InMode Ltd. (NASDAQ:INMD) Q2 2023 Earnings Call Transcript

Moshe Mizrahy: One more thing I wanted to tell you on this is coming with new products to the market, you need to take into consideration your existing portfolio. You don’t want to cannibalize it too fast. So it all depend what do you bring and what kind of new indication or new procedure, how it will be in the full portfolio system. There’s a lot of issues to be discussed and decide before we define what product you want to develop.

Shakil Lakhani: Let me add some color here at Shak. Obviously, you can tell that the Moshe’s got a lot of passion for this and he’s engineer by trade and so what he’s saying essentially is that we’ll do what we need to do in order to get what we need to get. However, the measure, as he mentioned, shouldn’t be from how much we’re going to spend. It’s more about what are we going to do? What do we need to do? I think there’s a lot of companies that get into this and there’s a reason that we were able to scoop up some of the IP from there will be right because they’re no longer here. But I think for us, we’ve always been about saying power and longevity and so our engineering team is obviously strong, but we’re not going to just multiply spending.

I try to warn you guys that most of you have a problem with the word spending versus investing. Most of you will wholeheartedly invest when something makes sense. That’s what we plan on doing in the women’s health and wellness market.

Operator: The next question is from Matt, excuse me, Mike Matson with Needham & Company. Please go ahead.

Mike Matson: Yeah, thanks. Just on envision, I think you talked about the dry ISEA clearance coming in the third quarter. Can you just give us an update on that and how important is you driving sales in Envision?

Moshe Mizrahy: Well, you’re right. We thought that we will start the study on the third quarter. I hope it would be. We’re in a very loud stage of the FDA approval of the protocol. We had, we did a pre-submission to the FDA with where we suggested this is the protocol. We had a long Zoom call with all the team in the FDA-ophthalmology department. We agreed on few things. They asked us to send a second version of the protocol, which were preparing right now. And, hopefully, by the end of this month, it will be filed with them and then, doing an IOP. So, sometime in the middle of this quarter, we already have the doctor that will do the study. Pilot study was done in Israel and other countries. We know that we know that it is working and we’ll take it from there. And once we finished the study, we will submit to the FDA, hopefully, before the end of the year.

Mike Matson: Okay, got it. And, do you think that that’s an important feature to the ophthalmologist when they’re considering whether or not to buy the product? Are they willing to buy it now with the knowledge that that’s going to happen at some point in the six to 12-month period or something?

Shakil Lakhani: So what we’ve typically seen in the past with all of these technologies, not even just specific to the ophthalmology community, is that if you have physicians who are getting good results, they have apathy patients, and they’re generating some good revenue from it, they do the selling for us. And it’s just simply because they believe in it. They’re doing well and as long as they’re getting the results, which we are seeing 100%, they will do the job for us. So, seeing that it’s a little earlier, we do anticipate continuing some of the revenue growth and using it as a driver obviously here. But that’s kind of the most important thing when you think about this is, okay, if we do launch something before, study like that that we were talking about, we’re in the process of working and getting going. Do we have those other check marks, that we can put into place and as of this point, when I only see it getting better, we do.