Penumbra, Inc. (NYSE:PEN) Q2 2023 Earnings Call Transcript

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Adam Elsesser: Yes. It’s a really, really good question, and I’m glad you asked it. I mentioned pricing really for a slightly different reason, we just have a simple system. We got a price. It’s easy, everyone knows it. And we’re hearing that, that is a valuable, a valuable way to conduct business. That being said, we’re always – always have been priced fairly, and that’s been our reputation out there, and that stays our reputation. And I think that’s important because you’re in business for a long time, your reputation and how you conduct yourself and what price you charge is fair. That being said, obviously, there’s a small premium for our products. We talked about this for the new products. It’s a little bit mitigated because like the Flash, you don’t need a separator.

And so, the vast majority of our guidance and success in the past couple of quarters is being driven off increased usage of the products, not pure price. And the reason that’s important to say that, one, it’s true, but more importantly, it’s sustainable. Price has a short shelf life to it. And it’s not something that we’ve ever will take an appropriate price when necessary, but we want to grow our business with sustainable share gain and market growth, which is very different than a short-term one-year bump full price.

Ryan Zimmerman: Thanks, Adam.

Adam Elsesser: Thank you.

Operator: Given the time your final question on today’s call is from the line of David Rescott with Baird. Your line is open.

David Rescott: Oh great. Thanks for taking my question. And congrats on the strong quarter. Maybe I’ll start off, Adam, on your comments around an expectation for a dominant share in the U.S. stroke space within the next three to four quarters. I guess one more basic question. Should we assume that this implies that you expect to have a majority share in the U.S. stroke market within the next three to four quarters? And I guess, given the longer time line to Thunderbolt, does this imply that SENDit is generally what is getting you to that dominant share position rather than more or less being dependent on Thunderbolt?

Adam Elsesser: Yes. You want me to expand on that? Yes. The answer is, yes. SENDit, and that’s what I meant by – we don’t have to wait – when Thunderbolt comes, there’ll be more fun. We’ll have more growth. It will add to our benefit in the future. But we don’t have to wait for that benefit now. We have – and when we first started talking about Thunderbolt, which was a few years ago, we didn’t have SENDit. So, we didn’t know that we would not have to wait. And the fact that we don’t have to wait, and we all thought we did, and now we don’t is a positive. It’s really kind of exciting. And to see, we had a tech suite at SNIS. We had physicians who were trying the products without SENDit and they were getting stuck around the curve.

They then try it with SENDit and failed right up over and over again. And the reaction is like, that’s amazing. And that’s about patient safety. It’s about getting the clot out fast because, again, if you take – if the clot, if you’re using Thunderbolt to get the clot out and it takes a minute or two, but it took you 45 minutes to get there, there’s still room for improvement in that case. But if you can get there in a minute or two, and you can get the clot out in a minute or two, then you’ve really done the work. So, we’re doing work now to get the first part of the case, the most important, getting there. And then we’ll add to that with Thunderbolt when it comes. Frankly, that feels like a pretty good set up for success for many years.

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