So we saw strength across the board that all contributed to a really nice solid Q3, 31% growth on the top line, and next to that, some really nice continued progress on our path to profitability and our disciplined approach to OpEx investment.
Bill Plovanic : Sure. And then on the guidance is, fourth quarter guidance is flushing out at about 22% year-over-year. You’ve been running hot at 30%, for the year roughly, if all three quarters combined and, up and down, but right around there. Why — what’s the reasoning or thought process behind that deceleration as we head into the fourth quarter?
Mitch Hill : I think, Bill, we just want to make sure that we’re very confident in the guidance that we provide for Q4. And there’s obviously some fluctuations here as we reach the end of the year, and there’s some holiday time and some of the things that factor into our thinking about that. But primarily, it’s just one of wanting to feel comfortable, with the numbers we provide to the street.
Bill Plovanic : And I’d be, last question, I promise remiss not to ask on LimFlow. Just, I think a couple of times you’ve mentioned the reimbursement. What’s the wood you need to chop on the reimbursement side to kind of get that all settled out? And thanks for taking my questions.
Drew Hykes : Thank you. Yes, thanks, Bill. So, LimFlow does have established reimbursement, both inpatient as well as outpatient. So, that’s in place today. There’s DRG codes inpatient where we believe the majority of procedures will occur here. That was certainly the case, for instance, in their Promise II study here in the U.S. So, that’s in place and will allow a foundation for us to build on. We do have a line of sight to enhanced reimbursement inpatient via the potential for an NTAP, which would take effect late next year, as well as line of sight to enhanced reimbursement in an outpatient via the potential for a New Tech APC. So, both of those would be additive on top of the existing reimbursement that’s already established in those two respective sites of service.
Operator: The next question comes from Marie Thibault from BTIG. Please go ahead.
Marie Thibault : Good evening. Congrats on a great quarter and congrats on the LimFlow deal as well. I wanted to ask here a little bit more on the LimFlow side. You mentioned operating support, 2 million to 3 million per month. Do you expect that to ramp throughout 2024? So, is that just sort of a starting point? And can you remind us of the margin profile on that device based on, existing sort of ASPs and reimbursement assumptions?
Mitch Hill : Hey, Marie. I appreciate the question. The 2 million to 3 million a month that we mentioned is actually a number that we expect would decline as we move throughout 2024. The exact pace of that drop, we’re not quite sure. As Drew mentioned earlier, we’re still putting together and working on the revenue sort of plan for 2024. But that’s a number that we would expect. Ultimately, they’ll begin to kind of cover some of their own costs and then that number would decline in 2024 and into 2025. From a margin profile point of view, I think it’s best to kind of think about that in terms of the overall blended gross margin of Inari. So, this would be inclusive of the LimFlow product. And that’s the one that I can tell you we’re still comfortable kind of guiding to that mid sort of 80s percent gross margin for the company.
So, as we did 88.5% in the current quarter, we expect the gross margin of Inari as a consolidated entity will decline a bit over time primarily due to the international growth of the business. So, the new product kind of additions to it have some effect but not a significant effect.
Marie Thibault : Okay. That’s really helpful, Mitch. Thank you. And then a second question here on sort of the core business and the OpEx outlook. You’ve done a very nice job of controlling spend there. How are you thinking about sales force on the core market? You’ve got a lot going on with both DVT and PE and some of the new products. Are you nearing sort of what you view as peak salesforce levels? Is there a lot more expansion to do cutting up of territories? How do you think about that holistically?
Drew Hykes : Yes, Marie. I think we continue to see runway out ahead of us to continue to add to that team. We’ve certainly added each and every quarter in 2023. And I think we would anticipate adding as we move through 2024 as well. I do think the pace of those ads are beginning to slow at least relative to some of the huge classes we’ve added historically. So, I do think we’re modulating the pace of those ads. But given the penetration we’re currently at and the runway out ahead and the need to not only focus on VTE, but also begin doing work around some of these other new TAMs, be it within InThrill and AVF or the work we’ve begun doing in chronic venous disease with REVCORE, looking over the horizon the next year, reentering the arterial market with Artex. All that I think also points to the need for continued ads to the field team.
Marie Thibault : Sure. Sounds like you’ll be very busy. Thank you so much.
Mitch Hill : Thank you.
Operator: The next question comes from Adam Maeder from Piper Sandler. Please go ahead.
Adam Maeder : Hi, guys. Good afternoon. And thank you for taking the questions here. Congrats on the quarter and the deal. I want to start on LimFlow and was actually hoping to get some more detail on the salesforce that you’re bringing over, how many reps are, I guess, coming on board. How much overlap is there with your existing customer base? It feels like it’s a good fit with the existing call point, but was hoping you could expand on that. And then lastly, why not, let the core sales team also offer the LimFlow product? And then I had a follow-up or two. Thanks.
Drew Hykes : Yes. Thanks for that, Adam. So to start, LimFlow just got FDA approval, PMA approval back in September. They’ve got an initial team that has been recruited and trained and onboarded, fully trained, and they are commencing the U.S. launch as we speak. That number is something in the neighborhood of a dozen sales professionals. Right now on the team, we obviously would anticipate adding to that group as we go forward. The overlap with the call point, I think you’re absolutely right. There is a significant amount of overlap across the folks we anticipate performing the LimFlow procedure with our historical call points in DVT and PE. It’s a combination of vascular surgeons and IRs and ICs, the exact same group we’ve been focused on historically.
So there is some nice overlap there. To answer the last part of your question, we believe out of the gate here that this technology deserves the kind of focus and dedication of a dedicated field organization. It’s a non-emergent procedure, and it’s also a fairly concentrated group of high-volume CLTI, limb salvage centers of excellence. So I think a dedicated sales organization, we can have it be a pretty manageable in scope and still get the job done. So I think for now, we’re anticipating this will stay a separate sales organization focused on LimFlow, will keep the mothership sales organization focused on VTE. I do think there’s some really interesting potential synergies and efficiencies with some of the work we’ve begun doing from a market development standpoint relative to chronic venous disease.
