Tactile Systems Technology, Inc. (NASDAQ:TCMD) Q2 2023 Earnings Call Transcript

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Operator: Next question comes from the line of Ryan Zimmerman with BTIG.

Unidentified Analyst: This is actually Izzy [ph] on for Ryan. So first off, I was just wondering if you could provide any updates on your ongoing head and neck trial. When could we expect to see some top line data from the trial? And roughly how large of an opportunity does this represent?

Daniel Reuvers: Sure. Thanks for the question, Izzi. So the head and neck RCT is advancing. This is the one, for those that are less familiar, where we’re committed to tracking probably 200-plus patients against the standard of care. We expect to have somewhere north of 180 patients we will have enrolled by the end of this year. We hope to have the enrollment completed by the first part of 2024. And the follow-up is a handful of months. So probably at 2025 to get to the point where we have the expected results published and the kind of impact that we hope that it will have on payers. This will be, by far, the largest RCT done, we believe, in the space and certainly, by any measures in this head and neck community of cancer survivors.

We’ve said that it’s about 10% of cancer survivors would be head and neck. So kind of frames a little bit there. And we certainly think that it can be a meaningful contributor to us probably as we get later into 2025. One of the considerations that we made and we kind of thought about what our 2025 revenue targets were going to be when we had those established back last fall.

Unidentified Analyst: Great. And just one follow-up. So I heard your comments on the engagement of the Kylee app and it sounds really encouraging. But what is the tangible benefit that you guys are seeing in sales given the engagement level?

Daniel Reuvers: Well, I think that it’s still emerging. One of the things that we do believe is that continuing to be able to communicate with these patients, we’ll be able to identify how well they’re doing and if and when they’re going to need to graduate to another device. So their ability to record their sessions, their measurements, even capture photos, we think, is going to make it much more compelling, if and when they would be eligible for an advanced pump. I think the other piece that we still expect we’re going to be able to benefit from and this one is coming, is some of the order management process is also one of the areas that we want to expand our Kylee application. Our ability to engage with patients more so the way that we would with your favorite airline app where you can place your order, you can change your order, you can check your status.

And I think that those can help reduce cost to serve, while at the same time, allowing us to actually improve the engagement that we have with patients in whatever time line and format that they prefer. So there’s a component of operational exchange that is still ahead. But in the meantime, we think that the ability to continue to educate patients is a good way to continue to expand the universe of patients that can get a diagnosis and then ultimately, treatment.

Operator: We are currently seeing no remaining questions at this time. That does conclude our conference for today. Thank you for your participation.

Daniel Reuvers: Thank you, everyone.

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