Haemonetics Corporation (NYSE:HAE) Q3 2024 Earnings Call Transcript

But again, we entered into this agreement with them because it works for both parties. It gives us that gradual soft landing if you will with – coupled with the ability to expand our share and market presence elsewhere. And that’s what we’re working hard to achieve simultaneously.

Larry Solow: That’s fair. And what about in terms of just, you mentioned sort of gaining some momentum – momentum on Persona continues and going to be rolling out Express Plus in a bigger way, it sounds like coming up over the next few quarters. Do you expect to kind of get some more pricing as you go forward as Persona continues to roll out and as Express Plus gets into the market?

Chris Simon: Yes. The fundamental aspects of our plans are continued market leadership, strengthened market leadership in plasma. We’re absolutely committed to that. That’s what we’re experiencing. I’ll give you two stats, $25 million and $50,000, $25 million Persona collections, right. We’ve demonstrated the safety and the reliability and the performance of that system, 9% to 12% yield enhancement on average. That’s an answer for all of our collectors in this environment to their productivity challenges. So – and we do anticipate an appropriate premium for our technology. Express Plus is performing exactly to our expectations. And just as soon as we have the –finalized our limited market release and have worked out all the remaining questions, which are few at this point, right, we feel great about it.

The customer feedback has been outstanding. And we’ll look to flick the switch in early fiscal 2025 and roll that across the field. We’re not going to talk about specific pricing given the competitive environment, but we remain committed to growing share and improving our margins as a result of technological advancements that have unrivaled value propositions.

Larry Solow: Great. And just lastly, if I may, a simple question and just on the OpSens, obviously you closed the acquisition a few weeks back hasn’t been under the hood too long. But maybe you could just speak about just the expansion opportunities under your umbrella. I know they’re two lead products, or I guess they’re a lead product, I guess OptoWire and then the SavvyWire you mentioned. I guess they’re both now going to be under a much larger sales force. So can you just speak to the limitations they had previously or just maybe that significant opportunity under your roof just going forward?

Chris Simon: Yes, thanks for the question. Sorry. We are really excited to welcome OpSens as part of our company going forward. So shout out to those employees. We’ve spent a lot of time with them over the prior six weeks now and have really gotten to know them, understand and appreciate their work ethic and their commitment to advancing patient care. So it fits hand in glove with what we’re doing, with what we’re now referring to as interventional technology. So it’s our Vascular Closure and it’s sensor-guided technology that we’ve acquired. So, yes, we will put that directly in. In fact, the training is underway. Our sales force being trained on the guidewires and their sales force being trained on Vascular Closure. We expect to have completed the fullest of that training this quarter, fourth quarter fiscal 2024, such that we launched together in April with fiscal 2025.

And the [indiscernible], the Apheresis, the collaboration has been really excellent. And so, we’re quite optimistic about what we can do together to advance that product. And I think some of what we talked about, some of the OpEx expansion you see over the last two quarters is us preparing to make sure that these products can live up to their full potential as part of our portfolio. So stay tuned for more, but we’re very optimistic about what we can do together here.

Larry Solow: Great. Thank you. I appreciate the thoughts.

Operator: Thank you. And our next question coming from the line of Andrew Cooper with Raymond James. Your line is open.

Andrew Cooper: Hi, everybody. Thanks for the time. I’ll save my CSL questions for offline. But maybe shifting to the VASCADE International and you called out the 200 bps of incremental growth there. Just a little bit of help on sort of the trajectory you expect from there. Is that the first bolus and it’s a gradual pacing? Or is there a potential for sort of an inflection here now that you’re out in the market in some of these other geographies?

Chris Simon: Yes, thanks, Andrew. So, the way we think about the expansion in Vascular Closure, we’re going to, where appropriate, replicate the playbook that served us so well in the U.S. And so, there aren’t 600 accounts in Europe, for example, there is 250 or 260, but – and we’ll use a combination of direct and distributor approaches to fully realize that potential. So, it will be mixed in that regard and appropriately so. We think it’s more economical and feasible as we scale. A lot of the lift experienced in the third quarter was specifically from Japan, right? So like most companies, we’re using a distributor model in Japan. There was the initial buy-ins that came with that and you see that come forward. What we really like – this is true in Europe and it’s especially true in Japan and we were able to secure a very favorable reimbursement in Japan to reflect this.