Q2 2020 Earnings Call
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[noise] call from 70 ma'am please.
Hi, it's Rachel.
Smith.
HM.
[laughter].
Yes.
[laughter], sorry, do we hear that.
For Angiodynamics.
Yes.
The right direction.
I'm pleased with our continued transition from a company with a broad portfolio.
Differentiated products to a much more focused medical technology company.
Delivers unique and innovative healthcare solutions.
The new profile of our company is enabling us to move away from the mature lower growth markets.
Hello.
I competed in the past by carving out significant space in larger and faster growing markets.
We will continue to develop our foundational technologies, such as Nanoknife Angiovac and our recently acquired XML Atherectomy laser to drive this transformation.
We will also further accentuate our existing portfolio strengths by acquiring or developing technology to support these products.
As evidenced by the acquisition of the C waived tip location device announced this morning.
We remain focused on three drivers to continue our transformation.
Internal research and development.
M&A and clinical and regulatory pathway expansion.
A great example of execution through our internal R&D efforts is our Angiovac generation three Cannulated circuit that we launched late last quarter.
Angiovac Gen three drove our ninth consecutive quarter of double digit procedure and revenue growth in our thrombus management category.
With respect to M&A. This morning, we announced the acquisition of the C wave pick tip location system.
This wireless App based SCG system.
Eliminates the need for a confirmatory chest X ray during pick tip placement.
The system has received FDA five 10-K.
C E.
Health, Canada and other international approvals.
This product can be used as an aide when inserting picks at the bed side and feels a technology gap in our fee a portfolio that has been a contributing factor in the decline of our PICC revenue over the past several years.
As a result, we believed that this tip location system will allow for greater patient access to our unique bioflo piccs.
In addition, we're continuously evaluating opportunities to reshape our portfolio.
Our balance sheet allows us to remain opportunistic with regard to M&A that will enhance our existing oncology and thrombus management portfolios.
We are also prepared to augment these existing portfolios with equally disruptive and innovative technology.
As evidenced by our acquisition of eczema medical.
We have already made significant progress integrating this acquisition into Angiodynamics.
We have begun building out a dedicated salesforce.
To put this unique and highly innovative laser atherectomy technology in the hands of clinicians.
We have also been working hard to build that a robust and scalable supply chain.
To ensure that our physicians needs are met in a timely manner with high quality products.
We remain on pace.
To continue to make our expected investments to ensure that we are prepared to properly launch this product into the marketplace.
We have also been spending more time in the field with key opinion leaders discussing the opportunities and use cases of the excimer laser atherectomy product.
Hearing what these physicians have to say after using the product.
We are even more excited about the application of extra most unique technology and the competitive positioning in a large and growing market.
One of these kao Alice Dr. John run back.
Radiologist at wholly named Medical Center in Teaneck, New Jersey.
Co authored the results of extra most initial I'd study.
And recently spoke with us about the distinct advantages of extra most laser atherectomy product.
Specifically he highlighted exome most proprietary technology that allows the device to provide more energy than competing lasers.
Enabling more effective removal of both calcified and non calcified lesions.
While also more effectively preventing destruction of the surrounding vessel walls.
As clinicians gain a better understanding of the improved outcomes.
And ease of use afforded by this technology compared to the current standard of care, we anticipate a meaningful meaningful increase in adoption and revenue over the coming years.
As Dr. run back highlighted.
This novel laser technology enables clinicians to perform atherectomy across both laser and mechanical procedures in a way that has more versatile and less risky than other methods.
And we remain confident that clinicians will see value in this product.
As we continued to make solid progress building out our internal infrastructure, we remain on track to execute a commercial launch toward the end of our fiscal year.
The third driver of our transformation is clinical and regulatory pathway expansion.
The Nanoknife direct study is an example of our ability to leverage our developing clinical and regulatory talents.
As of today.
Teens study sites have secured IR be approval.
And we anticipate up to an additional five sites achieving IR be approval by the end of our fiscal year.
We're very pleased with the pace at which leading institutions are committing to our comprehensive clinical study and securing IR be approval.
This pace and commitment supports our expectation that we will enroll the required 250 patients.
In the registry arm of the study over the coming two and a half years.
Separately.
We are pleased to announce that our prostate safety study has secured central IR be approval.
This will keep us on pace to complete this study by the end of the fiscal year.
We look forward to providing you additional updates on both of these exciting nanoknife related studies over the coming quarters.
Lastly, we are pleased to announce that during the quarter.
The AMERCO met the American Medical Association CPT editorial panel.
Posted two newly approved category three CPT physician billing codes for irreversible electroporation.
The amaze approval of these physician billing codes recognizes the unique features of IRA and nanoknife for patients with pancreatic and other serious cancers.
The new codes enable physicians to distinguish this innovative technology.
When reporting IRA to payers.
Which will also helped generate new clinical data.
I want to specifically recognize the society of interventional radiology and the American College of Surgeons, who co sponsored the application for new codes to the American Medical Association.
We look forward to continuing to work with key specialty societies are physician customers patient advocacy groups and other stakeholders to advance access to the life changing benefits of Nanoknife.
We continue to build momentum, while putting a foundation in place to support higher organic revenue growth and the integration of XML.
And as we expect to build further momentum into the back half of the year.
Our team continues to execute against our strategic initiatives.
Now before I turn the call over to Steve.
I'd like to take a moment and thank Michael Greiner for his many outstanding contributions during his time as part of the Angiodynamics leadership team.
As I frequently mentioned this is a very different company than it was even two or three years ago.
And Michael played a very large and valuable role in that transformation.
I want to wish Michael and his family well and we wish remote much success going forward in his new role.
With that I'd like to turn the call over to Steve Trowbridge, Our general Counsel and interim Chief Financial Officer.
Thanks, Jim and good morning, everyone.
Before I begin please remember that we posted presentation on our Investor Relations website summarizing the key items associated with our quarterly and year to date results as well as our financial guidance.
Unless otherwise noted all prior year results and comparisons exclude the contribution of our name excellent management business.
Additionally, we have anniversaried the acquisitions of Biocentury and radio dine in all results discussed today are on an organic basis.
Our net sales for the second quarter fiscal 2020 were 70 million, which is flat compared to a year ago.
Excluding the fiscal 2019 revenue contribution from the us Glaris clearer therapy product, which we stopped distributing during the fourth quarter fiscal year 2019 revenue growth for the second quarter was 2.5%.
Our angiovac nanoknife and allowed us an isolated balloon products exhibit solid growth during the quarter.
These pockets of growth were partially offset by declines in our picks and port products.
Our total VIP business grew 0.6% year over year and when excluding Asclera grew 6.5% led by strong growth in Angiovac.
Angiovac procedural volume remained strong with procedures, increasing 31% year over year, representing our ninth consecutive quarter of double digit volume and revenue growth.
Our core business also returned to growth during the quarter. This combined with the strength of Angiovac is encouraging sign as we enter the back half of the year.
Vascular access revenue declined roughly 4% during the second quarter as growth in sales of our dialysis products was more than offset by declines in sales of picks imports.
As Jim mentioned earlier, we're very excited about the acquisition of the C wave tip location system and expect that filling this technology gap will have a positive impact on our PICC business going forward.
In addition, as we discussed last quarter, we rewarded the GPO agreement with Premier reports. This agreement allows us to leverage premieres extensive membership network of approximately 4000 us hospitals and 165000 other providers to sell our Bioflo vortex and Accella products and we expect this agreement to drive growth in the back.
Half of the year.
Revenue from our oncology business increased 5.1% primarily related to growth from Nanoknife and balloons.
Growth was somewhat offset by continued anticipated decline in sales of our radio frequency ablation product.
Nanoknife growth in the quarter with strong driven by a significant capital sales, partially offset by quarter over quarter decline in probe sales.
We remain focused on driving future utilization and while sales of disposable probes in the quarter were soft the significant amount of capital sales coupled with the pace of leading hospitals engagement with our direct study that Jim mentioned earlier, our both strong indicators of commitment to the Nanoknife platform and we expect probe sales to grow in the back half.
Moving down the income statement, our gross margin for the second quarter fiscal 2020 was 69.3% up 140 basis points compared to a year ago, driven primarily by productivity and supply chain improvements as well as positive product mix.
Our research and development expenses during the second quarter fiscal 2020 were 7.8 million or 11.1% of sales compared to 7.1 million or 10.1% of sales a year ago.
As we've previously messaged, we're continuing to invest strategically in R&D and clinical to support the growth of our leading technologies.
We continue to expect R&D spend to be between 32, and 34 million in fiscal year 2020, including investments related to our acquisition of eczema.
Yesterday expense for the second quarter fiscal 2020 increased to 31.1 million, representing 44.4% of sales compared to 28.5 million, representing 40.8% of sales a year ago.
We continue to anticipates SG nine spend between 126 and 130 million for fiscal year 2020.
This increase in spend will support our upcoming product launches as well as the needed investments for commercial release of X low in the back half of our fiscal year.
Our adjusted net income for the second quarter fiscal 2020 was 2.2 million or six cents per share compared to adjusted net income of 2.9 million or seven cents per share in the second quarter last year.
Adjusted EBITDA in the second quarter fiscal 2020 was 6.4 million compared to 9 million in the second quarter fiscal 2019.
In the second quarter fiscal 2000, we began with roughly 83.6 million in cash and we used $5.9 million of cash in operating activities. Our free cash flow was 3.3 million.
During the second quarter, we use 45.8 million a cash on hand to fund the acquisition of XOMA medical that we discussed during last quarter's call.
As of November Thirtyth 29, soon we had 41.2 million in cash and cash equivalents and no debt.
With regard to our financial guidance for fiscal 2020, we continue to expect net sales in the range of 280 to 286 million and gross margin in the range of 50% to 59%.
We also continue to anticipate adjusted EPS in the range of 10 to 15 cents.
Provides further context around the earnings guidance, we acknowledge that our year to date earnings are already near the top end of our full year guidance range as we discussed last quarter, we anticipate increasing investment over the back half of the fiscal year with respect to building the XML commercial team and supply chain infrastructure.
These investments remain in line with our original plan and we will impact earnings most significantly during the third quarter fiscal 2020.
With that I'd like to turn the call back to the operator to open the call for questions.
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Thank you.
Our first question is from the line of Jason Mills with Canaccord Genuity. Please proceed with your question.
Hi, Good morning, gentlemen, thank you for taking the questions can you hear me Okay Jim.
Jason we Ken good morning.
You, perhaps happy new year too.
So two questions.
Only some green shoots since quarter.
We went through a couple and I'll get back in queue first wanted to touch on the acquisition of the tip location system.
In the quarter vascular access probably wasn't up to your expectations. How quickly will the tip location system. Assistants addition to your portfolio turn that business around and I guess as you look over the next couple of years, what sort of growth profile.
Expect out of that business in total with the addition of a good system.
There's a couple of good questions. Jason So couple of things in the vascular access portfolio. This year will grow our ports. The first half of the year ports are behind prior year and the second half we have the premier contract kicking in as we previously identified to communicate it and we know that our port business will pick up in the second half and have good mode.
Sentiment that into next year also with Pemex, We think the acquisition of the C. Wave system is really important for us it will really affect our numbers. This year, Jason will integrate the product into our technology into our portfolio, but as we grow it's really important to us because we want to do both tip location and navigation today.
The products ready for tip location, it's not yet ready for navigation will continue that development during the process. So we expect over time, we'll guide you more clearly to 21 in our three year guidance soon but we expect our whole vascular access portfolio to grow in the low single digits over the next few years.
Okay, Great Thats helpful color and then on the excimer product line as you build towards a a full commercial launch there can you give us a bit more color and how you're thinking about.
The commercial infrastructure necessary to compete in a market that you know as well as I is similar.
Brute force marketing.
Market and it requires a fairly style.
Direct sales team on and I think that was one of the questions. We got a lot from investors just how agreeing dynamics could compete with the memory sales reps in the aggressiveness of some of these sales teams.
Around the country with Nexmo could you could you touched on that a little bit.
I will also maybe touch on.
With respect to Xotwo, what would be a reasonable so the first year revenue.
After launch.
Range, if you're willing to sort of quantify that at one one more follow up on good bye.
There are lot of stuff, Jason as we've mentioned right. We're almost three months ago today, when we made the acquisition.
We really eczema medical is really a technology company based in Tel Aviv Amazing technology did a great job not just with the science behind their device, but getting a strong indication stream approved on their Sta approval really amazing now there was only one commercial person in the us on the eczema team that person remains with us very highly skilled and.
Those the space well since then in the past 90 days, we did what we said we do it at that call. We've added now another commercial leader to help balance out the workload on the high end and we've also hired and trained our first series of sales reps and even field support people for clinical support we remain on track.
With where we guided that Thats why I will spend a lot of money right now with very little revenue coming in we remain on track by the end of this quarter to hit our internal goal for sales reps in the field and then by our next fiscal quarter by many 31, we have a goal there and Jason for competitive reasons, we've not yet identified exactly wearables people will be and how many.
And we'll give more clarity to spring around that but we have the kind of the ideas that we had two we communicated on a rough scheduled to you in October are now being executed we've not yet given guidance towards our revenue other than if you go back to that call that we had together a few months ago. I think we mentioned, we expect 8% to 10% market share.
There by the end of year, three we remain confident with those rough numbers.
Just a little over the last on rebuilding that sorry, just just put a little the finer point on that I want to reiterate what Jim said that by the end of three years, we're targeting that 8% to 10%, you'll clearly see a ramp up so that we're exiting year two at a higher rate than here. One. So you can think about the ramp in Norway. You normally would as you would go up that curve.
And we acknowledge that this is a high touch business, we understand that I think that the impacts to our.
Fiscal 2020 earnings guidance that we had modified last quarter based on the acquisition reflect that in all the work that we've done in the first.
Quarter here and expect to do in the back half of the year building up that commercial team is aimed at addressing exactly what you said, which is making sure. We've got the infrastructure in place to have sales as well as clinical specialist supporting fully supporting our launch.
Thats helpful color. Thank you lastly from me Angiovac and.
Great growth in the procedure growth and equally as syntactic net all that surprising the due diligence we've done.
Suggest the Venus spaces, indeed growing quite fast so can you comment about where you're seeing and I guess in what sorts of accounts you're seeing.
The best uptake and Angiovac and what you're seeing and we're hearing from physicians with respect to treating.
Pulmonary embolism DTN BT in general.
With these immune mechanical thrombectomy technologies, where do you where do you see this going.
So Jason we agree that the mechanical thrombectomy market will grow at a healthy pace as physicians and clinician gain more confidence in the devices available not just our device, which is unique in special where there is we know a couple other good devices on the market I think people trust mechanical thrombectomy as a treatment choice now getting back to the.
Simply to our device, we're really pleased with the launch of Angiovac 3.0, our marketing teams in our research and development teams listened carefully to our customers and who access than guided us in the development of the 3.0 device. So as you mentioned about new customers coming on the really two buckets, Jason we have some that had tried our 2.0 devices.
For that really kind of put a sizable bit waiting for some improvements that we delivered to them and 3.0 and thats one bucket in the second bucket is people that have not yet tried our device now are looking at it because we still the unique capabilities with our perfusion system. The way, we can reduce blood loss and to go after really large thrombus and clearance.
So we're really pleased with initial launch of the 3.0. We also as we've guided we have other R&D projects that are in our pipeline would be coming out over the next couple of years. They will make the device even more applicable to more positions and may be allow more treatment and we also remain committed to looking at M&A.
Finally to bring in potentially outside.
Signs to our bag and Steven let Steve talk about them PE and VC, yes to reiterate what Jim said, we're really pleased with the growth at Angiovac has shown and what what's it's really exciting about us that it was really exciting to us about that as its primarily in the space that we've been playing so weve been seen physicians come in primarily.
Playing in the right heart as well as.
Vegetation tricuspid valve vegetation.
With the R&D programs that we haven't place and with leveraging our clinical and.
Regulatory experience that Jim talked about in his prepared remarks, we see additional areas to move into with Angiovac that we havent tapped into yet so we see angiovac very similar to the way, we see nanoknife as a platform to drive future growth through the medium and long term.
As well as we while we continue to see real nice growth currently in the market Thats playing.
Makes sense.
Thank you.
Our next question.
Our next question comes from the line of Matthew Mission with Keybanc Capital markets. Please proceed with your question.
Good morning, Thank you for taking the questions.
Just first Jim on the Nanoknife clinical trial, you are making very good progress on enrolling sites. Just curious where you are with the the randomized control arm I think this to more difficult part of enrolling the study.
Steve Yeah, Matt. Thanks for the question. So we havent talked about specific enrollment on either of the registry or the RCT side, we're focusing on is getting the sites up and running and Thats, what weve been disclosing.
As you know its.
A tough process in terms of getting patients and with a long protracted inclusion and exclusion.
Assessment process, they have to make sure that they're probably staged and then there's three months of induction chemotherapy and then you have to restage and go from there. So it does have some longer lead time to get the patients in.
Theres no doubt that the RCT side is moving slower than the than the registry side, but thats to be expected.
We havent seen anything that tells us that it's going to be.
Harder than we thought on the on the RCP side. So it's really progressing along with our expectations again, as we're focusing getting the hospitals through the IB process, which can be very long protracted. We're really excited with the momentum that we made with getting those 13 sites in today.
And then moving on to site specific enrollment efforts.
Throughout the back half of this year and into the rest of the process of running the trial.
As a as a follow tip of the 13 study sites that have been have approve have been approved.
Our is is one of them approved as as like a randomized control side or is that is that still up I you still working on that.
No.
A number of them are below our approved on both the RCT and the registry side. So I think the majority of those sites are approved for both some sites are just registry sites and some sites are actually just RC keysight. So we do have the mix, but it's not like we only have one or two.
Excellent.
And then just looking at the guidance.
If I think about the second half sales growth that you're going to need to get just even the lower end of the guidance. It's it's up in that six this 6.5% range.
Whereas the inflection coming from for you.
In the second half and are you still expecting 20% oncology growth for the year.
Or has that changed.
Yes, so Matt.
So in each of our three businesses, we know exactly where in your numbers are correct right. We agree with your numbers you identify for the second half and we know exactly where by the free businesses again, I'll give you a quick synopsis and the vascular access business, we have that premier contract kicking in as we speak actually started in November and its compliance base as you know with two of those three arms there.
And but they have a 90 day window to get compliant and thats happening as we speak so we're pleased with the adoption there.
As well as a couple of small products also being launched in our VA business. So we know that they'll do what we expect second in VIP, we've taken our Venus business as you know over the last couple of years have been highly challenge and has been a negative drain to revenue and this year through we have a great technology already in our laser, but our sales and marketing teams to perform really well we've gotten a bit.
This now to flat and maybe some slight growth going forward they've done a great job. There that's been a drag on our growth now performed well in the second half and third than if we talk about thrombus, Matt. We're on a really good trajectory. Our thrombus business is very strong with our there are angiovac 3.0 launch and some other things in that space will have what we need there and third Turner.
Two oncology, yes, we will have really strong growth in oncology, primarily in three areas. The two acquisitions, we made last year buyer century, and radio died with balloons and Magellan going to perform well in the second half secondarily, our microwave business got off to a little slower start than we thought we were really winning some large customers. We think you'll see that in the second half.
And third Nanoknife really really strong adoption of our new Nanoknife 3.0, as seen by a lot of hardware and capital sales and purchases in the first half of the year. The second half not going to continue with a strong demand and capital and we'll see our probes increase we think as people now aligned to do some of the treatments for patients that will be in the registry.
We are the RCT. So we're very confident that with the numbers you identified for the second half.
And then just on solar a lot why is it why hasn't started off slow I mean, if I look at solar it's basically flat for the first half of the year.
Versus RF being down in the Twentys, how should how should we thinking about the relationship between you, adding microwave business versus RF coming down.
Yes, a little bit then said early grows a little under our expectations one of the things that we're doing that internally is in the past. We competed with salerno around the edges smaller sites smaller treatment sites, because I think we're always worried a little both about competing with two really big guide JNJ and Medtronic and now the team we brought on knows this space where.
While our technology is really superior we need to do a better job communicating that so the sales team for the last six months or so has been targeting larger centers larger sites going head to head against JNJ Medtronic based upon how our technology works and why is different so when you gain the largest sites the upside is great, but it takes a bit longer for that.
Process, so were slightly behind where we expected we're completely with you, but we're confident in our pipeline to know the second half will be strong deal orders for those sites or is it are you still in the process of.
And then just haven't shipped yet or are you or are you still in the process of trying to win that business a little bit of both map and I don't mislead, it's not like we get an order and haven't shipped that's not too much of our business on be clearly we have hardware produce we have probes available or applicators in this case, but knowing as you go to the purchasing cycle, we know where we are in our pipeline we measure very closely.
So I don't want to mislead you say, we have a bunch of teed up orders, we haven't shipped that wouldn't be fair. We just know the process of our pipeline, it's timing related okay, I understood and last question I'm going to jump out on the tip location you'd previously discontinued effort several years ago picks continue to erode, yes, why is now the rate time to come back in and and trying.
And stabilize and with that with with this product.
It's a really good time for a couple of things you identify where when I first arrived Andrew a few years ago I communicated to our external parties why we discontinued our internal development on tip location. There were some challenges there from a technology standpoint, and from IP standpoint, frankly, and we know that our other competitors had bought up some of the other existing opportunity.
As the market. So we kind of took a time not push that to the side. While we did other things to develop other platforms here. So for us to things occurred about one is we then got back because R&D process had worked well we launched Angiovac 3.093, 0.0, even some other products in the VA Bagger being launched.
And we also know now exactly why and how our growth has been inhibited in the pick area part of that again is due to our lack of a tip location and navigation system and the other part we believe very very clearly and I'll remind you again, why we filed suit against Bard, because we know that theyre unfairly restricting.
Trade access for our customers to have access to that market and as you know as we've publicly communicated on the loss that we placed on bars, we have a couple different things restricting it Matt but we're highly confident we also have a sales and marketing team that is delivered in that space and grown other categories. There very well so the timing those right. We've got a great technology it worked out really well against it.
Flotation comes over right away for us to use will continue in finished development on the navigation asset.
Thanks, Jim and congratulations Steve on the neural.
Thanks.
As a reminder to asking question you May Press Star one. The next question is from the line of Jason Bedford with Raymond James. Please proceed with your question.
Hi, good morning.
New your guys.
Q few questions kind of jump all over the quite a little bit here, but on the tip location device. When was it approved and did did medcomp absolute launched the device.
So it's been approved by 18 months ago thing, Jason and they have had the device the market for about 18 months.
Okay.
And I assume it.
Now I'll stick to what type of pick or will that be dedicated to NGL.
So the Medcomp system is an open system and it was approved us as an open system will keep it that way, we will certainly be selling it with Angie opex, but it will also be open to use with other picks as well the way that we think the whole market should be.
Fair enough.
On nano.
The new sites that you've added to the trial or are they new to the therapy or the existing users that have decided to participate in the trial.
So we've seen both we've seen both sites that are existing users that have gotten through their RFP process, because they've got familiarity with the technology. We've also seen sites that are coming onboard now because of the fact that we have the improved.
And that they are using the idea as part of our.
Propose pmeight to bring in the technology that maybe they've had some institutional barriers before we've also seen some sites that havent been nano users at all that we're getting in as a control sites, which we need as part of our registry arm that are also flipping now and saying hey, once I understand more about nanoknife wondering it on side than the Nanoknife part of it too. So we're seeing both of those.
We like that that encouraging sign.
Okay, and I missed the comment on from the disposables on nano really down year over year quarter over quarter or both.
It's both it's both so they were down quarter over quarter and they are down year.
Year over year.
Okay.
I'm, sorry year to date, and then quarter quarter.
Year over year.
Okay.
Bio sentry down year over year, when your expectations entering the year look for for faster growth.
The growth slower in kind of what needs to happen for the growth the pickup.
The tubing, Jason we changed again, the go to market model Biocentury and two largest distributors in their supply chain in their channel and we decided to take those distributors out we modeled the acquisition. So we did that's originally we took those distributors out it was an aggressive approach towards it because one of the control the customers control the pricing and we did so we probably.
We underestimated a little bit how much product was in the supply chain and a little bit of disruption associated Jason So, but now it's completely done we own. It. So we know the second half we've already seen run rates, we've seen ordering patterns that give us high confidence to the numbers. We expect in Q in the second half just that a little more color to that Jason we segment the customers from us entry into three.
The different categories. So there is new customers, which we are absolutely bringing on since we purchased the the product we're bringing in new customers and we're seeing good volume and they're doing existing customers that were purchasing direct from Biocentury before we bought it we're seeing growth there as well that's a very encouraging sign and then to Jim's last point.
There's a number of ways that you can move from a distributor to direct model, we chose to do it pretty quickly and rip the band it off could have made other choices, but we'd looked as was the right long term choice and as we head into second half of the year, we're absolutely seeing those customers they used to purchase from distributors coming back online. So when you put all three of those together with growth. We're very confident that we're going to see growth in the back half in here.
Okay.
That's helpful and just my last one on any of that 3.0.
I think the revenue growth brand you knock was 53% volume growth I think you mentioned, 31% the variance just price or is there a capital component that I'm forgetting here.
So the amount of capital to fund so two things there is a price. So the new Angiovac 3.0 is priced at a higher price point in the market Thats. Some of it and also Jason I think we have new people coming on utilizing the product I said earlier, sometimes they're buying a few devices you pointed to the first treatment so little bit of both those will get closer together over time, we think we're doing we're really really focused on our part.
Seadrill growth to us that is very important but in this case, you're seeing really strong numbers on procedures and on the actual revenue and you identified pretty much line again, ASV and again people buying this new technology stocking in on the shelf.
Thank you.
Thank you I'd now like to turn the call back over to Mr. clamor for any closing remarks.
So thank you for listening to our call today, we appreciate your interest in our company.
You go back to the comments that we've made publicly over the past 18 to 24 month, we talked about changing our portfolio as what are the most significant ways that we will drive value at angiodynamics over the past 18 months. We've now made five moves with our portfolio. We've divested one asset that we don't think we were.
The rightful owner of going forward, we've acquired four assets. This morning with a C wave tipping our for those are really important for us in a number of ways. We're now competing in markets with higher total addressable markets for us to compete in the healthier and faster growing and they also offer US a chance has led our technology innovation shine.
So we're really pleased and hopefully you'll see that our actions have at least met the words that weve used to identify our transition as a company and we couldn't do that without the scores of people that work here people who've joined our company being part of this that drive our outcomes with our patients and our outcomes with our customers and caregivers. We're pleased with our results we look forward to show.
Our new our Q3 soon thank you for your time this morning.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.