Q1 2021 AngioDynamics Inc Earnings Call
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This time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference call is being recorded the new.
The news release detailing to fiscal 2020 one's first quarter results crossed the wire earlier. This morning and is available on the company's website.
This conference call is also being webcast live over the Internet at the Investor section of the company's website at Www Dot Angiodynamics dot com and the.
And the webcast replay of the call will be available at the same site approximately one hour after the end of today's call.
Before we begin I would like to caution listeners that during the course of this conference call. The company will make projections or forward looking statements regarding future events, including statements about expected revenue adjusted earnings and gross margins for fiscal year 2021.
Management encourages you to review the company's past and future filings with the FCC, including without limitation. The company's forms 10-Q, and 10-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements.
A slide package offering insight into the company's financial results is also available on the Investor section of the company's website under events and presentations. This pro.
This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance. During this morning's conference call.
I'd now like to turn the call over to Jim Clemmer engineered dynamics, President and Chief Executive Officer Mr. Komar.
Good morning, everyone and thank you for joining us for Angiodynamics fiscal 2021 first quarter earnings call.
Joining me on today's call is Steve Trowbridge, Angiodynamics Executive Vice President and Chief Financial Officer, who will provide a detailed analysis of our first quarter financial performance.
I am excited that we were able to report strong first fiscal quarter, while remaining focused on profitability.
And on managing our cash balance sheet.
Fight the impacts of Kobin 19.
Throughout the quarter, we observed a solid improvement across our end markets.
Hospitals and local governments continue to navigate the pandemic.
These effects have been largely localized we're observing variability in the pace and magnitude of recovery throughout our various geographies.
We view these positive signals as encouraging but we do not anticipate the demand environment. Three turns are pretty cope with levels in the near term and weak.
And we currently expect the demand for this year will be roughly 10% to 15% below pre kovac levels.
Despite this headwind we have a line of sight into growth and we expect that we will be profitable this fiscal year, which Steve will cover in more detail shortly.
Turning to our results for the quarter.
First quarter revenue of $70.2 million increased 6.3% year over year inclusive of the water in the UK, we discussed with you last quarter.
In addition, we.
We reported adjusting adjusted earnings per share of two cents for the quarter, reflecting our commitment to growth as well as our ability to manage expenses and cash in response to the cobot 19 pandemic.
I am extremely proud of the entire Angiodynamics team.
The way it has continued to execute in the face of this difficult market.
Our teams ability to constantly adapt to such a dynamic environment has resulted in year over year sales rose rock.
Well, our dedication to expense management how's it allowed us to maintain profitability.
The team also continues to demonstrate an unwavering commitment to upholding the quality of our products and to helping patients and customers retain better outcomes.
Additionally, we read.
We remain committed to supporting in progressing our key growth initiatives.
Demonstrated by our recent announcement of the commercial launch of our Arriaga atherectomy system, which I'll discuss a bit later on the call.
As we continue to progress throughout the year, our ability to provide products to customers and patients remains our priority.
I am pleased with our ability to balance growth investments operating expenses and disciplined capital management and I believe that we remain well positioned to return to a more normalized level of growth as the macro environment begins to stabilize.
We've maintained a solid financial foundation and continue to execute a compelling strategic transformation.
Led by our key technology platforms.
To drive these key technology platforms forward, we continue to focus our spending on two areas during the quarter.
Internal research and development and.
And clinical and regulatory pathway expansion.
Let me update you on our accomplishments in each of these areas.
On the R&D front, we continue to focus investment on our Threeg technologies, Angiovac, Arrium and Nanoknife well.
While seeking out ways to increase the profitability profile of our other products.
We continued to see strong interest in the recent launches of our Nanoknife and Angiovac platforms and we remain focused on further developing these platforms.
During the first quarter.
We saw continued strength from our Angiovac platform and as we've mentioned in the past we are investing in the expansion of this platform in calendar 2020, Watt, which will open up a significantly larger piece of the addressable market.
I am thrilled that we were able to announce the commercial launch of our Ari on atherectomy laser.
Our team has been working diligently for nearly a year.
To establish a robust and efficient supply chain.
Build out a dedicated sales and marketing channel.
And developed physician and sales training programs and preparation for this product launch we have.
We have already seen strong interest and significant traction during the limited release phase.
As evidenced by the more than $1 million and Ari on revenue.
And the 500 cases that were performed during the first quarter.
As well as the fact that we currently have 47 lasers in the field and a robust pipeline of upcoming installations.
We continue to anticipate Ari on revenue.
In the range of $7 million to $10 million in fiscal year 2021.
Now that the commercial launch is officially underway.
Our sales force is committed to educating potential customers on the benefits of this revolutionary technology and I am.
And I am optimistic that they will quickly see the value of this product for both their patients and their practices.
The second driver of our transformation is clinical and regulatory expansion and data generation, which.
Which are foundational pillars of our strategy.
Our path finder, and direct studies remain a primary focus and continue to require a certain level of flexibility in this current environment.
We continue to see hospitals gradually opening back up in activity in these two studies continuing to improve.
As of today 23 direct study sites have secured I RP approval as we have added two additional sites since our last quarterly call.
Additionally.
Last quarter, we announced our expanded indication for our unifi use thrombectomy product that.
That now allows for the administration of fluids into the vessels that are impacted by thrombus in.
Including both the peripheral and pulmonary arteries.
This additional indication is consistent with our long term strategy of building out along the continuum of thrombus management and developing a robust technology platform that will address thrombectomy of any complexity.
Wow like last quarter, I didn't specifically mention M&A.
As an area of focus spending in the first quarter, we will continue to play an important role in our transformation.
We continue to pause any M&A activity or until we are comfortable that the covert pandemic is behind us I wish.
At which time, we will then resumed our disciplined approach of identifying appropriate M&A targets and assessing strategic opportunities.
With that I'd like to now turn the call over to Steve Trowbridge, Our executive Vice President and Chief Financial Officer.
Thanks, Jim and good morning, everyone.
Before I begin I'd like to point you to the presentation on our Investor Relations Web site summarizing the key items associated with our quarterly results.
Similar to the last two quarters I'd note that with respect to the first quarter and our business moving forward, we will provide slightly more inter quarter detail than we would in a normal operating environment.
Our net sales for the first quarter fiscal 2021 increased 6.3% year over year to 70.2 million.
As has been true in our recent quarters. The ongoing recovery has had a very big impact on each of our three businesses.
Our VVA and VIP businesses performed the strongest during the quarter as the number of procedures improved off of the cold and lows. We saw in the second half of last fiscal year, but still remain below pre coded levels alright.
Alright ecology business continued to face pressure from coated related procedure headwinds and a tough capital spending environment.
We performed a deep analysis of our business on a same customer basis and that analysis has indicated that volumes are still down 10% to 15% from co at pretty good levels.
We expect this to remain consistent throughout the course of fiscal 2021, assuming the recovery continues along its current trajectory.
Our total VIP business increased 3.3% year over year, driven by Angiovac sales growth of 46% compared to the prior year's quarter.
Somewhat offset by a 16% decline in venous sales as a result of the lower number of elective procedures being performed.
Our biggest business is the business, we would expect to be most impacted by elective procedure delays stemming from the covert pandemic.
Our VIP business also benefited from 1.1 million in sales related to Ari on during the limited release phase as Jim.
As Jim mentioned, we are very excited to have officially launched Ariad and we anticipate this product will represent an increasing part of our VIP business moving forward with sequential quarterly improvement anticipated throughout the rest of this year.
Vascular access revenue increased 21.4% during the quarter.
Growth in this business was driven by solid growth in Piccs and Midlines for the second straight quarter, which helped to offset slight declines the ports and other access.
As discussed last quarter, we had a sale of approximately $5 million to the NHS through our distribution partner that we do not expect to repeat exclude.
Excluding this sale our vascular access revenues declined 1.2% year over year.
Revenue from our oncology business declined 12.3% during the quarter as oncology procedure volumes continued to be negatively impacted by Covance 19 in many of our key geographies.
Total nanoknife sales declined roughly 25% year over year against a difficult capital sales comparison.
Excluding capital sales Nanoknife probes sales declined 5% in the quarter at 7% US probe sales growth was more than offset by softness in China due to the ongoing impacts of covert 19.
As a reminder, many nanoknife procedures occur subsequent to multiple rounds of chemotherapy and patients are immunocompromised as a result.
As you can appreciate many of these patients are cautious about returning to hospitals and operating rooms, resulting in procedural volumes that are below pre coven levels.
Moving down the income statement, our gross margin for the first quarter of fiscal 2021 was 50.9% a decrease of 700 basis points compared to a year ago.
As we mentioned last quarter. This decline was anticipated given the ongoing focus on employee safety and product availability.
Approximately 500 basis points of margin headwind was related to the planned under absorption in our manufacturing facility. However.
However, we reported a significant inventory reduction during the quarter, a 7.2 million leading us to take the full impact of the under absorption during the first quarter.
Our plans will have an impact on our full year gross margin as we continue to assess the shape and timing of the cobot 19 recovery, but we expect to finish the year with quarterly gross margin running closer to pre coven levels.
Our research and development expenses during the first quarter fiscal 2021 were $9 million or 12.8% of sales compared to $6.3 million or 9.5% of sales a year ago as weve.
As we discussed in previous quarters, we remain focused on strategically investing in R&D to further develop our nanoknife angiovac and already on products, while continuing to drive the profitability of our other businesses.
We remain thoughtful about our investments in light of the current environment. However, we intend to maintain investment in our key growth drivers, while being more judicious in our investment in other areas of the portfolio.
Well, we reserve the right to pull back on these investments if the environment changes meaningfully for fiscal 2001, we now anticipate R&D spend to be between 35 and $40 million with the increase over our prior expectations coming as a result of additional investment in expanding our angiovac and nanoknife platforms.
As DNA expense for the first quarter of fiscal 21 decreased to $26.3 million, representing 37.4% of sales compared to 27.8 million, representing 42.1% of sales a year ago. We.
We expect a slight increase in SGN expense in the second quarter as we support the commercial release of Aryan.
We're continually assessing controllable discretionary spend with an eye toward cash management, while maintaining investment in our key technologies.
So we continue to anticipate SGN expending during fiscal 2021 to be between $123 million and $127 million.
Our adjusted net income for the first quarter of fiscal 21 was point 6 million or earnings of two cents per share compared to adjusted net income of $3.2 million or eight cents per share in the first quarter of last year.
Adjusted EBITDA in the first quarter fiscal 21 was $4.5 million compared to $7.3 million in the first quarter of fiscal 2020.
Turning now to our balance sheet in the first quarter fiscal 2001, we began with roughly 54.4 million in cash equivalents and we used 5.4 million of cash in operating activities with a significant portion of that attributable to seasonal Q1 expenses.
During the first quarter, we had capital expenditures of $1.8 million.
As of August 30, Onest 2020, we had $47.9 million in cash and cash equivalents and $40 million in debt outstanding.
Turning now to guidance.
Based upon what we're currently seeing we anticipate that fiscal year 2021, net sales will be in the range of $278 million to $284 million and full year adjusted earnings per share to be in the range of zero to five cents.
We are obviously in a very fluid environment as a result of Cove in 19, requiring us to analyze a number of different scenarios.
The guidance, we are providing you today is predicated on the current trajectory of the cobot 19 pandemic, if the environment change.
If the environment changes meaningfully between now and the end of the year and our key geographies, we may need to adjust expectations and we will communicate any changes accordingly.
With that I will turn it back to Jim for a few closing remarks before we begin the Q and a portion of the call Jim.
Thanks, Dave as I.
As I mentioned in my introductory remarks, I am pleased with our performance this quarter.
I'm proud of the great job that our team did to maintain focus on our key growth initiatives, while remaining disciplined and continuing to execute despite a dynamic environment brought on by the cobot 19 pandemic.
While we do not anticipate a return to pre kobin levels of demand in the near term we are continuing to see positive trends emerge in our end markets.
Our team will continue to adapt to the ever changing macro environment and we remain committed in our transformation which was.
Which was driven by the execution against our key priorities and continued investment in our key technologies key technology platforms and growth initiatives I want investors to understand that we are dedicated to performing a transformation of our portfolio through the development of higher technology.
Mix that drive measurable clinical improvements in patient success, while empowering our customers to receive reimbursement while they use our products.
As the adverse effects of the covert 19 pandemic continue to subside I know.
I know that angiodynamics will be well positioned to achieve profitable long term growth with.
With that I'd like to turn the call back to Melissa for questions.
Thank you at this time, we'll be conducting a question and answer session.
Like to ask a question. Please press star one on your telephone keypad.
Information tone will indicate your line is in the question Kim.
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My question is dark.
Our first question comes from the line of Matthew Mishan with Keybanc capital markets. Please proceed with your question.
Good morning, and thank you for taking the questions guys.
I guess first can you help bridge us between the.
The 10% to 15% procedure declines that you're expecting and your guidance which is.
Which.
Clearly as.
Differentiates from that.
Matt Good morning, it's Jim So what we did not we look back and we Didnt really deep analysis in our different product categories and geographies trying to get our call quote unquote same store sales you know a lot of our categories. When you look at some of our vascular access business and some other businesses. We can measure current customers and measure their demand is less.
Few months, so we're seeing that that run rate might be down about 10% to 15% on average in many of these customers now while I say that because we know were a bit soft on current customer demand in some categories. We're also doing well winning some share in some categories, gaining new customers and new traction with new products like you saw with again Angiovac performing really really well based upon.
The customer.
Yes, please pleasure with the new product the new argue on revenue. So it's really a balancing act Matt you're asking good question, we're trying to give folks for transparency, but their takeaway is our current customers are still below levels that we expected even below prior year in the purchasing rates their delivery of care rates, but yet we expect the guidance. We gave you based.
Upon that slowly coming back a little bit and our ability to gain share and do well in the other categories.
Good morning, Matt.
So the way that we think about it is as a very high level generality, we're seeing about 10% to 15% decay.
Declines across the board. So it's clear that we're not back yet to full pre cobot levels, but as we have.
But as we talked about at the end of our Q3 call on at the end of our Q4 call and we'll draw that hypothetical line of procedures that are elective and then some of our products will fall on one line. Some will fall in the other so even though there is a general consensus that procedures are about 10% to 15% off their pre coated levels. It is different depend.
Thing upon the type of product we're talking about Angiovac is a great example, so we saw a 46% growth in the quarter, we talked about that in our Q4 call that June was a record month for Angiovac. So angiovac procedures are clearly coming back faster and I wouldn't consider them to be in that bucket of 10% to 15% laser on the other hand is clearly been the most impacted by Covance, So thats probably off of that tend to.
15%, you can think of our VA business as being a good bellwether and worse as Jim mentioned, we're seeing same customer sales kind of at that that 10% level, but we're also getting some wins, which is allowing us to have a line of sight to growth. So when you think about our overall portfolio you add in Ari on we're very pleased with the first quarter performance, we expect that trajectory to continue through.
The rest of the year.
As well as strength in Angiovac and that some of these wins were seeing throughout the other areas of our business. It's clear that we're off and that the overall market is off 10 to 15 and not back to pre cobot levels, but on top of that we absolutely have a line of sight to growth and that's embedded in the guidance that we gave you today.
Excellent Okay that all makes sense.
And then I had modeled out the guidance this morning.
Fairly quickly first blush sales don't necessarily new change too much but on a sequentially sequential run rate from where you're at today don't change too much from from a quarterly run rate for gross margin has increased dramatically.
Given your EPS generic R&D guidance.
To to hit the EPS is what changes over the next several quarters that allows you to get back to that mid to high Fiftys from where you are.
From where you're at in the first quarter.
Yes, there's a couple of things that will change so we talked about the significant under absorption that was planned in Q1.
And the fact that we were able to bring our inventory levels down by 17 million 7.2 million. That's a big change so that led to a significant decrease in our inventory turns which led us to take all of that under absorption as a period cost in Q1, we don't.
We don't expect inventory levels to continue to go down 7 million each quarter, we're going to bring it down more but without that type of decrease the under absorption will start to minimize a bit from where it was in Q1 that we also had some mix. So we talk about the UK order. It was a big order it was onetime but that was that.
Margin that was slightly dilutive to what you would expect that all of our corporate margins. So that's going to have an impact that won't repeat.
So mix as well as a decreasing pressure on under absorption.
It will allow us to see some significant prudent in gross margin going forward.
And then just lastly, just your thoughts on free cash flow for this year, you're you're it wasn't too different from where it was from the.
From the first quarter last year, but you also did have that that inventory wind down or would have been a working capital boost how are you. How are you thinking about free cash flow for 21, yes.
Yes, so we expect that we will generate cash at the end of the year. So when we exit our 21, we expect to have increased our cash balances from where we finished at 20.
Yes, it will be a moderate increase but but.
The reason were able to get there while we're balancing the increased investments that we want to have in areas like Angiovac Arianna Nanoknife is what we talked about through his coded pandemic and some of the some of the levers we've been able to pull making sure. We're cutting back on discretionary spending clearly across the board traveling entertainment isn't happening as much as it used to in the past. So we've got some areas where we can.
Definitely tightened down expenses, while maintaining the proper investments in growth and so we expect that we'll be exiting the year, having created some positive cash.
Great. Thanks, and congratulations on a nice quarter and thank you very much.
For having the confidence to give guidance.
Thanks, Pat good morning. Thanks.
Thank you. Our next question comes from the line of Jason Bedford with Raymond James. Please proceed with your question.
Hi, good morning.
I guess a few questions one to two follow up on the last line of questioning gross margin was outside of the NHS order.
Pricing in the quarter fairly consistent.
So Jason as Jim Good morning.
We didn't adjust price very much at all it wasn't really a factor.
I want to I want to remind folks again I think we spoke about in our Q4 call back when the pandemic hit us in mid March we ran our manufacturing quality operations and we also did things to reduce efficiencies that we always strive for quality is number one in our plants efficiencies are never too, but we had to take care of the safety and that really.
I mean, our employee safety. So we did things that affected our efficiencies, making sure. Our people were safe operating in this kobin environment. So we gave up some of that room on efficiencies that will slowly get back during the course of the year as our people now are working in this new environment, three even helping us be more efficient along the way keeping their safety priority. So some of that Jason is baked in it's a couple of things.
I wouldn't look at price if anything we've actually had a little bit of price because of our technology shifts as with Angiovac. The new launched last year that we talk to you that price went up we think the positive price with the nano probe is now with the new Nanoknife system being launched last year. So it it can be a little choppy.
They can be a little challenging but if the if the trust a few factors when in price wasn't really one of them.
Okay, that's fine.
You mentioned earlier in the call variability in the recovery across geographies, if I back out the NH.
Revenue International look.
A little bit weaker than I would have expected U.S. was pretty stable and certainly improved from last quarter are there any pockets of geographic weakness you would you would call out.
You would think you kind of identified it what we've talked about that so our European business is under some pressure pockets you know operating theatres, if you're talking about just the UK for a moment.
We're very very close to some of our large customers there have walked us through the changes and challenges they face in their operating theatres of how their efficiency levels are down the treatment opportunities are down so their volumes are down and at some point there were often many cases in China, we talked about I think in the prepared remarks, we've had some some nano slowdowns in China. So.
We look at Europe, and China, as our two softest markets.
But there is still there are still issues like you look at Brazil, right now have issues with volumes in Brazil, Latin America, Canada had issues are coming back.
Slowly, but we're probably see that Jason the U.S. will probably outperform our outside of us markets, even going forward for the next little on the horizon here.
Okay, and can we assume that trends.
Have improved in the month of September as well.
Yeah, we can't I know when we gave in the last call. We gave folks a little bit of look into the June numbers here. We're not we're not done in September the way. This call fell this week, but we have seen that so.
Similar to what we said before just anecdotally customer behavior, even engagement with us chasing small levels of anecdotal behavior. They are asking our reps they come on and talk maybe a product trying to come up on a value analysis committee that was delayed for three months. So we're seeing some of these small and those that are positive and then.
And then those effects and so to answer your question, yes, small good incremental gains again in September that we can report to you soon.
I think thats right, Jason and more than anything I would talk about the stabilization that we've seen kind of July August September. So we talked about April is being clearly the meter width.
With some steady improvement happening in May and then nice increasing improvement in June and then steadiness in terms of July and August.
Into September and I think Thats, what also gave us.
Increased visibility and that increased experience to come out with the guidance.
Okay, and just last line for me.
The Oreo on launch can you just give us a little feel for how the device and where the device is being used meaning are you displacing laser or in terms of case mix is it a little bit more above the knee versus below the knee any flavor there would be helpful. Thanks sure. So right now Jason in many of the key.
This is the first of we just mentioned earlier, we have 47 lasers placed in the field already prior to the official launch which was last Monday.
Most of those cases, the customer had experienced with the other laser in the market and a lot of the cases, they're going to use our laser with one of the other mechanical options that a few companies provide we think the balance of our product and one of the mechanical options really gives them the confidence to treat any lesion today above or below hard or soft calcification now.
As you know, we believe our product and probably do all of those over time, but as we're gaining confidence with our physicians. They are going to use a blend of products over time. So I think most cases have been above the knee advocate Jason out of our first.
The first about 500 that we've treated during the the limited launch.
Yes.
Okay. Thank you.
Thank you, ladies and gentlemen, as a reminder, if you'd like to join the question Kim. Please press star one at this time.
Our next question comes from the line of Cecilia for along with Canaccord Genuity. Please proceed with your question.
Hey, good morning, Thanks for taking our questions.
I guess, if I could follow up also on the last question I'm just as you're looking at building a pipeline can you talk about the pipeline you have today with our eye on specifically the centers that you're targeting and then just if you could provide further color on pathfinder and really the trends you've seen us cobot, they covet burden lifted.
Sure.
Through the first part of the Steven mentioned Pathfinder, So what weve done out of the gate, it's really been customer driven when the data was published by X amount of that got us interested in the technology. There are other physicians have I've seen the data to it is really really really compelling. So you know as it.
As I mentioned before we've had a limited market release, we didnt do any advertising and promotion as you know we started to higher selling and marketing team over the last couple of months, we've got a really really good team of people. So they bring with them some customer relationships because they were engaged in the atherectomy business prior to joining angiodynamics in almost every case, they've also had customers who solved.
Data and said Hey, guys can I give that a try so now we have to have a staged approach and our limited market release period, which ended last Monday about being able to service some of those folks letting them TRIR laser as you know theres a balance of the office space laboratories his duties procedures and in hospital areas, we probably have had.
Much more over yells out of the gate almost because it with the coated situation. Some of the hospital customers have delayed value analysis committees and purchasing decisions, which has been fine for us because we've been able to service some of the Ob al demand that was created over time, we'll see more hospitals come on but.
But really familiar with very limited marketing not until last Monday, we put our website online I hope you go look at it.
But now we also do having backlog of interest and orders already that will service and we're being very judicious in our manufacturing and quality capabilities made should we make the catheters to the quality levels. The entire dynamics customers can expect and also producing the lasers. The level. We can service. These customers out of the gate and Thats really where we are but we have a good.
Finally, we're pleased with it as we add more sales reps on each quarter, we'll build that pipeline out as well and.
And then with respect to Pathfinder Cecilia, we're very pleased with the way that the Pathfinders study and registry is progressing.
We typically don't give the play by play in terms of enrollment. However, what we can say is that this registry easy compares to something like our direct study.
Little less hurdles to get into it and we clearly notice that but.
But our users have been very supportive of our data generation activities and our commitment to continue to collect data as we launch our young.
The registry enrolment is going right along with our expectations, we've been pretty happy with it.
Great. Thank you and I guess, if I could turn to Angiovac could you talk a little bit more about some of this.
Some of the specific areas driving strength in the quarter as well as really just the broad market dynamics that you're seeing in the field and really how those dynamics has evolved just cobot has progressed. Thank you sure. So a few things happening and will take you back again to last fall when we launched the new age of 3.0 version and it really took.
And it really took into account what some of the customer feedback was on our past device. So we've seen a really really strong uptick hopefully in a couple of different ways watching new users have now using the 3.0 version that didnt use our past device, we have new users that have not use it as a treatment option for people with severe clock and we're also seeing people who have used the debt.
Based in the past use it in more cases because of the significant outcome. There is experiencing so as we mentioned to you in the last call. We saw June was a record month for case procedure. You saw the numbers reported this morning really really strong not just sales, but more importantly, the actual cases perform where the most we've ever performed in the quarter, even while coated was in.
Tapping it I think is a testament to what the device does how well it works in this case now back to your larger overriding question again, we like a few other companies see mechanical thrombectomy being chosen as a treatment platform at a more rapid pace really because I think physicians are gaining confidence in our not only.
Our device with three or four other grid devices on the market as really good treatment options. So we believe it's a really healthy growth area as mechanical thrombectomy will be chosen by physicians to treat folks afflicted with clock. So as Weve also said I mentioned earlier in calendar year 21, we plan to launch a new device.
Using the basic fundamentals of how Angiovac works, but much more appealing product of physicians, who want to treat less acute clot less acute cases, so for us what that means we're going to open up our market. So today, we may compete in a market that you could argue is $50 million to $70 million of a total addressable market now we're going to go into much much larger.
Larger market expansion and over the next couple of quarters or so you will walk you through more details we get closer to that launch next year.
Great. Thank you.
Thank you ladies and gentlemen. This concludes our question and answer session I will turn the floor back to Mr. clemmer for any closing comments. Thank you Melissa so I'd like to remind the folks on the call today again I'm pleased with how our company responded to the Cobot 19 pandemic, we have a really strong base of employees are dedicated.
Data and committed to producing quality products that treat people to provide high outcomes for our physicians and the patients that get treated we're also as a management team transforming our company and again, we've shown you through our actions more importantly than our words that were driving our transformation through our portfolio getting into markets.
That are larger and also driven by outcomes that our technology drives. So this is the future of entered an MX a technology driven company that provides measurable outcomes to patients in need. So again. Thank you for joining US today, we look forward to further conversations in the future.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.