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

Josh Jennings: Understood. And then just wanted to just better understand the dynamics in China in front of MicroPorts kind of finalizing the build-out of the EP ecosystem and incorporating robotic magnetic navigation technology. Is there a holding period here in China just for new customers, I think you’ve described kind of sales funnel or pipeline of potential customers in a dozen plus range in China. But do we need to see Genesis approval before those — that pipeline converts to contracts? And just maybe just to help us think through the next 12 months in front of that full build-out. And then just a follow-up to that. Is there any other countries in Asia Pac? You have this HRS, I think Asia Pac meeting coming up in September in Hong Kong. Any other opportunities you see Japan or other Asia Pac countries that are intriguing for Stereotaxis? Thank you.

David Fischel: Thanks, Josh. So yes, the EP HRS, Asia-Pacific HRS conference that’s coming up in the beginning of September, I was very pleasantly surprised by how good of a program was arranged by the Society for Cardiac Robotic navigation in collaboration with EP to HRS. They are showcasing some amazing procedures and some amazing capabilities of our technology. So I think that is reflective of the type of pre-commercialization work in some ways that is taking place there to build up interest and to grow kind of the visibility of our technology there overall kind of there is — there’s some opportunity potentially to commercialize new robots prior to that ecosystem coming into play next year. But I’d say that, that is not the biggest focus.

The real focus is how to make sure that as you have this full ecosystem available, you can have a very successful launch and you can together in partnership with MicroPort, take multiple percentage points of market share in a country like China, which is a significant existing market. And so that is really kind of the primary focus the strategic focus and kind of the big way that’s out there. I think kind of as we said before, right, we expect Genesis approval in the earlier parts of next year, given the submission that had taken place already at the end of last year and then some of the additional requests for information that took place in the first half of this year and MicroPort will be submitting it’s kind of the next-generation ablation catheter that works combined with their Columbus mapping system and our robot later this year.

And so kind of overall, we’re looking at a kind of a nice launch probably around this time next year. And kind of I think that we do have other accounts in the Asia Pacific region outside of China that still do procedures that are great users of robotics at APH RS, we will be engaging with those accounts, and we’ll be engaging with potential accounts in other countries in the Asia Pacific region. But I’d say that kind of from a focus perspective, we see very clear line of sight to building a substantial business with MicroPort in China. And so that really is kind of the biggest strategic focus kind of — and that’s where I’d expect to see the biggest kind of change to our overall corporate trajectory from there.

Josh Jennings: Appreciate that. Thanks, Dave.

David Fischel: Thank you.

Operator: [Operator Instructions] Our next question comes from Neil Chatterji from B. Riley Securities. Please go ahead. Your line is open.

Neil Chatterji: Good morning. Thanks for taking or question. Maybe I’ll just ask — take a lot of my questions has been answered. But maybe just on the — I think last call, you kind of talked about some of the preclinical studies with PFA generators. Just curious if you have any update there and/or on any maybe development for MAGiC and PFA?