Viveve Medical, Inc.
Q3 2020 Earnings Call Transcript

Published: 12 Nov 2020

[Operator:]

Good afternoon, and welcome to the Viveve Third Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode. Speaking today are Viveve's Chief Executive Officer, Scott Durbin; and Jeannie Swindle, Senior Director of Corporate Communications. Please note, this event is being recorded. I will now turn the call over to Jeannie Swindle. Please go ahead.

[Jeannie Swindle:]

Thank you, operator, and welcome, everyone. Before we begin, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company. Any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the corporation's projections, expectations, plans, beliefs and prospects. These statements are based on judgments and analysis as of the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are described more fully in the company's annual report on Form 10-K and other filings made with the SEC, which are also available on the company's website. Also, any forward-looking statements represent management's views only as of the date of this conference call and should not be relied upon as representing management's views as of any subsequent date.

[Scott Durbin:]

Thank you, Jeannie. Good afternoon, everyone. We really appreciate you joining us today. I'd like to begin the call this afternoon with a short business summary, then review our third quarter financial results and highlights certain milestones as well as summarize our forthcoming pivotal U.S. clinical trial, PURSUIT, in the context of the multi-billion dollar market opportunity it may afford us in the future. As a result of positive preclinical and clinical SUI results released during the third quarter, Viveve has transitioned to a urogynecology company with a core focus on stress urinary incontinence or SUI. As a result, we pivoted the focus of the entire organization in the third quarter to three core areas; first, to continue to grow our installed base through our recurring revenue model into our core specialties of urogynecology, urology and gynecology; second, to continue to support our customers through our novel internal customer care team efforts, which drive increased consumable treatment tip utilization and sales; and third, to rapidly advance our pivotal clinical program in SUI to achieve an FDA label and to commercially launch the first patented protected endovaginal office-based treatment for urethral hypermobility to improve SUI in women. Further, like most companies in the third quarter, Viveve continued to experience the negative impact of the COVID-19 crisis on business operations, particularly in the United States. While we plan to continue to operate at a significantly reduced cash burn rate as we execute and complete our pivotal PURSUIT trial towards a new FDA approval in the U.S., the commercial environment overall is improving. Today, we reported total revenue for the third quarter of $1.5 million with a global installed base of 865 systems as of September 30. Through our new recurring revenue model, we've placed nearly 100 systems in the United States since June of last year. This commercial model continues to be met with great enthusiasm from practitioners, and we anticipate increasing its success in the future due to its scalability, lower selling costs and the potential to rapidly improve profitability. Internationally, third quarter was also a strong quarter. We grew our installed base to 386 systems and continue a high rate of consumable utilization throughout the Asia-Pacific region, where we continue our focus on key markets like South Korea, China, Taiwan, Thailand and others.

[Q -:]

[Operator:]

The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.