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

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Larry Biegelsen: Yes. Adam, I’m just wondering to follow-up on Robbie’s question, embolization has been a good business for you, growing mid-teens at least. What is going to do this quarter? And I’m wondering if the sales force is perhaps distracted launching two products. And just – I just want to sneak one in on vasc, it seems hard to get to – how vascular is going to grow faster than neuro for the year, given the first half, neuro has grown so much faster than Vascular? Thanks for taking the questions.

Adam Elsesser: Yes. Really good follow-up questions. The first one on the coils, we’re already in a majority market share with coil. So by definition, that is going to slowdown compared to the beginning of the two most significant launches in our company’s history. So, I think the numbers are fairly obvious when you do that. And don’t get me wrong, everyone is proud of our coils. They do great work and have a significant clinical benefit. But just by definition, that’s going to happen. The question around vascular, I think we answered it in the script. We have way more hospitals coming on board with Lightning Flash and Lightning Bolt than we already have. We’re closer to the beginning, I made a pretty specific comment that we have well over 1,000 submissions in the U.S. alone for Flash and Bolt.

We are way – and these are mostly new customers and that process as it plays out, will obviously drive. And then this is folks who have seen it, use it once, going through the submission process at the hospital. The scale of this is different than any other product we’ve ever launched in our company’s history. And I just wanted people to understand that. And that means it’s – it might not happen in one day, but it’s happening. And I got to give – it’s a testament to the sales team for doing the work to get that going, but it also to just extraordinary innovation that is driving that many new customers to want to use this product. So, I think when you do the math around that, the question around vascular growth takes care of itself.

Jason Mills: Yes. The only thing I would add is just from a number standpoint, Larry. I think vascular globally was about 58% of our total revenue. That will climb in the third quarter a little bit, perhaps slightly below 60%. And then we likely will be over 60% of our business vascular globally in the fourth quarter.

Larry Biegelsen: Thanks Jason.

Operator: Your next question comes from the line of Margaret Kaczor with William Blair. Your line is open.

Margaret Kaczor: Hi, good afternoon everyone. Thanks for taking my questions. I wanted to really follow-up on two pieces. So one, get a sense of the scale, I guess, of the 1,000 active hospital submission for approval for Flash and Bolt. And I’m not sure a few people are willing to give us what number of hospitals, I guess, you’re at today, relative to the hospitals that you’re targeting and that 1,000 plus as we look out versus the potential accounts, right? And then a similar question on the adoption curve of those maybe that have trialed Flash and Bolt. Can you give us a sense of kind of their scale? Is it month – this month 1, try a few cases, kind of put it to the side, bring it on? Or is it kind of inflection has reached relatively quickly just as we go on throughout the year, it will give us a sense of growth?

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