Q4 2020 Profound Medical Corp Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the profound medical fourth quarter and full year 2020 financial results Conference call. At this time all participants are another thing on the mode. After the speaker's presentation. There will be a question and answer session to participate on that portion on the call you wouldn't need.
Press Star one on your telephone please be advised for todays conference is being recorded.
Now I would like to turn the conference over to your speaker today, Steven Kilmer with Investor Relations.
Thank you good afternoon, everyone let.
Let me start by pointing out that this conference call will include forward looking statements regarding profound.
Which may include but are not limited to expectations regarding the efficacy of profound technology in the treatment of prostate cancer BPH uterine fibroids palliative pain and osteoarthritis you on that.
Often but not always forward looking statements can be identified by the use of words such as plans is expected expects scheduled intends contemplates anticipates beliefs proposals or variations, including negative variations of such words and phrases or state that certain actions events or results may could.
It would might or will be taken occur or be achieved.
Such statements are based on the current expectations for management.
The forward looking events and circumstances discussed on this conference call may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the medical device industry economic factors, the equity markets generally and risks associated with growth and competition although.
For panel does attempted to identify important factors that could cause actual actions events or results to differ materially from those described in forward looking statements. There may be other factors that cause actions events or results to differ from those anticipated estimated or intended.
No forward looking statement can be guaranteed.
Except as required by applicable securities laws forward looking statements speak only as of the date on which they are made and profound undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise other than as required by law.
For the benefit of those who are new to the profound story I would like to take a moment to summarize our business for.
<unk> developed some markets customizable incision free therapies for the ablation of disease tissue.
We are currently commercializing Tulsa pro a technology that combines real time, MRI robotically driven trends urethral ultrasound and closed loop temperature feedback control.
For the technology is designed to provide customizable and predictable radiation for the ablation of a surgeon to find prostate volume while actively protecting the urethra and rectum to help preserve the patient's natural functional abilities.
<unk> is CE marks health, Canada approved and 500 10-K cleared by the FDA.
We are also commercialize and finally on the innovative therapeutic platform that is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastasis and so on.
On a leaf has also been approved by the China National Medical products administration for the noninvasive treatment of uterine fibroids and has recently obtained FDA approval under a humanitarian device exemption for the treatment of Osteo Osteoma.
While we do not expect this FDA hte approval to have a material impact on revenues in the near term. It is a significant milestone for our company and we are making preparations for U S. Commercial launch later in 2021.
On the call today, representing the company are Dr. Arun megawatt profound Chief Executive Officer, and Aaron Davidson, The company's Chief Financial Officer, and senior Vice President of corporate development.
With that said I'll now turn the call over to Aaron.
Good afternoon, everyone and welcome to our fourth quarter and full year 2020 conference call on behalf of the management team and everyone at profound I would like to thank you for your ongoing interest in our company and for those of you who are shareholders. We appreciate your continued support I.
I will turn the call over to Arun in a moment for an update on our commercial activities. However, before I do I'd like to provide a brief update on our fourth quarter 2020 financial results.
One major change you probably noticed from our press release today is that we have changed our presentation currency from the Canadian dollar to the U S dollar.
We believe this will result in more relevant and reliable information for those looking at our financial statements and will more accurately reflect the results of our operations, especially given our focus on U S commercial activities.
To streamline things all of the numbers I will refer to have been rounded and are therefore approximate.
For the three months period ended December 31, 2020, the company recorded revenue of $2 $9 million, an increase of 36% year over year and 29% sequentially over the third quarter.
When we announced our preliminary unaudited revenue estimate in early January 2021 ahead of the JP Morgan Conference.
We hadn't yet made the switch to U S. Dollar reported so for clarity. This translates to actual revenue of $3 8 million Canadian dollars versus the $3 7 million Canadian dollars estimate at the time.
Total operating expenses, which consist of R&D.
G&A and selling and distribution expenses were $6 1 million in the fourth quarter of 2020, an increase of 14% compared with approximately $5 $3 million in the fourth quarter of 2019.
Breaking that down further on a year over year basis expenditures for R&D increased 4% to $2 5 million.
This was primarily driven by higher spending for the setup and administrative costs of new clinical trials options awarded to employees additional head count and overall increase to general expenses, partially offset by decreases in material costs consulting fees and travel expenses.
G&A expenses decreased by 6% to $1 $8 million due to lower consulting fees and travel software bad debt expense and depreciation which were partially offset by increases in salaries and benefits and share based compensation.
Finally, selling and distribution expenses increased by 79% to approximately $1 7 million.
As noted in our press release, and selling and distribution expenses have historically been lower than R&D expenses. However, we expect selling and distribution expenses to exceed R&D expenses in the future as we continue to invest in the commercialization of Tulsa pro in the United States.
Overall, the company recorded a fourth quarter 2020, net loss of $7 5 million for 38 per common share compared with a net loss of $3 9 million.
Our <unk> 33 per common share for the same three month period in 2019.
Has that December 31, 2020 profound had cash of $83 9 million.
Like to close by saying that while our performance in the fourth quarter again speaks to the strength of our technology and our business model. We continue to remain cautious in the near term mainly due to COVID-19 headwinds the impact of which are unpredictable with that I'll now turn the call over to Arun.
Thanks Erin.
Year end 2020 March for 12 months Mark on.
The introduction of Tulsa in the United States and in spite of the delays due to COVID-19 on.
Pleased to report that we successfully executed against our strategic priorities in 2020.
The most important of those let's just start laying the groundwork to drive significant adoption of Tulsa pro in the U S.
And there were two major pillars of that I would like to focus my remarks on today.
First was to start building a high quality U S installed base.
In that regard our U S market entry strategy for Tulsa Pro targets three types of end users.
One.
Early adopters, which includes neurologists specializing in cutting edge alternative for us.
State disease treatment.
Independent.
<unk> imaging center companies such as Radnet.
And three opinion, leading teaching hospitals.
Each of these are unique and play different roles in supporting long term adoption.
The first two R&D adopter Tulsa pro sites have been treating a growing number.
An increasing variety of patients.
The experience at these centers mirrors, what we observed during our European launch, where surgeons initially use Tulsa pro to treat intermediate risk patients.
Then started to also treat low and high risk patients and then those with BPH.
The result of debt addressable patient population expansion has been higher R&D utilization.
Then.
We had expected.
At the beginning of 2020, we estimated that after the first six months to 12 months of being operational the average run rate would be 40 procedures per year eventually growing to 100 procedures.
For more after that.
Today. These centers have exceeded those targets by about 50% achieving an average run rate of 60 procedures per year.
With respect to the second group the imaging centers.
We used to report that Red net is now actively treating patients using Tulsa. After initially experiencing delays related to COVID-19.
Midway through the year, we are increasingly focused on the Dart group, establishing Tulsa centers at top tier hospitals.
The early results of those efforts has been outstanding with.
With the list of prestigious institutions offering the Tulsa procedure already including the Mayo clinic Ut southwestern Medical Center.
Well spend advanced prostate cancer Center and.
Most recently Yale Cancer Center.
While we have always expected teaching hospitals to be relatively lower volume at first.
And we're seeing these institution being particularly impacted by COVID-19.
They remain best positioned to help drive long term adoption by training. The next generation of urologist presenting at medical conferences publishing papers in relevant journals and participating in additional trials designed to support Tulsa Pro two.
<unk> quantify for a CPT one code.
This leads me to the second pillar of our Tulsa Pro adoption strategy, which is clearly reimbursement.
At the beginning of 2020, we announced.
We had submitted an application for a healthcare common procedure coding system C code from the centers for Medicare and Medicaid services or CMS for the Tulsa Pro procedure.
Subsequent to that we had an opportunity to meet with CMS and a number of hospitals.
The feedback from those discussions as well as from our consultants was that an existing code could possibly apply to Tulsa.
For that reason, we ask CMS to set our application on our side and allow the hospitals to decide if they would like to use that existing code.
While we're not able to provide great amount of detail on the numbers of patients on.
For reimbursement levels.
We can say that we're hearing from the hospitals.
That has submitted for reimbursement using the existing code.
They are being paid.
Well that is clearly a positive.
I would like to reiterate.
As I have on previous calls.
That we view reimbursement and coverage.
A three year plus process.
And the usage of the C code is the first step of that process.
In the longer term we.
We expect to conduct additional clinical trials that are mostly designed to expand the body of clinical publications.
And enable Tulsa pro.
To qualify for a specific CPT, one code and ultimately for payment coverage.
The first of those is tagged to an extension of the tax pivotal trial.
Another 35 patients to achieve a total number of patients treated to 150.
That study is on track to be fully enrolled in the second half of this year.
As we have discussed before by the end of 2021.
We believe that we should have the requisite publications to qualify.
To apply for a specific CPT one code.
For a coverage determination however, we will need level one studies.
Which we also expect to start recruiting.
Before the end of the year.
So to summarize.
I would like to Echo Aaron's comments that there remains significant uncertainty with respect to the Tulsa procedures adoption rate in the very near term due mainly to COVID-19.
However.
We're energized.
Going into 2021.
And remain on track to achieve our long term adoption goals for Tulsa Pro.
In addition, we're looking forward to launching saw on leave in the United States later in the year.
This ends our prepared remarks for today.
With that we're happy to take any questions you might have upper.
Operator.
Thank you and we'll now be conducting a question and answer questions and as a reminder to ask a question from please press star one on your telephone and to withdraw your question press the pound or hash key.
For mom and while we compile the Q&A roster.
Our first question is from Anthony Petrone with Jefferies. Your question. Please.
Thank you I hope everyone is doing well.
Maybe to press a little bit on the prepared comments on on backlog.
And not necessarily focusing on procedures, but rather installation cycles can you give us a sense of the average installation cycle pre COVID-19.
For a new site and kind of where that sits today just in terms of kind of the hurdles that you have to get past and getting.
Our system fully installed and up and running and when do you classify actually the installation cycle is the bigger headwind.
Related to Covid relative to purely on the procedure side and then I'll have a couple of follow ups. Thanks.
Sure.
Happy to.
On.
So.
Let me describe it by each of the pillars that we talk about each of the three.
Types of institutions that we focus on the biggest impact in terms of the delays was really in the hospitals and as I mentioned in our prepared remarks.
Going into the second half that was.
On a priority for us because we want to get the opinion leaders to get going on this product. So there were a couple of hospitals, where we actually had contracts.
But they.
Hospital administration simply did not allow.
Even our people to go into install the system.
There were a couple of hospitals, where we did install the system, but then in January for example, they were for them that they could not do a new.
New technology procedures and sort.
Sort of got delayed.
Because of that so high.
I kind of look at this as a one time thing.
And I do think that there is some impact on that.
Early part of this quarter, but the reality is all of these hospitals are now back up and we have installed and they are starting to treat.
So to answer your general question, though.
From the time, we get a contract.
A typical startup.
Is somewhere between 75% to 90 days for us at the moment I think over the long haul.
We anticipate it will be somewhere between 45 to 60 days, but at the moment, it's somewhere between 75 to 90 days.
Debt is that Hudson on your question.
Absolutely that's very helpful on and I guess thinking it correctly.
Can you bucket into two short situations, which is contracts in hand, but.
The company was not allowed to proceed with the Tulsa install and then systems that were installed that procedures were not allowed I just want to be clear that all of those are now installed or is there a certain portion within the first bucket, where you still have to finalize the installation of Tulsa.
No.
Agreements we did.
Last year and maybe very early this year there are now installed and.
Hospitals are now as of March we anticipate from full operation in place.
So I think that part is.
So hopefully.
There is no third wave and that part is now behind us.
And then the last one for me and I'll hop back in is a little bit more information on the C code hospitals that were installed last year are actually being reimbursed with debt C code.
Can you remind us from just the level of reimbursement that's being received under the C code.
And whether or not that is.
So on a universe across the installed base of Tulsa is at the moment or does it vary by region across the country.
Sure.
No.
What we've publicly talked about it in general numbers.
The APC code associated with Betsy C code on.
Generally pays in the overall between 11% to 12500.
And that range depends upon what type of institution is applying for a certain institutions in lower cost areas.
Or smaller institution, we will get the lower end of it.
Other institutions that are teaching institution will get the higher end of it.
<unk>.
I think that generally.
Hospitals are reporting that they are comfortable with the payments that they are receiving.
So as I said I Couldnt give you a specific hospital or specific number but I think general feedback is that hospitals are getting paid the amount they expected to get paid.
That's helpful I'll hop back in thank you.
Yeah.
So on count.
Question comes from Pavel <unk> with Raymond James Your question. Please.
Good afternoon, everyone and Erin thanks, so much for taking my question.
So my first question really is I think on your referring to all of the existing contracts having been installed.
Yeah.
Previous calls you'd referred to the pipeline being quite strong and that you will continue to sign contracts. So I'm trying to clarify is that the case, where all of the existing contracts that have been signed have been installed or are there are there more contracts being signed that would be kind of create this bolus of additional installations that will need to happen at the <unk>.
Hospital constraints start to start to release.
So let's jump into fireside chat.
Yeah, we have contract signed whether or not.
For the devices.
On install devices not treating patients still.
Right, Okay, it's a tightening of what it is.
<unk> debt, what I was referring to is the agreement that we had last year.
Our installed not all of them might be public on AGA.
Tight or anything but.
Are there, but we do have new contracts that we've signed this year, which are not installed.
Okay terrific. Thank you that's that's an important clarification.
And then and then so now talking about those are those.
Contracts that are currently being signed have been signed.
And the hospital constraints that you talked about.
How do you are you starting to see now that these hospital constraint is starting to be lifted or do you expect that to be happening sort of into Q2.
And as that bolus of installations.
It comes just kind of comes to bear.
<unk> size prepared to to kind of handle that large number of installations.
For the back half for this year.
Oh sure so.
I think to the extent that we can all predict what's going on with Covid I think that what we are seeing is hospitals are.
Starting to come back to normality to some extent.
Yeah.
I would say the other side in terms of the caution is that we have.
Installed.
Sure.
We have installed the systems, but getting up to speed in terms of the volume is still going to take some time because.
They have to start.
On getting patients established typically patients.
<unk>.
It takes about four four to six weeks for the patients from the time they schedule the patient to when they actually treat.
No.
I think theres still some uncertainty, but I think generally things are heading in the right direction in terms.
Activity.
To your second question.
<unk>.
We've talked about our pipeline is good.
We.
Adding <unk>.
Sources in our company at a pretty aggressive pace and we Havent outstanding team and they are traveling in spite of all the restrictions Dave.
They are current team as necessary and so on.
So you're on.
I think the short answer to your question is yes, I do think we will be prepared.
As the installed base grows and as the utilization growth.
Sure I think.
And just one more quick question.
About the C code. So you had mentioned that there are some of the hospital hospitals that are being reimbursed.
We followed up with sort of the 11 to 12000 figure.
And recognizing that you want to be judicious in your projections around it. So maybe if you can just clarify how many different sort of CMS contracted jurisdictions are being.
Currently reimbursed or from being submitted to ending reimbursed and then it was quick sort of follow up to that has that sort of trend to translate to any sort of any private payer reimbursement or is that too early to tell.
Yeah.
Rollout I would say, it's too early to I mean there.
Uh huh.
Only a few hospitals, so I would say probably two or three different zones are involved.
The moment, so it's kind of on early on that.
On the on the private pay.
I think again the number of patients is relatively small and so it's hard to predict the future, but I think our general impression is that.
Certain private patients are also being paid.
Maybe the amount they're being paid is highly variable depending upon what type of insurance they have.
But.
The general feedback we have from the hospital.
Sure.
Getting.
Payments.
Great. Thank you very much and I'll hop back in the queue.
Thank you. Our next question comes from Josh Jennings with Cowen.
Please.
Great. Thanks, This is actually at Neal on for Josh.
I guess first off I just wanted to ask about the international regions that are in play for Tulsa Pro.
So I know, Japan is one country, where you have seen some traction.
Could you talk about the.
The progress that you're seeing there and then secondly.
Just with Tulsa pro placements.
In Europe.
Could you talk about the opportunity there and if.
If that's a meaningful opportunity there for investors should continue to just focused on mostly on the U S opportunity.
Those are two very good questions.
So first of all in Japan.
We do anticipate that it is outside of the U S. It is going to be an important market for us.
<unk>.
The.
We do continue to see.
Traction.
But we do need to get regulatory clearance in Japan.
And we anticipate applying for it in 2021.
We it's hard to predict exactly when we get it but in the meantime.
We are getting new orders from Japan.
Debt are based upon their policy of.
Importing.
Technology to.
Through direct import policy. So we are.
On an innovative technology as they recognize and they're using the direct import concept to do so so we're not able to advertise in Japan at all at the moment, but it is word of mouth is.
Working.
It's also giving us.
Some confidence that hey, once we get the regulatory approval, but it's a market that we do want to pay attention to.
And as we go through it in Japan, we will keep you informed on that.
With respect to Europe.
Also very good question actually because.
What generally happens is what's happening with us as well.
We got our CE Mark early we started to learn about our technology, we start treating patients and that.
Education helped us when we came to the United States in 2020, and now again. It happens typically is now debt. There is some traction at the leading hospitals in the United States.
The Europe is starting to pay attention to us.
Also to say Hey, this technology is something we want to.
Evaluate as well so.
We are starting to see more interest whether it translates into higher numbers, it's hard to say at the moment, but it is certainly translating into additional clinical trials that are funded by Europeans for.
For us and so I think from that perspective, I do think long term Europe will become interesting also.
For certainly in 2021, you will see it.
Additional clinical publications coming out on Europe that will help us globally.
So I kind of think U S is by far our number one priority dependent we're going to continue to become important to us as we go forward and I think Europe.
<unk> will be next.
As well.
Great and then if I could just add in one follow up question here.
Yeah. There was there was a recent study published in Jama, just on prostate cancer screening with MRI.
On the results of that study seem that for.
For indicate there is potential to increase the use of MRI for prostate cancer diagnosis.
So could that could potentially become.
I'll provide a tailwind for Tulsa pro adoption.
I guess, particularly with the imaging centers.
Yes, So let me know.
That's also really good question.
So there is quite a bit of activity.
And what are the reasons why people used to ask because this question early on.
Being an MRI.
On a problem for you will you be able to find time on MRI and what we're really finding is that there is a.
Sort of a workflow debt.
And more companies are looking at debt, leading hospitals are looking at to see if they can use the MRI for diagnostics as I've kind of talked about it a little bit before also but the clinical workflow from.
Margin based diagnosis to MRI based biopsy to Tulsa.
<unk> base treatment.
And then post follow up.
The MLR based also because nobody really wants to do biopsies unless they really have to do it.
Chances of us.
Replacing biopsy in the very near term is probably low but I completely agree with the concept that there is a lot of work going on at DMR companies on continuing to improve the <unk>.
Imaging technology for diagnostics.
Might be familiar with the concept of pyrites, which has been more of a academic.
Concept for Eric admissions have been using that to stage. The patients I think you will see the pirates concept get more and more adopted in the diagnostic world and I think that will lead to.
On a much more uniform workflow so.
I haven't said anything actually what you've said, but I'm just putting more color into this.
Having multiple companies.
Diagnostic companies and with our <unk>.
<unk> technology, providing treatment with them on I think it's in sync with what.
What we see as a trend.
Great. Thank you.
Thank you. Our next question comes from tackling let's take capital your question. Please.
Even on thanks for taking my questions two for you today.
Starting on slide just asking a little bit more directly I think you guys ended around credit.
At around eight active sites from the United States.
Previously you guys have helped us out a little bit just providing some broader goalpost to think about installs on a go forward basis. So hoping you guys could help us out as much as you can understand and Theres a lot of uncertainty with the environment, just trying to get a little better understanding for your expectations on installs and this year and then even if you could tell.
I think on a longer term basis that would probably be helpful as well.
Sure.
Yes, I mean, I think Frank you were right in that eight to 10 range of installs.
Think we're a little bit.
On.
Cautious in the sense debt.
As I mentioned before there has been.
Certainly doing that.
Uh huh.
So January February there had been some related to startup. So we were sort of in bidding, what's really functional and what's not functional versus installed versus non installed, but having said that I think these are very very short term things and were more about the long term.
So I think.
Generally.
Likely to see these installed becoming functional sites pretty quickly.
With respect to the pipeline I think that debt.
But we.
We continue to see that.
We have a very good pipeline of imaging centers that are interested in.
Adding tulsa to their portfolio, we're continuing to see that the imaging centers that signed up with us last year want to increase there.
The number of sites that they want to go with.
Scene.
Early adopters.
On the pipeline of additional early adopters.
In our list and we certainly see a number of them.
A leading hospitals continuing to be very interested in we are in dialogue with more so in the certainly the rest of this year you will see.
Again opinion, leading sites adopting this technology and I think but I won't give you specific numbers, but just for you.
Obviously, we want to be very cautious and so on but I do think debt.
When I look at adoption of game changing technologies. The fact that leading hospitals are also leading adoption of a game changing technology, which is little bit unusual.
Certainly one of the source of confidence that we got on going forward.
That's helpful. And then just a second one on the utilization front I. Appreciate your comments on the outperformance versus your original expectations by about 50% on the.
The utilization in the first six months to 12 months.
Maybe talk about the second number a little bit of getting to that one for 100 procedures on a longer term basis do you feel that that's still a realistic expectation or do you think given the confidence on that.
<unk> on the early days, you could see outperformance to that second number.
Frank I would say that on 100 is still a very good target for us.
Hum.
I do.
Wanted to sort of provide a little more color in the sense that.
The the.
The reason why we saw this increase that generally.
For the clinicians began to learn about the technology more they felt that they could use it in a broader set of patient population. So.
In terms of the fact that this speaks to the fact that we could be applicable to a larger population and thereby the opportunity is bigger than what we started out with I think that certainly we feel pretty good about and I think you will see.
Case studies and publications that will begin to show that broader.
Potential of this technology and this year later this year.
On.
But I would say at the moment, we still think using 100 as a target is pretty good I think in Europe. Certainly we are seeing that the top commercial sites are getting to be beyond 100.
It's possible, but I also think debt.
To be honest I think 100 is more of an average I think we will probably have some sites that don't get there and we'll probably have a few sites that will be little bit higher than that.
Great. Thanks for taking my questions.
Thank you Frank.
On care and I'm, sorry, 90 day, ladies and gentlemen on to ask a question just press star one on your telephone keypad.
Our next question is on loan than hang on Alliance club on your question. Please.
Good afternoon, gentlemen, thanks for taking my questions.
First off for me just on the commentary about sales and marketing and expect that sitting on R&D.
Is that kind of more of a function of.
Well I know, it's a function of selling expense going up but how much of a function of that as you know.
All potential.
Decline in R&D, just recognizing that you're going to start the level one studies by the end of the year.
That's unheard question then.
Definitely income mapping and flowing here Ben.
Net sales and marketing we've definitely been working on growing the team fairly aggressively to.
You know being able to manage the funnel.
From an R&D standpoint, Theres definitely that's what I'm getting at the gathering and flowing.
There's also things like we had a very good year. So we accrued for bonuses in the fourth quarter with spreads across all <unk>.
Areas that is non repeating costs for instance in Q1.
We accrue at some lower rate.
Throughout the year, but so there are some also some sort of one time costs in there on the Q4 that made it higher.
Okay, That's fair and then.
You mentioned managing the funnel.
Who are they are.
Kind of on the accounts or the account types.
The newly added person personnel are.
Going to be.
Calling upon most frequently I mean as you know.
Hospital imaging centers.
Who's on really getting the focus on so its all day, Bob it's all of it but yes, the imaging centers and hospital executives, it's physicians urologists interventional radiologists radiologist, it's all payable.
Okay, and do you have a head count that you expect to get to or or anything you can share on that Brian.
We haven't disclosed that yet at this point.
Okay. So stay tuned got it and then I'm just thinking about you know Tom I'll leave you got the humanitarian exemption.
You don't have you already started having conversations with the folks that could be kind of the initial installs in the U S and you know what.
So what are those sites look like on the wall.
You know what sort of splash are you planning to make when you do launch a day.
And with just the Oh, you mean, the Cherokee humanitarian device exemption.
Probably not a big one, but I figured I better ask a question.
Yeah, No and I think it's a good quick question on <unk>.
With respect.
Spec to true that I think we have.
So far spent most of our time on.
What is the right strategy and what are the target hospitals.
Knowing that at the moment it is a capital strategy and knowing that that's a build on that.
Thing during the Covid era.
I would say you don't expect any.
On the sales news on that in the first half.
But yes, we do we have a target set of hospitals.
Would it be mostly pediatric hospitals.
And.
Hopefully there.
They have.
You know funds available true there their charity organization, so on which might be a little bit different. So we are.
We are.
Starting to engage with.
With these.
These for.
A few specialized hospitals.
You may have seen on our website, there's an interview.
From National children.
This debt was just put in just a few days ago. So you're right, we're starting to get there.
I think it's a compelling application, let's see how it goes.
Okay.
Yeah, well good.
Thanks for thanks for the color guys.
I'll leave it on that.
Thank you Ben.
Okay and our last question comes from Michael ammonia on there with the T. L. S capital Your question. Please.
Good afternoon, gentlemen, and.
Congratulations to you on the team. Thank you for thank you Michael success during an impossible yet.
You received Hum well, Hugh you've announced an agreement with GE healthcare in December of last year.
Yes.
Could you just.
For the importance of this especially in light of.
The.
The studies that you hope to see published later.
This year as it relates to the installed base as it relates to market share and as it relates to the adoption.
Yeah absolutely.
Michael.
You know, let me start by debt concept that you had talked about is that I do think debt.
<unk> is going to continue to be an important aspect of prostate management from diagnostics to treatment to post treatment.
So there is a lot of attention that DMR companies are putting at it I think the fact that we can fill this one big gap that existed in this workflow I think puts us in a very interesting position so from that perspective.
Were obviously delighted that all three of the big MLR companies are working with us on.
Obviously, that's an important point for us.
Second is that at a high level.
The MLR companies have their own specializations and.
<unk> for example tend to have specialty they said more in the imaging centers.
Whereas Siemens tend to have more specialization.
Some of the teaching hospitals and so on so I think having that flexibility.
Allows us to.
Cater to the needs of the of our customers rather than forcing them to use.
And Mazda.
On that where are compatible with only.
So it makes it much easier story for us too.
On a conversation for us to talk about.
And again at the high level.
<unk> is the largest stem our company in the United States.
And so.
Having access to that installed base is really important to us.
So.
Yeah.
No.
Given that we're debt early stage is it was it something that we urgently needed to have an installed base today not really because gen.
Generally even the large hospitals will have two of the three suppliers and we have been able to manage so far but I think that as we go forward, particularly long term it will be an important a very important agreement for us.
I'm good on I understand correctly.
They're essentially sharing credit costs for the development and the.
The software development and all of the testing.
I mean, our agreements on sort of win win based agreements and so.
Hum.
We are.
The things that we need to do in terms of developing our software.
Things that day.
They need to do in terms of their development they are doing so.
You know I think that is pretty consistent with the agreements we have in general.
Okay.
Well congratulations it speaks for itself.
The larger banks.
Installed base in a very difficult company to work with.
Is your partner now so thank you so much for best of luck for this year.
Thank you so much Michael.
Thank you and with that ladies and gentlemen, we conclude on Karen a question for today.
Would like to turn the call back to Iran men on watch for his final remarks.
Thank you so much thank you for being so supportive.
I think Michael's point is right it was.
Difficult year.
All of our startup.
We are we.
Our certainly energized with what we accomplished last year and.
We're really looking forward to 2021 and updating you on Q1 2021 with U S dollars.
I guess I would like.
I like to add one more quick point debt in case.
You may or may not have noticed at the tact clinical trial in fact in the month of March is now.
Fully published in the journal and the print channel.
And the.
10 in Tulsa.
In fact on the cover.
The journal.
So if you're American Airlines American Urologists on Simpson American Eagle.
It was lead terminal.
Thank you so much.
And ladies and gentlemen. This concludes today's conference call. Thank you for participating and you may now disconnect.
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