Axonics, Inc. (NASDAQ:AXNX) Q1 2023 Earnings Call Transcript

Page 8 of 11

Operator: Thank you. One moment for our next question. And our next question comes from the line of Mike Matson from Needham. Your question please.

Mike Matson : Yeah. Thanks. I just wanted to ask for an update on the patent trial. Is it still put to happen in August?And then, just wanted to gauge your ability or your comfort level with kind of, if you were to be – being purchasing any of the claims, any of those patents, your ability to sort of redesign around that, sell a product that’s not pressing. Again all hypothetical.

Dan Dearen: Hi, Mike. This is Dan. As we’ve always said, we don’t believe we’re infringing any of the patent claims that have been asserted against us. The trial is scheduled for mid-August. And the second part of your question is correct, which is, there are ways to make other designs. If somehow we were found to be infringing any of the claims, which we continue to maintain, we are not.

Mike Matson : Okay, understand. And then, I think, Ray, early in the call mentioned that you were adding reps that were dedicated or to Bulkamid. So, maybe talk about in the past, it’s first that I recall hearing that. So can you just talk about that decision? And why you’re doing that versus having one sales force focused on SNM and Bulkamid?

Raymond Cohen: So, Mike, it’s not different. I mean, so let me let me try to explain. We have a total around – I’m going to round down to about 150. We’ve got 150 people that are not sales managers that are that are quota-carrying. Okay? And there – you can imagine we started with sacral neuromodulation, right? So some of the folks, some of the folks have been all in on sacral neuromodulation since day one. And when we brought on Bulkamid, they offered Bulkamid to their existing accounts, okay? Simple as that. But at the time of the acquisition we also inherited a number of people that were focused on selling Bulkamid. So what we’ve done is, we’ve enhanced that group of individuals and we facilitate a lot of cross-selling between, the teams.

So there really is one team of individuals is just that some of them lead with Bulkamid. Others lead with sacral neuromodulation and then they cross-collaborate or there is cross-selling involved, right? So – and what’s the reason? If I’m interested customer for Bulkamid and I haven’t used Bulkamid before, I need to get trained. So we want to be able to have those individuals go in and do the wet lab training, right? We bring in a pig bladders and a setup. And we get them trained. And then, hopefully, at the end of an hour or so then we’ve got some live patients that they’ve scheduled, which is the optimal way to do this. And then we can move from the pig bladder to the actual human urethra and observe to make sure that they’re executing on the injections and the appropriate technique because this is technique-dependent.

You put the material in the right place. Use the proper amount of material. People have phenomenal results when they get off the table dry. I mean, that’s why this is such an amazing product. So nothing different in our strategy. It’s just that, we have more products to sell and a lot more revenue needs to be generated. So we just got more people. And once again some people start with the bias towards Bulkamid. Do the heavy lifting there. Others are biased towards sacral neuromodulation.

Mike Matson : Okay, got it. Thank you.

Operator: Thank you, one moment for our next question. And our next question comes from the line of Anthony Petrone from Mizuho Securities. Your question, please.

Page 8 of 11