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

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I mean we are constantly looking at different things. We have a lot of folks coming to us and they saw that we acquired Bulkamid and we acquired the foramen finder. So we get a lot of inbounds, as you might imagine. Our main focus is the new continence field and we’re trying to stay straight down the fairway with respect to that. So we’ve been evaluating a number of other potential products that could add to the bag that are strategic in nature, would move the meter. We don’t want to fill the bag up with a bunch of miscellaneous stuff, right? That’s inexpensive, that doesn’t make sense for us. So we’re going to be judicious and thoughtful about what we do. And we’ll just go from there. In terms of adjacencies, if that means what else could we do with neurostimulation?

I think that we said numerous times that we do not anticipate getting into an adjacent business utilizing neurostimulation as a platform that does not make sense, different call points, different businesses completely. So we’re going to stick to our knitting and just kind of stay straight ahead. We got a good business. We have such underappreciated or I should say, untapped market, with a combination between SUI patients who’ve been differentially diagnosed — or who have the moderate to severe forms of stress urine incontinence or urgent incontinence patients at the bath time. And these are tens of millions of patients out there. And I think our DTC efforts really underscore the magnitude of this opportunity and so forth. And when you run ads on television and you’ve got over 250,000 people per quarter and this year, we’ll be well over 1 million people coming to our website looking for information at findrealrelief.com.

So that, I think, also underscores the fact that this is a really unbelievable market. And I think it would quite frankly, kind of a bit foolish for us to take our eye off the ball. So we’re going to continue to go down the path and focus on growing the company, growing it profitably in the years to come. And I do appreciate the question, Shagun.

Operator: The next question comes from Anthony Petrone with Mizuho.

Anthony Petrone: Congratulations sharing a strong quarter. A couple just on account penetration, referencing some statistics from last quarter. You mentioned, Ray, last quarter that the highest volume accounts at Axonics are doing about 50 surgeries a year. Just wondering where the average is across the user base and how many can get up to that 50 upper bound let’s say, over the next year or so? And then, the second quick follow-up would be on just Bulkamid synergies here. Got that up to about 20,000 implants as of last quarter. And it certainly seems like there are synergies that are driving, I think, competitor wins, just considering that Medtronic doesn’t have it for bags. So how much more runway is there with Bulkamid, just in terms of that procedure being now a bigger option for patients and practices but also potentially a lever to gain share from Medtronic?

Raymond Cohen: Yes. Thank you, Anthony. I appreciate your comments. Let me clean something up. I think that either some misinterpretation or a little bit out of context. We have some customers that are doing well over 50 implants a year. So I just want to get that point across. It’s — they’re rare. And I think we kind of put them in 3 buckets, quite frankly. One is the — well, we use the term dabbler bucket. Which is folks that are doing around 1 per month, right? So that’s kind of — there’s a lot of those docs out there. I mean any one physician that’s doing 1 implant per month, they have the ability to do probably 3x to 5x more than that, with just a teeny little bit of effort, right? So we’re continuing to move those physicians up in terms of the volume which is why we made it a point to talk about the mid- to high teens rate of growth on a per account basis.

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