Silk Road Medical, Inc (NASDAQ:SILK) Q2 2023 Earnings Call Transcript

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Erica Rogers: Yes. And Chris, I would just add. I think one way to think about this is we’ve raised our guidance at $182 million at the midpoint which represents 31.5% year-over-year growth. And we did that in the context of a kind of steady as you go revenue per procedure. And so what that tells you by inference is that the strength of the business is solid. The procedural growth is strong. The adoption of this technology is strong.

Operator: Our next question comes from Adam Maeder of Piper Sandler.

Adam Maeder: Congrats on the solid quarter. A couple of innovation-focused questions from me and I’ll just ask them both upfront. The first is, is there any update on the acute ischemic stroke program in the NITE-1 study? And the second is regarding stent technology. So it sounds like you have approval for these new tapered stents, the ENROUTE stents. You’re going to launch them first half of next year. Wanted to ask who manufactures those? Are these open cell stents still? And what is your view on covered stent technology.

Erica Rogers: Sure, Adam. Thanks for joining the call. On NITE-1, we continue to make progress there. I want to remind everybody that this is a first in-human feasibility trial. And we’re making good progress. I’ll just leave it at that. On tapered stent configurations, that is an extension of the ENROUTE stent family of products and the ENROUTE stent family of products, we have a manufacturing relationship as you well know, with Cordis. And so they are making the tapered configurations as well. On mesh stents, look, I think we should reserve comments a couple of years from now when those products get approved if they get approved.

Operator: And our next question comes from Michael Polark of Wolfe Research.

Michael Polark: I just have one topic and I’ll provide you an opportunity to comment on our research. Look, we dug into a bunch of government and other data sources and tried to re-triangulate market level, procedure volume in the U.S. each year for carotid revascularization. And as you guys know, our conclusion was 35% to 40% below the company’s estimate of 170,000. And so I heard the affirmation of the 170,000 estimate again on this call. And I guess, provide you an opportunity to comment on what gives you confidence affirming that number this evening and feel free to throw us under the bus, what was wrong with our research?

Lucas Buchanan: Thank you, Mike. I’ll take that one. So yes, throughout history and for a long time, we’ve truly vetted and we remain highly confident in our TAM estimate. It’s really not the company’s estimate. It’s a validated rate-based methodology by a market-sizing expert. Modus Health, counting billing records with — that are fraught with billings, incentives and errors and trying to grow them up [ph]. We’ve vetted this different ways we buy [ph]. We got checked this with our field team. We’re in 1,200 hospitals. We trained 2,600 physicians. We ask them all the time. What does your practice look like? How many people are you treating. And again, in the end, we remain really confident in all the various methodologies we’ve got checks we’ve used and we also see this NCD decision if finalized as really a rising tide effect and will accelerate TAM expansion.

Operator: At this time, I would like to turn the conference back to Erica Rogers for closing remarks.

Erica Rogers: Thanks very much, everyone, for joining us. We couldn’t feel better about the business and the future has never been brighter for TCAR.

Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.

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