Motus GI (MOTS)

Garth Russell LifeSci Advisors
Tim Moran Chief Executive Officer, Director
Andy Taylor Chief Financial Officer
Mark Pomeranz President and Chief Operating Officer, Director
Drew Stafford Piper Sandler
David Kuang Oppenheimer & Co.
Boobalan Pachaiyappan H.C. Wainwright
Call transcript
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Greetings. And welcome to the Motus GI Holdings First Quarter 2021 Update Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I’d like to turn the call over to your host today, Garth Russell of LifeSci Advisors. proceed. Please

Garth Russell

Executive and First for Representing Mark Quarter are Moran, Operator, the us the Pomeranz, you Taylor, Tim GI Andy Operating Motus XXXX Chief Motus President thank and you, Officer; Officer joining everyone for company Chief Chief Thank Financial and of and GI. Officer; Update Call.

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

our turn in to Moran, XX-Q recent with floor the detail CEO SEC. filed undertake Motus or to any in and in forward-looking these revise such events. Factors cause like obligation, revisions on and implied most or Periodic over discussed are release that XX-K information, X-K filing on Form now I'd future GI. forward or Sir, from statements the any of by the looking the or our outcomes will statements could We differ results other not materially results those call to greater to expressed Form light Report of Tim new of is publicly actual yours.

Tim Moran

of creation call, quarter, during I everyone an that earnings outlined commercial an on our you our followed thank us update for XXXX providing first four first fourth of call. in the update Garth, Thanks, by quarter joining by the quarter value data each progress we prepared GI's start drivers today Modus for I'll specifically, first our overview on which include Upper will to financial clinical call the quarter. to GI of At I'll FDA recently Pure-Vu our performance remarks, take strategic end your the innovation, provide the partnerships. then an reimbursement, Andrew our for questions. system, and ask and cleared product open more

relates To market conditions are team specific target multi for evaluations progress, customer result, to acceptance pleased focus as to As which larger hospitals, dozen US cultivate to conducted execute a QX strategy I'm are our as system have impacts our it relationships and that commercial Pure-Vu important academic of centers due building more we varying steadily on two colonoscopy. in And particularly hospitals. continues These systems. COVID-XX. medical our awareness, date, than health improving most of report utilization market to product that site speeds, at of progressed to we've part prominent are evaluations of hospital proprietary at

taken the As a our than planned. commercialization longer initial phase of result, has

I in growing. However, Pure-Vu that am is pleased interest

has receiving our customers the system, feedback technology and existing regarding more Importantly, hospitals commercial users which prospective requests highly positions from believe We're by very future inbound success. well in physicians Pure-Vu us we for evaluating and positive. been interested

at US Our key been strategy primarily leading on initial prominent focused hospital opinion systems. GIs has

our including marketing, on growing we've of year, effort with compendium clinical are studies, our as this last online through digital platforms. creation physicians, in podcast the our case one as which social series, available the GI During well supported and interviews also of investments Pure-Vu other media through one website

regional to sales pipeline, our of terms team expanding community IBM. hospitals, our and is In its outreach

in Maryland. Methodist Texas, restarted Houston as we in at QX, and of the as largest evaluations community Hospital, one completed Hospital hospitals example, well both Sinai For in

incremental third Notably, quarter this performance represented consecutive indicators first of quarter last of terms revenue a delivered we of key revenue in compared to the XXXX, XX% in our growth. In increase quarter.

GI additional of increase we we are on targeted of are large Pure-Vu We now for we accounts. Pure-Vu sleeves with market site in evaluations conducting us at steady to this adjustable hospitals very numbers the opportunity purchases of comparison paid part well this of at signed minimum agreements, We the access which to attribute the the for second product to training in in Pure-Vu hospitals, to volume Pure-Vu four the as conducted physicians as as still and are to workstation. procedures rebound our in most quite half quarterly revenue regained procedures XXXX. quarter, US, US both major While require see modest single-use as relative return encouraged have of progress use

sites negotiating in are additional expect close that as second currently We agreements, to such key quarter. purchases the we with capital as well

bit volume these a expand me further committed on Let agreements specifically.

agreements adopter recurring us reasonably customer revenues First, these quarter. with sleeve predictable early provide each

we provide the agreements margins, as on the return these workstation. list sleeves typically for for strong use pricing gross command of in Second,

the Finally, with balance sites, levels committed aim continue of expect to through within we each the train additional minimum grow requirements. the exceed purchase physicians XXXX, of these quarterly procedural at to volumes that to

base a focus strong advocates for who technology. establishing Our commercial Pure-Vu on of remains our users are

as creation As now awareness does within same thoughtfully want grows, opportunity use to sales the health To support do system. that started reach in well expand I drivers. growth, our have hospitals areas. hospitals solution to value adding Pure-Vu, both four we the shift gears our within for to in as needed anticipate our so resources our to to select XXXX sister

the disposable Let's report granted I'm new And the GI endoscopy, to are is market existing fit at clinical they utility identify for sleeve lab. another start and that innovation. in attempting lower by GI two uses gastroscope new commercial clearance source. procedures are same able during blood activity consider we've GI performed use of to will Pure-Vu Therefore, same developing new overall the been the soon as the the Upper pleased an Pure-Vu upper exciting in capital hospitals solution. our the adherent physician on XXX-k the sleeves customer using further blood perspective view This to as our obstruct same us the frequently that weeks ago, to opportunity the target sleeve and endoscopy. need enhances target GI critical new bleed and product base equipment designed a of Pure-Vu The From clots application. for physicians. treat GI be FDA Upper for our field with for Pure-Vu the

We market the a removing expands expect Upper XXX,XXX occur vortex US approximately US leveraging bleeds our improve by pulsed key cases irrigation visibility. Pure-Vu sense obstructions smart XX%. that per of by in a and with year, play to the in our addressable inpatient approximately GI can in at rate total technology, assisting which suction role these

Pure-Vu first our initiate Upper our us collaboration and case GI leverage clinical approval will FDA In users. utility terms gain evaluations of to is next to with clinical steps, that allow in demonstrate priority learnings existing to

commence world our XX in to expect who procedures. June pilot key initial of at excellence, real centers will perform We cases of approximately series an

we During of experience cases. important feedback procedural a this and UPPER will phase, different patient GI pilot across gain variety

Upper launch. We expect these learnings to a help GI inform for commercial our full plans

Now in accelerator potentially quarter, let's technology one to add-on we two to commercial our In Pure-Vu reimbursement. execution. would setting submitted serve if reimbursement inpatient CMS; applications reimbursement for for payment, as and awarded provide the fourth an the discuss which current a new

could outcomes provide through a patient the centers for complement our potential to may additional outpatient catalyst due it health the drivers, direct awarded for cancer the that is be adopt system for only payments. would pass delivers Pure-Vu procedures to an in physicians of business, first for innovative serve as which incentive coverage to coverage Securing transitional be superior the colorectal and Pure-Vu application believe screening our second through for Pure-Vu an and outpatient important course, economic pass favorable today. The technology Financial payment, if outpatient of we market.

the We're stages to of of Pure-Vu by gain executing We payers. our for the system in by expect CMS feedback initial also both on coverage applications private the end XXXX. strategy

to access process variety provider first we've top an aligning am mind firms, us our to to in The a nation's has different with to just I the our agreement we call a help date. efforts. initial and as this obtain manage partner for to services submissions a outlined well only one And that who keep to signed reimbursement. been develop this implement a of product pleased to step reimbursement payer Please report engaged there in system. review assist with of platform us is partnership outreach in program, on avenues peer reimbursement support patient as that are the external and

making While forward. to I'm we move cannot company. guarantee we're plans a terms, the this is reimbursement payment or the key our favorable progress pleased early with for priority And

in and helpful of to We compelling new cancers as generate cost, Moving our to lifetime believe cancer per Pure-Vu There of for of colorectal colonoscopy. could the sponsored the current week, journal to outcomes system clinical screening. patient current findings to care are savings of compared outpatient this driver, in the $XXX and up outlined the the the this of coverage. a quality Effectiveness Allocation for creation use that new life the our third the Resource analysis seek on data. to article of has the colorectal published Cost of Last aversion standard potential show important of care and system generation data of standard Pure-Vu be to outpatient compared efforts reimbursement value outpatient

of current This study the from evaluating to clinical bowel XXXX. last is of who we study compared outcomes investigator GI hours patients. to of we challenge the bleed We typically our XX prep The The bleeding. is with at the time Pure-Vu study is anticipate for using current this begin enroll minimal could terms this patients to having Clinic as benefits diagnosis to bowel of GI initiated and completed Cleveland the XX studies, as study In designed a end clinical the complete reported faster call, received system emergent provide our the standard during patients patients enrolling. by to prep. undergo care to in will economic much full to lower required active at currently least critical study lower XX

to as Finally, let strategic our relates thinking partnerships. reiterate me it

to several with partners. potential strategic We advance dialogue continue our

focus US, targeted in pathways for shareholders. enhance our our and our technology Our of and commercial finding US in unlock outside expand is value the regions development efforts to accelerate and the

value commercial believe and will important highly the focused our beyond. deployed potential progress. market, As criteria, business drivers will we I quarter. the and approach to we're strategic capitalize first options continue of to disciplined making to In fit in that for And over our consideration. a that their drive Andrew? call Pure-Vu and the Andrew, turn greater summary, trajectory will if for awareness results of utilization we the become review four available now to and in actionable our the financial have creation XXXX on enhance who

Andy Taylor

sales the everyone of Pure-Vu thank the today. XXXX reported joining for And approximately you primarily Tim. quarter us We for first you, from sleeves. of single-use Thank $XX,XXX revenue

this mentioned, Tim reported fourth increase As in XX% of of compared approximately the to quarter revenues represents an XXXX.

compared in with warrant associated the net $X.XX months issuance, $X.X common totaling we first included an March approximately diluted attributable or $XX.X or in $X.XX warrant was loss announced institutional last and executed XXXX, share the which under warrants net of basic a deemed previously agreement, or XXXX shareholders and investor. a ended January non $X.X million The per exchange per for diluted year. XXXX loss period basic million the $X.X XX reported of and basic from share, quarter share cash, with issuance the existing of the $X.XX per dividends diluted For to million three net same to of million loss

in fixed to $X.X year-over-year. operating During approximately the $X.X used the of a as period same compared million for XXXX, for first XX% net quarter, of was million and the activities assets reduction cash purchase

$XX.X cash outflows corporate call year, expenditures XXXX value associated with meet quarter loan warrant in case compliance As cash At cash our through totaling exchange XX XXXX. Valley Bank. This agreement, and as time and equivalents. not recur agreement in cash each on raised XXXX. current the execute are year our quarters our With to with needs million, creation I'll that, March poised in and approximately covenant, we into overall the matters, first XXXX, approximately reported million term liquidity annual we certain $X.X includes this drivers, compliance to XXXX Tim. will included is the balance, $XX ensure quarter cash future balance million Silicon this our with over one which million bank And our with well turn back from anticipated as $X

Tim Moran

a stronger the addressable in on company. and build catalyst In Andrew. a been have half never capitalize Thanks, to continuing of a back to our as technology Pure-Vu supporters procedure committed remain intend mover near loyal work a we closing, ramp perspective, to our to believe to strong market. ensure in to our advantage to We in first with access this continue expect of volumes we and customers position foundation XXXX. term we From large

four forward continue new data reimbursement, will drive including generation, to opportunities. We clinical innovation, partnership each strategic product and major of our catalysts

commercial catalysts our for open Our for us now provides shareholders. I these and their questions. call our operator customers, opportunities your progress for patients to to coupled significant key value with the unlock ask will the


question Piper Jaffray. Matt Our Instructions] with [Operator first comes from O'Brien


Hi, guys, actually for last quarters, a purchase the more questions. to the good you sleeve afternoon. Drew This want a And disagreement. thank signed couple minimum you taking is Obviously, this Matt. couple on on start I off quarter. for

have COVID And any you you are institutions started up accounts Just agreements. signed how last there any update well. as relative tracking their as volumes. those they to feedback understand in from those to impact then quarter I on some ramp those


thanks Drew, more able is hitting quarter. as accounts each say these see. accounts of additional Tim. that this sign gaining far been spending we expect and referenced we what a to so in remarks, basis, here which This we're now beyond. quarterly question. But sign objectives Yes, to that I on that in the And for time additional to pleased minimum prepared we is we're QX pleased Yes, accounts to training also their so the committed were I'm want these we've access physician. accounts But in is

have it expect half in that well grow as is us design that having far the up get we and coupled get But influence we and and of ramp into the allowing expect those ability that fully that the into roadblock and far and program further these back will the we site truly get not year. usage in be so accounts just to a beyond capital accounts will minimums, So our these fosters so year good. the that be now on further these accounts process so funding of to to but with quickly


Okay, hear. kind out maybe And of schedule, congrats approval about of that's roll help us there. on Upper the great to the you well think GI, ahead turning to

you're what pilot 'XX cases point think some you 'XX? going full the mentioned you is like think a I Is off, market change thinking anything it type you're then, or going the should about able VAT do more launch? how be it are that to approach, to And event? like that? committees kick how Or Does we proceed to institutions? that the way


submission you pleased, the job. short were as with approval. it regulatory a pleased we to very our so engineering very team, Yes, of great that Internally, it team FDA course, a our And and and team. The R&D in, And want did make terrific folks compliment order. came focused. said, to very with clear I then,

procedures. to upwards it so important initiate the XX And the that first to a full feedback, here call really based terms GI to is accounts grouping that's the of inform you pilot in So to do is yes, the on the that, want Upper commercial this key of for physician want priority initial eventual learnings, we that will all robust, development, things of key us procedural launch. to do things ensure get reason

it's terms So into But of call Upper doing, same And we're we to accounts, I've in it about the going market. we're in to, synergistic with based us is same this everything do the that's that position couple cases. now, that then really point. very that, before, to the the going then opportunity. on months that'll as talked GI right excited right; continue call inform take, those it to Drew, speed on we're a initial

add force lean leverage now to can sales the productivity of that have. very to more got they've works we the that, another indication we existing it of then top and sell. capital. But on off So And

that's a forward And them it role obstructing accounts treat on blood relates of different the And going a for and a go I situation. acute this to VAC for already utility. the simple site, obviously, is view basis, this a can the that to big because think system on the So play going as Pure-Vu that one now, capital overall to something capital two and committees to to is have very about blood very GI be this field when indications. physician, but we've talked investment or is Upper are this, allow critical clots upgrade

to the the So we that to combination to nice channels believe to physician going as allow being existing a of able the to that truly use our the product visibility, is clear while working gastroscope. still act have gastroscope

they're gastroscope working get is So to using suction, which channel, them tools the their for irrigation, intended our it allowing they're for. not up what to down tying truly which is device put suction it's using that now the

we're take strategic the bullish, to then, next have pilot a further in So, call anticipate the update. of we so but approach, providing the this very this very I be portion a first earning on series, and will


kind of early revenue little And that profile just bit the have start just things is XX for institutions to the fully you here, that's and total from general, sign high revenue what correct then, at stepping next, number more start pushing to I maybe institutions strategy cost out Very some over when acceleration, to the last of helpful. Pure-Vu, business on this me, and in am looking back months the And similar laid work those and debt, to kind understand to continue going the expect on, out you and perspective one of build right just obviously make of sure a want expect to you a I a XX interpret to the you pace, sort process see the at a interpretation? XXXX. efficacy of I that in aggressively part with


XX- relatively said quarters really that phase. themselves, gives speaking, physician learnings, sites terms because it's that's But the think first think best taken investment is the the a to way about how to the talked the COVID I extra product obviously, it from you those setback about of accurate. make the through kind resources. was significant that we're saying, procedure. feedback I launch, that Drew, thinking a then we've you really about this learnings the couple we there And the it initial the gives is, And if you generally with So call a think it of so beginning was get selling procedure is into of that what in and need the reason you the utilize important to XX

I able So we're much that these think accounts. back opened we're have along moving to in reps things further now get our and up that into

So you start heard resources me we sales say add to will earlier, this year.

have more our the size team. of opportunities we than sales So

we out start the also business that a us commercial up and which really we're seeing capital ability scale to then have see resources into coincides to as evaluating, you'll think So partnership, happening, I the remarks, as of And prepared closing the kind the accounts of which these more, could the into the but from invest committed resources nicely in be reordering a products basis. continue we're viable add consistent potential perspective. converted, heavily to to option for the expectation strategic to sales a fully the I the on mentioned of year, ramp with end getting process,

this terms advantage. of, addressable have only how got mover what take really first market available, that, get frankly, thinking we large, right, the So, and we quite that we're but into the large in we've product do that's here

So ahead. exciting future


with comes Oppenheimer. from Our next Lichtman Steven question


this Steve, on thanks Hey, taking questions. for our for actually guys, is David

into would the could, with with could the that's getting what I you Upper you Just about was that. extended for if because environment talk starting like wondering launch reimbursement indication look off GI. the upon I'm if wondering me,


this, Sure, we're to we new submissions of would GI I so this they kind with programs what our these technologies. with are there more we what into, about, doing just that that similar can fit track believe programs fast lower offer GI, for initial lower say CMS that is talked that product

same that now, this like product David. market opportunities, GI is the Upper an to those and would obviously, evaluating have unique we're those So,

for have and to to certainly opportunities shorten of the don't we So ability in the we'll shorten with prop also that hospital any lower of takes something at the What for based to you to in going terms give Pure-Vu similar which we GI an lower bleeding stay, evaluating, diagnosis these get will that's will this and GI value commercialization. be our And GI, take part a of procedure, patient for both our length all but GI think cases. say applicable if have advantage it that's of the benefit times update that terms to would I support for most is in is timing, we in we're be time the Upper cases the avoid Upper can and terms of to can procedures, on difficult delays or significant hours, institution. endoscopy

the think But not accelerator Upper future. in just be we a reimbursement were is So to GI get to if headwind. an reimbursement we on probably


Okay, secondly in looks could about great. was helpful. the CapEx broader rollout. you of you hospital placing purchases the environment given ahead? anticipate the then what Do 'XX from wondering any current That's And I me like, talk outright system vaccine just if


would to that about quarter, first the even last certainly we it Yes, talked we're and rollout in quarter, start getting quarter. seeing so second improve in the we anticipated vaccine in as better we're the And things.

our view our the flexible onsite these significant begun positive. access, up all very all and in has new to perspective, to the with that's changed company a we're don't said a accomplish know what business, And as market. as a very, discussed downstream on certainly impact, we've to past. trying the customers course, be hospital physician of months. I I'm their build very So purchase. popular. as we specifically you we're the to XX Currently, seem capital We've in predict compared to see capital is From us to And the it But focus program to that we facility. mean of as over and do because options yet simple of improving gives leasing which about has I is a this we'll which, now positive, we that mindshare very calendar get for a we've an technologies talked can offer course the agreements, program, as I'm open being update of between environment or the outright more. the ready lease the year. XX into terms end certainly then volume not sure capital


lastly just that any for And on should either it. Are we year, updates expedite me. there from reduce Got any be or types presentations study? of data this out looking


we certainly on Yes, underway, comment focus have a are that both kind of upcoming the Mark, on clinical of as well done, existing Pure-Vu getting sure, on ask we're studies about, line publications. we but have new the just how trials who's that to thinking some I'll as


Hi, call. for the everyone thanks joining

will are of be So, full course of in yes, it really Pure-Vu we months. coming looking And at reduced -- journal. likelihood the coming high of out steady

our and believe also institutions at on in trial, trial. think that we parts for investigator expedite the that talked unfortunately as had So we're I happen past, the track the looking switched about in of for key early to we've

in But and data will to full as So be we we of regardless out coming well. get set get disclosed publicly with data do anticipate we months that that that, didn't a that the study. able


comes Our with Chen Wainwright. H.C. Yi next from question


Hi, for this Chen. dialing is Boobalan in Yi

new the beginning is reps hiring anticipate as sales So, normalize? economy do question, you to first


We intend for speak. Hi, year. is that in to add based do. we sales throughout areas. and looking the this as But metro Yes. resources do really, Tim. we actively This Yes, And specific we're question. opportunities at Thanks it'll be needs strategically on Boobalan.

give as I we sales of said, be will team. number that because opportunity. to going to you to would we're ready I So with our expect will specific not we're do kind intend it add see to, a commensurate But


one, quarter? planning XXX-k you submit new to the applications next Alright, coming are during


we GI, we're call a is from perspective, a for XXX-k But got any so on application we obviously just the approved ago not quarter and month ready the or most Upper here next to So other would absolutely additional that one appropriate be we submitted folks, so. of terms submissions -- platform the to recent in it comment nothing but as XXX-k on our a have submission. to develop be R&D perspective. a will pipeline, would that product We comment definitely and update from it continue opportunities today we in robust


queue. in the further for time, closing to There At are this no would back comments. I call to turn over like questions management

Tim Moran

Great, thanks Tanya, thank And I the that. just I appreciate call today. joining everyone want to for

accounts. As and I enthusiastic all are access back market in of eventually now not, out said we if here and to the that we're with most excited our

seeing As certainly commercial Motus very creation nice the you drivers have of can the we term, growth heard today, near our term we're here a but a traction from perspective. And proved four to on believe value impact long business GI. be the important for

talking to call. you forward you quarterly we and during look next to everyone thank So


does This conclude today's you. Thank teleconference.

lines for And time. You your Have a may your this you disconnect participation. day. thank great at