LENSAR, Inc. (NASDAQ:LNSR) Q3 2023 Earnings Call Transcript

But we’ve been very, very successful in the past, and it’s just hard to predict where that percentage is going to go. But if you press me, I would say the leasing percentage is probably going to be a higher part of the ALLY mix. And obviously, I think what you’re going to see is the more ALLY systems we get out there, the more cross-pollination between physicians and the ability for a physician to go in and see how successful the practice has become and how much faster they — and better they can do these procedures. And so peer-to-peer conversation and observation is just — it’s worth its weight in gold and it’s the best marketing that can happen. And so it’s like that commercial when the — he tells somebody else and it just expands from there.

So the more systems we get out, the more demand you’re going to see for ALLY just because of that cross-pollination.

Ryan Zimmerman : Okay. Very good. And then a couple for me. So I saw Oertli submitted its 510(k). I think that was public last week at AAO for the phacoemulsification component. I’m just wondering, Nick, if you want to comment on kind of when they could potentially be on the market with that and how it impacts maybe either the customer base or commercialization plans in the future?

Nicholas Curtis : Yes. Another good question, Ryan. Thanks. They — so they did submit their 510(k) for the Faros device. And Faros is going to be our predicate device for the optional, let’s say, phacoemulsification option to the ALLY. And so customers can either retrofit the Faros system into their current ALLY if they have ALLY in the field today without it. And — or they can order it with the phaco device when they order their ALLY to begin with. Either way, this will be optional for LENSAR customers on a going-forward basis. We would expect that — I’m a little reticent to comment too much on what is Oertli’s business and really under their control as it relates to the clearance of the device. But suffice to say that FDA has 180 days with a file, and that can move slightly depending on the questions and when Oertli response with the response.

And so just suffice to say, somewhere between now and 180 days, if they’re going to get the clearance, they would get a clearance. And then we would take their data and use that data in our own 510(k) submission for the ALLY. So I wouldn’t expect that it would be an option for LENSAR customers until sometime much later in 2024, assuming that Oertli gets their under a timely sort of — yes.

Ryan Zimmerman : Okay. Fair enough. And then last one for me. The additional salespeople you’re planning to hire in some of these new roles, I appreciate your color on that. Just help us understand kind of what that cadence looks like when those people — you expect to potentially have those people in place, when they could be productive and just how to think about that impact from the additional salespeople as we move into 2024.

Nicholas Curtis : Yes. Given the interest that we’re seeing in ALLY right now and sort of the activity level where it’s going, to be honest, I wish I had them yesterday. And so I’m pretty excited about the fact that we’re going to scale here quite a bit. I would say that between now, given the cycle of interviews, holidays coming and whatnot, realistically, I’d say it’s between now and the, let’s say, the end of the first quarter in 2024 from bringing on board and scaling. And people also have with their current jobs, year-end sort of cleanup and bonuses and stuff. And so I would expect that by the end of the first quarter, we would have several new hires in place there. We’re actively — we should be bringing on a second STR here within the next 30 days or so.