ShockWave Medical, Inc. (NASDAQ:SWAV) Q4 2022 Earnings Call Transcript

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Isaac Zacharias: Yes, Adam, I’ll take that. This is Isaac. I think in the prepared remarks and what we laid out on the last call was sort of the outline of the plan that we’ve already enacted to help drive penetration. It’s coronary penetration, but it’s also peripheral penetration really. On the – what we’ve seen from our sales data is that on the accounts that we launched in 2021 for coronary, we see what happened to utilization of the product in those accounts throughout 2022. And ultimately, that gives us confidence that we can drive continued penetration that and where we think the unmet need is still quite a bit higher than our current penetration. So from a territory optimization, we talked about adding territories and increasing number of FCSs per territory.

And generally, what that does is just gives you more touch points with the physicians, the nurses, the technicians and helps us launch products while we do that. The educational programs that we’re putting in place this year for our team, our sales team and from peer-to-peer educational programs for physicians will focus on kind of more advanced techniques for IVL and lesion morphologies and how to treat those lesion morphologies more effectively with IVL. So it’s really incorporating the learnings we’ve had from – since the launch and then driving new education. We have clinical publications coming out, particularly – specifically around eccentric and nodular calcium. And then that will dovetail nicely into what we’re seeing on the C2+ performance in Europe, which is you got more pulses and it’s more effective in treating nodular calcium with those pulses.

So I think as we look towards the second half of the year, launch C2+, we want to hold that to the second half of the year, so we can effectively launch L6 in the first half of the year. But then with the publications, the peer-to-peer training and C2+ to reinforce utilization in lesions that right now are maybe less ideal for IVL, because of the 80 pulse limit.

Adam Maeder: Really helpful, Isaac, thank you.

Isaac Zacharias: Yep.

Operator: Our next question comes from Bill Plovanic with Canaccord Genuity. Please proceed with your question.

Bill Plovanic: Great, thanks good evening. I’d just like to start out with C2, a couple of questions. Just one is with C2+ and more pulses per unit, does that – would you expect to see maybe a decrease in the number of units sold for the cases that were maybe using two that, that will all go to one. And then just on back to the sales organization in the U.S. And I think one of the comments either you or Doug or Isaac made was just in sales force optimization, I would assume that was in relation to just adding more TMs and SCS, but I just want to make sure, are you bifurcating the sales force to start focusing some on coronary and some TMs are specifically on peripheral or is it more just kind of the – you’re going to continue with one foot sales force addresses all?

Doug Godshall: Yes. So I’ll start with C2+ Isaac can talk about sales force. C2+ – we see kind of 1.0 something catheters per case. There’s a word today with C2. It’s a premium performance product, but it’s also a premium priced product. Folks are quite reluctant to grab a catheter – which also means there are cases that they look at today and say, oh that might take two catheters, I’m not going to use C2. And the early feedback out of Europe in our limited release is they are — there are some percentage of cases they’re doing now with C2+ in a limited release that they otherwise would not have been using C21 for that very reason. I know this is eccentric and it’s tough. I’m not going to get halfway through the case and then have to buy a second procedure.

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