Stereotaxis, Inc. (AMEX:STXS) Q2 2023 Earnings Call Transcript

But I think at least for us, there is a maturization of our commercial team and their ability to engage with sites and many things snowball gradually in kind of in this world. And so I think some of the efforts that we’ve done over the last couple of years to improve and to engage with sites starts to have more of an impact and we’ll start to see more repeatability in the commercial teams capabilities. And so it’s kind of — it’s still not a completely open and easy environment. I still think the macro world is a world more of headwinds and tailwinds. But I think kind of we are able to overall make progress despite those headwinds.

Alex Nowak: That’s good to hear. Well, I appreciate the update. Thank you.

David Fischel: Thank you very much.

Operator: Our next question comes from Josh Jennings from TD Cowen. Please go ahead. Your line is open.

Josh Jennings: Hi. Good morning, David and Kim. Thanks. Wanted to just get a refresher on the status of the US and Europe capital sales teams? And any plans to build them out and stability is a near-term plan? And what would you need to see to change that strategy? Would it just be expansion of the sales funnel and just increasing levels of demand or any other triggers? Then I have one follow-up on China.

David Fischel: Hey, Josh, good morning. So I think we’ve talked a little bit about the European sales team and our strategy there in the past. And overall, with our commercial teams in the US, Europe and Asia as kind of the right size. We think we have kind of a good team with smart people and capable people, we have gradually incrementally strengthened team in Europe in anticipation of the MAGiC launch. And — but that’s been overall very gradual. And I would say that we are waiting for — we are confident that the MAGiC catheter can be launched very successfully at our existing sites in Europe with our team and that can be a successful launch. We also think that we have the bandwidth, obviously, to launch the new robot and that, to some extent, just makes the work that our existing team has been doing on the capital side much easier.

And so I think that our technologies as we bring them to market can be launched very successfully with the existing teams that we have. Now the opportunity to grow a team when you have an improved revenue model, and the significantly higher disposable revenue per procedure is attractive and significant. And so we do plan to channel much of that incremental gross profit that we will receive from the MAGiC catheter from the growth in revenue from these new technologies back into our team back into the company. And I’d expect that as we’re doing the MAGiC launch, we will move much more towards a model like other companies in the field have where you have one dedicated salesperson per hospital customer. We currently have one person for each three or four hospitals and that is a commercial disadvantage versus competition and one, we have the MAGiC catheter available, we can in a very financially prudent and sustainable fashion shift towards kind of a more similar model to our competition.

And so that’s kind of something that we would be doing as we do the MAGiC launch. I think we can do that in a financially sustainable fashion being self-funded by the launch of that new technology. And so that’s something we’ll do gradually kind of probably over the first year, first 18 months or so of the launch.