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Motus GI (MOTS)

Participants
Bob Yedid IR, LifeSci Advisors
Tim Moran CEO
Andrew Taylor CFO
Mark Pomeranz President & COO
Kyle Bauser Dougherty & Company
Matthew O'Brien Piper Jaffray
Steven Lichtman Oppenheimer
Jeffrey Cohen Ladenburg Thalmann
Ben Haynor Alliance Global Partners
Call transcript
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Operator

Good evening and welcome to the Motus GI Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator instructions].

As a reminder, this conference is being recorded.

pleasure your my Mr. now is to host introduce It Bob Yedid. Thank Bob. you,

begin. may You

Bob Yedid

Representing Tim you, everyone Taylor, Chief third Officer Motus call. you And Chief quarter of company joining update Thank Pomeranz, thank Operating the Financial for Officer; operator. President Officer; Chief Moran, Executive us Mark for XXXX the the Andrew are and GI company.

take and that over opening statements company. remarks, will like to Before this forward-looking their I you remind call for turning a to the about to management could subjects actual that These risks opinions webcast date XXXX. call contain statements are to conference minute statements would call, forward-looking to and only note uncertainties Please this that of the XX, of cause differ. as reflect results November these the

implied to that undertake new or or actual of statements periodic not in other the results our these obligation Factors and with expressed in filings Form detail revisions of in other outcomes in differ reports and recent XX-K, on light the from will events. release by discussed are cause or filed any periodic Form XX-Q any future on -- most those publicly to forward-looking materially results greater and forms to X-K or statements revise forward-looking SEC. information such We

With Tim? my to to pleasure remarks, Tim those it's prepared Moran, turn the CEO. over call

Tim Moran

course, everyone. you with call joining our for call Thank financial morning, quarter. session. of us our over our for good to-date, off up And so public before can Andrew, a And we as results conference business Bob. company. first review the overview open for the you, progress Q&A the quarterly Thank I'll Great. an call for call today's third today start a will to and turning then of he

We customers the System started. the an of U.S. company's as our history, commercial let's phase entered initial in Pure-Vu to marked that said, hospital by exciting of get shipments recently With our

to for on focused GI to anaemia, are prep as customers undergoing inadequate to procedures. significant these and bowel procedures, hospitalization colonoscopy patients delayed reminder, using XX% that even need conditions, Inadequate impatient leads resulting for currently This for infection of abdominal address providers. principally to remains System lower and prior preparation all the a canceled, pain. As emergency colonoscopy, in such Pure-Vu both bowel undiagnosed aborted inpatient unmet costs affects or increased bleed, patients and a prolonged an up

first the to inadequate The to control the the overcome visualization. hands Pure-Vu prep to time. and quality It safely rapidly clean the the of physicians bowel System puts power of high into colonoscopy and challenges allows physician achieve procedure for the during the colon

length clinical colonoscopies nursing are result, reducing in the both on an that inpatient patients demonstrated are are ensure time, we million studies and thereby the hospitals. million System improving year. XX its the performed up There Pure-Vu burden approximately bed makes of performed turnover every U.S., to colonoscopies the staff. that stay, in benefit As inpatient X.X over the and which and colonoscopies reducing have offers completed the Outside a estimate U.S. we several procedures clear overall XX% ability in of on estimated million X.X

System this large we unique to for global challenges has long-term, for Motus opportunity establish new Pure-Vu the believe GI standard-of-care Over prep the the a bowel inpatient as market.

into the procedures. into adjacent expand upper well market to opportunities follow-on see as GI outpatient as also We

been Since and exciting to commercial diligently this our commercial designed inflection a get it’s point. to optimize for quickly update, I detailed joining took this I as planning on important the Before team provide success. CEO one to and key GI ago, launch Motus we path year executing think review the to I have milestones

Mark in of of President Pomeranz, Officer. addition together the role leading deep Pure-Vu as First, top our the put the Israel great who asset development and assumed R&D me commercial and a company, leadership team the approval incredible Operating our advanced organization. previously regulatory System, a team has significantly of be CEO our tier company, we’ve to and led well Chief resources partner Mark been clinical as operations. to and with the to regulatory manufacturing to continues an bolstering

of also Peters Steve Global Regulatory and Affairs. into Quality as executives joined recently Vice President We roles. the Strategy; joined Vice of hired team leadership George and two important key Marketing Bosrock as our President and

device joined of appointment a team medical Jeff sales Hutchison, Commercial the Vice medical leading our Operations, several professionals with of led was and of from by who global device us Sales September President the Finally, sales seasoned in division expanded GI company.

XX our additions, and years than and to customer geographically proven now of situated GI largest allow team optimal these medtech opportunities. in sales believe proximity more we to averages our are experience With

market crystallized go-to-market Next, and we completed our assessment detailed a strategy.

to We that we as well have where highest profiles in focus order recurring adoption the help utilization carefully our the and may as both we’ll have and analyzed achieve launch as segmented in generating growth. streams procedure revenue future driving patient believe company success in well as and accounts sustainable

more more assessment, this commercial procedures initially per average a than which focusing X,XXX our market I'll on the with we in launch conduct moment. from hospital hospital networks, detail discuss anywhere are XXX year, inpatient Based on in detailed larger to colonoscopy

clinical in multi-center year. this preparing generate to This milestone study data. completed our through REDUCE launch inpatient key robust earlier strategy established was was we last the The

Pure-Vu showed may to after standard-of-care. compared improvement statically significant you cleanliness REDUCE recall, the bowel As in the use as study

market There delivering these XX% of Specifically, aware that is patients the improved to of at in Pure-Vu capable of adequate demonstrated today outcomes. we rate from technology preparation the that bowel are use that baseline. is no following XX%

and all key use milestone reliability. of major improves XXXX This most The single our as the well importance scopes, Pure-Vu as GENX our in system Motus improvements loading for and of brings commercial of receiving to was generation to cannot to improved success. It set shipments for GENX incorporates further mobility, another system of course now use available navigation, clearance I commencing commercially enhancements rapid me these and cleansing of FDA future handling workstation outstanding which time, maintaining our upgrade of our incorporates also GI second important system. up ease that positioning overstate sleeve while commercial onto facilitates which in the capabilities.

As the previously announced, our first early October. of commercial began System in placements Pure-Vu

had reason and feedback real focus on characteristics, adopter of ease given to on they're These is generation The their out early the was are initial sites Our first Pure-Vu use. experience system including adopter that are hospitals early hospitals. because world with using system. experience rolling ergonomics our rapid prior in handling we us providing its previous

into has feedback to and accelerate critical the extremely additional early This been and feedback as the positive. QX, throughout To-date, we of course hospitals is of beyond. our XXXX remainder deployment

In early pipeline growth help and long-term just position us initial adopter large can these for which opportunities hospitals, addition commercial is focused sustainable in of that to targets on substantial value I market, our this high outlined.

hospitals to target the we of as From of to a of we Pure-Vu macro to represents inpatient strategic the if rollout X,XXX System year, you market. in between which than that at hospital have hospital this a colonoscopy with which perform our perspective, approximately look procedures greater customers, future many potential are XXX X,XXX targeting, all proceed already the the and we opportunity

With we strategy understanding, are currently of executing. me that let commercial provide outline the an

to through This become one purchases go identifying to standard medical champion for most this System building is Pure-Vu relationships through two has required stage, physicians, who Committee typically be Value the and a the a Analysis System with hospitals. our process successful within it team Pure-Vu process. starts First, To will with in review. device sales VAC the key

this XX days to can we start VAC days one a to rental contains XXX has variety brief While choice from hospitals options. offer to device approval an the finish. between vary, final capital purchase, of of then and or approved, process anywhere which make require most or can evaluation The acquisition outright of Once purchase. they utilize our the to programs a hospital lease prior

deeper [XX] meaningful hospitals pipeline, conduct directly now evaluation. If these their importantly, number we've our resubmitted we with hospitals. more VACs Most a approval progress into made System a bit have to Pure-Vu received to we target of than and have the the engaged with an dive

or move in XXXX. we and A tenured evaluations, team, elaborate making the further armed tools believe is which Integrated winning economic quarter these into percentage affiliated process is we stage, these on to if IDN powerful process at leasing, not the clinical and with most, through progress. our early part high and the Following hospitals. Networks, fourth consists numerous or additional Delivery rental VAC in larger very of To of this customers targets, importance purchase expect all, positive utmost are initial of good

hospitals sister which site, an IDN. gain that adoption in provide to within of that to approval flagship is easier strategy are Our we same pathway then part the

their have to very have they since our and introducing new either; doing brief purchased of System evaluation on now funnel while sites for report workstation process; their market. to a proceed device prior budget first is using sales completed that evaluations the in VAC who the loan capital pleased through XX early targets. the customers three, of their hospitals our approval or launch, to our medical are implementation. approximately purchased submitted a These approval; In combination system; adopter have for entire weeks their six and VAC utilized sleeves one, four, to Pure-Vu two, is purchase early for typical are submitting in I'm to This companies being solution short-term as

of belief sleeves important time focused to Initially, disposable per ramp purposes, growth through five utilization Motus at site. modeling our In per every opportunity driving long-term for the is approximately expect therefore XX revenue System we over to it’s to model, month procedures that customers we of workstation. terms will GI our be sale Pure-Vu our to the on and recognize for

be One driver will expansion GI a of utilization staff. the hospital within

XX activation product to implement account. a has GI account account to may use our a objective training and establishing the the and two system doctors specialist out broad of agreed-upon our for an within and of have regular range from staff hospital Pure-Vu only physicians can doctors. staff Once clinical includes can cases. account place, their to example, additional that System the GI that which customer an the experience, of lead at Pure-Vu inpatient a to new limit the will program, For on protocol is Pure-Vu initial five a hospital workstation with utilization This three in

additional execution which in our growing to program will quarter We believe our sleeves. disposable the of each lead sales will activation lead account of to turn utilization

the are we launch our it provide with specific pleased While initial the in is to system, too early of guidance. uptake

metrics penetration market. of However, of we key quarters on after we plan into the commercial experience, the to System get several the share Pure-Vu

centers. medical of generating the committed this EXPEDITE announced are investigators world-class to investigator of we to clinical week, System leading we ahead, in Medical study additional initiation Center. Looking with Pure-Vu Boston at an being evidence Earlier the the collaboration initiated and benefit conducted

study regimen at as successful assess outpatient inpatient hospital. of System’s use time the cases is bowel well minimize order to for performed to population to ability further for The in Pure-Vu primarily the conventional a accelerate to preparation the the as designed colonoscopy the

an no this the resonate bowel would successful bleed diagnose possible. I and customers to our immediately. emergency available, new of was not that case the treated accounts bowel procedures all my conduced ultimately Pure-Vu. The I system bedside unit. want exemplifies care Pure-Vu bleeds identified and System, approach to immediate inherently to prep. source adoption Without arrive an out our now and System have up of had the been globally. sharing ago, patient the by Unfortunately has A across our like few had U.S. ICU, the the common to real patient This the physician power then intensive an help rolled that likely hemorrhage then been world of Pure-Vu prep remarks this the GI weeks the worldwide at treatment. close their had think Knowing with pre-procedural admitted to could hospital. GI drive one truly into too colonoscopy, the It’s they cases and patient us and are patient the and rapid obstacle

have the through of patients We impact are technology. our the all we inspired on can by positive use

I will to to now our Andrew turn financials over for discuss the quarter. Andrew? the call third

Andrew Taylor

thank And us joining Tim. for Thank you, today. everyone you

$X.XX to approximately XX, the year. months per net ended for three a or or of of a share period per we a compared diluted million For $X.XX loss net same loss of net September reported loss million diluted $X.X $X.X the share XXXX, last

XXXX. XXXX period of included of compensation, to non-cash quarter third $XXX,XXX compared of principally same the expenses non-cash The $X.X to expenses for million stock-based approximately of related

loss nine net net of diluted per approximately a non-cash share to months period expenses last the reported compared million we for of of $X.X $X.X principally same a the months same $X.XX non-cash XXXX, to loss of For million September of $X.XX year. related of included nine XX, XXXX, approximately ended expenses or The million compared period loss per ended for net $XX.X a $XX.X compensation, XX, the diluted September million or share to stock-based XXXX.

approximately cash and about the additional past company ended upcoming equivalents with for of investments. million to The this in investment the in quarter $XXX,XXX Pure-Vu Systems GENX order placement. commercial This the reflects inventory for quarter cash, $XX.X into prepare

turn call Tim. to the I'll over that, back with And

Tim Moran

Andrew. you, Thank

full and As potential of company patents staying That Pure-Vu protected months, has our the patents accomplished. XX on to globally. will of the XX us on is I what by reflect pending I'm XX strategy allow last System, the which for execution proud the issued the very said, reach laser-focused

We U.S. for Motus in and to We large our moment alone. us GI in the opportunity unmet which is with position market have needs. globally a unique belongs very and the impact a believe solution both to significant to large bring high us a market that

a team. We great have

motivated opportunity highly our and to are for costs can improve care, patient to believe whereby we pursue we for reduce this providers, value We investors. work healthcare compelling shareholder drive diligently

to now Q&A. the to Sian? like would open I call up

Operator

instructions]. [Operator

from Please Kyle Company. comes question from first Your Dougherty go Bauser & ahead.

Kyle Bauser

here. Hi, the all Good morning. I'll for Tim. EXPEDITE. with start Thanks updates Maybe

that XX case of the patient key the REDUCE of the just the as between be the a So is without is REDUCE will prep, the used was inpatient here the arm previous clarification, study, hour so study right? the for inpatient and EXPEDITE difference arm EXPEDITE trial, XX in that

Tim Moran

would about they I for Yes, so that inpatient. that that appropriate look was administered, at the the way inpatient, is, the think they EXPEDITE Kyle for prep will

year. time they'll prep they looking in previous of complete historical back was cases determine perspective, the in at then improvement to example, From document and they will what the bleed would accelerate that canceled. at versus able were At of study, colonoscopy and look that for been may an they the the the So, have look end cohort that. GI to case, a be otherwise reduce will the outpatient their at cases over they inpatients,

Kyle Bauser

And think curious timing enroll for faster? what which And of full I'm just enrollment are arm do the you your expectations XXX will patients.

Tim Moran

question am to going Great. I over that to turn Mark.

Mark Pomeranz

Hi, Kyle.

that's the the outpatient through inpatient we As than to inpatient next we anticipate we study of and the arm the setting that understanding gives a year, of a longest faster course do look at of expect due that, the basically it’s intercity arm on great real this arm with enroll being going this. most BMC so world of to around But the nice at us it lead and just the hospital, utilization. volume the

Kyle Bauser

prove it population? just proposition any patient here. or used in medical And XXX(k) primarily that urgent EXPEDITE Okay. quick especially couple indication expansion to or questions high clearance for a is need study the out be additional type of Will the value of

Tim Moran

see valuable the for don't an see validated Thanks but expansion as Kyle. so setting. Yes, point on being EXPEDITE it do the data question the world as we real in Yes. indication a study of economics a we

canceled or on So, volume, point, cases. at have delayed well and looking unit, entire the inpatient they to as colonoscopies that their your inpatient impact as accelerating data reducing outpatient both and both outpatient endoscopy

Kyle Bauser

on And the topic Okay. if of last Understood. I one trials. question may clinical

are and so talk them about deck. much. clinical trials randomized other how in these trials, you I underway you much anticipate control that your led eventually thinking spoken am presentation you’ve and Can about costing? in timing Thanks about particular So just trials be will investigator the that

Mark Pomeranz

This again. Kyle. is Hi, Mark

So, the working with are top in main of some we actually yes, institutions

trials both lot outpatient in for trials, really setting that outpatient also setting on the world that a data the help well world as the that as multi-center the inpatient cost randomized and work controlled ability will inpatient a our in the are establish reimbursement setting as for ultimate well. on really world driving in basis in of more randomized studies randomized

Tim Moran

color, part if what's And trials and of about would cost, to about is say your space is, a compared second add other one business significant things cost companies. talked can question I that nice of before, more the Yes. the of little that in, these we're we’ve the just not Kyle, the around I this device

very make while So, super the haven't obviously why these they run, come not expensive tools important see which now given we sales commercializing. specifics continuing these because out, to trials as are us we're out to is you investments

Operator

Thank you.

Please O'Brien question next from Matthew ahead. go from Piper Jaffray. Your comes

Matthew O'Brien

If the have us just you're you can that? with not than would at point? low just even reps say single-digits, you Tim, you single-digits, this it’s mid many tell number, higher how exact comfortable

Tim Moran

for question. you We have thank reps. the field-based currently approximately sales XX customer-facing Matt,

the you So we team, in located the want and the at the launch remarks, have mentioned prepared look as country. geographically that if I where commercial now we throughout and them for team

Matthew O'Brien

and how just And what period? you and think do levels folks, think -- these how do can sure to them you you up over six a productivity to you ramping maybe I'm added early XX they days of kind do month in get about

Tim Moran

about brought organization. things is into Yes, the one been that of we've the the the profile we've so that reps deliberate of

that XX Analysis they've more on the and I get percentage we've the and utmost focused we're that only critical. as And that, now for -- but in navigate average right start us with experience, importance, which also to thing targeted coming years, license tier is so the not important hospital you most we this to of VACs really what to early at the track the KOL on many they're organizations. the then how mentioned probably And relationships, that's our winning So Committee expand have and But record with then Value years very it on. done folks grow with to very bring but docs the is they business getting approval. VAC earlier, proven probably top we prestigious know is progress. able And I'm as all that and starts process pleased be

we're on new we've given into is space, think our record running probably what expecting our having I experience and quarter the the is and reps But coming brand get fully why I quick. previous and to investment. organization, again learning based track of a which think up their GI business type that about pretty takes in made it's worked my

I of quarters that get have From a account-driven we're under we we to in that a productivity belt I on utilization. I something heavily focused to that. It’s mentioned. But our that view time, as tied program think couple think independence what is will account and is account better perspective, that over do activation

they we when So account, their set systematic and ensure approach an product fully we that we and the a get train and our operate have physicians understand very system specific into how take and that system. our to up our to staff

to get but belt period, So of couple that in on. and productivity a more self the move that accounts. can I that they’re terms cover other eventually we want of specifics I after we're give we and focused think can allow kind sustainable obviously But accounts absolutely on quarters something to reps our you probably under our before of actual initial will then to

Matthew O'Brien

what When of impressive accounts in are you that X% right targeting, that you is month, the which in X,XXX talk X,XXX percentage talking now? you about to you’re one already, accounts are

Tim Moran

lot that dialogue are accounts busy some X,XXX have of time. now right about that would for keep I of XX% with. say accounts, we that would can I had population, right, a say So quite us

as we is XX, such with prioritization conversions As my It's accounts other and in and These I'm hospitals. quickly. end Pure-Vu reps, hitting the into good fortunately, ready right? happening ready But communications qualification that obviously go we're in with we that XX that as with both opportunity prepared with priority, is to we’ve all the I I and able remarks, expand their to when XXXX. spend large to obviously market And put making the with engaged would about qualified time mentioned us, get in have continue about had through for facility will about pleased of the say their accounts are progress we're and things a more right? this are that XX QX early to very

Matthew O'Brien

the guys part about we that there were that Okay. lot inventory And then of a just of or made, CapEx sleeves you’ve themselves the as as system or built just is that investment that think on largely that for $XXX,XXX side? is

Andrew Taylor

I'll Andrew. jump one. in Hey, Matt. this on It's

was see $XXX,XXX the split So, that roughly you there,

mix finished the materials XX:XX obviously capital on a on the goods. sleeves WIP and that's raw of and side, and

to I be on time, so will will that you model as the over more side continued investment but think both business starts the fronts there see on here. disposable even evolve

Matthew O'Brien

And all Thank information, me. this just two helpful. Okay. then super for so more from you much

just do of to purchase, could we it’s with think an accounts are you're now, be got do out you going options You do Is difficult is that. I in. going that XXX just your converting them at but XX engaged XX some converting XX multitude kind How they those or to there sleeve want a There question, giving with of where are that you. working hopefully right about ended on about you've purchase? know eventually for think point? mean thoughts I an hear how a open go? system

Tim Moran

funnel I cycle are Yes. medical have been lives think What’s of running associated the past kind good in Matt typical following or in is, it’s companies. I sales with that device

need I champion. say So, to obviously evaluation happen, the we're high. needs that so generate has success moving through these evaluations been them And with an thoughtful right? very process, to But far would initial

in exists believe take an a right? I hospital got that a got each need So, works time. we We And you’ve earlier, on that excellent technology and America, every in need. ever said addressing as that have

thoughtful or rent clear model, making I high outright have street will team fall a really it. out built in don't needs to what At yet we they capital a Where so where put based weeks that purchase. customers to meet the do have being on options at technology given and sure perspective end workstation power in. both we But is categories, on the manner view We that that capital capture do make important the the think on a have we acquisition they hospital. that got whether can just want the the of think go the business long-term the lease, for You system, in the and to from we the upfront enough in day, been what of execute to terms we really to with them. recurring a revenue various that a they these hospital that their works a stand six can work acquire this is is we hospital sleeve. ensure is have we programs I efficient for of

Matthew O'Brien

question. know again Okay. put be some next around Can the kind it’s for Last cash difficult just you a of may I months? one Andrew, rate air buzz and XX over early. just burn the

Andrew Taylor

Yes.

as guidance you we're to. obviously specific on that alluded not providing So,

last of say and million the think can what this per in rate couple million $X.X consistent have I is right to I $X that been has ranged between XXXX now burn quarters I on for quarter. our

you I inventory. personnel, continued think investment had investment we expect we into obviously into as heard

expect would to kick we that up. So

be will dramatic. it that a moderation, think be won't I

with. uptick So quarter and But can specific number you that put closing mark on XXXX say I some per not $X anticipate million I'm a we to will probably that expect going think be from it.

Operator

from Please comes Co. & Lichtman go Steven Oppenheimer ahead. from question next Your

Steven Lichtman

institutions of is five mentioned be the Is we the champion to the XX sort assumption about thinking procedures for I main you you workstation. penetration as know institutions? -- per experience. helpful, based should to mentioned that be that for you metrics multilevel physician expect Can on the one month of gains you

per assume more physicians could workstation if additional on time? over board So we come

Tim Moran

the by a think shifting a been of most have accounts, are that that recall, champions, through I right? I our that's have We're it. view the one We're mentioned docs about leading Steve along. our new Yes, way bringing as side, think you and typically paradigm to And two will or people it we VAC. technology, taking

that So same-store time to as five that over -- of that's think that, way -- is And early what's to that an about take if to you we ramping nice XX a about view to get we're expand, going think ramp will, right? if the view. want this we business a sales time you time so it takes over to up. get more have be will, would the onboard we -- good to able expect But view to procedures, GIs we that As there. doing on we to I number also

Steven Lichtman

and many then bit more you already on in. a of currently just with had And were or so XX those experience from pipeline? of How are hospitals little engaged many the GENX how sort came the

Tim Moran

sure. Yes,

So of GENX. with about previous experience those had a half accounts

half come outlined. I So adopter of those that had that of kind early accounts from category

Steven Lichtman

your thoughts expansion? outside U.S. gain And GENX. for Generally, the terms are here, pursue U.S. about about to talk in the of international primary then CE obviously of the how anything those in years? you is the focus you -- looking to what So aggressively opportunities couple mentioned will in press and release, Mark coming gaining of

Tim Moran

Yes, sure.

report milestone in So, be the PR a approval. as I think a on -- we CE will key the will we've mentioned

getting -- line that QX with in a is approval in are our can't the is. that really important and agency opportunity given emphasize process the our anticipate of I'll how that administrative We in now. being say executing U.S. process What enough that we beachhead sight on kind I and of to

have time and our greatest having resource and Europe, executing But at we significant the said in So market. little we reimbursement Japan return get markets, the on emphasis that countries very longer bit this and are can from term, looking investment, that, spent focused on understanding then programs in markets. assessing we O-U.S. large obviously perspective think time where and the we a other a

will a we there So, will absolutely provide that that's as us. in see relates selling pulling market of and but later to continue commercially a get say point big future I on our probably are but now time would penetration. that we view think to we ready, the to spending priority I XXXX O-U.S. quarters. the think further we as I updates U.S. is as our a we being into for We What take about getting it think trigger

Operator

Thank you.

comes from Cohen Ladenburg Please from Thalmann. Jeffrey ahead. question go next Your

Jeffrey Cohen

to Just capital sense force to of about follow look that out play into and us during currently. of for balance the XXXX? how expect Do was may the us on Matt the talking you field or questions. on a and some I you give clinical through and previous XXXX? the that of know walk double increase, Can the year sales folks

Tim Moran

Yes. Sure.

and are a way looking market. And terms the their feel perspective, we do in penetrate growth in team invest continue to invest the from Jeff, over that think we what the it of efficiency have now, sized experience right given also a is, will we we outlined as coming. what we obviously in growth go to the they see and So, I we productivity can time right is

and company, it’s of I at rep, market cash our it’s think next importance. through So, have start absolutely as expectations XXXX resources, utmost place we quarterly I'm I our you tell would not plans to evolution important really a our sales basis, put ready is we effectively but as double this know, you capital effectively, will coming the we in in on But already why. we where will see that a managing burn as that suggest stage of force and to what in expenditures what just our to

we So, people. continue more to we add grow, as sales will

commercial part belt. we The that organization got clinical view specialists as product the well, a of something under get have are we you that's know to more we take that will as experience continue our on also mix, as

the product the KOLs to going You've relationships clinical and that Committee with really on procedures, over and bringing is be site rep additional in got with that Analysis supporting driving specialists process. the on But are the important Value doing charged us through education role time. sales physicians playing

we way So, as board, will important. flex starts come think to one I point, to to your the customer will And or another. mix again, be on that that

Jeffrey Cohen

you expect and -- early previously? Is filed process Okay. Got you what like -- talking CE pursuing do were in XXXX, mentioned it. that you now And then Mark, sounded had as as you XXXX about did are that? far you when

Tim Moran

Yes.

filed in expect feedback now have that quarter filing. estimate Mark would we and we right on for our best CE first is the So approval the

Jeffrey Cohen

of as into as discuss territories is through the directly And Okay. any you eventually on planning doing about that could of you you’re little something bit getting how kind a are European some far then, them, thinking partners? distribution or

Tim Moran

Yes.

So, thank question. you for that

with strategic a with we our aligning that is by are, all and a market, potential we I for other of includes appropriate will actually we're Jeff partnership. Mark were, the strategic. all terms we're in both -- research in market go-to-market And as stages ago, think we But on evaluating was or most specifics you I of consideration the We right? partner, that as I just a part distributors strong into early engaging consider we're XXXX, process for all think over as few assessing more would mentioned, the and options distributor And country, Europe also strategy And think I of of as those that in but would weeks of the I get Europe that kind of right? Whether three. that. also direct I provide further well going say at

Jeffrey Cohen

from as I side inventory as more that both Andrew, looks it talk side for on one backlog And as be as a console the and goes the you into and about that me, the and more how demand? build could and will put resources consumable guess well far

Andrew Taylor

Sure, of course.

accelerate between two mentioned so had inventory to that about through respect months the -- would ramp the that business think are a Matt terms ahead be the And And growth disposable three burn capital on I expect burn, of both this earlier our I’d trying least that that disposables. of one an more year months, with into investment in anticipate in the of start will at inventory, we'll of right disposable. certainly the is course to levels couple XXXX. So as direction element the anticipate normal stay We now, areas XXXX. be of which XX:XX I is progresses. and sort of cash there'll of that head to to the and inventory, as and I’ve split The into mentioned, into disposables, capital particularly will

Jeffrey Cohen

far scaling and Okay, issues any or don't you as up? as year medium term see term

Tim Moran

a partners. Absolutely not. Mark, perhaps the about you can add little manufacturing more bit

Mark Pomeranz

Hey, Yes. Jeff.

manufacturing on, we of have good even continual manufacturing really actually actually the partners basis. things one and we're shape workstations going we with monthly do So in the is on on a

three we quarter so, mentioned. ahead, in or two where a of ahead keep need Andrew as to we of those those always of be So production with lines of sort sort sort months active, to line running

the the we our staff, year. needs and all have continually just now So capacity next we adding keep lines through on service With line. additional running,

Operator

you. Thank

Global final question from Ben from Your Haynor Alliance go Please comes Partners. ahead.

Ben Haynor

get far of these of and couple takeaway of provide be what to any so limited. has system color early you're there? know there seen the utilization in I how was a familiarity just here little going days that early have, the from broad me. XX accounts is might bit it's or big a you've to terms with ramped, given kind their that can curious the But Just so is I you

Tim Moran

what with we you I'll past, product always a is, cultivate about work a with, -- of doing what a we thank -- approved development Ben our right, the adopter GENX to talked in benefit will say is -- having I unit had for the this we've of us hospitals, not you case, the which that group allowed about early think FDA if which and were launch. market bit this the question, the of say So do I've

in weeks facilities comparison through on So, think I I group with remarks, But procedures to to probably day on that X outlined am XX bit ramping having month in would ability the a move process. is day the comment being six categorize to XX and the utilization, these per the I that. timing even as to faster workstation comment that five around the with site, premature. comfortable to I process the in that XX to having prepared

forth view rapidly. that sales think on. very team on But here that's I pleased to I group. the continue we getting plan And in we am adopter this with our just these units execute early best I early set think had our with out the performance of

Ben Haynor

be that a to way guidance able was provide curious want necessarily those And run appreciate out, share to got But might quarterly don’t all of basis? I on rate. lastly annual the the you a for you from if where or breakeven to you see burn of kind point rate me, you internally, kind

Tim Moran

So, is Tim. this Ben,

a in we office, see team executing our the be commercial I running continue but organization, in this at juncture I not back this, both selling and But that place to providing point future in view, And focused some we to run be which point, and only very more revenues. metrics not effective on is business of, manner. potential be bring obviously also through we around expense efficient we at this in mentioned, the launch, the are back will And for will that early future, with to in for a on having at off commercial successful increase our just an he think, these But think recurring would business required here don't is comes significant why the me days breakeven we're also starting customers the an to from the put is put of if now points. organization we’ve interested XXXX. details, commercial and in logistics. we build premature start but are here. I appropriate office add if you us. this right? becoming we company interact to team that we about give think moving Again, I point from but have only can customer right? a processing the the mean, that, like right So, And support, Let inflection with order how now, the Andrew breakeven think Andrew said as together

Andrew Taylor

medtech of spoken as The although both going time be leverage I out guidance, to only not revenue providing over that Similarly, much find you we business think add getting with margins. will our with of very companies sales recurring Tim margins anticipate thing line will that to has model. personnel, growth be our is, I'd are at we our respect in operating to lot scale a

will we I get that, for level so occur same to which relates with well. think it in that need of medtech And thing companies get with cash to to will to line you of see sales reaching in will terms flow their the it what what positive in the other as level be as a timeframe

Operator

Tim this I at would Thank you. to to the There for remarks. floor turn like are over questions closing no time. further back

Tim Moran

at Thank questions thank Motus, interest to you, look Thank want behalf you. time the of to supporting team management their on everyone today. here want for term. near company. the absolutely We the Sian. just the the say again here I everyone I forward to and to and in appreciate speaking I

Operator

today's concludes This teleconference.

time. You for Thank may this disconnect your lines participation. at your you