're other, did the you where the first oxygenate happening looking and software, we wean did heart patient you you in company. and talk also data that a can looking software, as can recently body. PMA to Europe so, know What unload ECpella what's for our and we as the company. the patient systems And

So there's some lot what patient the really are some going from Also do be things to with work we're amazing to connect we've we're also we're and and things Connect to in starting that starting a with on a currently running and to future going of where do AI. we helicopter Wi-Fi. Impella able first ambulances done our to have

we're the ECMO putting device. on So Connect Impella

space. able you're ECMO this knowledge be and only an a into a be being hospital excited all the or feature. innovation – and whether at cloud being to that So we'll the helicopter bring And on expertise or clinical exclusive person Impella data transferred is ambulance transmit and or to to whether we're in that is ECpella, will that an

just For the you is X.X, have – it it's mean, the VAD. product. to a ability I a full have a breakthrough

can resting always is all ECMO how what I've pump the these a really So start naturally that. it's as it's heart and the VADs working, was on pump fact to space flow heart. invasive sensors reload that the But XX want devices. years. you And heart to means as turn as devices other heart, get weanable you And the that that recovering. with Impella, And we heart VAD. minimally device the is it's forward in because been the the it essentially the revolutionary the dumb will with And it's you surgeons see the down, – to are wanted it allows

in are these have they those patients heart any many up survival is don't recovery, don't even because And And of even heart get doing. with bar. important lucky if you knowing way these put You maybe patients or care And native really for is the even and numbers. can low you in is get papers how you survival the of them a most recovery give what's heart that hospice survive, transplant. these end

revolutionary around than cell. we material, it where to volume be So the think loops. stem They've will focuses on of had in accelerated really to publications anything will treatment, we're Japan. that be be country amount it'll excited advanced hemodynamic believe pressure super unloading more doing product Japan, information in of that in else And science recovery and bring in and and heart will be a recovery we're they

Margaret Kaczor

Great. Thanks guys.

Operator

Thank you.

question from from next Our comes Guggenheim. Pasquale Chris

line open. is Your

Chris Pasquale

flat plus Good I Thanks. if to Mike, all good minus we days dollars. be quarter the second old guys. morning your tends couple million volatility, this before back at had macro look about sequentially or a of

what and the much half you're the So the of I'm hear quarter's result down to taking year? below that back saw were out guidance a surprised of Can how break thinking. this little $XX reduction it was quarter million you significantly you between this you shortfall as

Mike Minogue

something at That and on to us looking at puts at. Chris, right. numbers you're a we range. And Sure, the you're XX% you guidance, if is normal our look higher XX% the

or at the back we've but we of look increased end range. lower to lowered our year, where fiscal the you we've started If we're the guidance, essentially

maybe with strong. We then XX%. in was that So XX% bit to little yet to starting it after with we fiscal staff. extended to shortages are the also XX% some of August vacations, seen playbook out year And started which there XX% ramp Delta the hadn't the impact a working. and a upgraded was QX, We We great we – momentum. incredibly had

August July that happened hit little what it and bit down August, a is I carried in think, So, in was into September.

but little in we're opening quarter training. bit. Usually lot more that new a already a that You're we are dip dip see down the also more little open that patients centers, right do do mentioned. we And is to that do tend where we've a have usually we summer we products or in of flat, –

the I thought think just model up just where that's as but think days We COVID, strong we in a of highest year. to some patients, we too were because were of revenue as what give we but getting to perfect old is through the So end number have going ever of not the this third you trying we're responding, – the to good we're to but higher than to model going I we've the be the in that the shortages, are the of incredible just to I hospitals year transparency back half to second an quarter think do And we see XX% done is going is where not and and shortages XX% we're and expected working better. we achieved. it fiscal probably

Chris Pasquale

Okay. And Impella used you better, helpful you where some COVID a understand That’s in surge you we mentioned material a that treat second quarter in quantify quarter? contributed that of the at Can then is a think to much in be cases. this, little COVID a all, is saw actually these particularly that It’d factor patients. to like how helpful. how

Mike Minogue

helpful. the and the to hospital. is patient patient our the protected stay, are And starts sick, every take out But hub-and-spoke unfortunately take track that we’ll availability. the the patients does that that’s all extended that’s trends a PCI what that where bad so we patients for in really and Chris, beds the patient we around and is moving treat and of lot

our do, about what protocols or we with the think are as the when large are their was facilities think we the by saw in users heart the the medium a they as hub minimized. for. happens tended and to and we might that something or more happening. in the the more the COVID, or small, products at were impacted. happen to and COVID you’re that’s or a patients, is total in FDA while you What maybe if that’s and lungs, growth And myocardial and of cardiogenic I especially resilient were we little products shock kidneys, approved saw of those be that’s But and the the bigger, trend weren’t our hospitals with shock more size picture, nursing they year-over-year, shock And they transferred talking medium impacted maybe ours problems what designed So impacted patient we help shortages not, were look have medium the what’s whether getting track a hospitals September hospital, to hospital. also spoke with

getting So, oxygenation, continue you’ve do the a majority failure heart specifically where heart these population patients COVID, look a as great support, that’s at just of where to, ECMO ECMO, this question. to seen but V-V it’s broader necessarily pure they to we and not

Chris Pasquale

Okay.

guess is the hearing maybe I’m out a margin, being of that’s lost constraints, volume some but overall. still squeezed headwind the by what it’s that’s net-net, So, offsetting capacity at the I

Mike Minogue

Correct.

Chris Pasquale

Okay. Thank you.

Operator

Thank you.

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

is Your open. line

Matthew O’Brien

things, for Thanks to questions. to QX. on the keep reduction I wanted sorry this taking tease guidance the side but million from QX going of Morning. $XX out I’m to

the the was said if uneven. what had last think of quarter, ease end an COVID bottom you I range expected you is

about here $XX that’s COVID and million million. So you for rest quarter expected the little of the $XX of a I’m than is year. bit in the probably sure worse the likely

million maybe $XX year. half shortage know, maybe, somewhere reduction, the million $XX the don’t in $X of like $XX seems I related of is is to back the of COVID million the to related that staffing range million it So

to that then for is to kind the to assessment staffing side. able $XX fiscal million from here sort the a $XX impact here reasonable what for shortage of a headwind hospitals on of to half of I’m of our this million what’s million and year So heading the adjust question. sorry $X perspective, they into on XXXX offset long going of kind tend with

Todd Trapp

questions. lot there’s – a let me Yes, Matt, of

kind So, through right, got to first lay I our during first again, regard here quarter, walk the our we and out sat and earnings. the of it But just tried quarter let with was as you me well a the in to a re rationale and Abiomed for script through again normal both July, as really right? expectations we seasonality got revenue on record revenue patients, and as July quarter both a would say then and from we I patients. on had, both perspective into you And solid

we came our annualized, $X.XX at typically typically seasonality, right? you So get if QX And time, And then XX% so first have our right, half, normal And into the second look process. just mentioned, performance to our billion. over half. that as Mike you it’s XX% at

our Southeast. other of some the as what hit of in time. labor then about Florida August. really that the revised was the And we i.e. well four range the some the really $X.XX And And months at of markets, August good after actually of billion the larger year, of hospital in $X.XX Texas, felt and it as us at Delta regions for So billion new the us to this month shortages. impacted in first was dynamic then surge

headwind that encounter not previous did – the in we in so pandemic pandemic. previous And a

labor really and temporary, we With million the in XX% are volumes mentioned, of And internal miss did they to two pressure did August are $X as year. so versus prior the by deliver headwinds, on I us our U.S. these putting shortages I have caused to still And as QX think said, and think across range. September a growth $X year. positive and reminder, more growth million performance I procedural impacted we that last quarter forecast but

during update this we So, at we to $X.XX with is I think can to our guidance. above do trying these it it prudent transparent slightly initial was was really uneven be our billion, And thought point again you times. all billion in was guidance as which to – $X.XX to we’re as again, time

Matthew O’Brien

or side anything going or XXX able Thanks things, is that? to that. these headwinds longer Okay. is on the on goes studies pipeline something and you get XX Thank that bit than enroll you’re any And talking staffing for something, to Mike, side patients, is that it as the with on XX potential being enroll ECP, the take a to little as impact pipeline you. then can and then far to there months, months is all COVID about done in shortages, of

Mike Minogue

a Matt, of So questions, questions. great lot

our and other while are customers these them Let doing companies put with start and And me committed or studies not to our totally on are trials studies. pause. passionate

post-approval and RCTs studies running. multiple have We

did date to give now numbers. to have, you up do So, for, I’m XX going protect we on we patients

patients randomized in XX for have and sites XX are We running. we PX, have registry enrolling that we And the that up have protocol. XX fully in

So in the On – that’s STEMI, everything are quarter. XX quarter did with shortages. through we went we over impressive pretty patients Delta the and we in on it just

XX patients. at sites have that XX We enrolling we’re are and

and that continues have to going move. We’re XXX a to recognition patient here

component The of your we’re was And I are question, ECP. a that. So we excited priority. about it believe the last going to make

is challenges and sites with to certain wide disease might centers to it’ll the enroll. net, that we’re going and the there going that nine prioritize for And study peripheral as that a well. are to cast excitement – that these things have French other will a many we’ll efficiently. them vascular and that we’re of means We’re have the product there, But to and ask demand tremendous go cause in the are that device fact going to

the our to has adapt So one execute. and job regardless thing, continued of happening, what’s

have We we taken or the control, stops we nothing things whether the of and its clinical research advantage internal can that feel innovation innovation.

these for we And continue products in outcomes new confident the to incredibly we’re that so studies. improve timelines there as clinical patients innovate in and out are for

Matthew O’Brien

you. Thank Great.

Operator

you. Thank

from comes Danielle SVB Antalffy question next Leerink. Our from

Your line is open.

Danielle Antalffy

now incremental a adoption. the negative, COVID hospital easy great. thought. able would and that the are much offers leverage there. very some which so with around like time I seeing hospital and feel I Impella for Connect’s if labor to guys not than Connect do mean, ever wondering Connect is Thanks taking fix feel that’s good say labor can net or solution. just Mike net that it everyone. you’re Todd, know I’m morning, good because the you and the more incremental Impella shortages, capabilities and Anything a but adoption qualitatively question. just you like a of is be your it’s these shortages, And capabilities giving traction an Impella I Hey, any negative,

Mike Minogue

the question. thanks for Danielle,

I because been provide training support of the data we’ve you’re, you’re that is in investing very the or even insightful it’s question, it’s level cloud, or industry, in recognizing the in doesn’t whether exist to nurses. what or think a bedside capturing

are with We newer, CME and coming the do as nurses ICU, training care. So they they’re we can hands-on and can coordinate do training, that them. online can specialized the can go into we work

shock, that though, be for had XX% So, playbook made to complicated variant us massive XX%. we than more want impact continue it that more do it our just of clear less the Delta I shortages for of impact was did XX% and sites. of impacted not to our and the the labor impact that. the was The in that what sites

so it we’re talking Impella it, you’re with to exactly without bedside local whittling can patient well our on what is, our it the quantitatively managing as with at the the it our our call Connect, that physicians bedside patient numbers put people, center, support, makes putting about our doing being and So, nurses, with I easier we’re and in and think review that we’re cloud as experts, away SmartAssist, then track our that that what and with trying minimize it.

And coming that’s their you’re play. – advantage to really our where growth. that allows continue field And from will us into benefit and the services. give to I premier mentioned, does hospital things positive have So, ability help think team we’ve us this all I pointing to is approach, you’re to the an and our think network drive

Danielle Antalffy

forward. news, step get That’s that And great big could Thanks designation. the quick I that. on this first talking but very just in for BTR. earlier something and it’s really about man, a one breakthrough feels follow-up know like

So plus be talking what as sooner much, should as potential thinking mean, are or that? I we still time to Thank far than be we commercialization? could you away, it years so five

Mike Minogue

but revenue. for as to And credit come in be but almost actually allows see be you studies, the kind and in EP is are puts the it how us in put have done see DRG get outcomes. portfolio it study, we for a because you hands to and getting it Danielle, you products also this of the a earlier all generating have to you we And now for these into when launch. helps studies to and to into go and and and is kind program. really the important just which we you suite, a it’s prioritize of really want a device of of we the course U.S. into The feasibility it’s as ahead the to that years is team can faster at a And old you into in all early means we pivotals great think to like And physicians. well, technology as amazing drive the of similar these would as, transformed way approach. what it the look is innovative on breakthrough ICU own cath space, somewhat get steady to the launch, the preclinical that resources, great the can cycle, in this applying hospitals ECP, it the FDA Anyhow, are really are will is, FDA lab, but technology again, And a U.S. the field. for of prelaunch. surgical brings bring flexible, for lab to heart – learn, the to slow have to the a allows our you controlled it And It’s of I this as pump advantage days. from these us payment our And is enter U.S. running medical cloud. so BTR in technology I

Danielle Antalffy

you. Thank

Mike Minogue

Thanks, Danielle.

Operator

you. Thank

next from Bank. Deutsche Our comes from question Pito Chickering

line is open. Your

Pito Chickering

Hey Thanks for morning. my questions. guys, taking good

in changing not do question what versus on are are you guidance ICU September? And also, November, October October? versus more capacity, more you that been better and October getting capacity but in focusing hasn’t one ICU and just seeing around here, improvement apologize, assuming and So December for I August why

Mike Minogue

for question. a Thanks It’s good Pito. Yes, it.

a we capacity, I at last that six, capacity hospital. what if are look And they’ve October by since we’re lot improvement think, worse. tracking think states I of you at in we ICU eight city, of seven, saw over, seeing state, with heading by although you in ICU some by said, September the gotten if areas, like their into days, obviously Carolina’s, look

England said, areas get in Florida, of metrics up. going I be Northern Carolinas, seen of we’ve improvement areas areas as you to like we some other see in continue like going ups. into see some And think October, this flare these pop there’s that to you’re are North but so a in month Texas, those lot September to And New where obviously just, the I

move I’d better, every up, say you’ll getting coast tracking as day. again, we’re believe And pick during up might little see the bit, but to single continue people we it’s especially a hotspots overall So inside the move something it that these months. it’s but winter

Pito Chickering

fair Okay, enough.

think drive that? seen it. Thanks we’ve help a lot already you hospitals Impella support For start previously, going will mechanical adoption, to COVID so Impella forward, Do growth use become as didn’t due that you have use of hospitals more they to ECMO to much. begun seeing and used

Mike Minogue

ECPella Pito, years, that product. our and now have is ECMO something XX,XXX we we with track. And done own the patients over over again we’ve

physician struggling which will trend tubes trend something both ways. that but that’s Impella, a on all is, that XX to a through. the X a One That’s XX French, XX catheter. French way large is, ECMO that with is French So the works just hole continue,

shock people mechanical the that do thinking been centers are because circulatory quicker are good to it’s There’s about learning how that a about, about of publication and with risk support. I I issue stroke. and well they’re what literature, technically in use than pre-PCI of it. mean or escalating where looking outcomes. Ecpella quicker of is shock teams. They using for less you in And failure less using better best heart moving they and escalation or ECMO last to just intimidation an overall definitely an in support. get People have talked oxygenation. They of or They balloon that to the the do response there’s So probably that’s there practices about inotropes Relative think right as they’re getting ECMO, as the inflammatory pumps. bleeding better a job process, need talks

majority the those think ECMO. are patients positive. V-V been I that’s all And COVID again, So, very on of

cardiac I support. need think and been versus the there’s so happening some the that’s oxygenation around oxygenation education just for also And

they everything or whether to all And continue problems. positive. So patients, can we support it’s heart to do been we again, have problems lung

Pito Chickering

much. so Thank Great.

Operator

you. Thank

Bedford Our next Jayson from question Raymond from James. comes

Your line open. is

Unidentified Analyst

Jayson for grew usage quick there [indiscernible] about U.S. about I a think question the in the growing revenue points is the I only into discrepancy but mentioned dynamics from playing is that Bedford. mix, This X%, XX%, so XXX between growth in patient patient Todd utilization? any but is other trailed a revenue of the had

Todd Trapp

I can Yes, level walk high you the through walk.

right. in Patients of We So, sales the points were favorable four see up you’re did X% about quarter. mix.

prices. X.X Impella as where we from higher to Impella well CP transition X.X the from was continued just switch that’s as have selling Impella again, to the average So X.X SmartAssist,

So that’s a we would XXX point in perspective. be reorder a We top-line see two. some in two. higher the year-over-year points had a of, I that’s from say quarter, did And a or about growth. another, four versus rate then would And the that quarter point slightly probably XXX, or deals higher probably

So walk patients from revenue that’s the really in to the U.S.

Unidentified Analyst

dynamic providing guys Got it. a for mind think, Europe Do that a as there you well, seeing because as I we’re well? similar

Mike Minogue

Yes.

in some had It’s it’s pretty couple a growth patients. I would pretty, So say, in solid of we Europe, things. again;

Europe seeing as are little reorder We one result goes could lumpy. a quarter from, XX. rate it’s a pretty in bit It a be of higher

quarter little a over a This was XXX%.

bit we we are well as transition CX little well to SmartAssist, a a I sales CX rates CP seeing some we benefit with favorable of seeing it’s well from there. so a increase in as say over And as of as as price mix would CP are reorder Europe,

seeing that So a Europe. the same little saw we’re bit in we in of dynamic U.S.,

Unidentified Analyst

timeline helpful. to terms geographies Is international additional Europe guys expansion. That’s in you have or X.X Are you. any there guys of Japan in plan new the you targeting? obviously on in a you launch X.X Thank other guys are a

Mike Minogue

launched in X.X Europe. So

Europe that already. is in So

technology and be of to product. looking other the our SmartAssist, bringing are the geographies the would with continue We are, And rest ECMO those RP grow. world, which to

Unidentified Analyst

And about volumes any with doing? that on guys you helpful. you Have That’s from finally, two ago, X.X Sheath how’s Thanks. quarters the impact the been XR seen launched guys that?

Todd Trapp

now on with done Yes, PCI we our the a single XX% that quarter access. last commented being of high-risk cases are

artery. ICU. with want our the has be That They Impella to the lab want want best same Impella the procedure and either femoral the the also in the users; option cath or preference, do the largest patient able the higher wean to and CP. our they the in capability. flow sensor been the they the So users in PCI And the also

right Sheath more primarily and focus now CP. their for single XR So compatible access Impella making is with the the

Unidentified Analyst

be in you. is might for guys population any of too Thank a opportunity finally, you but TAM? way Okay. market And BTR it’s terms new frame the there way early this, additional can patient or

Mike Minogue

hospital. the combination the to of the into patients to we is we’re to be over Impella technology vastly going longer start looking heart are term we’ve earlier is with between Impella XXX,XXX mean, I through I worse to patients get put then are, with to support this an for those that And can number To that’s XXX,XXX for that X.X III which call potentially cardiologists. very Sure. that a about failure LVAD that to talked And for what conservative on is heart get are And as on intent and is of as second years. go ability out to require IV that admission is The million BTR. the that support ICU those Class X.X but a those some feel and patients looking highest improved and Impella those well. device the the also just utilize Class extent, may that have And additional think, patients this study we going treating reduction better the in technology a go failure subset BTR the FDA are acute the chronic approved, also a the preCARDIA, they Those preload would better. the that not patients patients. X.X. are to

doesn’t However, it and forward requires it and provide sternotomy left coring flow. the of a still out ventricle

shoulder, cases, up allow that are the and So get And axillary other give patient that many with options of them and shown buys a can full minimally around, through and shut. implant they walk do that and trying the in therapies the utilize. physician support recovery invasive it to what valves is patient we’re some

Unidentified Analyst

for Thanks Mike. all me. That’s

Operator

Thank you.

Marie from from Thibault comes question next BTIG. Our

is line Your open.

Marie Thibault

for far on to it Hi, good thank a highlight spot the quarters for here wanted And a if has And seemed you you I questions. see any for and like out X.X. It bright the question certainly now. fiscal to some try wanted of that a second parse as whether usage taking as and few were in of between nursing the contribution COVID morning. in usage there overall to I a the made the us, could to of shortages. of quarter, differences how sort X.X patient as and in usage, kind quarter, dynamics CP much U.S.

Mike Minogue

Marie, surgical level just X.X it X.X individually Sure. XX%. the was up X% business to and high was so XXX% grew as a quarter-over-quarter. The entire X.X year-over-year, and

heart Cleveland the the go it’s single Clinic, it Impella especially around provider you also And necessarily is country. becoming Cedars Northwestern for Quite a We not at looking we’re some RP. that as what And had impact top growth at centers, frankly, quietly? where in having it preferred surgeons, is product. as a Hackensack the the

patients those Cleveland patients. their CABG, chronic get surgeons, acute team and at down way protocol, at PCI. cases, potentially together heart One it bringing surgeons over at is Clinic a referred and turn some support. also We’re if the with you’re that And example partnership do in those because need for our then high-risk the to solidify looking as on hospital where they

talked treatment They’re evaluation the then patients of you likely what to to disease, out X.X, you artery an worn have they’re hearts, coronary you do. you advanced with about, at compensate have going stabilize I do just a that going going they’re and did So facility. to

those of with some the the go cath to patients lab And X.X.

patients patients go to on of and the of to X.X, those EP with Some CABG. some lab those go the

point treatment a interest Todd protect of And the the the the that in a and make he if and that’s for adjunctive patient, really on the to bring so ability could designing that patient. kidneys, therapies if, stabilize the the it’s heart wants protocol then best on to numbers. a allows comment whatever breakout

Todd Trapp

represents is revenue makeup. today of in look U.S. Marie, about of the at of terms that XX% it and our X.X business, you XX% of that surgical

we’re the So, more look also our XX% to a in say, of opening on would patients but at also sites, XX% if you quarter, I combination year-over-year. new growth treating, it’s

Marie Thibault

the that. that’s whether second certainly hear costs. to would what heard That’s in Thank we’ve then love lot Abiomed higher chain, of you other about input and Thank talk question outlook some a is baked really helpful detail. way. And seeing the my about supply for tech into here, you. been the Inflation med companies concerns margin

Mike Minogue

manufacturing Marie, I thanks compliment to for our the for that resiliency. question. ops and team want

the we’re As, and we we the attention here everyone very have something that to. else, product team close and in but a redundancy. monitor Massachusetts pay We like focused execute, Aachen, on make but Germany in it’s continues to it

transparency So our in the our and I but think ability from what is confidence to quarter, innovation to you’re hearing us on manufacturer continue and supplier products.

Marie Thibault

Very helpful. Thank you.

Operator

over call at now time. I Mike any remarks. questions Thank turn the you. closing to this Minogue further to for I’m no like showing back would

Mike Minogue

you a your time have And forward with to day. look if you. any for Well, thank questions we Have you today. great everyone follow-up talking

Operator

today’s Thank call. for concludes conference This you participating.

now may wonderful a Everyone have disconnect. day. You

Abiomed (ABMD) 28 Oct 212022 Q2 Earnings call transcript