Q3 2020 TELA Bio Inc Earnings Call
And welcome to the bio third quarter 2020, <unk> earnings Conference call. At this time all participants are in listen only mode. A question answer session Wolfgang.
Following the prepared comments as.
As a reminder, this conference is being recorded I would now like to turn the conference over to Stuart Henderson, Vice President corporate development and Investor Relations for tell a bio.
Thank you Victor and good afternoon, everyone earlier today Tele bio released financial results.
For the quarter ended September Thirtyth 2020, the copy of the press release is available on the company's website join.
Joining me on today's call are Tony Coalition, President and CEO and Nora Brendan CFO before we begin I'd like to remind you that during this conference call. The company will make projections and forward looking statements regarding future events.
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Encourage you to review the company's past and future filings with the SEC, including without limitation. The company's forms 10-K filed on March Thirtyth 2020, and 10-Q filed on August 15, 2020, which identified specific factors that may cause actual results or events to differ materially from those described in these forward looking statement.
These factors may include without limitation statements regarding product development product potential regulatory environment sales and marketing strategies capital resources operating performance or potential impact of Covance team with that I'll now turn the call over to Toby.
Thanks, Stuart and good afternoon, everyone. We hope.
You are safe and healthy thank you for joining us today.
Before I review the highlights of our strong third quarter performance I would like to talk about the past 12 months for tele buyout.
Just over a year ago, Tele bio became a public company and while much has changed in the world since that time, the fundamentals of our business.
Our sound and we remain well positioned to drive growth, our overtaxed and Overtax Prs products represent an advancement in soft tissue reconstruction and are designed to improve clinical outcomes and reduce cost of care for hernia repair abdominal wall reconstruction and plastic and reconstructive surgery.
These markets combined represent a $2 billion use potential addressable market opportunity and we believe tele bio is uniquely positioned to lead innovation in these markets to our close collaboration with surgeons are adaptable technology platform, our organizational flexibility and are focused on advancing.
<unk> mission of bringing the benefits of natural repair solutions to more patients.
Hernia repair as one of the most common surgeries in the U.S. with an estimated 1.2 million repairs performed annually.
In the U.S. hernia repairs ranged from inguinal hernia is on the more simple end of the spectrum to the repair.
From large complex ventral hernia defects and abdominal wall reconstruction, approximately 90% of all hernia repair using reinforcing material or mesh designed to provide long term support at the repair site legacy measures include permanent synthetic meshes biologic meshes and results.
A little of both synthetic measures and each have their associated advantages and shortcomings.
Synthetic mesh has dominated the market due to its low cost strength and ease of use and is the primary product to use today for inguinal hernia and more simple ventral hernias. However over the past several years with the introduction of new Tech.
Technologies and risks associated with permanent synthetic mesh there has been a shift from permanent synthetics to more natural repair materials.
In a recent market survey, we conducted surgeons expect to increase their utilization of natural repair solutions across the range of hernia procedures.
And exhibit a high degree of awareness of the associated risks with synthetic mesh use we designed overtax to take advantage of and catalyze this transition and we believe overtax is well positioned to capitalize on these evolving market dynamics.
Another dynamic EPS.
Play in the hernia market is the increase in robotic assisted hernia repair surgery in 2019 over 480000 General surgeries were performed using a de Vinci surgical robots system up from approximately 380000 in 2018, according to intuitive search.
Ago hernia collar sector me and bariatrics procedures make up the majority of its general surgeries.
Through our market survey Surgeons report using robotic assisted surgery across the range of hernia repair with England and simple ventral repair contributing the most procedures, we believe our overtaxed.
LPR is strongly positioned to leverage this ongoing migration from open and laparoscopic approaches to robotic assisted procedures and we have experienced strong uptake in this product line in recent quarters as we expanded our product range at the beginning of the year.
Moving to our third quarter financial.
Third performance total quarterly revenue was $5.3 million, increasing 34% from the same period last year we.
We experienced solid growth from both our hernia repair and plastic and reconstructive surgery products as procedural volumes improved relative to the second quarter, while we continue to experience.
Actual postponements in non emergent procedures in areas of the country, where COVID-19 infections are rising these postponed postponements were not as drastic as they were in the second quarter with hospitals and surgery centers, having a better understanding of the virus and how to protect their employees and patients while this improvement.
The response is encouraging we believe there will be variability in the fourth quarter and remain cautiously optimistic even with the number of daily infections, continuing to rise and fluctuate. However, we remain cautiously optimistic about our growth.
Our team has done a fantastic job utilizing our Telo life program and other Uni.
Unique solutions to cultivate our strong surgeon pipeline as a reminder, tele lives comprises of two virtual sales solutions designed to educate surgeons about our product portfolio and clinical data. The first is a virtual version of our VIP tours and our second is for KNL seminars over 140.
80 surgeons have attended our virtual VIP tours or our K are well webinars through the end of September among of the surgeons, who participated in the event we have seen.
Close to 125% increase in our products average monthly revenue.
Due to these programs success and the positive feedback we it's.
Received we will continue to utilize these strategies for the foreseeable future.
On the clinical front additional data from our Bravo trial were presented at this year's Americas Hernia Society annual meeting the first of the data presented demonstrated that ventral hernia repair using overtaxed led to a low incidence of.
Digital site infections and recurrences.
Among patients who experienced a surgical site occurrence or surgical site infection at 30 days and none required surgical intervention or implant removal.
Our study consisted of 85 subjects of which 75%.
Met the criteria for ventral hernia working group grade two or three over 50% of the patients were obese over one third had undergone a previous ventral hernia repair and 16% had a history of surgical infections.
The second group of data presented from the Bravo study is from.
So initial 20 patients who reached their two year follow up among these patients no patients experienced a hernia recurrence. While this first group of patients makes up just over 20% of the total number of participants in the study. This is encouraging and continues to support our belief that our reinforce tissue matrix should lowered.
Our true hernia recurrence rates.
As a reminder, the Bravo study is a post market study designed by Tele bio and its investigators to evaluate post operative complications and returning Asians following use of overtaxed in subjects with moderate to complex ventral hernias due to many hospitals limiting non essential.
Visits because of COVID-19, we are working very closely with our study locations to make sure all follow up visits and sight monitor data verification can occur and as timely other manner as practical.
Turning next to our operations in.
In late June we began prudently scaling up our salesforce in territory.
Stories, where non emergent procedures are being performed close to pre COVID-19 levels and where we have hospital access through our existing IDN and GPO contracts.
Throughout the third quarter, we continued with our strategic hiring program and ended the quarter with 44 sales territories.
These new sales territories are being added within our existing six regions. So each region will ultimately consist of approximately eight territories. We continue to monitor the changing dynamics in elective procedures with our hiring needs, making sure we move forward with our operational growth initiatives, while judiciously manage.
Managing our cash.
Well access to our hospital and surgical center customers improved in the third quarter, our supply chain engagement within the hospitals has been challenging with this pandemic. Our team remains in active discussions with supply chain and clinical resources within hospital systems to drive adoption.
And the utilization of our Overtaxed technology platform. We also continue to make progress on securing additional IDN and GPO contracts.
Lastly, we believe our overtaxed Prs products commercial rollout for the plastic and reconstructive surgery market is beginning to take hold our clinical team has done an excellent job of re.
Going out to and communicating with surgeons through our Telo live program. Many of our surgeon customers are new to the Overtax Prs and are currently evaluating the product through their natural adoption process trying the product on a select group of patients and waiting several months to determine its clinical performance before using the product.
On additional patients our clinical and clinical development teams support these surgeons through their experience and continue to educate additional surgeons on the compelling value proposition of Overtax Prs and it's used in plastic and reconstructive surgery.
Ill now turn the call over to Nora.
Thanks, Tony and Hello, Andrew.
Please refer to our press release issued earlier today for a summary of our financial results.
2020.
Revenue for the third quarter.
Looking at year over year to $5.3 million revenue increased over the prior year period, I'd like if youre doubling impacted might arise.
Including 19.
Gross profit as a percentage of revenue in the third quarter, with 52%, which was lower compared to the prior year period.
Primarily due to a charge for excess and obsolete inventory in our main corridor.
Sales and marketing expenses were 6.3 million in the third quarter 2020 compared to 4.79.
And the same period in 2019.
The increase is primarily due to higher salary benefits and making cost as a result of an expansion of our commercial and commercialization activity.
Pretty an increase in headcount, which was partially offset by lower traveling consultant expenses, resulting from the impact of the company's 19 pandemic.
DNA expenses were 2.69, <unk> third quarter 2020, compared to 1.2 million in the same period in 2019 increase is primarily due to higher costs associated with being a public company, including compensation benefit.
Based compensation expense R&D expenses were $1.2 million in the third quarter 2020 compared to what happened.
Finally in the same period in 2009.
This increase is due to higher salary increase outside from a hot spot.
Apart from operations was 6.993rd quarter 2020, compared to 3.99 in the prior year period, we ended the third quarter 2021.
$81.5 million in cash.
Cash equivalent, which is a decrease of $4 million from last quarter and net loss was offset by some improvements in working capital this quarter due to the ongoing process improvement and inventory management and demand planning.
Based on our current plans, we believe that our existing cash resources will be sufficient to meet our capital requirements.
Find.
From operations for a long time.
Now turning to 2020 guidance do.
Due to the continued uncertainty from the impact of coding 1900 business. We will continue with the suspension of our full year 2020 guidance.
And with that I'll turn the call now over to Tony.
Thanks in closing I want to thank everyone again for your time this afternoon.
Revenue for your interest until the bio.
I would also like to thank our team is available for their commitment and dedication through these challenging times because of their hard work and perseverance I'm confident we will continue our success and achieve sustainable growth in the long term.
Ill now turn the call back over to Victor.
Option open it up for questions.
Thank you as a reminder, the question you need to press Star one on your telephone and to withdraw your question press the pound key names.
Based on the Bible the company.
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Yeah.
Uh huh.
Yep.
[laughter].
Hi, I think you got me Raj Denhoy broke up a little bit there, but what are you guys hear me okay.
Yes, Hello, I'm wondering too about.
The sales adds in the quarter I think I heard you correctly Stewart sorry, Tony.
I think you said you were at.
44 reps now I think it was 36 last quarter. So why did you can confirm that.
No and I guess that piece of hiring seems like it's picked up a little bit too we expect you're going to continue to add people here into the fourth quarter.
Yeah, Let me just clarify right. So we've got 44 territories carved out.
And set up based on.
All the criteria that we use right.
You know where the talent is where the IDN GPL access is we only have about 40 reps, maybe 42 reps plugged in to those 44 territories right. So we're a little bit low compare.
Compared to the territories.
Hi, a couple of rep. So so we're really in the low fortys right now.
Our target is to continue.
Sort of the strategic thoughtful recruitment of wraps until we get to about 48 reps or that should happen at some point next year, I mean, where right now we're sort of feeling.
Pretty good about the team we have the productivity that tell alive.
Being a good jump off point to get the reps primed and started.
And and were starting to really figure out how to make use of our clinical development specialist in business managers that support them in the field.
So I think for.
48 feels like the right number of reps for us.
At some point early next year.
And and then we're just going to focus on productivity and driving that group and then we'll see where it goes right. It will allow us to monitor how cold it is going how we're feeling about supply chain access and.
And we will remain vigilant and will retain the right to hire faster.
Or sort of hold or based on what we're seeing but either way you know we're going to we're going to drive this thing with growth either doing more with the current footprint or or or doing more with the current footprint in adding to the footprint.
Right.
That makes sense, but it does sound like you did add people they will come not mistake that was sort of flattish probably end of last quarter rights are you did you.
Got to 40 42, Yeah, I think you're right on the money yet.
Yep Yep, that's right right perfect Okay.
I appreciate you don't want to give as much in the fourth quarter, but I'm just curious last last quarter every day.
Right as you know a little bit in terms of the kind of monthly progression in terms of order how are things shaking out I mean are you seeing any sort of softness now that the case volumes are increasing I realize it short term and not really germane to kind of the long term growth story, but just so we can calibrate kind of the near term expectations. Yeah. I think that's it that's an interesting question that we're trying to figure.
Gave ourselves you know if you look at Q3 coming off of a highly anomalous quarter. In Q2, Q3 seems to have snapped back to a more normal cadence right on a month by month basis.
The biggest contribution to the quarter isn't the last month of the quarter September which historically.
Radically has been about 40% to 45% of that quarterly revenue.
And that exactly was the case in Q3, so it's interesting that we had sort of a normalized.
You know cadence per month, we had a normalized you know.
Set of procedures it felt very normalized other than you know the.
The ups and downs that Weve seen you know regionally in that you know in the market due to cold at Apache Ness in.
In Q4, you know, we're dealing with a whole different ball game right hopefully we see a similar normality in terms of performance and you know certainly October our first month in a in the quarter.
Sure. It was was hitting the mark well.
But you know I have never been through a co that situation in the middle of holidays Thanksgiving and Christmas. If you look historically at our business, even though we were immature last couple of years, our best month of the year tend to be that October November December.
You know somewhere in that ballpark, our best month. So you know I believe we should be able to keep that up you know, but we do see this patchwork effect. That's constantly shifting you know and right now it feels like it's a the Midwest, particularly the upper Midwest.
Where where we're seeing some impact but you know.
Okay like I said before you know I think were nimble, we're agile where mobile we can you know we can figure out how to keep this thing growing but Q4 is going to be a little strange with the holidays baked into this as well.
But so far so good Raj.
Understood and maybe just lastly, just in terms of access right. So.
No I mean anything you want to offer I mean, any new GPO contracts are being that might be pending that we could hear about anytime soon.
Yeah, no. So so did the big GTL is that many big DPL players right. We've got a big one in hand as you know.
Health Trust and you know there is that there is a couple of others that we're going to work on when.
You know when the time come if they're not ready yet in terms of the process.
So were grinding away at the IDN and you know it's it's working if you look at you know the performance and contribution of what we're doing here you know were up within the Health Trust account.
Counts you know I think in Q3, we had you know somewhere between 80 and 85 accounting if you compare a year ago Healthtrust. We've you know we were down in the Fortys. So you know even though you know we went sideways a little bit in Q2 due to cove. It we're making traction and you know right.
Now all the healthtrust accounts are looking like about 35% of our business up you know well over 10, 10% a year over year. So so even though it's been a difficult getting traction and supply chain. We've seen a good improvement and then you know 50% of our business is from you know not 50%, but the rest of the business.
It's from ideas and if you look at our IDN contracts rise that.
That were knocking down sort of piecemeal.
No.
They are they're all contributors to those final big.
Gpos, which we still have to work on getting so right now the plan is execute against Health Trust the best we can and.
Knock down all the IDN that ladder up.
Too busy in Premier and those guys and that's exactly what's happening right now.
Perfect. Thank you.
Yep.
Yeah, and just to finish that rise.
All that extra color about 50% of our.
Top 20, IDN do ladder up to those natural national contract GPR. So I feel like you know we are getting there you know across all the different you know systems that are out there.
I hope or by Crook.
Got it thank you very much.
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[laughter].
[laughter].
Thanks and just.
So the operator knows you keep breaking up every time you see yeah. I can hear you can hear you now have him [laughter] yeah. So thanks for taking the questions.
I guess just to follow up on Ross's last question on supply chain access at the hospitals can you elaborate a little bit more as far as what the challenges are these just you can't get into see these folks you can't really sell the merits of.
Of Oh, we tax or is there something else that we should be aware of it it's not that complicated.
You did right its availability and distraction you know, it's just not ideal it's not impossible and you can see you know we're executing.
But it's not ideal right. So you know we've seen you know the employees either working from home furloughed in.
In some cases, what have you, but they come back.
You know just like we have the teller life program for presenting to engaging deeply with surgeons, which is working we also have our b to B program, which predates code Red which is you know becoming super Super important and that allows us.
To get to the team.
Of logistics and customer service team folks.
To engage with the supply chain people, if the reps can't get into the hospital. So you know we're seeing some situations where were non essential personnel.
Just to do administrative stuff.
Reps, particularly aren't aren't.
Encouraged to be in the hospital, if they've got to be there for our clinical reason that's a different story.
So we're employing our b to B program, which is mostly virtual you know by email by zoom calls by all the usual tools. So it's working but.
But it's a bit more frictional for us I would say, it's not it's not ideal I think.
And Matt in principle, if you are a large incumbent.
It's easier right to deal with sort of a fractured you know employee base across supply chain. If you are a newcomer or you know it just takes a little.
A bit more time, a little bit more friction and you just got to be relentless and persistent and flexible which we are it's working but it's a little tougher and that does have some impact on our product range right. I mean, we can you know that were more established on the hernia side.
So you know our life programs.
Games ever able to drive deeper penetration and more usage, where we have access and where we are whereas on the Trs side, we're still establishing ourselves were newer on that product range. So that probably has a little bit of a bigger impact on prs, although we're doing well with Prs then.
Than it does on hernia.
Anyhow, but you know I think this concept of incumbent versus newcomer.
Probably you know we have a little more friction that go through that.
Okay, and and this may be an unanswerable question, but is there a way to kind of quantify what that maybe is it costing you 10% of revenues in a quarter or yes, I don't know its you know.
It's costing us I think it's hard to quantify that I mean I.
I have I feel frustration right because I feel like I see what's working and it is working right. The new reps that we've hired in 2020, our 2020 plus percent of revenue right. So they are getting.
That's what we want to see we want to see these reps get productive more quickly. The live programs. We can see it working right. We've got a 160 surgeons that we've run through the life programs and their productivity on a monthly basis is up 125%. So you know you think what.
What could we be doing you know if everything was normalized and we were in normal situation I'm going to say its more right, but but we're having good success I.
I told our team.
And I'll say that to everyone. Our job is to grow and established a company no matter what the situation.
He is out there in the market and in the playing field and we're doing that and if we just have that mindset. When we'll just continue to do better and better as the frictional forces ease off and Cove it becomes.
Past memory. So yes, we could be doing more we don't know exactly how much more it's not possible.
But I feel like we could be for sure.
Okay, well I mean, I guess, it's good to see that you beat numbers. So handily in Q3, usually for me today [laughter] Yeah right.
So yeah I guess Tony is is there it seems like Hello, Hello live is probably slowing down just given that these doctors are back to work and pretty.
Busy you still got some of these these headwinds as far as you know copel taken.
Are you seeing and so getting access on the on the hospital side.
If you would be more challenging is there going to be and it's probably going to be more transient than anything, but just a hole in your ability to really grow the business.
You kind of adjust.
So this environment or is there just so much momentum that you don't have it will be the case now I don't think so I think we can get these tell alive program is moving.
You know our cadence has slowed down a little but not that much we're still doing them.
We're still interacting theres plenty of answer.
You know there is a need out there for.
You know for new products, New technologies, and there's a particular need within the hospitals for cost savings. So we have the right product at the right time for so many different reasons.
And you know we mentioned this we did the survey.
You know.
Take a look at.
<unk> perceptions and fully 60% of the surgeons are are cognizant of problems with plastic mash and that's our opportunity right and 20% of patients that are coming in are cognizant of the risks associated with this just straight up permanent plastic Matt So yeah. We're.
At early stages of natural repair being pretty attractive and when were on these life programs. It's really of a benefit that we can have the senior leadership team, including myself interacting with the surgeons and it serves as market research and understanding.
As we go forward and I could say.
In a way that you know we have the ability to present much more aggressively about the downsize of permanent plastic and the upsides of natural repair than we have in the past. So there's so many confounding puts and calls and ups and downs in this.
I think we I think that the upside of the life programs in the direct contact.
Dave Surgeons, you know they don't have to get on a plane. They can spend 30 minutes with US Bang you know I think we can continue to move forward with that and don't forget we're we're still penetrating in the LPR into the robotic procedures.
And certainly Prs is going to be a great growth driver for us as we go forward. So there's a lot of.
Good tools and factors that we have that are coming together that should be able to overcome all the shop and that's that's what we're planning for.
Got it I'll leave it at that very helpful. Thank you so much right man thanks, Matt.
Thank you. Our next question will come from the line of Kyle Rose from Canaccord.
You may begin.
Hey, Thanks, very much can you hear me all right yeah.
For.
I wanted to just run down a couple of questions here, you talked about the robotics and the LCR at the beginning.
Positive.
But maybe could you help us understand how does that.
I was the use maybe in the more simple hurry as.
From a robotics perspective translating to more use in CIBIL three is broadly just trying to understand how much of the of the overall hernia repair market you think you'll realistically have access to now versus.
In the future.
And then if you could.
So from a high level just break down.
Overtaxed versus Prs just from a revenue perspective would be very helpful. Alright.
All right.
Let's start with the with the last question first so on a unit basis, we're still running about 90 10.
You know.
The adverse prs.
It's a little different on the revenue side, but will you know, it's a little higher in favour of Prs given the ASP was a bit higher.
But we're going to we're going to report it out that way going forward and I will say that prs.
It's going to grow right, it's going to you know the traction is going up.
Hi, Tom we're sort of in that early.
Shomi kind of a adoption profile you know that we've we know so well and have been through you know with our other products.
You know I think our portfolio right now on the hernia side, Kyle has never been better positioned to be able to do any in any anything in every.
Cutting in the hernia market satisfy every type of surgeon preference every type of patient need.
In every type of technique, both open and minimally invasive.
Our ventral hernia repair is running about 60 to 65.
5% of the hernia procedures, but.
But between eight went all and hiatus. So why those are growing for us and you know somewhere between it looks like 35% or so.
Our split between those inguinal.
And haidl procedures, a lot of those proceeds.
Seizures.
The inguinal and Haidl side, our robotic and I think a lot of the simple bench rolls are starting to turn robotics. So you know I.
I think as a simple proxy Kyle whenever you hear about.
Overtax being used in a robotic procedure.
You're probably talking about us displacing a permanent synthetic mesh more often than not right thats, primarily the type of product that gets used with the robot just for ease of use it's very hard to use other natural repair products with the robot other than what we have going on so.
That robotic.
Procedure is a proxy for synthetic replacement.
And we are quite pleased with the growth of LPR.
It's really comment on and if you look at our.
Our Q3 statistics were running about 50% little over 50% being open procedures.
And the rest being.
But between robotic and laparoscopic with the bulk of those 30, plus 35% being robotic. So we have a very robust usage across our platform of natural repair with robotic and I think it's fair to say most of those procedures would have been you know.
Plastic.
Permanent match.
Does that answer the question.
Well it does that's very helpful.
I appreciate the additional color there I just wanted to ask one.
And more specifically about Prs, maybe just help us understand what some of the feedback is from.
It's early.
Speakers are that we'll call it the.
The babblers year, thus far are they trying to have one or two cases and in watching results happen and then just the overall state status or the health of the breast reconstruction market as it stands now we've heard from some of the more of the implant companies that the recon market is lagging to recovery standpoint relative to the augmentation.
That kind of what you're seeing when you're talking to your customers do you think there's more pent up demand that could potentially come into the market.
For a more comfortable yet and now were so small as a percent basis that you know, we're just still working our way through this early adoption phase so.
The fact that it lags augmentation.
It really doesn't mean much to us at this point, we're still working surgeon by surgeon methodically through the process.
I think the feedback with the product is it it's interesting.
Interesting, it's a unique product.
The different type of stretch and the.
The fact that it offers great support.
And control I think is very attractive.
Certainly the price point and ease of use also very attractive I think thats really where we are right now in terms of the early experience you know.
I think we have a a wide mix.
End of <unk>.
Physicians from the early stages of the.
Of the limited rollout, we probably came out of that with a seven to 10 pretty.
Pretty pretty robust to users.
And you know, we're starting to increase that number and you know that the.
The new the new users are.
Range span the range between you know guys that do a few two guys that will jump in and do 10 or 15 or 20, even you know and then monitor their results as they go forward. So you know.
We're right, where we should be in terms of you know everyone.
Everyone gaining confidence.
In our on our plastic into construction program.
The next move.
We will see growth, yes, we'll see growth over the next few quarters, we had and this makes sense right. We had our best units and dollars with Prs in Q3, so it's growing.
Slow but steady.
That's the math the monitor a slow but steady.
Thank you.
But again Thats star one for questions one.
Our next question comes line.
His colleagues from JMP Securities.
Okay, great. Thanks.
How are you guys.
Good how are you going to get.
I was wondering Tony if you might comment a little bit on the pricing strategy.
How do you think that's working overall and then any sort of commentary on his piece.
In this current environment of the hearing any thoughts there.
Yeah, I mean, our <unk>, our asps have been fairly consistent I would say over the last couple of years.
You know, we probably have a little bit of a tick up in the discounting as the percent of health trusts grows and grows but you know nothing.
Outside of.
Too crazy in terms of magnitude. So I think we price our product range right we priced it.
To be a very good value proposition, particularly with our high performance clinical data.
And you know, it's not requiring a whole ton of discounting.
We have a wide array of pricing within the portfolio itself day right. So we can take our lowest technology level and our highest technology level and you know you did different ASP for all of those you know on a blended basis I think the ASP has been fairly consistent.
This is stuart over the last year or so in 3000 dollar range or so.
And you know I think we priced it right we feel pretty good about the value proposition that we can.
Can provide to the hospitals the LPR product.
It's priced a little bit low.
Or.
To encourage those high volume usage in replacing plastic, but not ridiculously not too much lower.
So we have some flexibility you know I think we we have different technology levels.
And we have ASP is that you know seem to be hitting the sweets.
No.
Great and I know you talked a little bit about in the past about million dollar territories.
Maybe a handful maybe slightly more than that that you had.
Some adds this quarter I guess as we look at the 44.
I mean is that a target.
Furthermore, I mean do you did the ads that you may.
Big areas like I guess thoughts on where those can go yeah. I mean, that's a standard right I mean every reps got to pull a million dollars on an annualized basis, you know before co that happens gosh, what will your money we were running about 10 you know.
Reps that were a million dollar EPS than we had it was a handful that were $2 million reps.
So I think there's proof there that we can do it.
You know what's interesting is not all of our pre co. The top performers had gotten back which tells you some haven't some haven't which speak.
Peaks to the nature of the patching EPS, but we've added <unk>.
<unk> million dollar revenue run rates, you know with new reps hired in this in this year.
You know I.
I think 20% or so of our revenue right now.
It's coming from reps that were brought on in 2020, So you know.
That that's that.
That speaks to the power and success of the life program, the virtual B to B stuff that we're doing.
Because they don't have perfect access and you know free and easy playing fields you know at the hospital at the street level, but they're growing they appear to be maybe two or three quarters ahead.
Where our historical guys were and that makes perfect sense, Dave because we've got better access we got better data.
The thing is starting to click and come together here, so we should be able to drive that productivity and.
So far in 2020, we are doing it.
So.
The rest are very attainable very very attainable with this product set.
Great. Thanks.
Thank you.
Once again Thats Star one for question Star one.
One moment for questions.
And I'm not showing any questions at this time I'd like to turn the call back over to Tony for any closing remarks, all right. Thank you Victor So thank you everybody for for catching us on the call today, we really appreciate following us.
Business is strong feels good.
I wish we had a free and clear.
Your market, but.
But we're going to get our peace with whatever the market gives us. So we look forward to the next time and thanks a lot good.
Right.
Ladies and gentlemen, this concludes today's conference call. Thank you for <unk>.
You may now disconnect.
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