Axonics, Inc. (NASDAQ:AXNX) Q3 2023 Earnings Call Transcript

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So as you know, we don’t have privy to that information and I haven’t heard any hard numbers. So, I don’t know if it’s as robust as you described. And just to remind people who may not be as aware, the issue internationally is you’re dealing primarily with single payer systems who have budgets that don’t provide a lot of money for products that are just the quality of life products, right? So that’s the issue that there’s these caps, whether it’s Canada or the U.K. or the Netherlands or other markets we might talk about. Australia is a little more of a laissez-faire market which is why we’re focused now with the direct salespeople — sales force there and we’re focused on that. So — but this shouldn’t take too much longer, right? I think that’s the point I was trying to get across in my remarks, Adam, was that we’re down the path, right?

We are engaged with these regulatory bodies and we fully expect to get this product approved. There’s no showstoppers per say. But things have changed a lot internationally in terms of the MDR requirements and even TGA requirements Down Under. So we’re working on it and hopefully, we will get the approval in our hands in a matter of months as opposed to a longer period of time than that. So — but you’ll see revenue increasing for us once these products get approved internationally. And hopefully, this could become a more measurable part of our SNM business going forward. I appreciate that question, Adam.

Operator: The next question comes from Mike Polark with Wolfe Research.

Mike Polark: Just on recharge-free versus rechargeable mix in the quarter, the mentions in recent quarters has been like 2/3, 1/3 recharge-free versus rechargeable. Seeing any change there? And I guess, just curious if any new insights as to what patients are preferring in the field?

Raymond Cohen: Thank you, Mike. I appreciate the question. It’s interesting that we all would like to attribute whether somebody goes rechargeable and not rechargeable to patient preference. But I would tell you, based upon dozens and dozens of conversations I’ve had directly with our customers that it’s not so much patient preference. It’s exactly whatever the doctor guides them to which determines what they ultimately wind up with. Which is why we try to remind our customers that with the new R20, you’re talking about a recharging interval of 1 hour every 6 to 12 months, mean that makes a rechargeable product not rechargeable really because they don’t have to do anything. They just schedule the patient back in.

Operator: [Operator Instructions]

Neil Bhalodkar: Michelle, we’re back on. Are you there?

Operator: Yes.

Neil Bhalodkar: Okay. So should we go ahead and continue?

Mike Polark: Yes. Mike is still — his line is still open for questions.

Raymond Cohen: Sorry about that. Okay. So Michelle, we’re live now again?

Operator: Yes.

Raymond Cohen: Okay. All right. Apologies. I think we had a power outage here in Irvine, California. So sorry about that. So Mike’s question was about the split between rechargeable and non-rechargeable and I was just kind of going down the path or explaining that as a company, we’re agnostic but it’s more about physician preference, it seems to us than patient preference. And the fact that the recharging interval is significantly long and not burdensome for people. But nevertheless, it’s tough to erase the perceptions that physicians have but because for 20-something years, the only thing they knew was a non-rechargeable device from our competitor. So — but the direct answer to your question, Mike, is that it’s now about 75% non-rechargeable and about 25% rechargeable.

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