Sham Shiblaq: The 17 strategic IDMs that we’re talking about represent roughly 30% of our BPH hospitals. This is from a sheer numbers perspective, about 800 hospitals. That is not the only IDN opportunity we have. That’s just our primary focus is working with the largest strategic IDNs. There are many other IDNs that we also have contracts with that are buying our systems. But just to make it clear on our strategy, we’re just focusing on those Top 17 to build momentum in the market across the country. Regarding the actual adoption, it is very similar to the rest of the country at this point. We don’t see these large IDNs necessarily adopting at a faster rate because we have pretty good adoption across the country. Like we’ve talked about before.
We’re actually seeing small and medium-sized hospitals adopt technology in addition to high-volume BPH hospitals. I do think long term there is an opportunity we already heard from some of our IDNs, the benefits of ablation. There’s a strategic IDN that has told us and showed us data that represents their urology business as a whole in 2023 increasing. And they have shared with us that the a ablation is the primary reason why that occurred in their total urology business due to surgeons and patients shifting their practices and coming to the hospital for a ablation. So, a lot of excitement there on the IDM front.
Reza Zadno : And just to close on that, I think it was also good to see that even with these corporate IDM sales in the first quarter, we did not see downward pricing pressure on systems compared to the fourth quarter of 2023. So really good to see there as well.
Operator: Our next question comes from Chris Pasquale with Nephron Research.
Chris Pasquale: A couple of follow-ups on the ASC opportunity strikes me as an important milestone on a couple of fronts. For one thing, physicians don’t tend to like to do procedures in that setting where there’s a lot of bleeding risks. Maybe to start, could you just talk about what it says about where ablation stands today from a safety standpoint and resolve some of those very early issues with the procedure?
Sham Shiblaq: Yeah, thanks. As you recall, we had published data on bleeding more than a year ago with the protocol that we implemented in January of 2020. All the procedures conducted since then we are very happy with the outcomes. In fact, it’s best in class as far as bleeding is concerned, even compared to other procedures. And many accounts, as I mentioned, have already started discharging the same day. So we are seeing great progress over there and that that conversation doesn’t come up much anymore. It was pre, I would say, the protocol that was implemented in 2020.
Chris Pasquale: Thanks. And then Reza, let me just clarify what you think this really means for your long-term system placement opportunity. Do you see the ASC as being wholly incremental, where now, when you look at a high-volume hospital, you think about, not just one unit, but potentially multiple units in multiple settings of care or could it mean in some of these cases that it’s a shift in setting and a unit is going into an ASC that might otherwise have gone into a hospital?
Reza Zadno: As we said, Sham and I, we said that this is really about market expansion. You know, initially yes, we started very thoughtfully with the high volume centers of hospitals, 860 of the 2,700. The data, as Kevin mentioned in 2019 was 300,000 resective procedures, but there are more than 12 million men with BPH and many failed to medication. So our ultimate goal is expanding that market, starting with the hospital. So this, we are not seeing this as either or it is, placing our system both at all these hospitals and ASCs.
Sham Shiblaq: Yeah. I would just add to that, Chris that we’re being very deliberate in the sense of, and I mentioned this already, that we have a lot of interest to go to the ASC setting. We have not done that because we want to make sure that we do our proper job of penetrating the hospital market and we have a lot of opportunity to continue doing that. But there are certain areas where we have a lot of experience to high volume Aquablation surgeons that have now have their geographic area that has penetrated many hospitals, you’ll hear from one on Friday at our investor conference. There is MSAs or geographic area that now have a complete footprint of Aquablation hospitals. That’s an opportunity for us to go to the ASC and expand that market at that point.
Chris Pasquale: Great. Thank you.
Operator: Our next question comes from Nathan Treybeck with Wells Fargo. Your line is open.
Nathan Treybeck: Hi, thanks for taking the question and congrats on a strong quarter. I wanted to focus on AUA, you talked about showing six month follow-up data from your prostate cancer trial. I guess what are the key data points that you expect physicians will be focused on here and assuming the data is good, do you expect Aquablation use in prostate cancer in 2024?
Reza Zadno: Yeah. Thanks. Definitely we are very excited to share more data on Friday. I hope you will be able to attend. The agenda is to highlight the six months follow up on those early patients. Those early patients, that the primary focus initially was to remove the contraindication for patients who have BPH and cancer and FDA, remove that contraindication. The next step is the two IDE studies that we have started for — so today, if patients have BPH and cancer, one can treat their BPH. But their goal is to leverage on our previous safety profile that we have shown for BPH because it’s the same organ, same procedure to treat cancer patients. But this is too early to say this is ready for commercialization for cancer. The goal is to present more data and again, starting with the safety profile and shows efficacy there.
Sham Shiblaq: Nathan, I’d just say that we’re very excited about the opportunity. You’ll hear Friday from a couple of surgeons and their personal experience with Aquablation in BPH and cancer. The labeling for us, like Reza mentioned, allows us to treat BPH patients that have prostate cancer. You’ll see some of that data as well on Friday, it’s a large segment of men. And so we will continue to collect the data, and then we’ll — we’re talking about prostate cancer. There’s no running to this. We’ll be cautious — with what the data and what the surgeons drive the adoption once they see the data.
Nathan Treybeck : Okay. Thanks for that. I believe I also saw that you’re going to have an ASC study presented at AUA. I mean, correct me if I’m wrong, but what can we expect from this data? And like do you expect this data to drive increased interest to moving into the ASC setting?
