SRDX - Earnings call transcript Q3 2021

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Operator

Good day, everyone, and thank you for standing by. Welcome to the Surmodics Third Quarter Fiscal 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Tim Arens, Senior Vice President of Finance and Chief Financial Officer. Please go ahead, sir.

Tim Arens

Hannah. you, Thank welcome call. and fiscal third XXXX Good to earnings quarter morning, Surmodics'

Before remind developments new and tables those through call for results We'll forward-looking like because those could this webcast would accessible Reform believe and the they events, a provide provisions non-GAAP and we section is news I Investor begin, result contains refer stated operating historical Securities to future Private Today's of reference. measures Maharaj. not quarterly Please Surmodics advised our press for differ facts. update forward-looking will to information or archived materially statements also disclosing website, This Gary future surmodics.com. I is regarding under our results of resulting is safe conference to at GAAP will Surmodics the investors. results. release we website the Litigation otherwise. and from useful our Surmodics' forward-looking being or implied of information, statements audio Relations this also to our certain that where financial the over are forward-looking to be Gary? of turn the recording covered of our filings. morning issued call results call, webcast make on was release reconciliation as and statements or that A the available you now will be statements any statements. our or described by are These XXXX risks other statements Act actual duty SEC the harbor revise include disclaims we during from that uncertainties, in including future

Gary Maharaj

with exciting Tim. has It important accomplishments. Thank an quarter you, filled been many

developments and updates strategic you initiatives. share our to these with and have We

update ReVene thrombectomy Catheter, timing to key now July which to in The an important acquisition this will Medical. Vetex I product pleased acquisition Thrombectomy to provide related we certain platform. milestones arterial addition, the and Pounce of and on complementary are an important In announce and is our

summary a performance. with financial begin our of quarter third Let's

During ago in revenue mark a of period. of million from the year million million a $X.X the to Abbott. the that year in $XX.X respective receipt milestone payment quarter, we $XX.X period included generated revenue million last $XX.X Recall compared from CE

impact the grew quarter milestone this Excluding of payment, revenue third XX%.

Tim per performance record IVD non-GAAP as a well was of full our consecutive included growth. of provide significant XXXX impact GAAP as share a additional which acquisition will per and Our as an a our results, guidance. royalty details by a fiscal year quarterly fueled $X.XX. Vetex of and we Vetex-related of expected, cost $X.XX, to quarter second Also, reported on revenue loss of $X.XX share update the loss revenue the acquisition including

extremely to financial the on pleased fiscal I'm executing which drug-coated SurVeil While I'm completing quarter, performance our PMA XXXX first, of read this key our the we balloon. proud I'll significant progress our you, include: for made remind submission final objective, have

PMA and IVD And we expanding the product with our flow fourth submitted Starting final growth our strategic that our optimizing happy initiatives. our advancing I'm and pipeline. and announce Device Medical cash FDA. of Second, from robust June, in to to businesses module that third, fuel the SurVeil SurVeil. submission

at FDA the As delayed time data both from requested and treatment. mortality since the of previously discussed, years submission our patients X follow-up X was for

of prior administered to submission us have date review they of agency's June a filing complete our have is the Following XXst. and filing, we informed our that

during the preapproval scenario that to type now as the a appears agency. received scheduled be the case may be yet the While to December also it may SurVeil visits still with be impact best we the have receive the timing. process end inspection of several And PMA by possible for approval of to feedback 'XX,

will We clarity more by October. have much

communicated, of to payment from final million SurVeil the receive Abbott. milestone receipt $XX As we following expect PMA, the previously

While partner, we their commercial of support pleased related estimate receive are nonbinding decisions to launch. are SurVeil's commercialization to Abbott, made our launch order volume to be ultimately a timing to U.S. with

for to remain and track end full entirety. validation at respect patient for for verification our below-the-knee base to to X-month drug-coated the study continuing catheter. sizes have begin DCB, process steps facility swing completed balloon follow-up complete to Moving we the QX. the the fistula and Sundance a team visits of AV balloon sirolimus-coated We will DCB. With matrix Avess balloon design is on base process The our catheter Sundance the validation clinical now verification our its first-in-human for the design on work for of balloon the in

received have level feedback happy agency. on for to FDA We already report trial regarding the pivotal pre-submission that the from are a high Avesst. expectations design I'm And general with in alignment clinical we

access one patients physicians Access. of treat In Guide radial XXX Sublime Sublime the PTA limb catheter. we but Sublime with entire regulatory for Access is FDA tools via the consequences segment the Radial to platform. catheter X platforms Sublime We balloon important June, have since Next PAD our clearance suffering is complements And our along access different Sheath our now with This lower the to our treat received radial Sublime not XXX system. accomplishment an XXX Radial catheter. balloon dilation radial provides necessary for via just Sublime

feedback manufacturing encouraging validation recent which currently is the important evaluations. working Sheath Guide to complete Radial the enable and XXX using on begin clinical catheter, balloon all Sublime XXX access us will to the and their product process catheter. team Sublime balloon to clinical experiences necessary receive of physician Our Continue

an products and their Sublime benefits interest physicians completed to clinical evaluation their remarkable continue access expressive on the and the who have patients fact, product have performance In use these products based practice. to to and

even clinical with actually to continue clinics sell excited level cases order new clinic, recent directly to note, side interest. June. several agreements experience. Sublime as these our We we cardiovascular to was continued we facilitate in in signed this and horizons Sheath the about meeting Radial a use, products in are On catheter of Guide XXX in And to at the Radial a their New have X Orleans successfully featured build live

been Next validation arterial the and was patient completed this an Pounce artery, procedures. Pounce thrombus. of blood the Since for our is occluded Pounce additional cm third product used in X We first three June, XX was our during a of with use patient removed has which treated first process our case, as flow thrombolytics, in with Pounce without of procedure, restore femoral its approximately the In able thrombectomy passes our System system. after In superficial platform. diagnosed device quarter planned. successfully to successfully Pounce

with beds. and positive to devices As physician ease distal remove and resulting restoration in to ability expected, been use feedback of we flow encouraging tissue of clot, comments has blood

the to of to these will this Pounce X.X arteries, system This down recently in include below femoral size thrombectomy not our treatment area range allow Pounce to extend within us infrapopliteal the XXX(k) applicable for product a smaller received addition progress at widens system. we range. millimeters. vessels just arterial that evaluations, knee, those arteries therapeutic In clinical the have the This is to the but indication expansion

and market market. We be with in extremely removing is appropriate believe Vetex Pounce device. volume found looking Vetex synergistic This large veins Mark technology that Mechanical to and vascular successful both a venous that market we an and exciting, small of now believe of that commonly cot meaningful existing ReVene continuously arteries CE arterial was both clinical Medical. the to our to has clearance Thrombectomy our ReVene intuitive Catheter to technology, to Surmodics other can to underpenetrated and is has complements month, a portfolio thromboembolism use for mixed-morphology and platforms. designed one acquisition strengthens existing clear the and technology in leader. advantages to the approach opportunities are group XXX(k) our that acquisition to and the large with Vetex's completed clot . thrombectomy devices and Last opportunities for development platform companies us large in remove compared devices of are of IP We clots beds. expand This become eventual in veins. easy the We thrombectomy has with system thrombectomy received efficiently potential which already has provides the designed our portfolio U.S. the

which for now all complete to the employees team, includes ReVene the Vetex working efforts is key validation Our and manufacturing System. process

then We efforts in clinical to expect 'XX, of us second completed will allow which initiate to product quarter that these evaluations. fiscal our be

ReVene the XXXX. evaluations, in these of successful we product second will ready completion Following anticipate calendar half commercialization of for the the be

deliver to third strategic segments. priority medical business continue our IVD device Regarding and solid performance. our They

doubled essentially see to us revenue quarter coating a our to of ago continue from and year consecutive in which strong helped period deliver growth. growth the technology, second serene royalty We

Our with believe create all across We've offerings continue firing IVD of growing of their that consistently closing, cash we quarter. have has and while source flows, thanks heartfelt product a shareholder and second and progress $X.X offerings to funds our XX% portfolio an our strategic versus been future technology business of I dedication Tim? cause. value. an growth initiatives. core to which third other but fueling been all delivered front are last strong made year's have long-term important to quietly significant us. catalysts revenue objectives. generate These of products for fiscal many I exciting my performance our to in cylinders have strategic and quarter we record-setting on offer will its team tireless exciting operating In consecutive million, building want growth amazing our

Tim Arens

Gary. Thank you,

our operating revenue million which During Development $XX.X of and Mark our and overview favorable for impacts and quarter provide today's acquisition The of The recall, noted updated $X.X revenue quarter implications year you included million an evaluating recent under fiscal benefited was recognized CE agreement XXXX. current fiscal to will XXXX for our the third our SurVeil The be financial I outlook Distribution third of discuss milestone performance. Vetex call, declined to that from expectations. the with as million, Abbott. $XX.X full period, quarter should year from our when XX% several the year our provide of favorable achieved unfavorable prior payment prior performance,

revenue impact payment, milestone XX%. of grew the this Excluding

revenue. a Medical our expectations. impact Additionally, our that a recall Device XX% revenue unfavorable million you to quarter significant saw COVID was exceeded on and will declined that $XX.X year it ago

Mark mentioned, period included previously year the revenue. the As prior CE milestone

last diagnostics antigen grew exceeding a was slide in XX% order favorable record distributed timing projects. performance business million, $X.X as microarray our products to vitro well as just quarter's revenue. development for IVD Our by driven

third under down a result the as Abbott CE revenue primarily prior-year year revenue Mark royalty totaled third from million payment. Our period, Agreement license totaled the in $X.X compared prior-year quarter quarter XXXX, to compared $X.X of quarter. $X.X and million the the million, in third $X.X fee Royalty year License $X.X in the the in prior to million XX% $X.X milestone of quarter million from fee to the impact quarter. the prior million increased fiscal revenue

by including continue In for total portfolio, prior royalty to Product or in one easier impacted the royalty fiscal $XX.X to revenue compared serene of volumes $XXX,XXX Medical Serene flat legacy products. royalties in of Device million, of our Our for to XXXX, by COVID-XX. impacted due coatings see was our quarter the accounts business, reductions an in period. contract we down doubled were greater a growth third $X.X reagent third was broad-based strength to quarter. now X% compared year essentially coatings, prior This our the from was matter replacement our catheter million quarter XXXX comparison underlying due hydrophilic revenue that revenue. quarter prior manufactured which revenue the softness product procedure offset fiscal year to which benefited third growth was in our unfavorably one of essentially part In year in in sales, Balloon than quarter by sales. product our

by in of $X the year as Our project to at In opportunities. as down our growth period diagnostics timing products. the distributed $XXX,XXX, Product for to R&D $X.X by prior were Product continues of quarter This quarter. the in offset related part services was in gross prior our modest $XXX,XXX to mix manufactured year previously product XX% for products. one order of in favorable in our million, in charges replacement customer in compared primarily margins device the unfavorably our to contract mentioned business activities business XX% benefit revenue vitro from revenue. higher-margin due medical or of matter Medical impacted impact period. our $X.X XX% business clinical million down or gross year-on-year D IVD compared $XXX,XXX the regulatory services $XX.X was a Device to including margins was of increased relatively ago million with cost the the quarter, R& the reported million business, development and to saw for or to up favorable up compared shift product XX% lines. antigen year or R&D X% revenue of product we expense, X% of revenue revenue third were

As to the SG& A TRANSCEND support product the period. study of clinical our costs. $XXX,XXX development expense other $X.X Personnel XXXX an revenue or expected, the SurVeil-related costs or expected increase. was including and XX% quarter declined, increase contributed third investments of strategic X% ago and year compared in to to fiscal million, initiatives of

device third the the partially offset revenue medical $X.X medical quarter to business milestone from the of performance payment. expenses an was year CE was income as loss of compared in ago by operating $XXX,XXX operating operating prior in million the reported year Driving Our results quarter's the device Mark million operating lower from lower benefited period. that of recognized revenue operating $X.X

a quarter. year quarter's million Our revenue X% from in was the antigen third on lower from products. operating in prior our to IVD on of business XX%, Operating sales XX% income distributed down gross grew mix the margin by strong $X.X profit shift

income including the period. $XX Abbott. payment impact of the tax XXXX of the periods from recorded of of taxable tax clinical results, full U.S., to receipt and the year to expense non-tax benefited of income million quarter's reflects turning expense million Now, reflect $X.X income pretax for quarter the taxes. milestone $XXX,XXX ago income third current tax the strong the report year-to-date We benefit in in XXXX, the a basis, Both year The third in compared versus fiscal share a in in diluted compared quarter diluted includes $X.XX $X.XX share Ireland. the $X.XX loss of per we to loss share of quarter in which basis, $X.XX losses quarter. a Vetex reported per in a quarter. GAAP $X.XX the year fiscal per On non-GAAP third of we prior On prior per share earnings earnings year operating in costs associated the reported share with per acquisition-related of of amortization

the to Moving balance sheet.

million and cash to we cash continue of position. In generated and We with the operating a quarter, from million investments have third cash began $X.X strong $XX of activities.

$XXX,XXX we paid for During the quarter, capital expenditures.

XX, no debt. June and investments and XXXX, As million had of totaling cash we $XX

to our Next, sheet Medical. of and payment I'll cash cash was hand of from credit. the The long-term line discuss financial $XX.X related implications strategy. position upfront $XX million to July our our our to financial our on Xnd acquisition Vetex our balance of This funded ability strong million million with accelerate acquisition and $XX utilize growth reflects

preliminary. our approximately acquisition, provides investments totaled accounting the adequate Purchase million, cash initiatives. Following our is to and $XX support capacity which growth strategic

estimate Overall, million acquired costs the amortization intangible basis. assets annual of Further, and However, we be of $X.X as expect be price on in per for fourth majority acquisition-related be fiscal record earnings expect of of we share costs is fiscal expense XXXX XXXX share. per impact a and charge the to for reduction and to $X.XX the expected the similar of acquisition year approximately full quarter expense Vetex approximately an technology in we to purchase totaled assets. $XXX,XXX developed a recorded the amortization to tangible third to the quarter.

updated to R& Removal our XXXX support D includes Clot advance addition, including manufacturing expense and Vetex full expected Venous validation activities, In fiscal the further outlook to continue year process our product. to

all suggest we fiscal our revenue that our calendar to the necessary be to to share of is acquisition second of acquisition the expect estimates U.S. in the generating which to we market the that earnings, low product XXXX. year is mid-single-digit accretive Vetex beginning non-GAAP for second in to XXXX. begin forward, Further, Looking occur half expect half

Turning for now outlook our XXXX. to

from $XXX.X As between revenue to Gary license acquisition. the to million our of the SurVeil We XXXX Abbott XXXX agreement. and fiscal million. guidance million This includes mentioned, have year XX include we fiscal range associated revenue refined with outlook $XX to expect fee now Vetex $XXX.X

of growth year-over-year. single-digits in revenue mid-to-high reflects royalty Our guidance

year, D be digits For SG& expected the is full is consistent spend the double low prior to expected grow the R& year. and to in with A

the expect million from to $X $X.X income we million expense. to full impact addition, range of tax In year of taxes

XXXX of revenue fiscal with Our achievement the the sharing excludes associated upon revenue outlook sales SurVeil milestone or payment final SurVeil SurVeil product profit PMA, revenue.

share loss We per share of per diluted expect XXXX fiscal a to $X.XX of $X.XX. the earnings in EPS range of GAAP

Our EPS Vetex guidance acquisition and higher approximately $X.XX GAAP amortization expense reflects cost. tax and expense from

prepared like share. to this questions. diluted non-GAAP from to our remarks. the per $X.XX Operator, to now call open expect We earnings We concludes range would to $X.XX

Operator

Instructions]. we'll [Operator Matson first Needham Mike And with to Company. go &

Mike Matson

with I guess to want I SurVeil. start

sounds PMA? if you then, like and to is time? a it But upfront you the was more feel than now of going be distributed, look that get So order large I before. Abbott? you to to guess you to start going a later when does for stocking thought any smoothly subsequent little could what there from kind then you're like I see what the approval pattern mean, And to be Is orders? I over be order going revenue it of timing expecting once is wondering have

Gary Maharaj

had about second said to getting us which apart, question patients of Sure. but collect X/XX. for stops this And at is clock process on a I XXX quest-in. over amount was Typically, Tim. Mike it turn the resulted in, I'll years, part the that to it We X the of days, significant as data

the about FDA So we by the XX-day I'd will what of early October, feedback of -- the the the substantive have the September, file. end review from call

questions want. analysis little understand bit have, they they then, more what And so, further of what a we'll may

some in question, not still unlikely, out do this December. is manufacture it. the pre-authorization it's months, X/XX inspections different I especially where they product, we -- X X So countries have to for mean, It's having of highly X while

it's unlikely that's I make understood. and sure So why want we to

we're the us While at targeting, still quarter. for second responsible think fiscal to look I more it's

partner really with PMA the our then which you have part or becomes with will for both, us you it commercialization is, wait primarily clearly take manufacturing second do that develop risk risk the negatives do take to opening before There to up that a The and partner hand on from have X and in the before? issue you take to machine do take Abbott, a decision. depends the decisions our or guide Abbott risk, because really launch our you you question that The there get months of and positives an we'll X fulfill will to our running. whether order

to us based So let's and that for decide of months But subtest then X the February they purposes that in and to If from it in their say to to for get then PMA the was on making the binding quantities. was short we time fulfill initial them It the them. FDA take feedback of do say X I'm let's PMA could the 'XX, of discussion. the frame. launch do October-November order

there's there. So of window bit a a little

So Tim, what terms in and so have you comments I other don't the forth. periodicity know of

Tim Arens

occur some Abbott get does framing engine did we takes time it question, And more up you launch a provide at on and we for at add had point Abbott liberty to the But their understand manufacturing time the certainly call, PMA We're that Thank Mike. that stocking approval. job similar a are our started the initial for a Gary, we've appreciate than following any to Right. that. earnings little with I'll would deliver had the anticipation the is detail to color that which to orders. not expectations. just had discussions last Mike. discussions you The of nice

I speaks part your your the question think of on that to second order pattern.

The excited point think from that detail we bit XXXX, continued received at more Abbott be that. with forecast and confidentiality time is and But some that we've commercial what I'll to the in I able support a saw here would need One forecast. respect will context. in we be provide would our expect orders their we'll what the say the partner. So would pleased following is launch. final were to thing with we here, at to there

Mike Matson

I then, And one Great. thrombectomy ask to wanted product. Okay. the on

talk used existing things stroke the have for like those then, like So to -- potentially Mark, under right? of which X XXX(k) you maybe future portfolio. point? just at that products this And for CE know that about sounds and embolism, there Vetex, where be your and each is It expect do guess, if in you now I be indications pulmonary you would product commercialized the

Gary Maharaj

in Sure. Vetex XXXX. labor We started in working due diligence, mentioned with may I have deal

FDA not had no received point. they CE clearance at So that mark,

that it so, the us. diligence terrific to was it it for which it serendipitous And achieve able makes was period, during

So sufficient Europe given in in the support they're to U.S. the commercialization current and indications,

As you is market noticed, competitive. very

patients, both in the earlier will Black, development, that of one in clinical Forum that Venous the Steven complete clinical we the has a -- because believe down as validation, at line. development so Vetex I - So for us, American process to environment a XX Venous the U.S. we'll mean, done that continue important competitive Europe world's presented and data partner this after be experts year. in need famous We the

for claim DVT will have are and is important of the an subtle from going as be a USFDA the very The acute to remove ability is one we clot clot. condition there claim know And But claim removing I claim with the Right thing one second is veins. of a now, mechanically well. differences.

want the to we claim, we to development clinical So facilitate. what will eventually, be sure make that's fully but get that competitive,

same our Pounce. where that that second system. products what the Dakota, The at a is, would Pounce. really with high-end down we Falls, liked present complicated South venous in for What thing in the what in pull market saw but lot Pounce we in liked ReVene the out he Sioux is case. This that's centers, of pull used are complicated ReVene thing wouldn't system got that's we Dr. in what devices, side And every the has Backer about saw we he about also the out academic

have And rep specialized You of highly where see be that's power hand to use this it. to don't system. in the we your

so, intellectual and that from stroke. in property Pounce, end us believe will the both this And help we have PE we

me have this, bush just We development for R&D for really just mad but started broad concept problem saying already an and team with definition PE.

want further I in line and I because to them to give maybe would this So ReVene the to down hope viable bit see that come winning 'XX. that really time the for a secure Pounce concepts from at little fiscal point. percolate. Shortly we want to for

Operator

go Capital Lake We'll O'Neil next with Brooks to Street markets.

Brooks O'Neil

of lot have couple questions. you've all of we provided, detail that. appreciate A just really of I a

the you just of give seeing terms FDA? from of the you're and and clinical what paclitaxel both First, sense in your terms us in hearing sentiment, use could of current

Gary Maharaj

Sure. at looked as well. you recent And have IMS a may data Tim,

But if least really me be I do to hopeful would on Abbott unwind what would to around it the ready label a the FDA that I'm time So included and partner they it's it, of Schneider, label Peter when But viewing recent comment which on I'll our overwhelming authors issue. pass that of it. an seal my half mean be at still the overwhelming. Volkov it. on to throw to even Ramone evidence in opinion. paclitaxel away what now you put application, you. And favor and that It's -- really I in this that is the how launch. will can't

markets I on there's but bounce recent to IMS been in some looked be at the would back I you've use, believe I'm And not know recently Tim, speed data. that if don't wonderful. So that up either?

Tim Arens

Brooks here. and -- moment also back a Gary. step just Yes, maybe is And feedback a I'll with little for provide there

data here might recently the June not published it endovascular today where I think Gary, it published I'm sure is presented retrospective in I a pad in think the study. And edition. initial was know, but June. was And safe was it you

there are more more data it's the that data. the -- to signal. we But more view So supports that continue there and is keep just no of observational seeing

so, study, patients them particular almost And and follow XXX,XXX, no for look three observational I in this at difference. the study Medicare think just years XXX,XXX about and there's up

to what of and data important hospital has devices are on data, paclitaxel-coated well earnings And seeing industry. to restrictions on in this hearing favorable that in uptake the the bodes represent Gary have data really heard that they're going IMS uptake make calls their there's paclitaxel-coated for the refers speaks only to and U.S. U.S. decisions, And hopefully we've for think $XX That market devices. growth the only hospitals. that that's with trending system. that quarter. over million quarters is But to not-so-distant the devices. in paclitaxel the we're their the I last it's seen previously be regard several and that higher the the again, over them that we're decisions data place. said to That being future said, other suggest seeing the IMS companies anecdotally what We've that greater and FDA per

seeing we that have looks to from all we're well companies So be million what data all, other devices the trends I about in we're paclitaxel-coated U.S., good. bode $XXX now. sales right the and looking think hearing All the on devices. the could getting at for in these market What

Brooks O'Neil

you what hear Great. glad but I'm That's say I that. was to thinking,

So little my the just memory affected regard in secondly, have affected I the to and the expirations business? have refresh just on patent that bit wanted maybe you're base business. have patents a with ask a at guess, core sense Can business. I transitions, to about where core you business patent I

Tim Arens

absolutely. Yes,

had or you're XXXX. year patent $X.X is recall, that expiration Brooks patent Gen-X of might our expiration folks fiscal a million about patent issue to unfavorable family. the the So impact referring think the we And in I

guided we that that complete. impact. fiscal impact to headwind into XXXX, million We're a announce happy Going about that to is $X

impact to think over testament course had their products. with our $X to provide here of year. continuing our and about working for a I customers of And technology we've the business agreements sign it's the team, really important development access million to the continued

Every be serene, happy XX%. GenX, I mentioned here, broad-based our we of So of coming portfolio, different depressed patent every procedures, seeing a we're and more are quarter. what whether And the single of quarter was impact element I all royalty to of it XXXX across consider from it would And think the coatings Gary performance generation growth. I both year-on-year in most to recent about GenX, across different all in grew the hydrophilic devices pandemic patents. was of that's that saw our given on leverage or And the QX technology. again, that coating categories very see patent but fact, that family portfolio

So again, part really development a our and of business great quarter team.

Brooks O'Neil

Great.

me you, product changed, you the broadened of whether product families products curious, you are to distribute your or committed partnering field any the pipeline, product ask side about thinking and on these distribution still deepened the and of development you totally self Let ever as has just kind would I'm pipeline? of have

Gary Maharaj

much was then, continue experience, recent provide Well, that clinical can't taken to And rules Sublime our given Their evaluation. aback. you free pleasantly actually to provide product and how products you clinics. evaluation time, rules, for of beyond I legal can physicians

continue to We of that. a even our our had of couple these years these the and it. practice, clinics to that. And didn't systems have But we'd facilitate look, just find processes wait. with ago a to product woefully, like way product. So we to we Telemark this compel We to first fact a said, that experienced the continue couple using have changed

a found partner. to strategic till have we we wait So

types think carefully agreement product now providing more we all clinical through will Brooks, the clinical the we're we're these use from and different But happy the in value. getting be think of shareholder what long-term and much create a to selling evaluating product cases. under I also data to have because -- of

So partner. to think at coming good our months a and problem strategic evaluations Pounce here. Nonetheless, say go But We'll the value that ReVene it's the either to generating and Pounce well this, say a have in we'll as revenue, see to and that. I'll Venous hitters I'll look the through. like or can have us we enhance to as only heavy anticipate subsequent

is flowing we it. way way, river it's So the the either want

Brooks O'Neil

great. Yes. That's

not might can basic parts. about you're -- come guidance help the et think of to and in XXXX. you what ready terms Tim. Let impact But you size is how going year, or I And using penetration, moving any me it there's assumptions lot of question we think a is less way be just you're could one for -- to? can your of seeing next impact ask as there about provide they're know what that way cetera, the of last maybe for assuming profits more I things know revenue now, SurVeil market along us

Tim Arens

recently question that I I'll forecast firm to the guidance. excited to great I'm is we'll you patient. I in all say share hopeful than be mind. from ask partnership. And remain line we tell the think be it's And it Gary we is, the -- the question. And be I'll that provided that, in I'm which But top I Abbott. you're has that see Brooks, double-digit other one are able a to just The I that excited here and can of about is, we've meaningful. coming it's again, sure you here believers were guidance growth. All find more not to clearly, only longer-term the top quarters.

Brooks O'Neil

Yes. congratulations Thanks color All and me That's giving that for right. on all progress. continued good.

Tim Arens

you, Thank Brooks.

Operator

next go & to Company. with Sidoti Jim We'll Sidoti

Jim Sidoti

guess, us share I don't Abbott plans today, So initial any do you? from those with you to that have estimates

Tim Arens

during as quarters. this Jim, the we share We coming could we'll in silent to remain have but to moment. that wish mentioned the on I on more look forward for I though, news

asking for some confidentiality otherwise. it patience. the agreement. were wish our we'll So just But of again, We respect

Jim Sidoti

Okay.

So you in months. next for have ready to have you your When go the at parts? you talk have SurVeil, to X group And a you're do do talk these to things going and out go could to and Vetex look pipeline, the products? to strategic, that these X you products as Pounce, me you XX talk to go is, as one individual -- you different question or

Gary Maharaj

that's has if mean a see space radial it's I and white tell. strategic both don't I thrombectomy a Yes. to highly that that I be, could -- odd unlikely. think access encompasses

sleeper the that from the strategic. -- strategic hot the now, say you a access from a have be done given real And believe procedures is be majority The think hard X spaces, I of that the years now, water, space important how of see that to strategic positioning them. however. radially. thrombectomy will to radial vision, as right And may get portfolio tell drink of the you strategic it's and But would this if move we'll quite planning an to an insight redundancy. for one

different. be individually, combination that think of that we I expect values the wouldn't So

Jim Sidoti

size a slightly partner take of would making than would force a And much deal? I you apartment? you to from consider do strategic when you're mean, strategics, with the rate lower you're with talking sales the the you distribution a bigger when small a

Gary Maharaj

say be to Yes. we to, not strategic are us. And to I'll one -- clear, talk

informed keep financial keep heads deal. tells zone generate As sort clinical comment you I And the water Tim to line has data. way have know, us a and the is the Tim up of I've modules said, in Tim Tim, which market I if that? our to sophisticated usually forget to I blind very want the teams as and on down, likes that these know share don't us. any sensitivity for

Tim Arens

just was with might thank position in going here partners their little potential better share context us. helping that to for negotiations a our I Jim

understand sure for things it's And a safety holistically technology we're just make do on in we we deserve provide what and at Jim, the we'll bring things of And use, We remain differentiation, the and But more are off we profile. thesis. think Gary's of you, that our creation overall All So advantages, its value the want criteria. a And value we But those Yes, capturing that from really sales I perspective, terms on diligence shareholders' will response. of that the that Surmodics a is. made to important. value I'll ease platform. what to at I silent we've the look the lot tell investments of we look number feed partners. in forces that. important

today, remain a things this. more we'll that quiet little bit talk about we'll But look So on negotiating at. some we the of

Gary Maharaj

our I addition comparables of Ilk. valuable. ReVene of companies Tim, the I'll don't the strategic at see the of who see investors with know and this We We is look our portfolio and add. and Pounce But it. portfolio, have how know you products incredibly just

data clinical $X Now we million have that. they But to are and generate demonstrate I even not these product believe go $XX lines. don't the million product line.

than think substantially they're I valuable that. more

high we note to what to we we data, keep got. bar of clinical just negotiation So that this in form the know because with any intend

Tim Arens

to revenue. Gary referring is

Gary Maharaj

Tim. Thanks, yes. Yes,

Jim Sidoti

right portfolio for is or me. and acquisitions set continue you further? one think you and to the now it Do pretty out will Last look at go expand

Gary Maharaj

serious give a we picky development we will Tim a corporate say, we're little half what at, year, very program. would I Jim, and Well, bit comment take and per in have dozen We a few the active Behind on looked very, ones at. this. scenes, look or very a

with As months I what we Vetex and get done for said, it mean, it I really ago. took to over our started deal sure right the XX shareholders. deal that That's make was

run the a dynamic to have we balance for be making static not Tim be our performance, sheet business. we So tool indicator as to past, to and growth, continue as want clearly, a I said in buffer of to the but the used sure have

technologies scan our is, So in we continue high-value complementary to will companies. the short answer full

Tim Arens

nothing have I Gary, to add.

I that and articulated well. that accurately think you

Operator

to back or over it for questions to additional like you at no And queue in are time. closing this Instructions]. it looks [Operator further there turn remarks. I'd like any

Gary Maharaj

on earnings Thank there. for joining Thank you. you safe third call. us Be quarter our out everyone

Operator

Thank today's for And participation. that conference. your concludes you

disconnect. You may now

Surmodics (SRDX) 7 Aug 212021 Q3 Earnings call transcript