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SENS Senseonics

Participants
Philip Taylor Investor Relations
Tim Goodnow President & Chief Executive Officer
Nick Tressler Chief Financial Officer
Danielle Antalffy SVB
Jayson Bedford Raymond James
Mathew Blackman Stifel
Marie Thibault BTIG
Alex Nowak Craig-Hallum Capital Group
Kyle Rose Canaccord
Call transcript
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Operator

Good day and welcome to the Senseonics Fourth Quarter and Full Year 2019 Earnings Conference Call. All participants are in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Philip Taylor, Investor Relations. ahead. go Please,

Philip Taylor

much and very Philip to Senseonics the from Thank year and XXXX quarter full Gilmartin is earnings fourth the you Group. welcome call. Taylor This

on Form today, These the from statements that reflects expectations number the those with XX, begin the Before December matters, Relations section you website plans, events, management's the XX, and reports me list only hereof. performance of factors product to elsewhere different forward-looking forward-looking expressed These include quarter enhancements, about of within in These involve Investor that company we XXXX, all factors our statements. company's a for let year statements SEC. ended operating other on remarks any date and for of regulatory these XX-Q is results the as ended future A Annual our detailed XXXX remind www.senseonics.com. XX-K other risk Quarterly September forward-looking uncertainties. the of filed cause of speak implied and documents be and available or matters risks are actual under could Report the Report statements materially by and at Form

full than Senseonics the not in other or was XXXX undertake in law. except our advise statements as will of revenue also press which our that FD, We Also, basis, we gross included revise required guidance on communications. financial to you policy a on In update net is release. we obligation and year public Regulation comment it no guidance for to discussing light publicly be by forward-looking on these any reason, this call,

performance revenue be Eversense U.S. reimbursement provide program. we revenues and in of information call, our the better measures regarding this GAAP net providing and on with impact transparency meaningful provide supplemental our to gross will Bridge On investors

to a financial gross reflect revenue includes net program. In revenue and non-GAAP its not related reductions to measures. the on Eversense net statements considered be Bridge reports financial gross may basis, the net accordance with to reductions, U.S. which Gross in do accordingly be to GAAP, primarily measures Senseonics

These superior used substitute financial intended and with not the by considered information as companies. or presented different are Senseonics measures for financial be to U.S. in isolation other to a in non-GAAP prepared or and non-GAAP measures from measures may GAAP non-GAAP accordance be

available website information in GAAP measures on financial more comparable please at the non-GAAP nearest to earnings of For these this measures, these measures financial senseonics.com. corporate see on their our which is afternoon's reconciliation release, non-GAAP

from and Financial and Joining Tim are President me Senseonics Goodnow, Chief Chief Officer; Nick Executive Officer. Tressler,

With Tim the Goodnow, like CEO. to Tim? turn to over would call that, and President I

Tim Goodnow

all Thank you you, Good us. joining Trip. thank for afternoon and

updates operational and discuss Nick will provide and On financials in quarter the of provide on conclude our our accomplishments initiatives open fourth a call Q&A. XXXX, our recap for then provide outlook details the and our financial progress commercial and and we'll I'll today, call for XXXX. on

increasing technology distribution a revolutionary made in reimbursement In our network through established gain progress to people capabilities the channel to year in delivering incremental focused U.S., partners. our XXXX and diabetes. our access first in awareness and we full commercialization established with of and significant continued on We

consumer diabetes campaigns. direct of marketing digital use also include, of accomplishments through A couple and increased endocrinologists the engagement among We've of awareness outreach, medical key that our conferences. through expanded professional at awareness Eversense we've presentations direct-to-consumer

importantly and category. of Humana Medicare lives and We've and national established including as added benefit, medical with DME the wins a Aetna, significant complex number a coverage Cigna category covered the avoiding payer burdensome

Specialist expanding we've who accelerate procedure, the beyond pathways may to And train in or further certified also received have a out-of-pocket and Bridge on professionals those patient a of a healthcare have Eversense specialties access insertion yet patients. those high network implemented that Eversense access co-insurance. create to for not reimbursement endocrinology for Program launched We program a access for

On patients to off and important their the readings based label Eversense clinical and dose regulatory allowing the FDA, from thereby achieved we receive insulin the front, MRI we've non-adjunctive indication. the

extended also had of PAs, have seminal highlighting clinical and the and removal in We published NPs articles insertion the within to the clinics. real-world certifications safety capability Eversense. expanding journals, We've and four efficacy peer-reviewed

extend sensor completed we've subgroup to in a the PROMISE have XXX-day the in FDA finally, And authorization and for today. out the XXX to study from the received enrollment trial

proud net drove Throughout are ultimately and each accomplishments. of these patient revenue the gross-to-net million. full U.S. to contributed million. We full reduction professionals year of adoption, of before $XX.X of approximately extremely gross year revenue our milestones which $XX.X healthcare $X XXXX, of And these million

realize incremental product use demonstrated million additional certainly additional Although, we of value this we base, payers. and net don't that $X its installed in realize do patient revenue, additional the experience to

block building grow confident as our are we will We to business. of serve continue that the an success, important investments

market, penetration now to increased of X,XXX insulin base X,XXX and U.S. is XXXX reached patients. patient within endocrinologists In is the HCP treating over prescribers, Expanded and which number up inserting number now over This the patient and both Feedback the XXX. trained communities. represents awareness strong prescribing clinician targeted is by of which and of HCPs physicians. demonstrated significant population approximately clearly is Eversense increased the our on the in from the

billing CPT codes. familiar are insertions. professional Certified these trained but with wanting yet professionals not other time local specialties train prescribers or CES with under offer the not on also inserters provides only to Eversense for a familiar procedure, those very program can with trained to our their patients, and access to These their are Eversense are they bill the the Specialist and practices For but procedures, office-based

an population We are program CES grow. pleased that XXX to have providers and for currently approximately this patients. path up opens this continues additional access We

achieve obtain This by program generating before, as our to of $XX additional here business described successful have only program several our We key patient Eversense one well patients naturally through of program. commercialization up key of pull, have or we for Bridge sensors is we to as the initiated and two eligible access been As objectives. strategy increasing adoption to allows months sensor. six CGM the per access components

First, who patients patient that patients the number become experience the with their and for also many facilitates patients. advocates, accelerating try second base online. clinical we of are of gain quickly sharing Eversense experience know the expanding similarly benefit benefits passionate we goal professionals because experiences And more our ensuring healthcare their

the instrumental demand products demonstrating to we program shown Finally, have that in Bridge is the payers.

such and Cigna. received activities and are We volume HCSC, claim the were coverage by the in as that Humana payers confident voices recent of influential wins, the we

patients we as cover represented XXXX, XX% for insurance patients. not whose group E&I. access In This did our Eversense, provided they were of

partial the the primarily reduction In for not program, payment addition, typically full patients net XX% gross yet in who million States. deductibles. for United responsible utilization The by million had year some XX% patients the of revenue of supporting the was $X.X another program received of of met of $X.X revenue through form the the the to

clear has demand. are to the program meeting Bridge The traditional all increasingly also of market needs not helped that patients. demonstrate It devices CGM true is

year, from finger-stick past the came one-third patients our testing. during of addition, In

assistance after majority payer of with who provides from Eversense, on patients with are the entering are We programs patients the not program sensors the additional the end. while does cover continuing the that a two these patients majority for additional also pleased continue sensors, sensors. Even of program

that note tried move satisfaction many patient encouraging We is having to forward Eversense. patients high, after

single appeals the Importantly the and non-covered appeals program. patient patients the are initiating as into program serves part advocate the of for This case enrolled arm individuals. of the negotiations

patients have in Here appeals process we have into as success date the been the gone that still XX% patients fully with remaining through enrolled the seen pursuit. have well. appeals of the program To full

non-coverage the enabling Of a resulted those Eversense payer XX% over in to maintaining process, their appeals have patients coverage approvals completed and policy. have despite continue who those receive broad-based with successful

have made on the be a Bridge, Cigna While Eversense. strong would will we a the be on Cigna building great coverage positioned because of to now of installed of revenue A example going building full continuing start head a the month positive begin patients patients payers patients their of covered past patients covering are convert forward. who base this as to this be base program determination we positive installed to

mentioned medical of B Part implantable time the processed part with single insertion the category Medicare equipment rates million benefit will not through removal. to will for -- CGMs. durable like both for their and XX clarified a the sensor XXXX payment bill that Medicare as Eversense system beneficiaries other be year for CGMs the meaning we includes payment that as and and directly benefit wrapped able process. CMS as Doctors medical patient service, professional on that code calendar now the they last Notably the call, categorized for Finally determined rule-making our CPT CMS are be

ruling, codes from CMS the petitioned prioritization three months. we Contractors or the list. activity MACs noncovered seven Administrative in The removal and the category process original MACs we With the is remove in at action anticipate the Medicare coming our the to

new will year. is we created are of be XXXX, in patients coming of well all inserting of and our growing clinical X,XXX which the Increasing coverage in momentum and to group as in growth an United base the as carrying our over users and in passionate business positive in Key broader installed growth awareness by drivers prescribing and And we are States. evidence going led we physicians, mounting XXXX growing additional growing tailwinds patient believe a XXXX result anticipate both from our will forward. outcomes

patient program in of XXXX. we favorable have adoption down for the the and of base. continue Bridge Given financial the seen made the the positive growing XXXX, which reinsertion nine in installed and to barriers, With decision the drives of breaking patient investment experience, success we approximately supporting rates have experience months

stepping are quarter point, additional Eversense the cover this blended we projecting each utilization are XXXX payers XX% for approximate rates met. and adjustment deductibles full down with an At gross-to-net year as

and the revenue $XX.X year. was United States, for fourth our quarter full totaled the million million $X.X Outside

from many And Roche. clinical agreement be Based satisfied time mean as the feedback over you OUS remain outcomes to know, such evidence, high vast presented real-world with in cycles. the Eversense users multiple that XL and majority range we wear As the on customer the continue time and our distribution are high revenue sensor and product. with is of as know

minimum product price. contract the purchase levels purchase on warehouse December, which quantity in purchased Roche arrangement we Roche's that they exceeded higher the while for minimum agreed product to sold contractual the reduce the increasing Roche user. based had of As reported to We requirements their the for where to at end account amended this to XXXX inventory we requirements,

example challenge some is particular are in is they markets One a for facing procedure payment. provider

allow to and Eversense the high CPT States no XX% Germany was providers. coverage for covered codes procedure of of greater in billing the payer like by there in are there than lives While United

In utilization how committed Eversense working improve push expect Europe. to pull-through of purchase reducing Roche Roche. additional to and to users, both programs Roche of impact to from Senseonics do this access determine in and amendment understanding with notable place hands the in have long-term We our contract will technology in volume this year's are and

Additionally, risks purchases that their discussions XXXX timing sensor regarding Roche to their year. the we and There deferred with currently purchase first inventory, issues quarter be the substantial of are orders. may later in in longevity are

While the OUS to de If be for obligated revenue minimum they our not would we believe contractually quarter. order XXXX place first is Roche QX minimis. a do during

the revenue outlook to as Roche which In to overall for year, the amendment reflects the Roche our of contract. in XX% a a result regard reduction

over $XX gross for to the Bridge million the million million. anticipating to are In $XX In in for with up revenue GAAP with XXX% year year. of be total of States $XX expect range expenses, contribution, net and approximately the the in outside revenue year. million be net the the we to We the to revenue the range we the approximately $XX U.S. revenue forecasting United full reduction in are be U.S. to

product development. Moving on to

submission expect and execution as to Tracking Here priority expectations. across to towards another the and is end This placing within date for we study expected. plan, eight our the has previous approval step patients where have investigation FDA with will is according continues top completing potential of XXXX sensor sites. in the of next and three prepare in a to positive our this of to the been trial months XXX last line the work giant XXX-day following. to PROMISE be CGM product out the patient weeks to Therefore the

sensor. iCGM As use current the from intend designation the settlement data an patient a analysis the XX-day for to days for to reminder, the first trial the we submission of support and a interim XX

file to later in expect the this We second quarter.

system that development glucose In to announced delivery. Eversense with with InPen in smart integrate have Medical Companion insulin a Companion we we Medical recent a data real-time addition, news signed agreement for

Although, plans is administer use pumps integrating receive XX% as is strategic for pens than market their Eversense we ICG insulin The considerable still More our CGM once data market part still with insulins. insulin of diabetes daily penetration of approval. injections to the well.

Partnering their inform for relevant we're addressing insulin novel with for in to larger management insulin is with new real-time dosing both diabetes improved InPen, alongside able information allowing a integrated CGM to excited We're more values with start diabetes another to technologies. values, thereby decisions. solution see people with market

we of to Finally, increase partnership better to part of are people Eversense diabetes. potential to as opportunities our make uptake available product, exploring and our collaborative ongoing commitment with

with on-body the effort our partner eventual to organizations co-commercialization we development to technology. discuss transmitter, Flash the potential system no of next-generation with engaging implantable an in co-development In addition this and of currently are accelerate

are We having for for component. additional that this sensing people capability next-generation continuous on-body wear to designing sensor an looking are without

I'll the to Now over introduce and Nick Tressler. turn call

As year to was and Chief we quarter, promoted deep has Financial from science with life Planning call from sizes. Nick on companies been background last and various of Head November. over Officer the announced of Financial has in for leadership Analysis company financial He a the across the

to our leading and results. happy organization details are We the the now have he Nick? provide finance Nick will recent on

Nick Tressler

to look more leadership progress take I'm with the the with team Tim further the value marketplace I management community Senseonics. continue everyone. the to and of future. conversations about a of into afternoon you to forward larger maximize the opportunity Thank Eversense good near this excited to and investment role members in

Gross to accounting fourth our total results. total $X.X net reductions, which $X.X XXXX the including the million. revenue Bridge of $XX.X quarter the million, net after period. turning Fourth quarter compared to net XXXX for fourth to includes OUS primarily for of XX% Program XXXX the revenue fourth to revenue of was was XXXX, of compared gross total $XXX,XXX revenue $X.X million, Eversense gross Now, net net the net related U.S. million. quarter to U.S. nearly revenue revenue quarter year of and of In revenue million, grew $X prior

Gross prior including negative XXXX to profit charges period. inventory by streamline was The profit the $X.X of million million to compared decrease to $X.X in cost enhancements, million in year-over-year the for gross due supply QX increased decreased negative expenses, and obsolete year chain. $X.X warranties in to sales primarily product and costs sensor

and year-over-year in sales year study. QX driven $X increased by Research prior $X.X XXXX increased expense $XX.X the $X.X prior quarter to million due increase by Fourth U.S. and primarily clinical period. in compared XXXX commercialization The in the $X.X was million year-over-year The the development $XX marketing million efforts year to expense PROMISE was to in million primarily million to compared the XXX-day period. to increase million by

QX includes in $X.X legal was the supporting to compensation, operational increase prior and compared million other year expense administrative growth. of XXXX expenses an period and General and $X.X million,

XX, the per was compared loss three For $X.X XXXX ended months total the $X.XX share share $XX.X or fourth quarter XXXX. million in to December million of per $X.XX net or

Bridge For net the accounting reductions, primarily revenue to Program revenue to includes net XXXX revenue compared of net $XX.X revenue the for gross full Eversense million, after net OUS for XXXX. U.S. million related $XX.X $X.X $XX.X year million, of was of net million to net total which and

to revenue $XX.X $XX.X decreased XXXX for grew million. of including and for was U.S. Full cost gross of and the supply compared to million due negative charges revenue primarily cost gross XXXX increased total inventory enhancements, net expenses $XX.X obsolete cost profit for million. and sales was XXXX. warehousing XX% million The Gross decrease product to revenue in year-over-year streamline warranties, gross sensor by year profit to $X.X including chain XXXX logistics.

$XX.X $XX.X year-over-year the million U.S. was commercialization support expenses Sales and sales activity marketing The XX, in and million costs ended personnel-related December $XX.X increases marketing XXXX to increase in to related for increased million of to primarily compared for to expenses and the Eversense. XXXX. year

Research and costs. year-over-year to compared $X.X ended primarily the the driven for development The million expenses XXXX increase for December PROMISE XXXX. was XX, expenses to $XX.X million research and XXX-day in clinical by year million increased development $XX.X study

was ended supporting an the General a in expenses XX, year increased personnel-related other associated million to expenses, costs increase XXXX. for and growing with and $XX.X increased year-over-year expenses in to driven December and by compared million million administrative expenses XXXX operational for administrative increase general infrastructure. and audit $X.X legal $XX.X primarily The

for the or per year-ended per for Outstanding XXXX, average of shares XXX.X or From on million cash $X.XX to sheet compared as million XXX.X share XX, XXXX. $XX per our based $XXX.X perspective, to $XXX.X was a million. share was was equivalents December balance and share indebtedness shares million outstanding loss for XXXX outstanding $X.XX weighted loss Net average compared million XX, Net XXXX $XX.X million. were weighted for XXXX. December cash

in previously, Tim the guidance, to of of full to be $XX revenue range XXX% Roche OUS, of a to Turning the revenue a provided as year as growth expected net year-over-year sales relating to approximately approximately decreases million. includes the U.S. reduction net result of is the This distribution XXXX amendment contract. of in revenue million and primarily in in XX% to our global for $XX

program, the It for reduction of expected XX% the year reductions, be the gross-to-net from in U.S. also is gross-to-net approximately impact which for primarily patient access includes Bridge to full the

XXXX million by OpEx the XXXX In estimate taken the including expenses will QX actions low restructuring and to structure in COGS, range. to mid-$XX we to our cost compared regards in reduce

we Roche XXXX. of the amendment, hand QX on into last updated cash project Based of through earnings on we hand said we impact QX on had the the now our call, projections XXXX. On including to cash

Turning required number Capital, meet minimum our covenants to are disclosed a have credit borrowings, product Solar existing our to previously trailing senior of a with as under six-month we we revenue agreement covenant. including

we covenant with remainder for the XX, be March. the we trailing will XXXX, six-month of in upon revenue the as non-compliance of XXXX with that expect in end expectations Although of compliance of covenants quarter all based our contract December were of first as we

annual or details. Our be to filed and additional report our on on release XX Form earnings before March XX-K includes

to Tim. call will over I now the turn back

Tim Goodnow

Thank you, Nick.

am strong encouraged where Eversense and patient made we I for States mindful see the future physician we This awareness. the on As XXXX, to United patient several At we lay particularly of key I foundation and year's the its time, material reflect areas loyalty expanding with payers build disappointments. with by in have progress growth European specifically. revenue progress am the and same in

we We excitement were see able around to people. XXXX approximately We improving the United directly in situation. the to bring product XX-day focusing committed the the in product on to where do the full the year first States, are

has progress at been the Europe. in Unfortunately not same level

of we've the build over United And the will serve last to opportunity time XXX-day brought be recognize the the needed and We patients Here to this, the while that outside To years. X,XXX value. continuing we the three here drive States. States, in product to this successful success on changes expansion is opportunity work same patients in over is do the U.S. Eversense largest address greatest the to at

an pipeline other inflection collaborations clinical will a important XXX-day best made of for the list product our completion future. progress to We introduction Flash will product evaluate point company, to accelerate be opportunities advance the business. the for trial. nearing the transmitter And we and our to as on continue have its believe CGM, We the and anticipated noted solid

our prepared With remarks. that concludes this

Jain, and Operator, and us Manager for the Mirasol Officer; let's Panlilio, of Operating Operations. questions. Commercial our Vice Global Chief for President Mukul General open up call questions Joining are

Operator

comes [Operator from question Instructions] go Please SVB. Antalffy The of first Danielle ahead.

Danielle Antalffy

the Hey, hear for me, good okay? question. afternoon taking you guys. Thanks Can

Tim Goodnow

how Hey, Danielle, you? are

Danielle Antalffy

you I'm too. guys hanging in there, hope so you are Thanks great. Okay Thank much. good.

a that's start seems on relative when question question these where like U.S. from momentum guess a perspective, for it coming patient you least getting Just shortfall But at I I model. our paid building. the do mean the to is feels is to revenue because patients ramp. be my

patients program So from you're generating it you're like just revenue meaningful want perspective, critical mass the and we overhang coverage do to a get that at when bringing Bridge of board? this get seems from beyond on start you a actually sense the

Tim Goodnow

Danielle. obviously on And gross-to-net impact point, the has of Good the got the revenue performance Yes. of biggest business true the clearly net course.

of the XX% came the XXXX As on E&I. were we product said, full that a in about patients to

supported program. either considerations other And had another we coverage had although Bridge that XX%, them addition high Bridge So in in such with program. the they deductibles participated they the or

of and of as to like until year there late is that me, over not and have Deductibles normalize will rest the we've HCSC -- two come this we utilization. it wins and of understand them excuse quarter. -- many now quality the had expect year, year are in reset February but will So the in continue additional even things, we certainly be were first the Cigna to obviously did also the that here Humana,

expect transition this do year, think continues given to that we sense it down we will the in, we make it. So to brought utilize but it that patients

Danielle Antalffy

office, people stop adds. to checkups for I going new how you're that guess that this slow think risk going what's evolving guidance what if question, impact. mean, in have specifically. evolve? know physician's a That situation this the a today? know don't daily we the is then for as perspective it. reflected bit same continues the diabetes could volume hospital And do you got COVID-XX Thanks I sense. so from patient little to and like you're giving about to But much. just And patient Okay, I But I in guidance, everyone. makes a procedure more reflecting

Tim Goodnow

very and in from product point sterilization. perspective, understand England analysis. I the transferred majority this we've and here final certainly Certainly supply is Yes, continuity the of a At Danielle. fair assembly got pre-stage actually or manufactured for the is comments manufactured

months' have inventory are any that immediately supply through. of do of course continuity working us couple is available of concern, seen which in haven't process, we we a to and worth were we So

At forecasting impact that that in impact the course to go closely U.S., we're certainly we're as the to certainly gets or where sense. people point obviously, point, but information such of of it a very suggest is a here this make From really not you see need is. going of to everyone have, If the to we'll the make best as doctor as we develop. state that societal are we're in we'll that watching -- to the look as independent updates And really that this any dynamic companies. the individual then

Danielle Antalffy

Thank you.

Operator

question next from James. Bedford Jayson comes go Raymond The of Please ahead.

Jayson Bedford

Hi, good afternoon.

Just much may how does questions it, just right have now? few have mentioned me. I guess, Roche but a you inventory for

Tim Goodnow

We out were Jayson access to quarter inventory. fourth have Roche they year notably towards where due what the backed did their don't that had they and We of to move have speak end it. don't up able year. actually of that close the last the in their to supply We with inventory third indicated

So we've contract want And we to goes point. at that certainly months so, the XX we made to bill sure leave a reduction that especially inventory continue for months bunch don't a as or currently the of only or next so. inventory didn't XX to that make

year. know that you, the So at the but directly informed I'm answer we that -- high it of second can't gotten do I last -- half us they unfortunately in

Jayson Bedford

numbers more questions. related couple A Okay.

should X,XXX on we that that XXXX is that going on build base XXX-day brought You the on installed the patients here? Europe mentioned forward in you've into

Tim Goodnow

installed about we in the high the but the base then also and the first that normal do on understand indicated sensor need XXs XXs it's XX% use, sensor, into on and Obviously XX into we second is We've turnover there that that right? beyond. it's to

So that should work. model

Jayson Bedford

over in mentioned, of the think majority U.S.? vast Okay. or are Can in you we And that those the users patients assume XXXX. I expected expected X,XXX new new

Tim Goodnow

Yeah.

in the U.S. Jayson. are For clarity those all

Jayson Bedford

Okay.

Tim Goodnow

you U.S. I Europe, have but an in don't to patients. that's ability give guidance all

Jayson Bedford

time time partnership be What's distribution both XXX-day should line of lines opportunity expected normal That's product. then Okay. Flash the on terms here? in it investors the or And whether on the on expect fair. the just the

Tim Goodnow

Jayson, business give line Yes. you Unfortunately these development you not certainly time conversations take time. imagine can a to I'm able as and can

So, forecast this forth like back and -- can at point they not understand. I'd to I'm as and go as sure it you

Jayson Bedford

I'll fair. you. queue. jump back in That’s Thank

Operator

of The next Blackman question ahead. comes Stifel. Please go from Mathew

Mathew Blackman

sound like Rudy good is there. Thanks and doesn't It afternoon everybody.

bit this. And in you in of using the maybe whether me patient in track one curious, adds? progress in-store XXXX? here And perhaps growth that -- your just I the evolving? But the you how would things with follow-up. Rudy what that, could be how sort What help guess in revenue Obviously, to particularly a are changes us that think So, about progress just in commercial what have with then is U.S. as you in I'm you best we I is do little Tim, U.S. measure U.S.? a gross how now that And sort the your get noisy the task can at I gross-to-net. should seat, in have changes we be looking strategy, is U.S.? of follow-up

Tim Goodnow

to it. try it patients. the to do do I are I standards because focus of at the that gross truly look doesn't amount representative the Well, The product revenue, the of although of GAAP sending personally is we accounting Sure. gross -- nature meet revenue of knock the to deduction that generating. we we there's these we're subsidizing to we demand have there. able insurance it net company. seeing off And are feel do of them as But payers, patient strong we good to because we revenue convert the Unfortunately, are do instead

with education may in the our physician first Now, physician demand, year recall, or and as from focus commercialization, on a know really prescribers. high the you the you as training was especially

Eversense more recently well. it. we there. are the very and pull creating folks insulin using successful and first period, done after or year's very Rudy as that of What prescribers well of time job were done aware forward high I a are of most we've very now has And the think CGM patient he's is that good with,

job direct-to-consumer and the nice reps is generated direct-to-consumer as point other very now, the half done traditionally from our advertising from are on sensors So, of had a calling the they marketing with physicians done. about the where half the sales activities team to the has generated

So, we've done a that nice job balance. reaching of

we As of activities. you have some have for cost force the growth announce trajectory the did sales able know, we at to sales last these been the DTC based in call, but keep on that the management, sensor restructuring do

So, well we transitions of continue as receptiveness to good as feel we the frankly very make physicians those the the patients. as and online

Mathew Blackman

on then we I quickly maybe that is appreciate some CPT headwinds. mentioned lack I you and called like sort reimbursement just this getting it of And of work will sort know, take very of obviously barriers else adoption them. there sounds Is out through and Europe, codes of time much anything that. one does of CPT hurdle. in real need codes terms you -- a it that's if in particular to some to

through help sort Just thinking of over you're understand, thinking XXXX? several us Europe next about as how to the opposed just years

Tim Goodnow

Yes.

particular really does market. So, on it depend the

services. there issues Roche. based be system, If Different socialized, is codes markets included do the considerations. may of have spoke is can have it's for we As in then Germany, cost in specifically to it the all one and if obviously procedure it's second because technologies the procedure is procedure or had to no the hospital diabetes these or impact those with more it we some it's included tender different remuneration imagine, partnership with market a where to -- really you largest the because

on there's the a amount fair frankly difference market. So, depending of

different markets that's of well important ability do And hampered do one with exist dynamic the that do market has to Another do expansions think, and to the with different Roche's they has with healthy. the distributed frankly things as have of I as the payments into to pricing that where dynamics that of frankly financial very pricing. course a has the not expected some to a be product as may

Austria pretty to markets, it's lower-priced like be place difficult a for in or they in markets good Australia, So, that. players like highly be but CGM two can successful

consideration has the part been that as So, financial think well. certainly calculus I of

Mathew Blackman

it. Appreciate All right. you Thank so much.

Operator

ahead. go Thibault of from question Please Marie next The comes BTIG.

Marie Thibault

question the wins some recent we're in to hear national the wanted to then taking had you've of the still I insurers, on from. for waiting some little thanks insurers the coverage a of tonight. big and dig Hi, bit

through out don't it can you're that for kind hearing long might anything those XXXX kind coverage XXXX, So, coverage? especially, wins online some so Aetna where what of to could in you some we run sketch wins on when come yet from have you've insurers basis? of got me of a of just how back these then timeline late took you uninhibited And be like

Tim Goodnow

Sure.

Once process. payer It's not question. a that So, listed get be from is documentation that it could would to excuse -- a us that that a work all internal the flipped through overnight. as take and have to switch wouldn't timeline; it decision work to their me a three in through we payer internal I the months approvals ahead entire a systems. is the say it go good to assume crazy as way well

HCSC period, or we're now up Humana just example time probably the speed an that to provide as ability with their November came coming to in coverage. So, the

takes a probably in bit for we time and month notice little front two that it we or of still Cigna. have us of So, do another

about that dynamic that's has one local important the very talked max. of we Another the

have cover it to are go although yet the benefits we category approval. there Medicare insurance for the seven as companies essentially CPT States. FDA bill yet original seven ahead to three to they from granted approval was administrative are United that designation procedure the So, can't with currently us prior the contractors medical the we through And code for holding actually that

So, and that months hope this of to those year. to But get get off that implemented. take three longer process than likely converting knocked even a we will headed through they're

course The two Anthem of one bit payers remaining big two million over XX bit United million covered a next and a over XX are number little lives and lives. with number little covered with

are patients So, the that as effort continue United many with the payers. we We and work working those and the under those are program through provided largest of those we are make Anthem currently we about well. XXX ones negotiate every with that to to have Bridge Bridge as and process

a successful on it. been that get And by followed very to noted, has that But entire successful ultimately authorization is six with up XX% wood then honestly over months we three it getting somebody approved but we when prior process knock very it As can do appeals. we're through take through process.

So, on we continue all approval. groups we've the what safety of to present published that lot put their understand to of part the a -- people policy is that pressure questions of to of medical think we seen that That's will We've them. get publications so clinical long-term benefit. one

and we'll confident in the support show but not take stay time Bridge. of meantime, their So, and most with it's the that work, product continue the be strong them get the to there And it's them in to we continue of to it on us. we're strong utilization we'll population. and acceptance really atypical that the largest and front In most

Marie Thibault

for balance follow-up update. sheet. a for that I detailed on Thank Okay. have probably you Nick

the XXXX. you on cost You doing on we about what when cash get potential Capital? little get update then Solar bit Can waiver to through the the you're have mentioned hand of QX for year might And on the us savings that end with an a tell a front. you more

Nick Tressler

Sure.

between we in as in OpEx That's undertook savings of $XX this the the -- mentioned as will result across XXXX. to we QX as million that from year-over-year $XX restructuring million sold. well of cost and goods XXXX So,

cash standpoint. we to We from need a the to business obviously is monitor preservation do will what continue where and

analyze And so we'll evaluate continue to that. and

front We and it's focus. liquidity terms position. our our certainly in center take Obviously, of

there Those We we line issue I covenant. everyone. a conversations Solar, But can started time look updating conversations, with on have those forward would to this time, what certainly characterize you have expect that. potential constructive. to is some We a -- as wouldn't with put those regards With time. at they're a when would to take

Going as the committee through legal reviews. investment through as well

this So conversations they've those and constructive. we've been begun quite again, stage, at

is congregate get through I think folks issues. with there and ability addition, given the some to In impact the coronavirus,

come. to more So,

Marie Thibault

you. Understood. Thank Okay.

Nick Tressler

Yep.

Operator

Capital Alex Craig-Hallum comes Nowak of from next question The Group. Please go ahead.

Alex Nowak

the already Hi, order or QX? and OUS order have doesn't in not? guidance weeks quarter to a left. assume come know And more great. going Good we in afternoon here I Roche this in Shouldn't only they're that if couple know everyone. Does we

Tim Goodnow

it's guidance they pretty But year. that that possible constant they that in communication will point not. Alex Yes, in anticipate later It our still the that with does we're to this them. our at will expectation could is order be deferred

Alex Nowak

Got Okay. it.

believe the it. here like Eversense with to want longer keep doesn't by you seem Roche sensors. all -- contract the in So to of end them you come commentary either later really this still the year. Based the on in year. stockpiling It then the it's going the much going Got of before

dropping are out what doing So international potentially have the just to here to worry companies mean business reach XXXX? zero X, on January we I to so don't about other you to

Tim Goodnow

say Yes, I Alex, wouldn't all. that at

important I think it is for product still Roche. an

has more I it been think complex.

think that very but dynamics U.S. they I market are They the meter you market strong there a continue pretty pump of their to in the as know and pulled of lot be difficult in strip Germany, organization. out is and

do that Roche is not is now. able to something right investments heavy So,

made They've But a patients. patients. this to a is important to them. product made We've commitment an for commitment

organization, all. at but this continue the the a would best deal that we'll is with to like leave for not I this dead call assumption So to do what's

much think going multiple we're ago when able different a was drive years now going to they in to to be were that harder. their expectations be agreement signed I they first And this the place.

Libre well. some as and to I there pricing to have with think we continue competitive as impacted the some other well. reality of it markets make we And product and dynamics as that in that them produce of partner the over need to best the can pricing, the

or relationship I casting they at that all the very we're announcing wouldn't So aside. suggest would are not -- I much that we

Alex Nowak

bought quick one & innovation And real understood. Johnson last just in Johnson their some fund more No, shares year. question. quick

a few that. think I people saw

on sensor that competitor Libre. who you some development like That call pretty under Flash does lines a here When today Can you the the last Flash announce the product on you product? to And with us here? partner the the mentioned good sensor third-party. for a that's partner be? details You could then would time the could more development long versus give something remind And would skin? current just just just under how this us, be Flash

Tim Goodnow

Alex. folks So questions product would couple associated would a folks that or have are the there usual the that. From that partnership a of in interested diabetes are I disease frankly that interest perspective, a suggest of in long-term types like

you certainly for make are of system is key some And why sensor. to implantable that it's been an our that's longevity modifications announcement to actively testing XXX-day course, our I'm the XXX-days. saw we've the us go evaluate people to that with to as sensor heard certainly now sure have We what And matters. of we able

very, So wear see diabetes. night we then you could be as X that wear especially daytime. very we people flexibility and actually today the in the transmitter certainly agree with it the for have at product, system patients with we during that don't that compelling a it And type the

A a continuous CGM in. great would spot that then during wanted flash a the if day right? be combination, So they they check and something that could

the the and XXX-day XXX, XXX-day we're continues that the the first we feedback, goal get but stepping to in will jump experience, obviously, So then testing to to direction. clinical sensor, is be our to the into the get step

Alex Nowak

Thank Understood. you. Okay.

Operator

next The comes Rose from Instructions] ahead. go question Canaccord. Kyle of [Operator Please

Kyle Rose

Great.

is, line typical So as device, actually and time just it gets as just, the picture works, the just patient as implanted? where just two specifically far questions you can as through a big the requesting into seeing, how the walking walk for the One patient me. office doctor's far on-boarding versus you're time

Tim Goodnow

patient their to avenues comes a we with that follow, -- as if There's Sure, in they couple said, interest. Kyle. the of

it found through it doctor is So will actually they a activities. If will prescriber, their quick. have our go online DTC pretty

coverage to is You'll for there get a it assessment whether the do quick not. script. or as We'll

as a as do of it schedule just them course, unless doctor they're insertion. If they're the is coverage, the time material certainly typically, soon ready overnight, one very there can an inventory, to not -- They be of to certainly large in go. is can shipped to keeping clinics, but it it implanting

process. that their actually sensor their and why goes do of We the Bridge covered company that that and certainly we it the through application approval, begin have do one not work program, one it for insurance the is get it's that's going the second but those Bridge, to knowing it on third. we covered we're first to the in the actively by If to

XXX case the it of covered actively and we've of those one finds by the clinics are endocrinology the Now calling in on patient when at been that now. not and we they're actually major

prescribing You'll do has pretty there number physicians. that significant of notice the in increase a been

X,XXX to up now. we're So

is Many of those even then though product do the script will are active this to then doctor CES, that medicine say, an let's a the and they a he insertion. the of are with for providers person their we may or not will it, a working they GP an prescriber, network internal referenced be patient to is or of result and request she to which goes be that the do

more That depending bit little unfortunately are. they can time, where a take on

get we bit But insertions little it bigger. the obviously, working further. mature, make done. a if into to a we're that that and, to We it time more have that's come take go XXX lot can about mechanism, number they expect once But to

Kyle Rose

but -- talked just I Dexcom number you how which Bridge got has a Libre cost about perspective, you patients. channel, just, the you then, the XX% cost you to we've us a patients to great program, the and about talked I is Can co-pays. upfront sort reason from program? ask into And the The Bridge relative in picture guys about had XXXX, make lower -- strides of view numbers much pharmacy of specifically that down bigger right, for some insurance into talk of you bought coverage went think, but who Great. I that the seen

the when view assistance E&I continuing the aspect CGM you covered there's understand to two copay and be I to assistance. segments. program, then helping not Do of with that order the just copay the perpetuity Bridge Bridge the in I'm think you trying in the it's in It's guess, market? about program the competitive

Tim Goodnow

we don't. said today it XXXX. all $X.X and million invest about we it's to that – We anticipate that best do was invested done, and No, in

XX% E&I and full noted, XX% of were another you assistance. were As of this magnitude

the in others some and anticipated the assistance seeing pretty have in are that early you'll increases and in it as copay significant typical amount. pretty We this year is see we market are

likely do that need we it's in not copay it's going an is full anticipated would to most early forward everybody but year the for that We time. as there that thing. ongoing So be anticipate some

we've portion see focus through maybe But and We a made are primary at so cost minor good for us benefit. parity. relatively that do go the a or XX% We action as remember today on. pharmacy

This in is deductibles actually lower durable have a actually many than and medical many medical benefit folks equipment cases for does. those

So anticipate parity. of there are puts like would major and takes it initiative in some level a low uses. both for not directions price everybody but But I

Kyle Rose

– like reorders the then in okay, And for should And be me. It that's for very helpful. no modeling we Roche one sounds QX. then from just last question

order going to in revenues they're QX QX? that the like QX. up starting it is to number. big Does inventory guidance QX. were in QX, a your obviously no sounds build they assume I into mean, So

the to understand, in QX, OUS we really we Just of see the QX? weighting to should of level revenues some back-end majority XXXX expect trying that to should QX the number or be of

Tim Goodnow

It's again. always certainly it Yes. that I with the them back-ended order. in they and a been think we've way We've seen QX always that big

the that will And down. still fourth majority have overall but in anticipate estimating taken the we it that we do the We in they some quarter. order will come are of

Kyle Rose

Thank Okay. you.

Operator

would turn Goodnow, I Tim CEO conference session. remarks. back like over to question-and-answer any our to for the concludes closing This

Tim Goodnow

appreciate especially in would Well like been active living. We it's times been very these and we're trying hard complicated great. we times afternoon, know this and everybody's for with attention here. out Thank this currently that to that again the I and much has appreciate also work there time everybody's virus you very us.

at here look staying late luck. you. next everybody in appreciate good So I We and speaking Thank forward to evening quarter. with the the

Operator

has now today's concluded. conference presentation. you attending for Thank The

You may now disconnect.