Vicarious Surgical Inc. (NYSE:RBOT) Q3 2023 Earnings Call Transcript

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Adam Sachs: Yeah. It’s really good question. So, some of the kind of the timeline after V1.0 is integrated and up and running, it is all about verification and validation. It begins less formal and with subsystems and then, culminates in summative testing, which is kind of the end of system level validation for the product. So, the way to think about most of the work that we’ll be doing, any remediations after next spring, it is all about the system, how it performs in our kind of preliminary V&V testing that we perform on the subsystems, evaluating that, finding any issues that might occur in V&V and then, burning those issues down and remediating them in order to decrease risk of the V&V process. So one of the benefits, if I can call it that, of the timeline shift here is decreasing some of the risk and pulling some of the risk out of the V&V process, and into the earlier process of these remediations in the V1.0 build.

As far as manufacturing, that that is part of what needs to be all in place. And we are well underway with our CM partners as well as internally in order to build all of that out. So especially given the — what we’re discussing on today’s call, I certainly don’t anticipate any challenges with that from a timeline perspective.

Josh Jennings: Excellent. And then wanted to just ask about the integration challenges and where you stood earlier in the year in terms of locking in on 1.0 and the design and the go-forward. Does this delay, was it cause, or is there an opportunity to explore differentiated visualization sensing or data collection enhancements for the system relative to where you started? Or is this continue down the line in terms of what you’d locked in from a design standpoint from 1.0 earlier in the year? Thanks for taking the questions.

Adam Sachs: Yeah. It’s a fair question. There’s a lot of things that we’re really excited about it, as you guys know, from an advanced visualization standpoint. We’re making sure that we can roll all of those things in shortly after our initial launch. That being said, given the reduction in resources, our focus right now is almost entirely on remediating any of the challenges that we’ve faced and then setting ourselves up for success through the V&V process and through FDA authorization.

Josh Jennings: Understood. Thank you.

Operator: Thank you. The next question will be from the line of Caitlin Cronin with Canaccord Genuity. Your line is now open.

Caitlin Cronin: Hi. Thanks for taking the questions. Just to start off, in terms of clinical trial plans, are there any changes for your plans for pursuing other indications?

Adam Sachs: No, not at this time. Other than, that would be, obviously expected with timeline change, that we’re discussing. We’re still going to pursue other indications as quickly as we can. Frankly, the OUS opportunity gives us the ability to do that significantly more easily, and we are taking the extra time that we have now with our clinical engineering team to evaluate all these other procedures and really build them as best we can in anticipation of that.

Caitlin Cronin: Got it. Okay. And then, any kind of risk to current or future hospital or surgeon partnerships given kind of this delayed timeline?

Adam Sachs: Yeah. I think the risk is relatively low. But there is always some risk. It’s a competitive market. That being said, our hospital partners have been incredibly supportive of what we’re doing. What we’re doing remains very differentiated. And frankly, my personal biggest disappointment in taking extra time here is that it will take long — that much longer for us to be able to deliver this really important product for our hospital and surgeon partners than needed.

Caitlin Cronin: Got it. Thanks for taking the questions.

Adam Sachs: Yeah. Thank you.

End of Q&A:

Operator: Thank you. At this time, there are no additional questions registered in the queue, so that will conclude today’s Q&A session as well as today’s conference call. Thank you all for your participation, and you may now disconnect your lines.

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