ShockWave Medical, Inc. (NASDAQ:SWAV) Q3 2022 Earnings Call Transcript

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So a lot of the work is kind of this territory refinement, where we can continue shrinking territories in terms of the number of hospitals that the territory has, add FCSs into that territory, so that you now have kind of people per hospital that give you more time to focus in the account with each customer in the account. And what that then will enable is us to continue pushing penetration of M5+ for instance when we launch C2+ or continue like we did this year, pushing the penetration of coronary, while we executed a big launch with M5+. So I think, as we go forward, it’s — and as our kind of revenue base grows, we’ll be able to continue refining our territories, so that we got time to really work in the accounts and launch products while continuing to drive penetration.

And bottom line for us, we see a lot of upside to the penetration, still we’re in the early innings.

Michael Polark: Thanks for the questions.

Operator: Our next question is from Larry Biegelsen with Wells Fargo. Please proceed.

Nathan Treybeck: Hi. This is Nathan Treybeck on for Larry. Congrats on quartile. While I appreciate you’re not giving guidance for 2023. In light of the macro factors that you called out impacting Q4, can you just help level set of consensus revenue growth of 30% is directionally an appropriate way to model?

Doug Godshall: So — yes, you are right. We’re not going to guide 2023. Yes, we see strong growth as we head out of this year and into next year and sustaining it for multiple quarters to follow.

Nathan Treybeck: Okay. And how should we think about the contribution from Japan and China? You previously ranked growth in 2023 as US coronary, US peripheral and then China and Japan. Is this still kind of the right framework? Like those are the top three drivers?

Doug Godshall: Yes I think they’re still the top three. Japan will come on more slowly and we think sort of analogous to our US peripheral reimbursement, a very nice steady slow — methodical not slow, methodical growth engine and sustainable growth engine. And China, as we’ve seen, came on quickly second quarter with a stocking order but third quarter, all on reorders. So, we don’t expect given the sort of the nature of the market in Japan that will step up that quickly, but will contribute very handsomely. And given all the — given everything we’re putting in place and continue to see in terms of the traction we’re getting in the US, coronary will continue to drive handsomely next year and we’re really pleased with what we’re seeing on the reimbursement and new product combination on the peripheral side. It’s doing what we had hoped it was going to do with M5+ combined with a step up in payment level for the hospital.

Isaac Zacharias: Yes. I would just add to that. I think I agree with Doug. We’re seeing — I feel like we got great momentum kind of across the business, product line and geography. The Japan team is ready to launch. We’re pleased with MHLW and kind of where they value the product from a reimbursement standpoint. And I’d say, if I go back 12 months, I’m most surprised this year by the strength of our US peripheral business. I would not have predicted it to be this strong in growth this year even after we knew about the reimbursement uplift. But I think that’s a great sign of what we’ll continue to see in the US peripheral business and then what we’ll see in Japan with the reimbursement and what we’ll eventually see as reimbursement improves in the US with coronary.

Nathan Treybeck: Thank you.

Operator: This will conclude our question-and-answer session and this will conclude our conference. We would like to thank you for your participation. You may disconnect your lines at this time.

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