LeMaitre Vascular, Inc. (NASDAQ:LMAT) Q1 2024 Earnings Call Transcript

You didn’t ask about this, but maybe we talk about it a little bit. But in Chicago, where we process our allograft. We felt a little production constrained out there, and we’ve been adding bodies and resources out there recently, and we seem to be turning the corner on some production issues out there. So, we’re excited about that. That might lead to more allograft growth going forward, but we shall see and we don’t really guide by product line.

Unidentified Analyst: Thank you. Yes, appreciate the clarification there. A lot of good questions today and that’s all from us. Thank you.

George LeMaitre: Thanks a lot Alex.

Operator: Thank you. Our next question or comment comes from the line of Brooks O’Neil from Lake Street Capital Markets. Mr. O’Neil, your line is now open.

Unidentified Analyst: This is Ed [Indiscernible] on the line for Brooks. Congrats on the great quarter. Did you mention what percentage of the Q4 sales growth was related to price versus volume? More specifically, how that was sort of split? And then maybe just in addition to that, any thoughts around changes within the split moving forward throughout the year if you have that info?

George LeMaitre: Yes. And you want Q1 or Q4?

Unidentified Analyst: Sorry, Q1?

George LeMaitre: Okay. Yes. Q1, 8% price, 3% units and we’re trying not to guide for the whole year. We don’t quite know, but maybe that’s the answer about we’re in the sixth inning of price hikes. Maybe we still have something to go with that.

J.J. Pellegrino: And if you want a little more color on that, the higher — the heavier hitters in terms of ASP increases this quarter were Artegraft and RestoreFlow and some of our catheters and Omniflow. And if you thought about it last year, it was more valvulotomes and shunts. It was more of a broad-based ASP increase this year in Q1 anyway. We’ll see what happens as we go forward.

Unidentified Analyst: Okay. Got you. That’s helpful. And then back to the sales reps. You mentioned you plan to hire a few more this year. I’m assuming that the reps that you have hired in the past and getting them properly trained has been a bit challenging and maybe time-consuming, how have you sort of approached this? And would you say that you’re starting to see some tangible benefits in that aspect?

George LeMaitre: You mean in terms of — I would say — I generally feel like we haven’t changed that much in how we train them over the years. So there’s been no gap between old reps hired and new reps hired. You’re right to point out, though, Ed, that it is a time-consuming project. I would say we have never been the number one trainer for medical device companies in the United States to sort of get at this right now. We actually have a job requisition open and being filled for a sales train or a dedicated sales trainer. And that will be the first one that we’ve had, and it feels like or years here. So, there’s some hope that we can sort of close down on that gap or that area of opportunity at the company.

Unidentified Analyst: Got you. Appreciate that color and again congrats on the quarter guys.

George LeMaitre: Thanks a lot Ed.

Operator: Thank you. Our next question or comment comes from the line of Brett Fishbin from KeyBanc. Mr. Fishbin, your line is now open.

Brett Fishbin: Hey guys. Thanks very much for taking the questions. Follow-up on Artegraft it’s been a very successful acquisition, just considering the U.S. performance. You mentioned a bunch of potential new markets and understand it’s still very early in that process. But curious how you’re looking at that opportunity from a TAM perspective across the markets that you’re looking to launch in. Maybe just understand, it’s still like more than a year out, but maybe like a directional range of outcomes if those launches are in fact successful?

George LeMaitre: Yes. Brett, that’s a fantastic question. We think about this when we talk about this a lot. Maybe if I limit my comment to Europe, it’s easier. Europe being sort of 50% of the rest of the world, besides the U.S. and Canada. You’d love to say, it’s exactly — Europe is half this — I would say it’s half the size of the U.S. you love it financially, let’s say, you’d let’s say it’s half of that. But then I cut that in half again, but one reason which is in Europe, they don’t use as much PTFE and prosthetic implants in AV access cases as we do in the United States. It’s a little bit of a different practice pattern by the vascular surgeons over there. So, if you took our $33 million of revenue in the U.S., let’s say that’s kind of fall, although we still plan on growing that.

But let’s take $33 million in the U.S., you go to $16 million and then cut it in half, $16 million being financially, Europe is always about half as big as the U.S. and then cut that in half again. So, maybe there’s an $8 million TAM there. And then maybe if you want to be really high level could say there’s another $8 million TAM away from that in places like Japan and Korea and China.

Brett Fishbin: All right. Super helpful color. I appreciate that. And then one follow-up on the product area. Another good quarter for allograft not too surprising, but the trends in carotid shunts looks like they bumped up again this quarter, I think was 27%. Just curious maybe on what was underlying that level of growth and how sustainable that might be?