CVRx, Inc. (NASDAQ:CVRX) Q4 2022 Earnings Call Transcript

Robbie Marcus: Got it. Okay. Just last quick one for me. Is this something you’re going to try and submit for a late breaker at ACC? Or do you think you’ll miss the date there? Thanks a lot.

Nadim Yared: Yes, thanks for the question. We don’t know yet.

Robbie Marcus: Got it. Okay. Appreciate you taking the questions.

Nadim Yared: Thank you. The if you’re still listening, the ACC deadline for late breaker was — has passed. And that’s why we don’t know. We don’t know if the data will be, right unblinded number one, and if we are, if they would accept us even after the deadline. Thanks, Robbie. Operator?

Operator: Thank you. One moment for our next question. And that will come from the line of Matthew O’Brien with Piper Sandler. Your line is open.

Matthew O’Brien: Good afternoon. Thanks for taking the questions. I don’t know, Nadim or Jared, which one of you this is for, but I don’t want to overstate this too much. But when I look at the unit number in Q4 versus the number of active centers that you had the last in Q3 and even in Q2. That productivity rate is down somewhat here in Q4. So can you just talk a little bit about why that’s the case? And then the confidence and why those metrics improve so steadily especially even in Q1 and all the way throughout 2023.

Jared Oasheim: Yes. Hi, Matt. This is Jared. I can take that one. So as we look to the productivity for the accounts that we saw throughout 2022. Part of this was driven by the success on the addition of new accounts driving the overall average productivity down. We’ve said early on that right when an account starts, we see them treat one or two patients and then they push pause for a period of three, four, five or six months. They check out the results from a reimbursement perspective, but then also as to how the therapy is going with or doing with their patients. After they see that, then they start to pick up the pace on their own productivity. So the longer they are with us on average, the more patients they are treating.

So we still have confidence that the longer these accounts stay with CVRx, they’re going to treat more and more patients based on the data that we’ve seen and collected over the last three years. But I think the challenge we’re facing over the last couple of quarters is that we’ve exceeded expectations on the number of accounts we’re expecting to add, which just drives that overall productivity rate down, because of the newness of those new accounts.

Matthew O’Brien: Got it. Makes sense. So just to put a finer point on it, just because you’re up 15 and 20 active centers in Q2 and Q3 respectively. That’s the reason why that metric is down a little bit. And you’re not seeing any change from trend line as far as utilization among those accounts as we’re kind of exiting that six-month window?

Jared Oasheim: Yes, that’s correct. Yes, we’re still seeing the centers that have been with us for a couple of years doing more than the centers that have been with us between one and two years and they’re doing more than the centers that have been with us less than 12 months.