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XENT Intersect ENT

Participants
Randy Meier Executive Vice President and CFO
Tom West President and CEO
Robbie Marcus JPMorgan
Bob Hopkins Bank of America
Richard Newitter SVB Leerink
Chris Pasquale Guggenheim
Adam Maeder Piper Sandler
Ryan Zimmerman BTIG
Ravi Misra Berenberg
Kyle Rose Canaccord Genuity
Suraj Kalia Oppenheimer
Call transcript
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Operator

Good morning. And welcome to the Intersect ENT Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. to President call and like ENT’s to now Vice Executive CFO, would turn over the Intersect I Randy Meier. ahead. go Please

Randy Meier

Thank thank And call. welcome, participating and today’s you in you, for everyone.

President Joining today of is West, me and Tom Intersect CEO ENT.

like force and begin, to as meaning materially contained that the assumptions, we as remind we the result of other differ growth, obligation for indications statements codes coverage, federal the and which in such products risk those details securities are making Before or anticipated include, any as which undertaking well financial from our our results revise to herein. approval statements the forward-looking reports, and with could clinical or and performance, file of time-to-time which be timing forward-looking based you those we of risks from in new estimates would SEC. sales reimbursement I uncertainties, a and statements within of procurement will the law. limitation, disclaim Actual forward-looking events and any without of upon update We studies, current outlook

the turn to Tom. call over I’ll Now

Tom West

hotspots. benefit from rising elected and procedure market our commercial thank pandemic We COVID-related and in with quarter sinus our These despite for all earning call execution accomplishments, the access actions which improve the in throughout rates XXXX notable many to today. Thanks, COVID joining quarter, capabilities to our and in nationally the us rebound efforts procedures And had Randy. enhance recovery you strong July allowed quarter a third revenue ongoing third backlog our case and in infrastructure. reflect

year. QX and track growth. believe saw these demonstrate in last sequentially commitment to XXX% nearly of XXXX our results of return our in the XX% performance grow revenue revenue generated the ability to to Our We execution and QX to quarter versus

address to were of pandemic. FESS as in the for delayed pent-up many July procedures, where been results surgeries phase able reflect PROPEL rebound a early revenue had demand Our we for the in

of are conversion frequently addition, times the benefit With conjunction procedures, balloon in in rates experienced increased verification improving enrollments, space and office more space with PROPEL sinuplasty. shorter leading as office record physicians In between increasing in success use SINUVA, and SINUVA quarter. PROPEL procedures to actual we using revenues

an helping We expand also in AllianceRx Walgreens by procured into greater physicians expanded be and the specialty for a to ENT and opportunity entering distribution market patients the marks payer Prime agreement our behind coverage of to SINUVA. SINUVA ability by presence their pharmacy This relationships. Walgreens national with significant of strong national

the and the together, performance of XXXX. confidence to our quarter in to pre-COVID meaningful to gives performance our in in growth SINUVA in Taken ability relative XXXX PROPEL us return

Technologies. the closed Germany. and this of market PROPEL product have starting sinuplasty our we October, gained transaction, entry touch and the with third now Fiagon notably, AG in existing offerings markets, addition, portfolio complements Medical our portfolio and prospective we purposely In With scale ENT of product key and acquisition European in strategically Fiagon’s and expanded performance. strengths. our physician commercial sinus of leverages I’ll of our each core accelerates quarter achievements adjacent SINUVA and implants, into Intersect’s detail, greater these existing in balloon relationships on

care. between XX% FESS PROPEL FESS broader a XX% settings in procedures. used all recaptures of Following PROPEL growth in throughout ample this the of procedures to U.S. in dramatic total share is procedures, and gain PROPEL as it QX. part of sinus leaving surgical year, of the in QX estimate QX to downturn end the continues of at sinus-related upside momentum, We of total that latter nicely rebounded for

the to for market focus expand FESS existing evidence code. benefit health procedure our coverage of on beyond augmenting current economic payer is PROPEL development PROPEL Our specific

We have in supporting reviewed for need post-operative published interventions. the reduction strong already for instance, the peer expensive substantial data

American and registry evidence utilizing to prospective by seeking our Academy of that registry and Otolaryngology’s national societies pursuing to database, trials. are support own soliciting add and We the of the state direct

by QX utility PROPEL’s JXXXX, both J of available reimbursement for the coverage in addition, and the code, performance and office separate of In was to PROPEL our the particularly, both aware office becoming specific implant. the enhanced are PROPEL covers PROPEL’s using setting Physicians care. post-sinuplasty SINUVA which clinical more in

and the of increased a PROPEL XXXX towards use number QX from use seeing away procedures payer office based trend greater that a XX% portfolio, QX specific the and continue implant broader result, coverage. increasing As of our seeking versus ASC XXXX. in to the will in move grew evidence office. are we think enhanced are hospital PROPEL We and we office with capitalize on clinical

PROPEL from European Our benefited sales surgery of rebound summer. in sinus the procedures also a throughout

in month of recent European volume slowdown uptick cases, offset the COVID in last the quarter. the However, was in procedure by this growth a

in physician and coverage. well patient efforts cases, beginning SINUVA investment the first for SINUVA, the the growing in reimbursement, driven with conversion awareness improve results, record adoption, increasing to and year by with preference procedure candidates, a and as of show physician quarter, Turning our buy-and-bill as revenue some implant comfort to had half identified of

revision offering SINUVA the shift lieu the that also from and an from accelerated in and of hospital setting, to care particularly office as hospital addition, benefits visit. surgery of comes a In ASC COVID the

our results, are our patients have time verification are Enrollments in the also the the Beyond are in which underscore our the Conversion a a several reducing demonstrates trailing improving strong we and on sand significantly, while funnel. and ago with year up month metrics, of we record encouraging prospective spoken meaningfully This market access SINUVA past three tracking performance. versus that rates programs gears up rate of are that are is basis. shortening. we benefit

from success, an turn share funnel revenue our replenishment shipments saw we both as the revenue greater improvement in evidence rates QX our to procedures and performance SINUVA at analytic demand, recent rigor even future of allows our position of surgery us clinical, an further to There channel our gain SINUVA achieve available With selling for target metrics quarter. SINUVA, up value. Procedures of growth. U.S. our rhinosinusitis data us actual million, to conservatively, SINUVA. the efforts their we SINUVA total market and at and and XX% calls, level of Even with achieved confidence up with an in for marketing QX $X.X with versus Increased partners, more X% with specialty sufferers in two-fold conversion accelerated we polyps. and us. in intention two hub the metrics penetrated in enrollments greater than distribution and for significant rate. market less disbursements SINUVA focus chronic we highlight to are the revision highlights were of of build that estimate future this that for XXXX. can It’s giving have In the alternative predictive to These lead

in access breakthrough CMS July CXXXX see live of treated went coverage when patients C has Medicare want our unencumbered pass-through to SINUVA granted when coverage surgical that Medicare we a the for they code, to procedure ensure in is and by for with innovation. setting. ambulatory First, the population Pass-through an

States. approach medical physician patient’s for AllianceRX XX% the Prime. and patient pharmacy the SINUVA partnership for treatment and access specialty This the quarter to specific realized. This further establish will expertise distribution. offering, benefit broader to processes using With AllianceRX of A commercialized product nationwide practices and highlight will have and announced XX% coverage with public patients. the a This be fulfillment Walgreens enable ENT lives was partnership and medical over Walgreens the leader SINUVA and we pharmacy simplify will scaled their of second by of we now the nationwide efficient reach nearly United Prime, and C insurance in code, in facilitate in

further we develop commercial stated our yielding and our to are last infrastructure to positive ongoing actions results. market develop As quarter, --

are We benefits office is staff physicians the the as in embracing buy-and-bill at to reimbursement and to educating the and excelling increase on buy-and-bill field of an their our team payer. seeing based physician physicians

patients. expands for code C Our coverage Medicare

rates other specialty to working and timely we procedures. pharmacies continue specialty AllianceRx, conversion delivering to and opportunities buy-and-bill while addition expand with enrollments, and In create to improve leading distributors success,

use sterile procedure. to deployed leader devices, for Vensure navigation strategic the the navigable ENT new easy-to-use, accurate of navigation endoscopic during standalone designed in turn targeted and of electromagnetic surgical Let’s suite Balloons remodel to surgical system. Vensure Their tools Balloons and acquisition navigable of range a In sinuplasty surgeons integrated now The the Vensure surgical sinuses. proprietary, Fiagon complex devices Fiagon of systems within are Launch support August, Balloon to in single solutions. solutions Fiagon. its The clearance space. XXXK navigation a the balloon routine is surgery for German-based is use and Fiagon planned surgical instruments conjunction to our navigation track sinus full received with procedures, ENT the are both balloons. also and designed Fiagon structures are year. functional next of enabling

balloon to Randy October these us to We anticipate balloon integration launch I navigation. now sinus as efforts. process we the Importantly, Fiagon the more on closing lead the of Fiagon’s closing, sinus enabled suite into which develop offer Xnd. as us and prior part accelerate the upon allows comprehensive sinuplasty balloon. began drug SINUVA, are of a the of surgery our continuum PROPEL, underway well inclusive us ground unique to solutions market activities entry our opportunity Integration and enables sinuplasty continue hit to of coated to of asked integrating across this and have to Moreover, care, running

are on the we existing evidence-based is near base as near-term ensure and business with that for value-added The quarters, few they acquisition the consistent ENT goal introduction commercial European of we and help customers the focused developing and the are patients providing on expanding for well. of -- Fiagon the physicians installed activities our Fiagon’s solutions transition and serve. While comprehensive, will U.S. very also over our plans successful next in term

in to expect with be commercial the be meaningful will and We thereby including XXXX, of to growth we beginning half year contributing believe with launch consumable Fiagon, first our well-positioned tools in XXXX of that formally to product business Balloon half portfolio, and navigation we growth. the XXXX accretive Vensure synergies revenues second the by first the new and of integrating middle post-close, this to accelerating topline middle the

SINUVA last procedures, we mentioned call, manufacturing of elective the and production post-shelter surgery rebound with PROPEL in-place we runs our with quarter’s first earlier than restarted expected the July. on in in As

demand, With expected current manufacturing supply in increase the we the match chain environment. and activities to aligning, are

remains regained manufacturing to and continuing below we our scale While ramp-up capacity quickly. pre-COVID are capacity,

year by to to we expect rate capacity for margin production, core expanded and PROPEL production the full will low XX% return We expect range before run be to demand gross SINUVA. that end back With and end. year pre-COVID our of products in

begin traditional as the as swifter developed production teams, expertise design balloon expanding manufacturing U.S. programs, is and Fiagon our collaboration ramp sinus in of we’ve own to health our the capacity with other and Fiagon expanding our I Vensure regard as both studies products. with we planning and clinical Beyond trials to mentioned activities, we the R&D on balloons, in PROPEL follow-on enabling earlier, for for conjunction economic of production and the as well and manufacturing With our inside clinical outside initiated

line. We and aligning to we our global expand to which product activities, earlier product pipelines, reviewing our overall will are anticipate our enhance integrating respective provide ability into and and Fiagon markets access development our

to of to a as mind our and PMA we’ve remain objective, respect With be discussions the care. cadence we ensure clinically backed among drug stated developing serve, chronic with across of compelling, clinical continue of our physicians balloon continuum to top we provide an as the expand design and coated appropriate Our we the lines program, FDA is innovation previously, in trial product steady in submission. rhinosinusitis to

initiating As of at had rising some the been COVID-XX, interactions delayed, pivotal COVID with we the remain FDA a cautious cases. same time, a and result about with trial

for timing a launch our early clinical XXXX. estimated of XXXX. drug of impact intended commercial in drug of coated With filing pivotal may that was coated PMA we late previously as balloon set mind, start our trials the balloons the in this together, our Taken

achieving recap, pushed be remain in we for However, and to exploring compress of navigable from balloon the balloon date by months. to family to PROPEL with But six grateful predictable and business recent to from products We revenues of of of are the on the momentum continue commercial the our COVID-related Positive drug ago. our track. up has to a conventional quarter big expanding the and program coated than expanding a Despite means sustained right today our our may light developments, deliver potential near-term are our also we steps with growth. Vensure Also, our SINUVA and other launch scale Fiagon committed our the as alternatives stronger To pleased we we were made were in quarterly sinuplasty timelines. record Fiagon. us portfolio the in in goals. international position COVID, are footprint much are progress we later product year

to fourth deal about largely prepared the general industry have is place uncertainties and Thanks surgical electric under caution pandemic. system to of year. flexibility with to quarter, Regardless and the capital healthcare COVID surveys, earlier this our resurgence coming better broader rising increased COVID in the reduction The in there react infection appropriate to far of all ahead of structure due Looking net elective raise and rates and on based cost the procedures the the where will procedures. risks out months related to to our sustain with in associated we the the circumstances. cases, operational majority to actions is

well are our managing remain but positioned We financially, costs. prudent in we

fourth to us are the and growth see will turn pre-COVID take At that basis in confident call the Randy momentum will through relative in I now to our levels. to you financial position quarter, to a meaningful over XXXX we revenues results. XXXX For time, to this sequential expect increase our

Randy Meier

XXXX, In morning, then reported to quarter million sequential compared our surgeries shelter-in-place the with a of of the the sales to period. base summary little quarter reduced Tom, XXX% approximately from and Thanks, statement. of Decreased procedures overview period the the of second financial the hospitals from detail Intersect of $XX.X everyone. ease $XX.X increased XXXX, our in performance a same the a elective ENT visits $XX.X third good prior $XX.X increased to resumed as a decrease sales nine and of restrictions. X% office ENT procedures of office compared like million, on the XXXX. were sales million, pandemic, as I’d million topline start in period Net decrease elective net the levels, the results income months of from XXXX more On our and provide a impact ENT same and states quarter. to for first second of COVID-XX in resulted related XX%, primarily suspending basis,

product from reimbursement compared million, the $X.X access of increase PROPELS period the $XXX XX%, was similar of decrease XX%, in XX%, third ago. quarter to quarter ‘XX Contour to Gross PROPEL third was increasing with the in mix generated unit, XXXX, per and family was from the in XX% the from quarter third Overall, for same XXXX. $XX.X margin comfort XX% -- in the SINUVA resulting third a Product in XXXX market quarters PROPEL a sales physicians. with X% our quarter for family For year processes improvements revenues a PROPEL of buy-and-bill of were PROPEL a and record awareness stables of year quarter million, recent XXXX, and at compared the quarter second at up the Mini and with XX%. XXXX. with of at of ago PROPEL ASP XXXX representing third

We XXXX. the a sequentially, of up from second meaningful quarter improvement are in XX% seeing

over decision approximate expense well third manufacturing Year pandemic, was both unfavorable costs, First idle year. to manufacturing year in margin impact, by per last the XX% higher facility quarter. an XX%, nine due to of resulting months as gross $XXX,XXX periods compared XXXX, was unit facility an to driven our our as the for decrease COVID-XX idle

were $XXX,XXX, effect since quarter. Year-to-date incurred activities our an approximately third approximately our XX%. million of have margin facility $X.X total idle of charges we a in the provision inventory have representing and approximately manufacturing We resumed gross on

third impact nine the both our consistent Excluding XXXX, months margin the guidance. the of COVID-XX XXXX was gross first and in with original quarter of

to a $XX.X expenses million, certain same trials versus in million allowing in period volumes in Total XXXX clinical a run and a well the XXs continue return period over months by direct year result were year reduction $XX.X our a in sales of operating the Looking to low expect later the lower a XXXX Operating million reduction ahead place production same we the $XX.X were XX%. nine in expenses delay in ago. decrease The of COVID-XX quarter, of quarter to decrease XX% the cost XXXX improving our in in margins million to the for expenses $XX.X gross operating to put of XXXX, as as in were rate the third commissions. fourth response end. measures pandemic, in first a the

third than and continue to revenue the than combined with use quarterly we lower of we well rate quarter expected cash costs manage achieved higher expected. sequential For our growth, our

costs We management improvements, of of burn in XXXX announced an cash revenues expected will These allowed capital we me, a results the We to through our higher XXXX. a have lowered liquidity. of efforts able target our maintain previously with significantly believe working excuse results combination in effort to and our our cash cost consistent than of reduced ongoing cash cash high coupled operating XXXX. have in of savings level and already achieve to targets our, our $XX be savings in us preserve these with million

fourth integration ahead, cover cash of we will operating burn incremental the expect associated quarter Fiagon. of the Looking costs in in some the the with reduction

impact a of million, diluted recorded the derivatives of of table reconciliation per The share in a an per net third $XX.X share the loss XXXX, $XX.X an adjusted $XX of with loss included of the of release. quarter net details compared loss a $X.XX, in per a For loss operating the million million million, these the $XX.X $XX of share. cost loss operating adjustments to acquisition and diluted value is we -- of or the loss fair The or third embedded press of Fiagon in or associated excluding million loss $X.XX XXXX. $X.XX quarter are $XX.X of of of net our

Adjusted For $XX.X loss a a XXXX, of operating operating net a of compared loss of million per an first impact nine to XXXX. embedded the of the excludes the restructuring loss share were of loss diluted first of loss $XX.X net months as or net transaction $X.XX, of per for months recorded $X.XX million well and a months million, of loss $XX of or million, costs which share the nine $XX.X in also as of XXXX, $X.XX diluted nine an or share. first derivatives, $XX.X loss per million we the

to XXXX, of of million, cash $XX.X totaled XX, and million to as balance XXXX. our turning Now equivalents sheet. compared September the Cash, investments at short-term end $XXX.X

to took our continue from and working our manage both this We cost revenue we reduction earlier our balances capital recovery. cash year actions benefited well and improved

and May continues effectively has ongoing through the XXXX, to initiatives, million operate result XXXX. believe a company capital of As of adequate capital $XX recovery cost raise revenue continued it to company’s our in and growth,

our Turning outlook. to

conditions volumes fourth referral XX% necessitated to we and most for these predict XXXX prepared cannot future and our or results, extent fourth that and should that pre-announced Based and quarter the quarter elective we in this procedures the operating quickly earlier to rapidly trends XX% release, procedure of we quarter financials on revenues. so will While we demonstrated again. actions continue, the expect disclosed We COVID-XX can recovery patients revenues year the will of our as ‘XX-- and in the be are to we changing our that on XXXX do return duration treatment. pandemic be third our adapt of impact believe to

year, revenues levels. next grow Looking to relative believe continue we that should XXXX to XXXX to

believe In the returning for addition, improve low-to-mid XXXX. continue full gross margins year to to we the will range XX%

Now, I’ll the call turn back Tom. to

Tom West

strategies, time greater executing Thank procedures demand in in to provide sinus advantage as you, and elective and pent-up chronic market metrics and SINUVA rebound suffer quarter we a future surgery with on procedures our penetrating our potential. The commercial and total from very treatment solutions are portion confidence PROPEL at of record highlighted SINUVA. in are AllianceRX the the access the to taking us by with of towards we patients higher our capture both gives Randy. market to large exciting this and enrollment successfully combined meet of revenue Walgreens sinus ENT growth office-based It’s partnership of a By that further procedures. underserved full with agreement the Prime sinusitis Intersect family shift products

into regardless care core navigation focus of comprehensive offerings integration our align across the thereby progressing procedures continuum, solution and -- tools sinus more to Their the Fiagon care. business with enabling deliver site the care on us well. and is sinusitis Additionally, complementary our sinus a of surgical of

Balloon that organization. are device, force, product in With am and sinus we we from improve the the portfolio their benefit to impactful rebound the market Supported adjacent part management our will of addition confident innovative designed industry products the market. continue by penetrate to with to talented team and of I procedures to further thrilled of patient and elective our commercial the sinuplasty experienced line outcomes. a will be believe leading growing Fiagon ENT balloon team navigable sales have are our Vensure addition that We entered an Fiagon excited growing our very

-- your call the and Operator to the take for turn like I’d over Now open call to back questions. the

Operator

Yes.

Tom West

please open you the would Operator, lines.

Operator

am Yes. from Thank Instructions] And [Operator comes first the you. I sorry. JPMorgan. with question Yes. Marcus Robbie

Robbie Marcus

for Thanks question. the Great. taking Good morning. Oh!

Tom West

Yeah.

Robbie Marcus

could quarter. because you we the end with last hoping start off was the the believe spoke I I second outlook, time of

And shutdowns? comments quarter. that second what thought COVID recovery around much optimistic be were record last difference the the much How a in more little on we and is striking in of a where business infection of tone new time how of is fourth quarter? Your rates just against cautious you could

Tom West

and all the in more offer rates hospital accommodate pause confident great out segregate while the of pandemic record to doesn’t that the and COVID how healthcare too case and and a looking hospitalizations. take tone And that, far. has numbers Randy, feel if you I’ll and environment crack we jump hospital at that we to at learned a first want to system -- in. is that as say the of I way Robbie. is the the Thanks, us care, us cautious look Yeah. procedures majority and much just continue a at want better elective those traditional wards boat to gives push kind it between would

In how but of the then, feel real August hospital-based recovery a a health the Obviously, that environment in seeing we nice We about and a terms on in of core we of the some rebound business, business? backlog. obviously, in environment, nice green new quarter. business was which SINUVA and and July, what to had the the PROPEL is from we’re office saw September saw our the while shoots sequential improvement doing

business. So in see we positive the momentum

caution uncertainty and primary on predicated the Our the the is pace around the pandemic depth of reoccurring.

Robbie Marcus

that on the number is million we Thanks. not the And $XX assuming how Got And comment is including fourth the far quarter, Was over questions. third you revenue XXXX? much much be off stocking if that just how how XXXX, quarter? fourth clarifying in in SINUVA is Fiagon? be is for or and maybe there should a so, will ask revenue too organic much I’ll assumed ex-Fiagon gross in in In quick did and that couple this base it. comment and any the an quarter,

Tom West

Yeah.

Robbie Marcus

[ph]? million €XX

Tom West

there. things few a Quite Yeah.

went it. and of worth modest in going quarter. small primary $XX,XXX range in Walgreens, third in SINUVA a SINUVA Other demand that’s There through. to $XX,XXX this the for take than amount as was the really it and the very but that really very was shocking initial they Firstly, units

And for under partnership now. in you idled relative an Stryker, again folks in to that expect million relationship of near $XX existing also just zero. to XXXX has distributor the assumption caution of their would fourth from Entellus with assumed, Fiagon that more on than basis terms what the which with year basically In and the quarter, a I that revenue was been

business really acquisition technology to the navigation, has a build. that us view as need that we and acquisition sinus that will enabling well So to their to balloon we is access own as

but I value a is in the -- think $XX is is it back there right now nicely for will million half, contribute more I think us. than

We rebuild have that to business. will

Robbie Marcus

Got it.

Tom West

Yeah.

Robbie Marcus

Helpful.

Randy Meier

Yeah.

add Vensure August you Just prepared relatively Balloon let as an know, version some of the was navigation they scaling we just and just have the as in our just updated talked One, which right in of new technologies, with couple about acquired me tool. production we approved are things. Tom remarks, their obviously, acquisition, now. Both

So demand, real of that there our from current not we’re hearing docs. feedback positive a isn’t lot

look of orders get trying be In and really early that the those won’t a launch are couple But fact, there’s we mid-first to prepared quarter. we ramping fulfill. quantities to we’re into up production until

to there sale. the for that inventory isn’t prepare it’s not of Tom some timing increase So of the remarks, products, the enthusiasm to as mentioned in his but there’s just

So reason in getting a we’re lot revenue that as of a quarter. this whole that to clarify I wanted just not

Robbie Marcus

Thanks. jump it. I’ll back. Appreciate you. Thank

Tom West

Thanks, Robbie.

Operator

America. you. next Bank with And from the question Hopkins of Thank Bob comes

Bob Hopkins

Thanks for taking Good morning. Great. the questions.

the two much in days the Just curious, changed how world given last weeks. to like XX literally has

over Thanks. seen in time actually what you or is period. things curious to start of some seen core that slow not that down markets U.S. Have you’ve Just the your case?

Tom West

Yeah, Good is Bob. Certainly, easy question. there the of Paso, Texas that hotspots think are one to impacted. El are now. materially

is be at ebb Texas, and we our Southern call, will used were talking the to what think going got QX that about, California. Arizona If flow. time hotspots Florida, to about there we to the get and think we’ve country across I

Now Texas. again, we’re talking and Midwest, the of pieces about

into that standstill really at any almost But basis. March on I think a a in late that the pace a April, that to what normal. is in went way it’s a bit saw we not of resembles where it national new

very through still flow even volume a election tomorrow. coming which there’s steady a media predictable and on as the awareness very in the PROPEL We’re heightened enhanced both with seeing even last of result SINUVA of weeks up and further two probably flow, the orders and

look we we hotspots impact. material individual a territories. not the develop as and again, to that at are So going certainly But performance of track

Bob Hopkins

QX don’t where expects are and back next to last and okay. inform us what just earlier year So, in I we to weeks get But go so this out for -- Yeah. to for No. couple modeling. that obviously, expectations wanted help broadly think anyone near-term we’re the Thanks. were there there sense still to and don’t seeing of I your year. for

think response. I I So, but hear the

Tom West

And clear, just really Yeah. and in relation question. to Bob, to be that’s Robbie’s

and indicated that why we the function Our ago QX in not XX% quarter. and to year boat guided at push a and of is caution wishing kind a out that’s to too looking XX% for far of to to

Bob Hopkins

And XXXX clarify, Okay. that the that growth on related or does in to SINUVA grow include just comments just Robbie’s are sort grow. comments of there. I’m that curious, and the some question to acquisition you’ll PROPEL also you’ll

thinking there, over trying X% growth modeling get Just a for sense initial what streets XXXX? to obviously your is because the

Tom West

as the value yes, Yes. back as to particularly business, growth great to of in I would but Clearly expect do see a a we But We half against And relative in XXXX. a mature now Fiagon the PROPEL. acquisition. the SINUVA momentum not small That’s more Yeah. again, rate strong has growth of should and do year, ascribe high result PROPEL. deliver get incremental meaningful momentum awful, base.

that on into new than off specific concrete give and as guidance more year. until hold like been haven’t more the now we I’d head We right we to that

Bob Hopkins

the for taking Thanks Great. questions.

Tom West

Yeah.

Operator

Richard with Newitter the SVB next Leerink. comes Thank question you. from And

Richard Newitter

on with just offering. strategy the into just I’d now, to for balloon the more first is questions. balloon a the and sinuplasty what coated breaking Thanks hear one Maybe with you’re market, love not balloon sinuplasty Fiagon, drug traditional Hi. my taking but the

established You have players some there.

on you a us the on what solution? Are in focused help? the is? you to Are Are navigation -- going Fiagon Thanks. balloon? on use more there the give more more nav would you can color focused the competitive So Any differentiation little you pricing? sell

Tom West

overall. It’s feel us of of really fit question. Great Yeah. good a bit it a is it. We all for little

the ability participate of With and the with surgery you capability PROPEL a navigation in to the and have the navigation obviously surgery conclusion implant. tools FESS often leads to FESS

getting we’re to well, of true Contour right sinuplasty. same conclusion the now at in balloon the as side, balloon of a that the PROPEL office traction On setting is care use the the is

to on physician able So along. audience that of we’re across care offer benefit same been calling continuum we’ve the the all actually to

is into much navigation it’s not it’s the the face candidate And seated others. to that who’s so tube be in have and patient most not in What taking for in be is if do a They the upwards, to on half capability. of think it, footprint, that system, photo typical implants always an standpoint key makes photo the use is be you with a have has is their scan is would leading to accuracy it it use developed and face registration, easy differentiator as it navigation of would two have called I we’ve think capability space, because of same registration. technology reasons. small the enhancing simple appropriate you a navigation on. office it form now a touch use to an have will, deal well the great probe and patient continuum setting navigation we very or an mid-first of strong be characterize that you will it a are very very on of makes strong their from who One our We docs and in for all of that strong a performs offering care. a and a terms almost in photo photo from individual particular, a office again how very care easier used points, to you have hospital that as which setting of differentiated setting can launch post-procedure, you an what intriguing increased that of a you’re lying is tactile, in together, a piece of the down, you’ll having already. more topography the touch of registration. as can will more used the relative system registration They’re ASC traditional face in Fiagon the accuracy across Combine care, has

Richard Newitter

Thank of growth and off about as one projecting mentioned, detail. XXXX, Bob Bob you, the great Tom. Robbie, on X% XXXX. Maybe streets follow-up and question, That’s

piece big of too don’t expect kind And Fiagon. said is and the SINUVA inorganic You then incremental out of growth in a much PROPEL driver. have you

kind in do the and piece last this, same to kind touch way is, meaningful and then XXXX which to back of growth, just X% that to expectation the Thanks. you warranted we place And components? about SINUVA talked given the Maybe is Is our conservatism inorganic kind allows the in the discuss incremental view? the about feel you guess, compared you you could consensus should So, there. your surges those too. then Fiagon get think July, of I update of in about on given growth ‘XX how and PROPEL where of that growth tempered versus the you back

Tom West

Again, we Yeah. provided that haven’t specificity.

looking pandemic all we’re again. continues to think unfolds I see to as rise the what

hard make that deliver think I sure and in don’t we what trying that I these say, -- do calls. we to I to very want I’m of all

think So you of street to guidance I the rising there rate because COVID. is business, appropriate take current case I had around of the wouldn’t and from core be off caution

-- I general So that’s I without right the specificity in mark. it, of the think, again,

Randy Meier

Yeah. jump… me Rich, let

Richard Newitter

you. Thank

Randy Meier

a bit to color. … some give here little

we projecting XXXX. second the in to we the suggested, achieve to that with and fourth are I the to demonstrated as said track that. what in -- excess can small clearly on to think, adding It’s second third the Tom the organic we said quarter. quarter. leave amount and can growth We’ve that a in believe we’re the XXXX quarter in growth as the both have we believe our of and then business. quarter, of on in growth And we that in And improvement second sequential continuing XXXX what and continue monthly levels relative incremental that’s is see we’ve we

speaking where point growth. sequential believe excuse would through organically we top incremental a make Fiagon XXXX with building that growth in now to that improvement comfortable layer with would XXXX, right the street revenue and end on then X% us But year of that about is relatively me, that. some where So exceed we can

Richard Newitter

Thanks.

Operator

Pasquale from you. And next Guggenheim. comes Chris with Thank question the

Chris Pasquale

question… One Hey.

Tom West

Hi, Chris.

Chris Pasquale

morning. on question one then SINUVA. PROPEL Good office on in One Hey. the

piece the year-over-year XX% that really ago. up being a baseline the office, lot year in very encouraging. don’t PROPEL there of of and have a But where So was business context on we

tell So setting? at can quarter the from revenue volume office came in you us all, what PROPEL percentage of the or

Randy Meier

is, what Yeah. broken what’s nice on XXXX of modest a don’t relatively about still million. business. business was If But we detail. again, know of I to break it a a can piece that on that an we in business $X It’s growth out $X that of it $XXX X were total that points we of adds points. X million million, points grow on about talking growth million or $X and X annualized business just basis, --

very feel think can that million the add small we accelerate. $X to million offer and we on of coming base alone space will that So that a we encouraged, $X albeit from growth

office As you know, with we own get into balloon environment the our capability.

Chris Pasquale

And the nice SINUVA quarter to this from was momentum in Okay. see.

chain is past for the able improved really to be this reimbursement that need the of that or think the weak there and else SINUVA flourish the You’ve to elements distribution upgraded year. factor there for at do that? to in product gating be process you lot you is Are something the point? is commercially think over areas a of link that Where still so

Randy Meier

is reimbursed. more money to physicians afterwards advance is all actually buy-and-bill. about bit of on getting further a they piece procedure I but work almost the that with have of benefit made It’s is physician medical would we’ve then getting lot still of a be that the of reimbursement, pocket ENT maybe two-thirds progress comfortable say in and that the community to just still do buy-and-bill. put out of have to little And and bill comfortable

the economically for lucrative depending it be quite Now on physician. payer the can

to some But our to realize we the that environment. I based launch, terms that of QX physicians say in dramatically, still begun is, I candidly rate from place. our some go. didn’t behavior the that And and of adding have why that that’s But and of in comfortable. years getting the comfort have about much building the it’s of But revenue the what conversion after gears. in overcoming further have two into about refer That’s I think office really, all in when in first can sand benefit the capability changing to it’s on shortcomings buy-and-bill improved --

come just environment locked I muscle will the with and of lives have building we and with comfort, payer it’s up of that XX% lives, time. that XX% Now commercial public think which

Chris Pasquale

Great. Thanks.

Operator

next the with question And from Adam you. Piper Sandler. Thank comes Maeder

Adam Maeder

business? light high questions. One Hey. me follow the of going the obviously, so Should Thanks term Good thinking guess margin, gross morning, gross deal, one in that’s just margin be very question we gross margins. up. about assets for products, with to into the on over guys. Fiagon taking am legacy longer the medium carry integrated the and the Fiagon to I ask from the I

Randy Meier

pretty margins back are coming Sure, Adam. nicely now. Gross

the indicated recovery we Because in cost had we year, end of in some burn through. that. burned to inventory earlier As our the through high revenue, we’ve

production. ramp We’re up starting to

get we as end we the of margin run back subsiding towards start lot into actually the we the really as to should into costs cost dig be Relative more surprised and we’ve be pleasantly well third-party of idle What year in as had what the portfolio. we’ve been to seen come manufacturers. gross rates, hit a across as in fully to get the and the positioning what So should I’d and would Fiagon, as XXXX. characterize we’ve capacity to opportunity normal loaded

relative year realize not and XXXX up optimistic probably the probably to margin. margin as when what back disposables. we into we And to year. little start higher more be to would take so optimistic go XXs of getting into gross we as the we’re profit certainly, us and of gross enough But half bit to we’re balloon of higher consolidated to second the get off XX% sort we volume for a now Probably target about the the through term sort longer we of then kind low-to-mid XXXX end have the start profit XXs could -- and a where

Adam Maeder

competitive about to of helpful. ask there. color follow the then sort up, the for just wanted dynamics. Thanks I Okay. And Very

for if the standpoint weeks a Thanks taking so or you’ve seen therapeutics just any competitors? recent wondering in Just from competitive from changes the much months questions.

Tom West

polyposis answer up to has how in much the Dupixent picked is to ENT attributed that, mean, Difficult certainly, space. directly I say So to overall.

pickup with say think of represents would than business hospitalization, is we overall it. is I that the Again, bit space looking side payer expense the very which of ENT having But other know in a believe that equation is alternatives rise exactly in the the what’s of antibodies and -- given do go at for driving a people little we that it I and the that effective amount more are that our our well. space. are that adoption SINUVA SINUVA bit overall. hearing Certainly, to cost I But into we’re of office as based monoclonal antibodies cautiously, looking I meaningful in having if the about in the business. more we do a the think, some a it. Dupixent associated alternative far monoclonal But believe than are also believe

Adam Maeder

Thanks for the color.

Operator

Thank Zimmerman you. And from BTIG. with next the Ryan question comes

Ryan Zimmerman

Great. Thank Can hear okay? you me you.

Tom West

Yeah.

Randy Meier

Yeah.

Ryan Zimmerman

for right. the taking question. Thanks All

to the think really driven million $XX on companies Smith+Nephew. that Stryker previously I like first, was I think, by up follow and and a Just Fiagon with partnerships alluded Robbie,

makeup navigation, the $XX composition then where kind of coming of I back terms of understand it’s just to up? are it navigation? $XX Fiagon sales? for out integrate you. is as Is over So us time? partly of about million? And I I trending you think say, revenues composition around is, let’s balloon or it Thank mean, and does of Is to in and to for thinking what talk timing, Fiagon and back the I get help of that a that how what guess take is you the today. you’re Maybe what question to a run going have that similar million kind rate? follow all get you partly it you don’t But about you’re assuming revenue, it

Tom West

Yeah.

Randy Meier

Sure.

Tom West

to going It’s be…

Randy Meier

Okay.

Tom West

I of let’s crack, there It’s ultimately instruments the to balloon. installed I’ll say earlier take a it for and adopter when you. the of in as a get combination going pursued an competitively of existing competitively balloon be ready is in The consumables, consumable by there. space. and and production we a navigation, It’s and that as are then base -- Stryker disposable are They turn the used will balloon the Randy, tools kind be There be that well going first consumables, in being tools out combine FESS are be first as to and to likely would particular.

and front there of the So out to upgrades coming. audience’s we’re Randy instrumentation. eager But in currently are alluded meaningful to, to Fiagon the significant get system that access as have to nav

be but Year, form or even So breadth sinus on and our in as New the the move somebody to trying into balloons, way of nav seeking our the tools rather place Certainly on system of one shape strength to we’ll alluded I something and playing was that to we portfolio implants. -- not our of those. any play before, price, think

Randy Meier

just… Yeah. Probably I’ll

Tom West

Randy…

Randy Meier

little … to that. bit a add

portfolio older partnered was of One broader of and was prepare Tom that as represented single-use forwards, half generation commercial things revenue. first in and balloon. up an we XXXX is what of we the based is, remind as of a of and global have of acquired begin was is, XX% different. a navigation certainly, along I of What go -- and more the probably for indicated, next we we’re disposables navigation and launch and then about going think the portfolio what to only somewhat year. U.S. upgraded XX%, we’ve build as just in it disposables, the is it Tom And being our everyone with Back versus of inventories sort indicated, that a XXXX revenue system, multi-use

of PROPEL a space compelling when sinuplasty. those think a about you a use particularly office -- in have We offering, and with the products

or done that what back begin recapture in done they’ve certainly we can ground, past there’s two to exceed in past. So to levels and year the the reasonable Fiagon -- has get was think by -- we

Ryan Zimmerman

kind and guess around cost love this made my to as you durability savings and mean, your that new guess certainly as Okay. in is revenue the guys structure. Randy, a the going and your And more recovers, a you of expand during Very for you cost more savings. pandemic to understand those you, spend then, helpful. I you’re lot I’d I of products. launch put sales cost reshaped place bit of initiatives

those the So, Thank you just maybe the what maybe what versus you talk a and given you. reinitiate, can -- little what durability recovery? bit about last have savings of can

Randy Meier

Sure.

close the revenue getting indicative that broadly can year base. think, the to improving we And back a topline third cost that’s on good levels demonstrated much we I of quarter smaller pretty prior drive pretty the organization. in really just think productivity to

opportunity business, targeted with again way can have that areas indicated, to to. continue we’ll as sustain we markets the for that changed cost do certainly open certain some that add the development in of highlighting we to will as right, efficiency ability the to up future commercially, again, need probably, addition we add to add us You’re improving But, and just in we think that for years go sales to Tom scale our going and enter productivity forward. those our business been and market all are a scale then going Fiagon, in XXXX, we the to some as we a structure very to forward. make better and investments has are see then There

don’t a we’ve if you as going any much I that? we’ll So, know thoughts have -- the think, organization grow to sustain leaner forward. business Tom, on able be I we

Tom West

Yeah. No.

leaner more to In we terms yes, opportunity and overall. have expansion servicing. you is and model for and generating be will business return think from support that alike, I sustainable. organization gave very cost the some sales we There we’ve I the will But field, terms customer feel that need and in line, way force. the revenue the we in to got a mark. And sized be we benefit Fiagon elements of think matches restructure while much us demand think the navigation an on in to a one a of efficient an that in modest efficient COVID around curious Fiagon commissions hit appropriately navigation we very there of model universe a expand up

Ryan Zimmerman

Okay. Appreciate you. the color. Thank

Operator

Thank from with Ravi the question Misra you. is next Berenberg. And

Ravi Misra

Thanks morning. taking question. for Good the Hi.

kind do deeper look kind very you So another to mean, trend but How on not one an at the that’s company just of one you’re you that I area been the guys been -- this asset go where buying towards allows I may. if channel. now in-office/ASC of has procedures. into strong, historically Fiagon, that

where other say, reversion Let’s think we the focused? procedures normal emerge Or in to new hospital? sales of being kind done be are of do your on back the the Is the you going for a there’s pandemic. side to efforts this

Tom West

business. will has there functional endoscopic a PROPEL hospital for surgery sinus basis, wheelhouse always the think the particularly the of I strong be that full been on

We have effective migration cost pre-COVID seen a ASC and think center I community continue. as will that the a more gradual towards for payer

surgery to there into full on FESS increased itself level doesn’t of in think, revision setting. enough as office that surgery there’s an side surgery. be, FESS activity I the an may the of in surgical lend think with ASC. seeing And that SINUVA I involved we’re up that that in to But and flip that it will alternative setting yes, the alternatives FESS migrate procedure is, office to take increasingly place the will to

sinuplasty, our for think able sized PROPEL office that kind the an I rewards the reimburses have in And balloon market procedures in behind and a into. continues roughly have X% to with green opportunity you’re a setting, growth the grain. that code rate what that is the of seeing that to in is code implant wish which to shoots a You’re enter seeing with them nice of to SINUVA physicians and we in and again, be office which separate office conducting J those the for

will the we’ll focus that So I on we the increasingly will is setting, setting ignore I it think don’t valuable it. become it’s that office hospital and think

will other same you it’s remind the I thing is, all docs. The

setting. hospital is So in the a doc

it’s two she’s have where the where be think revision three the or and to efficiency may three surgeries, community portfolio, office surgery help to relationships and of FESS setting the ability physician in and our surgery, makes to of broader or the their the sales an force or we doing surgeries two that’s toolkit to days, alternative care. that get much I of it’s he’s of then the for continuum procedures broader able offer of caliber doing we’re our across now regardless days days care, setting with or our whether the a a physician You days

Ravi Misra

the difference navigable that non-navigable Great. between maybe just And then be for that. working in how two ones just and and the the saying balloon then last Contour you’re me, just might

be PROPEL maybe would navigation those kind one of better gross and And one, use case and the then the commentary. and product there just margin, two? what kind a adoption the Just of XQ on on is between just the take for non last, Randy, of

XXs? at level? of kind December kind just about Does the I year that exiting or saying think the low that Thanks. full quarter imply at you’re of exiting for you’re

Randy Meier

Yeah. The…

Tom West

Nav…

Randy Meier

ahead. Go

Tom West

as instrument physician Navigation benefit what quickly, the say, looking to order in or is the a sounds. a cavity preference placement that the growing having placing is see to kind is -- instrument the time, the that to the to as of non-nav giving to younger be just while just scan same is process. able there, CAT the without stent radial -- the different geography opening it just the implant in this navigated of at localized depending coming no versus on a matter expanded, on think and to the it allows ability you But where it that the to the without accelerate reduce either is you nav at of the opens in hold sinus the nasal Nav really cavity just preference. an going applicable, that of are then where Really Is XX% groups. see and cavity is handheld physician delivery of able placing us and really balloon, difference force as it terms to for navigation the and expanding that’s and balloon healing navigation expand really the we gives purpose it the XX% is literally provide to inflammation whether Contour. of the of it’s marketplace. is patency connected that the sinus and the perform way today and system to physician’s helps drug by of is be a ENTs want touching navigated the in to application or the is was it, the about into to you and open physician the where you’ve I And There’s as non-nav about Contour non-navigated. that screen

So a complimentary to you sinuplasty. going to jump Randy, are gross balloon that’s out. is that in But one how plays margin. either on

Randy Meier

Yeah.

just think, the we’re the talking of full I sort margins, gross about year, quarter. the On exiting not

but Although, fashion I sort really that an the quarter, rate. year quickly depends think, it’s just how run will in the sort ending it on production we ramp of of up the in

Ravi Misra

Thanks.

Operator

with question comes Canaccord Kyle Rose Genuity. next Thank you. And from the

Kyle Rose

Great. Thank you question. for the taking

wanted you’ve kind but a themes yeah, maybe lots the ask, here, just of yeah, underlying talked So, been about on today. that two asked I a to question

on growth. office SINUVA the the then one, So, and on other

office On a rather treatments historic patient quarter, then great sense And -- because in what still back understandably, trends, relatively is but the durable of here pass-through? a base? retreated accounts of procedure? trying obviously, realized things to I growth, understand, more come across from sort? to is, side? think to the it’s space more to growth more driver are lifetime SINUVA, the on that But small office than Is potentially a the lot that But patient a seeing mean, of I a is patients encouraging revision and understand us Just a size? trying this dabbling on specific seeing be of often Are that baseline. you volumes maybe moving maybe the you looks help you account just patients it Just from few just like. small CMS any utilization basis. understand it’s adopting

Tom West

Yeah.

in relative office, created some repealed an still we supported previously, covered. the aware PROPEL was had that S office code the code be some there marketplace was business S the that the code when to not and confusion time that were first the At J PROPEL. could So, was of people issued, and

a is really and post-balloon because being business post-sinuplasty, able gives post-debridement is the office kind saw primarily sign may There we business used can grow a office balloon out match treatment by environments, there. confidence specific, coming S we’ll Contour the now in use in large, code and we’re audiences $X a instances we’re it for that’s seeing of geographically particular, is setting that’s that, be the put more broader What much under from across and of used and of bulk we are roughly with So broader geographically they and there a because J million where the that more some at kind to sinuplasty. to that us against but Florida in a in that time what is healthier basis. now code, for that’s think much particular. utilization selling the dispersed very that on among and geographies But us. aggressive many office seeing And other where balloon very Texas PROPEL we’re encouraging grow PROPEL in heavy that

the the question. On particular a one retreatment. It’s insightful very SINUVA and question around

physician SINUVA than retreatment in on reinsert in they’ve FESS has later That using more come certainly basis, seeing revision somebody where then cost still is have a SINUVA had may where clinical and contemplating improve surgery. another pockets that. see are has to than they’ll It by We we’re kind of use. in, we year. a right the and in not be whether us cost able again, antibody to But, match it. effective a study or of encouraged we’re and have repeat some starting against It our that is effective physicians XX are between they more monoclonal for a with labeling days, lag order documentation to it the

of physicians the some but selectively So sign is but and back, coming getting again curve positive using across are multiple physicians repeating we’re that physicians patients, are are products, where there, here now a where not the very adoption just more who improving.

Kyle Rose

Thank Great. just, one And the account of additional I that detail is just underlying other for base. had there. you much then the very question health

Just in I that am trying you like understand looks and given you go-forward add with XXXX, account accounts on perspective? just the all -- very what growth moving Thank to a expect pieces do to much. COVID

Tom West

question. particularly hard little right because It’s to COVID. a Yeah. good a now, It’s tell of

have new we’re You’ve of the keep still do at closed getting They’ve we left They’ve ENTs that time, and haven’t accounts that retired. yet, track had had number accounts before. shop. same a And market. new of actually we the

little and exiting means it’s folks metric which a I’ve environment So a of market, the look to it’s consolidation distinguish blurred that at the the overall hard market, it’s and between as by we said, I patients, on say, a but coming broader lost haven’t you become physician new they’ve Board. we should new of part are accounts customers, a IDN. new an But customers, or also practice seeing new

to answer say is an April, that don’t us Other be -- we’re in terms ship. rising on have clearly number return accounts does that worst -- to as we the we rates would manifest where -- I I behind to the in appears way normalcy May I to whom to it the than despite the as that of product of case So clean like. of appear shipping the and data and that

Kyle Rose

you very Thank much. Great.

Operator

comes the Thank question next from you. And with Oath [ph] Michael Oppenheimer.

Suraj Kalia

Good Tom. morning, is Suraj. Randy. This

my Sorry, right? all phone you off. Can me hear dropped

Tom West

Got Yeah. you.

Randy Meier

Yes.

Suraj Kalia

Perfect.

FY questions a Does as and conversion to are I been But have seeing what increase? sub-part moving ‘XX. and it X%, that growth asked to get percentages also comfortable times maybe for say, And with, you roughly X can intervention were So, that a forward? a Tom, ask currently a factor flavor. bunch also different let’s ASP from X% diagnosis we in if of question, from patients for to

Tom West

Yeah.

do think I be it the we all the of to broken and it components down So now. growth would haven’t premature

X%, improvement We ASP your realized are have there. of accurate numbers

challenges able increase have on that brought of the and We ASP been even slight by the COVID. in economic sustain to some of ASP face

there’s gone our So of terms that in rate, composition growth the durability into detail of I not specific the But we’ve yet. in think of it. breakdown

question Your second on… was

Suraj Kalia

they Conversion and trend inflow is line conversion how being What seeing? soon you’re new just converted? the patient are times, times

Tom West

Yeah.

is that’s question again, So, the most that -- most SINUVA. relevant to

in because ensure time, and doctor’s on advance you’re drug you that office. benefit take a to can of inventory to is available specialty in verification going then and different pathway, of get therefore, hospital they’re place. at procedure an setting. a need it’s Therefore, a element pharmacy -- product an terms the supply visit, schedule to and SINUVA time. hospital the the be In hospital PROPEL initiating therapy delivers It’s going the based But

which to what benefit more and then increased stop. is with inclusion shows SINUVA and It comfortable also that with dramatically, was specialty from that time Our national down new on great. in of its start determining benefit is are hub facile becoming category particularly reach sophistication now the verification the times our is our with and helping Walgreens verification distributors,

to I would or number, determine they We the be still whether but tell hub the not to that it is physician generally and calls coverage a suitable weeks was the in one specific for to -- office in scheduled brought range are patient procedure. you, a haven’t when from to speaking that has shared it moment two-week the previously, one-week

Suraj Kalia

asked I the about, question, sales. it earlier final tie just new same-store into Tom, store And it. versus Got want sales one questions to of

the seems us Any Your roughly greatly about appreciated? that utilization a third, there third, a my would family. stable indications, between it What a for tell color consistent questions. to barely relative over the PROPEL seems last few third PROPEL you does be Thank quarters. and budge contribution, taking contribution a and because -- very third, the

Tom West

evidence year-on-year sinuplasty is where a that’s QX having XXXX, that’s the the separate that and about. whereas most in the talking economic Randy implant one get of break Yeah. health that actually PROPEL you’re depending number stagnation procedure one to evidence year-on-year. of difference. growth we’re carve And The again, implants build, implant the your Actually, were PROPEL have and that one a and Contour accomplished PROPEL versus for and support long that slight balloon it. a is most in And to the FESS It is you slightly, a which to level. done at separate in if third is really, at also cavity cracking demonstrate in open with break which The the from in a the PROPEL office addition a utilization. key use and to is code, why sinus ophthalmology run, the highlighted economic code. and open PROPEL to third, I overall to what’s thing which suitable out that rate PROPEL the third, spoke ability QX roughly of additional procedure procedure will from carve different frontal is down both Mini cavity, out real separate of that on high What open, see sinus and kind that to QX think other for a when been is use effective, which seeking which up increased Contour a other slightly segments. code come I change health regardless surgical a you will XXXX look reflection you’ll was with really it’s relative

Randy Meier

question back growth. your to some, add to original about guess, I sort go Yeah. Suraj, of just

to now But Fiagon, the talked a here, our continuing indicated is and original drive variety about, very a business. clearly recover it’s nicely base has we Tom to opportunities As growth. other we business PROPEL Tom of when very stable as have analysis made of

opportunities see growth our about to certainly growth and it, business of gain the But momentum are pick growth begin some opportunity when you seeing incremental year-over-year. Fiagon up and create the start there. opportunities. office is to We’ve the and to as going continue Europe You about well Fiagon’s in growth to think to creates combination opportunities, in SINUVA incremental as talked business also PROPEL

that to we beyond. generate us grow to some incrementally certainly things into and of that and for see an a fairly that engine XXXX there’s would growth modest opportunity provides stability and variety a to So while other in expect continue PROPEL consistent we get as fashion,

Operator

This the concludes session. conference question-and-answer to for you. our now Thank turn will I closing back West Tom over any remarks.

Tom West

time in today. And thank you. interest listen for you in your continued I really appreciate Thank the to taking Yeah. all Intersect.

the last proud I are of we As accomplish very able I’m optimistic over what of and said been the year. we’ve where course to about before,

Just for in record year the with forward. think I we’ve we model I this ago, a and way now and vector a out a still a on becomes us reflecting growth it, call going on had quite come about think for figured quarter not SINUVA that long

of health balloon. need and are see our differentiated PROPEL on with and in a business taken coated clear and a Fiagon, their top the and order Our from offering, and business acquisition a and in environment And important complements setting have we pace drug economic neglected competitive office access anticipates that shoots navigation application that, the implants somewhat our improve people but the have of our to strengthening into with coding very business in as been in terms the complimentary of for distraction be our encouraging. that on to away setting, consumable recovery market early we again entry also able the the to path to tools very the payer PROPEL also hospital evidence balloon green of what our do an increasingly its in

brings. presence a year ago, of we well very where modest a If on growth, by had been Europe, us sales footprint some two increased sources Western somewhat interesting larger a Fiagon have have as that that take of uncertain augmented would implants still five It growing I time. had say, now will in growth. sources our now we As we’ve

clear the some will of environment. sustainable momentum through have the of think for and We play need But we we uncertainty forward. still COVID a to path growth going

with So, if near of forward to again, speaking I again, care. future, you time today. thanks for in much. Take all thank the you not very your later I look today, and

Operator

today’s concluded. conference attending The you. presentation. you Thank Thank is now for

now may You your disconnect lines.