Q2 2021 Clearpoint Neuro Inc Earnings Call
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Yeah.
Greetings welcome to the Clearpoint Neuro second quarter 2021 financial results Conference call. At this time, all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
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Please note this conference is being recorded.
Comments made on this call may include statements that are forward looking within the meaning of securities laws. These forward looking statements may include without limitation statements related to anticipated industry trends, the company's plans prospects and strategies, both preliminary and projected and management's.
Patients beliefs estimates or projections regarding future results of operations actual results or trends could differ materially.
The company undertakes no obligation to revise forward looking statements for new information or future events.
For more information please refer to the company's annual report on form 10-K for the year ended December 31, 2020, and the company's quarterly report on form 10-Q for the quarter ended March 31, 2000 of 21.
Both of which have been filed with the Securities and Exchange Commission and the Companys quarterly report on form 10-Q for the quarter and then June 32021, which the company intends to file with the Securities and Exchange Commission on or before August 16th 2021, all of the company's filings.
Be obtained from the SEC or the company's website at Www Clearpoint neuro Dot com.
I will now turn the conference over to your host Joe Burnett Chief Executive Officer. Thank you you may begin.
Thank you Diego and thank you to all of the investors and analysts on todays call for being a part of the Clearpoint vision of journey.
We are here to help restore quality of life to patients and their families who are suffering from some of the most debilitating neurological disorders imaginable.
In the second quarter of 2021, we made substantial progress across all 4 of our pillars of growth, including functional neurosurgery navigation.
<unk> and drug delivery, clearpoint therapeutic products and achieving global scale.
Importantly, we made this progress while seeing a return to pre pandemic case volume for a new quarterly record of 249 procedures covered as well as adding multiple new biologics partners to our active list, bringing our totals from 32 of approximately 35 today.
I will now turn the call over to Danilo, our CFO to review our financial performance in the quarter after which I will add some detail to our 4 pillar growth strategy day Noah.
Thank you Joe and thank you all for joining us today.
Looking at the second quarter 2021results.
All of revenue was $3.4 million for the 3 months ended June 32021, and 2 points of 5 million for the 3 months ended June 30th 2020, which represents an increase in revenue of $9 million or 38% of.
The revenue is made up of the 3 components functional neurosurgery navigation therapy biologics in drug delivery and capital equipment functional neurosurgery navigation revenue consists of disposable product sales related to cases utilizing the clearpoint system.
This revenue segment increased 74% to $1.9 million for the 3 months ended June 30th 2021 from 1 point of $1 million for the same period in 2020.
This increase reflects the resumption in the 3 months ended June 30th 2021 of elective surgical procedures, which were postponed or cancelled during the same period in 2020 due to the COVID-19 pandemic.
Biologics in drug delivery revenue include sales of products of disposable products and services related to customer sponsored clinical trials utilizing our products biologics in drug delivery sales increased 19% to $1.4 million for the 3 months ended June 30th 2021 from $1.2 million for the same period in 2020.
This increase is attributable to increases in both biologic and drug delivery of product revenue and service revenue as our biologic and drug delivery customers reestablished your estimated timeline for initiation of resumption of all of their clinical trials.
Capital equipment and software revenue consisting of sales of Clearpoint reusable hardware and software and related services, where point of $2 million for each of the 3 month period ended June 30th 2021 and 2020.
Revenue from this product line historically has varied from quarter to quarter.
While interest in the Clearpoint system remains strong capital headwinds of the Lady valuations due to COVID-19, ransomware concerns continued to slow new site activation.
Gross margin for the 3 months ended June 30 of 2021 was 67 per cent compared to 68% per the same period in 2020.
This decrease was due primarily to a decreased contribution of the second quarter of 2021 to total sales of service revenue, which bear higher gross margin in comparison to other that's where our product lines.
This decrease was substantially offset by an increased contribution from functional neurosurgery navigation disposable product sales, which carry a higher gross margin relative to other product line.
Research and development costs were $2.1 million for the 3 months ended June 30 of 2021 compared to <unk> 8 million for the same period in 2020, an increase of $1.3 million or 177% sales.
Sales and marketing expenses were $1.6 million for the 3 months ended June 30 of 2021 compared to 1.1 million for the same period in 2020, an increase of of half a million dollars or 42%.
Both of these increases reflect the additions in key areas to our team as we invest in expanding our product line lots of indications and comply with global standards as installations to take place around the world.
General and administrative expenses were $2 million for the 3 months ended June 30 of 2021 compared to $1.2 million for the same period in 2020, an increase of $8 million or <unk> 63 per cent.
This increase was due primarily to increases in the state franchise taxes insurance expenses occupancy costs and share based compensation.
As the benefits of our last round of financing we have hired 15, new employees across the organization since the beginning of the year in order to accelerate product development efforts, the commercial support and global expansion.
At June 30th 'twenty, 'twenty, 1, we had cash and cash equivalents totaling $61.5 million as compared to $21 million at December 31, 2020.
With the increase resulting primarily from the completion of a public offering of our common stock in February of this year.
I would like to turn now the call back to Joe.
Thank you Danilo.
As mentioned earlier, our clinical specialist team enjoyed a record quarter for procedure supported we added multiple new biologics partners and new services to our active list and portfolio.
And 2 exciting new partnerships with Blackrock, neuro tech and Eddie or announced showing our progress in reaching further and further into the operating room to complement our MRI guidance strategy.
Let's break down that progress into our 4 growth pillars.
First functional neurosurgery navigation continued to rebound with 249 cases covered by our specialist team in the quarter versus 126, a year ago.
During the Covid a growth of about 98%. We had previously communicated that we believe the case volume would return to these levels in the second half of 2022. So on the positive side, we see that this return of happened about a few months early.
We are not totally out of the woods. Yet however, as we are aware of a number of hospitals in states like Texas, Kansas, Louisiana, Florida, and Georgia that have communicated that elective procedures may once again be put on hold due to the Covid Delta variant.
And the number and the growing number of hospitalization.
At this point at least 1 hospital has halted elective procedures and 1 hospital has limited the all other communication to this point has been of warning so far.
From a development standpoint, we continued progress across our portfolio and solidified budgets schedules and team members using the significant capital infusion in the first quarter of this year.
As mentioned on the last call we did receive FDA clearance for the smart frame array, which is meant to streamline workflows and help clear points of crossover into the operating room.
We will continue our limited market release through the second half of 2021 and remain on track for a full market release in the first half of 2022.
We have continued development across the rest of our pipeline as well, including the 2.1 Clearpoint software the maestro brain model the orchestra multi trajectory headframe, our co developed <unk> system in collaboration with Blackrock and our robotic assisted system called Clearpoint Revolution in part.
<unk> ship with day in K engineering.
We feel that we have an exciting cadence of new and improved products over the next few years, which will continue to demonstrate clear point is 1 of the true innovative companies in the neurosurgery space.
All of our previous timelines remain intact and after completing our first clinical cases with smart frame array, which was accomplished in the second quarter. We continued to expect first cases of clear point to 0.1 and of Maestro in 2022 and orchestra MBR and Revolution in 2023.
Our recent announcement to enter the brain computer interface navigation segment with Blackrock Neuro Tech is a very exciting 1.
There is tremendous potential around the future of D. C is both of our medical and communication purposes. As you can tell by the significant investment taking place in the space.
<unk> is 1 of the first and most experienced Dci implant companies with 29 critical impacts completed to date in human subjects.
The recent infusion of capital is designed to accelerate the clinical and commercial launches of their pipeline of Dci tools.
Under this agreement we are leveraging our existing clearpoint platform to build a custom smart frame solution and software to make the BCA implementation faster more precise and more of a repeatable across most of those surgeons and hospital sites.
I think of this partnership is very similar to the work, we do with our pharma partners, where we provide a system disposables and clinical support during the infusion of the drug in this example, we are placing the BCE I of the target instead of the infusion cannula, but the business relationship as very similar or.
Our intention is to sell this navigation system directly to hospitals through our commercial channel and see this as another disposable spoke on the Clearpoint hub of the platform.
Importantly, while MRI images are used for many if not all of <unk> application. The surgery itself is designed to take place in the operating room. So this is another application that we are focused on that is not reliant on MRI access, but rather an additional crossover of technology for clearpoint into the operating room.
We also just announced yesterday an agreement with <unk> a leader in surgical drill solutions based in Germany.
This partnership has 2 important elements.
First of distribution agreement, allowing clearpoint to sell and support the ATR portfolio of power drills designed for the operating room here in the United States.
This is an impressive portfolio of products that has been quite successful across Europe, and just recently gained FDA clearance.
We expect training in limited market release activities to begin in the fourth quarter of 2021 with a full market release in the first half of 2022.
The second element of our agreement with Audi or is that Eddie or will build an MRI conditional device based on their current velocity Alpha design and upon the successful development Clearpoint will be the worldwide exclusive distributor of the MRI conditional drill.
This drill is an important addition to our portfolio as it is designed to eliminate the need for a slower and twist drill and could save anywhere from 15 minutes to more than an hour of surgical time during each procedure, depending on the numbers of trajectories.
This is especially relevant for our drug delivery partners as multiple trajectories and infusions are quite common.
Like in the Blackrock agreement. That's also provides yet another crossover of technology for Clearpoint to help penetrate the operating room as well.
Second our biologics and drug delivery team continues to add additional partners and services in the second quarter. We currently have approximately 35 individual pharma and academic partnerships across multiple indications up from approximately 30 a quarter ago.
As a reminder, it is common that each customer or partner has a drug the platform of their own meaning they are not planning to use their drug of vector for only 1 indication.
Our decision to expand into Europe has already helped us win additional European based pharma business and academic researchers.
We plan to continue adding partners and still believe that initial an initial commercial gene therapy approval for neuro could take place in the year 2022.
As you've likely seen from recent press releases the enrollment of patients into these trials has restarted after COVID-19 and we fully expect multiple partners to continue enrollment and initiate new trials here in the second half of 2021.
Yeah.
It is also important to note that the majority of our investment into the navigation system mentioned in pillar..1 applies also to biologics in drug delivery that is the beauty of our platform strategy as much of the investment is applied across many indications in both biologics and medical device navigation.
This is crucial from of training standpoint, as well every biopsy case laser ablation case for deep brain stimulation case. The hospital does with clear point today is in fact training and preparing them to do biologics cases in the future.
For our third pillar therapeutic devices, we have continued our development progress and remain on schedule for our previously communicated timeline.
The Clearpoint exclusive laser ablation system that is in development with CLS in Sweden, and the IGT and France continues to make progress and collect the data and we are still planning for a submission in the second half of 2021 to the FDA. Despite some COVID-19 related delays we.
We did announce an installation in clinical partnership interest at Rothschild Hospital, a couple of weeks ago.
The primary clinical data that will be collected will be on pediatric tumors using the complete clearpoint CLS IGT laser solution with the expectation of the first patients being enrolled in the first half of 2022.
Our biopsy platform. Similarly is planned for first human cases in 2022 and remains on track today.
Finally, our fourth pillar of achieving global scale has made progress as well our quality system has been successfully updated to be compliant with the new European MTR rules that went into effect in may of this year.
This is not a small task and has it been daunting enough to some companies that they have decided not to sell of certain products in Europe under these new regulations.
Although compliance is challenging we believe our investment is the right 1 and the simple fact that we have 1 of our clinical specialists present at our procedures helps us with that compliance and market surveillance.
We are also relocated key personnel to Europe and are preparing to do additional installations like the 1 that was just announced in Paris later this year.
Based on the second quarter results, we are continuing to stand by our prior forecast of the.
Between 16, and $17.5 million in revenue for the year and a range of 900 of 1000 cases covered by our clinical team.
The last comment I would like to make is about our team. We are successfully added about 15 exceptional team members across clinical development quality legal finance and production over the past 6 months and I want to make sure I underlying how special this team as.
We have of vision of where we want to go we are well capitalized and we have a motivated and very capable team that knows these patients and their families are depending on us and my experience. This has always been a recipe for success.
With that I would like to open up the call to any questions.
Thank you.
And at this time it will be conducting our question and answer session. If you would like to ask a question. Please press star 1 on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.
You May press the Star key followed by the number 2 if you would like to remove your question from the queue for participants using speaker equipment, and maybe necessary the pickup your handset before pressing the star keys.
Moment, while we poll for questions.
Our first question comes from Frank <unk> with Lake Street Capital markets. Please state your question.
Hey, guys. Thanks for taking my questions I wanted to first ask on the fiscal year 'twenty 1 guidance reaffirmed.
Where should we expect the reacceleration to come to drive the sequential growth through your end with.
With the report here, it's model then to be growing through the end of the year. So I was just hoping you could give us a little bit more color on the drivers to drive the sequential growth through the back half of the year.
Yeah, I'm happy to and thanks for the question Frank.
So as you mentioned, we have reiterated our forecast and obviously that does imply that the second half of this year has significantly more revenue than the first half. So we are expecting to see that and see that pick up in the third quarter.
Again, when youre growing things off of a smaller revenue base, even a week of the delay of the delivery 2 of biologics customer or for example, we had a very large.
A large number of cases of the last 2 weeks of June so a lot of those replenishment orders took place in the first 2 weeks of July so really just timing of where the quarter happen to and I think maybe brought the revenue numbers for Q2 down but it's certainly been replenished here in Q3 and in fact to date July has been our most successful month ever.
From a biologics and from a.
Our case volume standpoint, so we do expect that acceleration to start back up in Q3 here.
Got it that's helpful. Thank you.
Moving over to of Ray maybe speak to the opportunity you guys see with this product in your 60 established sites do you feel this is something all 60 sites would benefit from implementing at their practice is it a portion of those is it more than 60 of just trying to get a feel for the opportunity to sell into the established market right now.
Yeah, I do believe I believe it is an opportunity for not only existing customers, but maybe even more for new customers that would like to use some of the clear points of technology, especially when our lasers available and our <unk> system is available, but simply can't do that today, because we're still waiting for that solution.
But I do think it's something that applies broadly I don't think it's specific to a hospital and I think it becomes more specifics of the timing to an indication. So what I mean by that is if youre doing a laser.
<unk> procedure using the array system makes a lot of sense, because it's faster it's simpler it's a little bit easier to make adjustments and if youre doing multiple trajectories in the same patients which is very common for tumors. It.
It it makes that workflow of little bit simpler.
So I think the adoption of array into laser procedures will be sooner.
If you wanted to use the arrays for a procedure like a deep brain stimulation case.
This is really required to use something like the microelectronic recording of our MBR in the in the operating room.
So what I mean by that is the timing of array adoption for deep brain stimulation might have to wait until or any of our system is available closer to 2023. So it really depends on what it is the the site is looking to use our technology for.
Got it Okay, and then last 1 from me wanted to ask kind of heard your commentary about you still are expecting any of your first biologic approval. This year. The is using the career point system can you speak to this approval him I want to say, it's P. T C. A D C in the European market, but I wanted to say that they also may have.
<unk>.
<unk> pushed out the U S. BLA submission. So could you just update us on this partner 1 of if that's the correct partner into the or develop their latest development timeline that they're expecting.
Yeah. So I believe what they've communicated is that there is still expecting to submit their BLA here in 2021 with a potential approval in 2022. So I do believe that that commentary from PTC is.
What we're presenting here today there is the potential.
<unk> for a European commercial approval to take place sooner then.
The 2022 or sooner than the United States, but whether it happens of the second half of this year of the first half of this year or the first half of next year I think it kind of remains to be seen we need to remember that it's going to be a very significant milestone whenever it takes place because it will be the very first gene therapy approved for a neuro indication.
However, you know of being the first is always challenging when the FDA notified bodies are continuing to work through all of those different requirements.
Many of the challenging requirements have been taking place related to manufacturing and replication of the drug the themselves. Since many of these facilities are set up for the first time.
But we're still we'll be we'll be ready when I spend every day that clearance is.
Available the.
1 of the thing I'd build on that comment. However is that there are also some other opportunities for orphan disorders that could take place in 2020.2 as well so while pte.
PTC is 1 of the partners, we work with where we've announced the name and we're doing a lot of prelaunch activities and planning for them.
It does not mean that that's necessarily always going to be the first 1 there are other opportunities in 2022.
Got it Okay. That's helpful. That's all from me thanks for taking my questions.
Alright, Thanks, Greg.
Our next question comes from Andrew the Soho with B Riley Securities. Please state your question.
Hey, good afternoon. Thanks for taking my questions I apologize the answered any of these I was jumping between calls.
First question from me is.
About Europe, just curious how things are progressing from a site activation.
Ability to get into sites from the sales and marketing standpoint of faster.
I guess, the a couple of installs here to date, which looks good but obviously Europe seems like it could be.
Approved from the commercial standpoint, the first and the majority of the navigation of perfect for you all.
Is the domestic so I'm just trying to get a sense of how out of support there, but I'm clearpoint will look once the approvals from lots of start happening.
Okay now thinks of the question, Andrew and yes. So Europe is starting to open up again, however, those.
There's obviously some additional challenges worldwide with the Delta variant that we're seeing however, the installation process seems to have resumed as I think you pointed out we've had 3 installations in Europe that have taken place so far this year in.
In Denmark in Poland and in France.
I would say by the end of the year, we expect to have at least 2 or 3 additional installations take place as we prepare not only to do laser ablation procedures or potentially deep brain stimulation procedures, but also prepare to do some of the.
Some of the drug delivery of cases, either under some sort of commercial approval as you pointed out or as we extend into clinical trials with some of our partners that are starting to enroll in European sites. So I think.
It's the ability to have some support from the pharmaceutical side of things for clinical trials to get our equipment in certainly helps us to accelerate the process of installation because we generally have a champion at each 1 of the centers that really really interested in being the first in their country or certainly the first in their city to be able to participate in the kind of exciting news.
Procedure.
Okay, great context. Thank you very much of that last question is just related to the direct to patient marketing potential for us.
A sweet deal.
DBS procedure.
Or isolated.
Where are we on that or what should we think about next steps.
Yeah, I think we're actually making quite a bit of progress. There. In fact, there was an article just published this week out of the Brigham and Women's Institute that talks about the accuracy of our sleep DBS placement.
And some of the materials from different DVS companies are starting to indicate more and more usage of our you know really really leaving it up to the physician as to whether the patient should be awake or asleep for these procedures. We continue to gather the data and organize it in a fashion and expect to start.
Start doing some basic education.
Directly with neurologists as well as physician providers on some techniques on how the Clearpoint procedure is used and again, whether that patient needs to be awake or asleep for those procedures at the physician's discretion.
Things are things are absolutely looking positive there.
Great great.
Thank you very much for taking my questions. Congrats on the progress and good luck going forward.
Okay. Thanks, Andrew.
Thank you.
Our next question comes from the U N Norwegian with 10 times capital. Please go ahead.
Hey, Joe we have been following the progress of care point in a sort of deciding to see how the story is unfolding and I continue to be a strong supporter of what you do.
So I just wanted to touch on the recent partnership <unk> formed the ideal of medical and it's definitely great News could you share of us on how you view this will be completing the complementary to pinpoint an existing solutions and how would these partnership value.
2.2 points current offering.
Asphalt both the function of neurosurgery and the biologics jumped either really partners. Thank you.
No. Thanks for the question George.
I'll cover the part the second part first which is really the strategic rationale for this.
It's heavily relies on our ambition and the biologic and drug delivery space out and we truly want to be a leader there and continue to be a leader in not relinquish that lead once once we have it.
What's the drill solution will allow us to do the 1 that is currently in development is it will allow us to replace our twist drill which is currently in our kit and is used during these clinical trials.
So if you can imagine the difference of drilling.
Drilling inside of an MRI environment. So remember you can't have any heavy metals. There you have to use a titanium drill bits and things like that so the primary solution. That's used in that MRI environment. Today for these drug delivery of cases is putting a hand drill so.
Like moving your arm of circle to actually rotate the drill bit and drilled through the skull and if you have kind.
Kind of middle aged patients with various ex goals in certain disorders actually generally lend themselves to the thicker skulls as well every single 1 of those drill holes can take the 15 to 20 minutes and you could actually have to do what's called as described as bone work is at the end to make sure you don't push into the skull itself, but be able to scrape around the holes and give yourself a clean.
Entry of a clean purchase under the skull. So in some clinical trials you can imagine you are not only doing 2 holes you could be doing for you could be doing 6 you might even want to do more than that so the thought of 10 to 15 minutes for each 1 of those holes can be a pretty daunting..1. It can also be tiresome for the surgical team that's doing the procedure, so having an automated <unk>.
And that's similar to the ones available in the operating room. Today, you can effectively do that same exact work in less than a minute for each 1 of those holes. So anything we can do to shorten the procedure time to take up of less time in the MRI magnet itself and to ensure that when the patient is asleep under general anesthesia, we're not keeping them under the under end of.
Seizure too long these are crucial crucial elements to all of our drug in pharma partners. So it's a it's a very very important project and we feel we partnered with the best company to kind of deliver on this ambition.
That's the strategic part of the development partnership the.
First part, which is the more immediate opportunity is the U S opportunity to distribute this offer the bill.
Lots of the Alpha which is the high end precision surgical drilled it out of your makes and distributes throughout Europe. So this is the tool it's an existing 200 plus million dollars market here in the United States. If you look across all of the indications, including orthopedics and spine and cranial intracranial for neuro dentistry and things like that.
Obviously, our channel is not focused on things like dentistry today, but our presence in the hospital and the intimate relationship we have with the neurosurgery computing community certainly gives us the chance to go after cranial in spine immediately and actually potentially play in orthopedics as well. So our focus is going to be on the customers that we know and the relationships that we have today.
However, we are going to explore the ability to expand into some of these new markets as well, but even if you just look at the the existing U S market for cranial in spine. So the the neurosurgery applications that are our customers are using today.
The at least of $50 million opportunity from from the data that we have.
Alright, Thanks, Joe that the sounds really of the <unk>. So I'll just go with 1 more question relating to our biologics drug delivery partners.
Great to hear that we added another 5 partners in this quarter. So do you expect debt, we will continue adding partners and a stimulant piece and could you share some color on how all of biologics and drug delivery business boom income for any potential impact due to the Kobe deal kind of do you.
Thanks, Joe.
Yes, Im happy to I think we enjoyed a very nice pace here in the I'll say, the second quarter, but I'm, including sort of the recent news from this week at the outset, so really the month of July as well.
You know I think a voyage or made an announcement today, where they are discontinuing their surgical approach.
Relative to their drug delivery platform. So obviously, that's the subtraction of of 1 of those partners at least temporarily it still remains to be seen if they're interested or willing to sell off of that asset to another partner and restart some of the clinical work, but the way that we think about counting. These partners is there's some addition that.
Takes place and Theres also some attraction. So if we think about what takes the took place in the last 3 to 4 months effectively we added about 7 partners and then subtracted 2 relative to the Voyager and Neurocrine sort of departure from this space. So it was a net of 5 and that's how we continue to make this count.
I would say that that's more on the high end of what I would expect to kind of bring on 7 new partners in just 3 or 4 months, but I think maintaining the pace of about 1 a month or 1 every 2 months is certainly something that's available we still believe there's another 100 partners out there across intracranial and spine that would benefit from clear.
<unk> technology, and I'd say, we have active conversations with 20 to 30 of them at this point, but they haven't matured to the point, where we would say okay. That's the that's an official partner at this point so similar to the the way we think about capital equipment placements, where we've got a funnel of potential customers and then we look to install 1 or 2 a quarter.
Similarly on the pharma side of things, we're trying to do the same thing we were starting with the very large base of potential users that would benefit from clearpoint and looking to convert them into a formal partners.
On a steady cadence.
Alright, Thanks, a lot of Joe is the privilege to be your shareholder and to be on this journey. We have clear point. Thanks. Thank you for all of the outlook for 2.
Do you and the team and have a great deal here.
Thank you Brian.
Just sort of minor task of question Press Star 1 on your phone.
Our next question comes from Jay <unk> 10, with Th capital. Please state your question.
Okay.
Hey, Joel.
I would like to congratulate you on the call at the end I'm really happy to see how coupon has been progressing so far under your leadership.
So the first question I would like to US about is the global expansion. So in terms of Europe, we have seen trials such as the D. C. And also the recent knows Lindsay if the hospital Foundation Rothschild in Paris.
So do you see any interest at the rate.
Salaries of the interest in terms of the new partnerships in the pipeline.
And if possible can you sort of walk me through how you are planning the skewed up your global expansion to cater to these pipeline. Thank you.
No. That's a great question J H and thank you for your support as well.
The global expansion, we are focused on initially has been in Europe.
And to answer your question directly we absolutely as a result of this investment in this communication and that's just communication, but achievement of starting these installations, we have already been able to win multiple European based pharmaceutical partners, which we saw added here over the past 3 to 4 months.
So the message of.
Going to these customers, who had always been sort of interested and clearpoint, but simply wanted to do there of preclinical work in their clinical work sort of on their on their home turf across Europe, and the U K for them to now have the opportunity work with click to work with Clearpoint, It's something that absolutely is opening the doors and that combined with our very broad indication.
For not just our navigation system, but for our smart flow cannula on the delivery of fluids to the brain gives quite of bit of confidence into our partners to say, hey, I'm I'm I'm thrilled to be using the smart flow and the Clearpoint system, because it's been tried and tested through thousands of cases at this point, it's by no means a purely experimental so I think that's been very poor.
Positive and we've certainly seen that in Europe. We have also generated interest from partners in Asia as well and we are looking at evaluating the right partnerships and ways to pursue their again, we don't want of spread ourselves too thin and we also recognize that the technical complexity and the benefit of <unk>.
The clear points of personnel in the room for the procedure is certainly something we don't want to walk away from just yet.
It's something that we want to continue to build on so we're going to be very careful as to how far we spread our sense of then but it wouldn't surprise me in the next 12 months to 18 months that you would see a.
1 of the 2 installations in Europe for that same reason of being able to help Asia based pharmaceutical companies install closer closer to home.
Okay, Okay and on the thank you for that there was really insightful and I have just 1 last question for you.
The C that the let the Wuxi is starting to rebound kind of just how many partners of hospitals are you seeing that have already resumed the trials and.
And do you see any new clinical trials being initiate the and if there is any of it punishment on is distinctly English Charles debt you see thank you.
Sure. Thanks, Yeah, no. So the vast majority of hospitals have absolutely resumed work.
As a result of Covid now as I mentioned, Theres 5 or 6 states here in the United States that are struggling with the Delta variant more end of issued warning. So if they are sites that would be enrolling clinical patients. It's possible that trials would be impacted however.
Generally trials that are being performed here in the United States are spread across multiple sites. So even if.
Our site in Texas for example had to pause for a period of time to deal with Covid I don't know that that same issue is present in the northeastern California necessarily where a lot of these other patients would be installed.
<unk> initiated so so whereas I could see some slowdown potentially in trial enrollment in some areas I don't see the same health in trials like we saw over the past 18 months. So that's I think 1 thing to think about.
Further I I do expect if I were to tell you based on what I know today looking across the 35 active relationships that we have I would say that at present the schedule of that I've seen involve us.
The continuing enrollment and initiating patients in the second half of this year across phase 1 phase 2 and the phase III trials. So there's quite a bit of demand a lot of these no 1 wants to go faster than our biotech partners want to go there they are absolutely.
Moving as quickly as they possibly can because of their incentives are to do that as well to to get these patients enrolled and showed the benefit of their therapy.
So.
Like I said, we're trying to be there for each 1 of our partners and make sure we're ready as soon as day in the hospital are as well.
Okay. Okay. Thanks, a lot Joel so I'm I have no more questions from my side and I would just wanted to say debt I'm coffee done that to a plane can be an evo Devo company than he did the and they only the sheet and as the shareholder I'm looking forward the being on the journey with you have a great day.
Okay. Thank you Jason.
Thank you there are no further questions at this time I'll turn it back to management for closing remarks. Thank you.
Alright, well once again, thank you to everyone interested in being a part of this team story here at Clearpoint. We believe that we are doing very important work and we will continue to put the patients and their family first as we take on greater and greater responsibility for their treatment across our entire portfolio. Thank you and have a good night.
Thank you. This concludes today's conference all parties may disconnect have a great day.