Q4 2021 ReShape Lifesciences Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the reshaped Lifesciences fourth quarter 2021 earnings Conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press Star then one on your telephone.
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I would now like to turn the conference over to your Speaker for today, Michael Miller, Our ex Communications you may begin.
Okay.
Yeah.
[music].
Good afternoon, and thank you for joining the year end 2021, reshape Lifesciences earnings conference call I'm pleased to be joined by Barked Bandy President and Chief Executive Officer of Reshape Life Sciences, Inc, who will provide an overview of the company's activity during 2021 and milestones.
To date.
Tom Stankevich Chief Financial Officer of Reshape will then review the financial results for the year after which we will open up the call to a question and answer session.
As a reminder, this conference call as well as reshape life Sciences, SEC filings and website, including the Investor information section of the website.
Contains forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 actual results could differ materially from those discussed due to known and unknown risks uncertainties and other factors.
These and additional risks and uncertainties are described more fully in the Companys filings with the Securities and Exchange Commission, including those factors identified as risk factors in the company's most recent annual report on Form 10-K as an additional reminder, reshaped stock is listed on that.
That trading under the symbol or S. L S.
I will now turn the call over to Bart bandy, President and CEO of reshape life Sciences Bart.
Thanks, Michael and good afternoon, everyone and thank you for joining US today 2021 was a year filled with significant accomplishments for reshape beginning with our merger with Oberland, our listing on NASDAQ and our subsequent $46 million financing all of which positions us to capitalize on the existing FDA approval and broad insurance.
One of the lap band and to reintroduce this proven product and other weight loss initiatives directly to the consumer or patient market with that in mind in October we launched a multi platform direct to consumer advertising campaign utilizing national television print social media and public relations to market all of that band program with them.
Available aftercare supported the reshape care a reimbursable virtual health coaching platform that can also support weight loss objectives for people who are not surgery candidates.
The goal was to create consumer awareness and increased patient demand for lap bad and as we recently reported the early metrics have been extremely promising recognizing that the four to six months mandatory waiting period for insurers represents a lag between early engagement of procedures.
In 2021, we nevertheless witnessed a robust 20% increase in revenues year over year to $13 6 million.
Before I go into more detail on our progress I would like to once again recap the incredible market opportunity before us.
Studies show that 73% of American adults are overweight or obese with about 50% of that population seeking to lose weight every year.
Harris poll research study conducted in late February of 2021 reported that 61% of American adults experienced undesirable weight changes during the pandemic with 42%, claiming they gained more weight than they intended and average of 29 pounds with 10% reporting they gained more than 50 pounds and remember this was one year.
Or ago, yes.
The epidemic of obesity is something we need to address globally with 30% of the wall now qualifying is overweight or obese, a number which is projected to grow to 50% by 2030, making the bariatric market a multibillion dollar opportunity in the U S alone.
Reshape is poised to take a lead position of addressing this significant and expensive health issue with <unk>.
A suite of physician led weight loss solution, including our flagship product the Latam, which has specific FDA approved weight loss indication clinical.
Clinical recognition as the safest surgical procedure and coverage by most major insurance plans, including Medicare to.
To implement this strategic brand awareness and intended market engagement campaign for reshape the lap band and reshape care in the fourth quarter of 2021, we launched our national demographic targeted direct to consumer marketing campaign across the highest viewed TV channels and print publications with the goal of effectively communicating the benefit.
And differentiated advantages of the lap at the only widely reimbursed FDA approved laparoscopic weight loss device commercially available in the U S.
The lap band is unrivaled being adjustable reversible and well proven with over 1 million band, having been placed into patients globally in the last 20, plus years, demonstrating superior safety and efficacy profiles compared to highly aggressive stomach stapling procedures in diets.
Adjustability reverse ability and having personal control as opposed to something being done to you have also been shown to have highly desirable aspects for potential patients when making bariatric surgery decisions.
Additionally, the reduced risk of adverse events and nutritional deficiencies associated with anatomy altering procedures have also been identified as being of great significance. In this decision making process. The fact that most patients return home the same day or so of that for a procedure, which is available in outpatient surgery centers is also a key determining factor.
Especially given how COVID-19 has affected patients and doctors at the hospital level.
Based on our recent commercial consumer testing and then no historical impact of patient direct marketing programs for the lap bad we were very optimistic about the potential of a national marketing campaign for a physician led ecosystem weight loss solutions.
Since the beginning of the marketing campaign lap band has been featured in 10 Major magazine publication and over 20 National cable stations that are all focused on our target audience.
Going forward, we will continuously improve on these marketing efforts through diligent metric analysis and adaptation while also pursuing co op marketing partnerships local digital media and a national social media Influencer campaign.
As we recently announced in our press release last week early analysis results from the marketing campaign has been outstanding.
Tober, we've experienced 250000 more patient visits to the lap band Dot Com website, resulting in 480% more patient request for information on the lap band procedure compared to the immediate months used to establish a baseline prior to launching this campaign.
More importantly, doctor referrals for consultations have surged over 400% in that same period. This significant increase in potential patient and bariatric surgeon engagement indicates that our message is clearly resonating with the consumer and professional markets.
We have witnessed a 25% increase in requests from very accurate practices for refresher training and certification on the lap band procedure and from what we believe to be a very positive umbrella effect with our campaign traffic to our surgeon locator is up a noteworthy 1300% compared to the same day.
TC prelaunch baseline period.
In January of this year, we had the opportunity to present, the Latam program and expand awareness to a range of key bariatrics surgery providers at the American Society for metabolic and bariatric surgery, a F N B S leadership Academy and they're reunited meeting where we received overwhelmingly positive feedback on the need for training and inclusive.
Many of the procedure for bariatric practices. Moreover.
Anecdotal feedback from surgeons on the positive impact of new patient flow from the DTC campaign has been remarkable and as a result, we expect to experience heightened physician engagement, leading to increased lap band procedures, and thus potentially a significant increase in revenues from reshape overtime.
This is a key component of this business model that I must call out again, the average mandatory wait period for insurers of bariatric surgery is four to six months. We had an early launch in Q4 of 2021, adding TV networks that magazines throughout that quarter. After gaining medical review committee approvals and followed that with a major investment in.
The campaign in the first quarter of 2022.
As we are now seeing procedure directly track to the campaign, we remain positive that the back half of this year will demonstrate the true potential of this strategy and execution.
While raising the visibility of that outbound program. We've also continued to build our proprietary ecosystem of unique weight loss solutions that provide more revenue producing pathways keeping patients in our sales channels longer.
Notably our reimbursed reshape care virtual health casting platform is a key element of our medically managed and bariatric surgery patient outreach strategy for <unk>.
Militating more engagement longer term retention and optimize health improvement.
Our entry into the virtual health care delivery space allows us to tap into a market that is expected to reach $95 billion by 2026.
Reshape care and its extension reshaped marketplace, providing e-commerce platform to access a collection of healthcare provider recommended competitively priced weight loss and wellness products that support the vital areas of nutrition exercise sleep and stress. This E. Commerce based offering includes reshaped new advanced line of premiums.
Supplement to optimize health and wellbeing, specifically for bariatric surgery and medical weight loss patients.
On the operations front by moving our manufacturing from Costa Rica to a new United States based supplier, which we announced last summer we have begun to realize significant efficiencies and cost of goods savings in order to support our accelerating patient flow from our DTC marketing campaigns and strategic initiatives, we have significantly bolstered our sales.
<unk> and commercial groups with the additions of Michael Bordainick as senior Vice President of commercial operations and our D is as vice President of operations and research along with others, including a number of key sales personnel.
Now I'd like to take a moment to review our pipeline.
Once we receive necessary approvals for European based study site and communicate our go forward plans with regulators, we will resume our EU based clinical trials for the reshaped best a laparoscopic implantable technology designed to support and enhance the weight loss journey for a patient with stomach reduction surgery.
Which has the potential to replace or complement current volume, reducing bariatric procedures, we remain in contact with clinicians and clinical sites regarding this trial, where access to facilities and patients was precluded by the COVID-19 pandemic.
Getting through our merger with O blood as we mentioned last quarter, we continue to explore the compliance and regulatory requirement manufacturing viability and quality system controls necessary for reintroducing the oberland balloon system. The technology is the first and only swallowable gas filled FDA approved balloon system introduced into the U S weight loss market.
As a nonsurgical minimally invasive product.
With the assistance of a grant from the NIH, we completed and met the necessary endpoints in order to complete the preclinical development of the reshape diabetes blocks them Neuromodulation technology, a novel investigational device using neuromodulation to adjust insulin production and potentially treat type two diabetes.
We have submitted for a second grant for which we recently responded to request for additional information from the NIH Committee over the recent holiday break we.
We remain committed to evaluating the potential of this platform, which is backed by a strong intellectual property portfolio through an agency and strategic investor base non dilutive funding strategy.
Yeah.
Additionally, we will continue to pursue M&A opportunities that align with our commitment to the physician led weight loss and metabolic solutions market enhance our current product portfolio and can be accretive to our value.
We are pleased with our recent efforts and achievements highlighted by our National DTC marketing campaign and the recognized results to date, we will continue to maintain focus on marketing the proven advantages of the Latam program in line with their positive metrics and resulting procedures.
And we will continue the evaluation development and prioritization of our portfolio and external opportunities that can bring additional value, creating weight loss solutions to our company.
I look forward to providing further updates on our progress in the quarters to come.
I will now turn the presentation over to Tom for a review of our financial performance Tom.
Thanks, Bart and once again, thank you all for joining our webcast. This afternoon.
Before turning to our detailed metrics I'd like to provide some color on our noncash stock compensation expenses impairment charges and costs related to the merger with <unk> that drove substantial increases in our noncash operating expenses for the following areas sales and marketing general administrative.
And R&D.
As a company.
We place employees at the heart of our business.
Understanding that stock based compensation is a proven and effective tool to retain existing staff attract seasoned professionals and enhanced incentive programs.
Subsequent to the merger with Oberland listing on NASDAQ and our fundraising.
We issued for the first time since 2017 restricted stock units and stock options throughout the organization.
Considering the height of this expense during the quarter. We believe it is appropriate to call out. These metrics for the year ended December 31, 2021, we recorded $12 8 million in total stock compensation expense of.
Of note a majority of this is this.
<unk> expense includes a onetime charge, probably look back provision for vesting to begin at the one year anniversary date of employment.
We also recorded a loss on impairment of intangible assets and goodwill of $28 8 million.
This is primarily due to significant drop in our market capitalization at December 31, 2021, coupled with the delay in the clinical trials for the reshape that due to the COVID-19 pandemic.
It is important to note that both the stock compensation expense and loss on impairment are noncash expenses beats.
Between the relatively high normal noncash stock based compensation expense loss on impairment and the 6 million acquisition related outlay of funds and given these expenses or specific in nature and uniquely attributed to events this past year.
The company expects its expenditures to revert to the customary levels moving forward considering the effect of these charges are nonrecurring.
With that in mind, let's turn to our revenue and operational results.
For the year ended December 31, 2021, we reported $13 6 million of revenues compared to $11 3 million of revenues for the year ended December 31, 2020, an increase of $2 3 million or 20%.
Which is attributable chiefly to a $2 million increase in the U S and a $300000 increase internationally.
We reported gross profit of $8 4 million for the year ended December 31, 2021, compared to $6 3 million for the year ended December 31, 2020, an increase of $2 1 million or 33%.
Gross profit as a percentage of revenue for the year ended December 31, 2021 was 61, 4% compared to 55, 4% for the same period in 2020.
It is important to note as Bart stated earlier that we have also begun to realize significant cost of goods savings by moving our manufacturing from Costa Rica to a new supplier in the U S.
Additionally, the increase in gross profit margin is also due to increased revenue reduced period expenses and improved product mix with higher domestic sales as a percent of revenue, which have a higher gross profit margins in international sales.
Total operating expenses for the year ended December 31, 2021 increased by $46 1 million to $64 8 million as compared to $18 7 million for the year ended December 31 2020.
The increase is primarily due to the previously mentioned one time charges for a merger noncash stock compensation and the loss on impairment of intangible assets and goodwill. Additionally.
Additionally, sales and marketing expenses increased due to the launch of our multi platform consumer advertising campaign utilizing national television print social media and public relations during the fourth quarter of 2021.
Sales and marketing expenses for the year were $9 2 million as compared to $4 7 million for 2020.
Aside from other previously mentioned factors are increased expenditures stems from additional marketing advertising efforts and an increase in related expenses from expanded commercial organization.
The company expects to continue devoting more resources towards sales and marketing, particularly through our national direct to consumer campaign, resulting in an increase in sales and marketing expenses for 2022.
General and administrative expenses were $24 4 million for the full year of 2021 compared to $10 5 million for the year ended December 31, 2020, an increase of $13 9 million.
In addition to stock based compensation expense. This amount also reflects an increase in legal insurance professional services payroll related expenses and an increase in rent and facility expenses associated with the <unk> merger.
Research and development expenses were $2 5 million for the full year ended 2021 compared to $3 5 million for the year ended December 31 2020.
The decrease is primarily related to a slowdown of clinical trials related to reshape that due to the COVID-19 pandemic.
On a non-GAAP adjusted EBITDA basis, including the addition of noncash stock based compensation depreciation amortization and impairment amongst other things.
The loss was $10 6 million for the full year of 2021 compared to a loss of $9 1 million for the year ended December 31 2020.
The increase is primarily related to strengthening of our organizational and commercial operations.
Now turning to the balance sheet as of December 31, 2021, the company's cash and cash equivalents totaled approximately $23 million.
Of note, we eliminated all debt from the balance sheet, including $10 5 million term debt with an institutional investor and our final 3 million dollar obligation to Apollo Endo surgery for the purchase of the lap band in December of 2018.
Additionally, 6 million and professional service in investment banking fees were paid related to the <unk> merger.
As mentioned in previous quarters, we continue to save and optimized costs, while we strive to increase revenue and pursue significant ROI growth opportunities.
As COVID-19 restrictions continue to be lifted and elective procedures continue to rise our efforts around product visibility and demand for our products. We look forward to reporting even better results in the coming quarters.
With that I will turn the call back over to Bart to begin the question and answer period.
Thanks, Tom.
Operator, please open the lines for questions.
Thank you.
Ladies and gentlemen, as a reminder to ask a question you will need to press Star then one on your telephone.
Or withdraw your question press the pound key.
Again, Thats star one to ask a question.
Please standby, while we compile the Q&A roster.
Our first question comes from the line of Anthony Vendetti with Maxim Group. Your line is open.
Thank you and good afternoon.
Hey, Anthony.
Hey, Bart.
Tom how are you doing so so the DTC marketing campaigns showed significant growth in terms of.
The number.
I guess in terms of percentage.
For.
Leads generated I was wondering if you could tell us.
A number of leads generated.
Or number of consultations.
Directly as best you can tell directly related to the DTC marketing campaign.
Thanks, Yes.
Sure.
As we worked out through what the metrics funnel so to speak looks like I think it's really important to point out that the mandatory wait periods for most insurers is four to six months. So if somebody wants to go ahead and get a very accurate procedure today Blackburn sleeve bypass whatever it's going to take four to six months for them to get through that process.
Behavioral analysis physicals.
Some people require that they go through medically managed weight loss to make sure. They cant do that just one more time, but as we get through it. The main thing is that we're seeing now I remember when we launched in October and November we launched harder because we got affiliate approval is from from broadcast networks like ABC.
And then December was a little light because of the holidays, we pulled back but then in January February and March we started advertise quite a bit. So if you start looking at that four to six months window will just starting to see those people get through the consultation and procedural volume list, but as we mentioned we had 250000 people come to our website that.
Warrants areas with our baseline.
A 480% increase in request for information on lap band of 400% increase in warm transfers to consultations and we have a pretty good conversion ratio. There. So I can tell you that is all starting to come but a lot of the practices are just now getting their feedback under them.
Some practices haven't done any procedures since Christmas is coming back in February and March So just getting their SaaS back Theyre just getting these consultations schedule. They are just getting everything lined up so right now we know that those are starting to come through we're seeing them, but what we can't track all the way to that point is the warm transfer.
And we work with the accounts, we have our field personnel working with accounts to make sure I know how to process. Those warm transfer had a tournament. The consultation have tremendous procedures. So we will start to talk about those numbers in a couple of more months as they start to come in and we start to get more regular or normalized data points on that but just looking at the way that everything kind of sift through the.
System, we're very confident that the numbers, we're seeing in the upper level if that's the.
Website traffic to leads and the warm transfers.
Anything else a follow through and over the next few months, we'll be able to report on what those direct correlations are because we have a business to business associate agreements with all of our accounts, which means that we are within HIPAA compliant and able to track that information all the way down to actual procedures.
Again that will be more normalized data going forward and I think the next couple of months will put we will put something out.
So Bart just follow up on that so.
Did you say that.
And maybe this is partly due to omicron, but.
Where some of these procedures, which are obviously elective.
They put off in in January and February to to some extent.
Because omicron or even even.
Patients that may be were interested even though it takes four to six months just the normal flow of patients was that just stall because omicron.
It was definitely impacted we actually started all the way back to December .
<unk> started to hit and hospitals, everybody have kind of gone through the process now so there are a lot faster to start.
Closing and reallocating staff in doing that.
And over the last couple of years, what to do so yes, we saw that staff staff was reallocated to different departments and hospitals some practices their whole practice courts caught COVID-19 . So yes, a lot of this was put off but that's why we're starting to push the numbers. So hard so that we can try to make up for that and try and get more people into the outpatient.
Surgery centers in this trying to get the doctors learn step up the one thing we did check is that with the practices. They are building their procedural load so and when they do get access they're not losing these patients which is key for US also because that's what it tells us to keep the process, while we know that continuity billings the traction is.
Get us more procedures down the road with direct to consumer marketing. So we don't want to have any breaks in it but we also have to make sure. It's the wise thing to do and we're confident of that because we're actually engaging with all of our accounts and making sure that they are not losing those patients those patients arent going anywhere theyre not theyre not.
Doing anything else you may have a small percentage fall off, but we're going to capture more than the coming quarters.
Okay, that's great and then.
As you have been getting the word out there.
Among not just not just potential patients but physicians.
How many physicians have that may be.
Used to do the lot band procedure, but stopped.
As there wasn't a lot of.
Marketing and training behind it.
How many of them have signed back up and.
Sure.
Do you have that that number also the number of potentially new physicians bariatric surgeons that are said.
We want to be we want to be part of this process.
That's great so.
As we said in the past, we're going to a different model, we're not putting 10000 reps out chasing 100000 doctors, it's expensive. It doesn't work anymore, you can't get access to them. They don't have the controls they used to at the hospital level. So driving the patient flows what we can do and we only needed about 150 accounts across the U S to really be effective in <unk>.
<unk>.
See returns that makes sense on this consumer investment and so the good news is we had over 30 accounts come back since the program started so in the last four months. We've had 30 accounts come back we put them through refreshes recertification gone out make sure that they were up to date on all the new collateral.
<unk> had a process that leads how to work with our tracking programs and our lead engagement company. So that's a tremendous number and that's just the first four months and a lot of these guys.
We will have to sit down and have a coffee. Some there is some funny stories.
But guys you said, they probably wouldn't come back until things really changed or until they had a lot of data with the patient flow I think a really good sign on the patient flow is that these guys are coming back now and that's important for US we know we're doing the right thing.
And I mentioned earlier on the Fireside chat I had today.
With Maxim as that.
We are also tracking what the umbrella effect is on this we've seen 1300% increase in patients going directly to our website and go into the surgeon locators, So even if theyre not coming through our system, we're still tracking them and we're seeing the doctors come back and do that the other thing is really key is because of the traction we're getting.
In February we went to an <unk> leadership meeting and for the first time in over a decade. They included us to present to their new fellows that are graduating because theyre starting to really believe that this the lap band should be something that is part of all practices and it should be offered so thats a huge sign in the society.
To see it start to recognize that it needs to be touch to the new fellows and make sure that they're aware of it would provide training for them that they see it they see it as an important addition to patient treatment.
Across the board.
That's great and then last question and I'll hop back in the queue reshaped care.
I know, it's Reimbursable, which is great.
Have you rolled that out to primary care physicians, yet is that where is that.
Rollout in terms of the plant.
Yes, we started to test that this past quarter with some different primary care family care.
And it was very positive result, so we're working on the final aspects of the new model that we're going to roll that out.
We're focused on the main thing and Thats, a lot better and the surgeons, but this is a great opportunity. We think that we can do it in a very non dilutive manner and we think that we can really start to access that market, which as you can imagine.
350000 general practitioners compared to maybe 3000 very accurate surgeon. So this could really open up a huge opportunity for us.
With the pandemic a year ago. The Harris poll results came out the average weight gain for an American adult.
Adult was 29 pounds, that's a lot of people getting into that I want some help zone and maybe they are not a bariatric patient level yet.
Who needs something like this so as the physician led weight loss solutions company is right down our alley and it actually helps us get more out of stuff, we've already built and developed.
Alright, and obesity is one of the Comorbidities.
Ed.
Can have a.
Negative.
Outcome for people that have to get Covid right obesity is one of the Comorbidities one of them.
Yes, she's actually magnifies, the risk profile of Covid, 78%.
All patients that were hospitalized or died from Covid war overweight or obese, besides hypertension diabetes and types of cancer now the risk of Covid, just people need to watch their weight and when they start getting pre diabetic when you start getting $30 50 pounds overweight. That's a huge concern diabetes is no fun and it's dangerous and it's <unk>.
Lastly, so yes, I mean theres a lot of people that need help and I think for us to expand that offering without having a lot of investment into additional resources really is something that's going to benefit our shareholders.
Okay. Thanks, Bart I appreciate it I'll hop back in the queue.
Thank you.
Thank you.
Our next question comes from the line of Ben Hayner with Alliance Global Partners. Your line is open.
Good afternoon, gentlemen, thanks for taking the questions.
First of all I really appreciate all the metrics that you've been able to share on the marketing campaign I think thats really helpful.
But.
Just curious on the visibility that you have had historically in terms of.
Well, particularly in the case of warrant transfers.
What proportion of U S sales.
Yes.
You have historically.
Through leads that you guys generated initially.
That's something that you have.
Some data on.
Yeah.
None.
Before the directed consumer marketing.
We only did a couple of test markets.
Because we didn't want to spend a lot of money on it until we know what we're going to do but one thing. We can do is go back to our historical data to when you look at the historical numbers when the company started to do.
Direct to consumer advertising on national level back in 2006, 2000, 17008, that's when we had upwards of $70 million increases in year over year revenue. So we know that's what works. The test market showed that we can drive the website traffic lead volume and the warm transfers.
So we have an idea of what those conversion ratios look like but I think for us to put a number on that right now.
Not be.
I don't think it would be good data until we start to see what normalized markets look like.
But its very positive I know, we're going to even if it's low numbers, we know that we're going to have tremendous procedural volume increases but.
We've been going through this pandemic, we just rolled out the program in October and November to tell you what the bottom line number is going to be from warm transferred a consultation to procedures, we're going to need a couple of quarters of normalized data to really start to talk about it.
Okay, and then just thinking about.
Impressions.
The patients are seeing over time.
What four or five months into this now.
Are you seeing upticks in.
The number of any inquiry as a number of surgeon locator.
Searches.
That type of stuff.
As would be patience.
It gets more and more impressions.
It Hasnt campaign marketing campaign.
Oh, absolutely I mean, we took our baseline from July after we got funded and after we got listed on NASDAQ.
We created a baseline from July through September and then start to compare the data.
Of the study and.
I am sorry, the campaign for advertising and yes, 250000 people to our website to 480% increase in request for information or 400% increase in warm transfers to doctors.
All of these are tremendous and then what we're tracking on the outside from that umbrella effect I talked about.
1300% increase in.
Visits to our surgeon locator page. So people that are going outside of the lead tracking process are going straight to the surgeon locator page on our website. So.
Very very positive and that's why the doctors are starting to speak with us about coming back are participating with it. It's why we're starting to get picked up by by more channels and more magazines because they see that.
The viability and the ethical way that we're doing it that is going to have the opportunity to help a lot of people.
Okay that makes a lot of sense and then just for clarity sake.
You are comparing versus July through September .
But the metrics that you're giving are those just for Q4.
Include up until yesterday or last week.
Whatever.
Period are we looking at sure that goes Harrison, yes, those metrics. We're as we're through February . So we launched mid mid October with the soft launched it a couple of magazines November we got most of our affiliate approvals for TV and we're semi dark in December because of the holiday. So that's that.
That's the time period that we're comparing it to from the soft launch in October to the end of February and through the dark period for the holidays.
Okay.
Got it.
And then lastly for me just on reshape care.
Do you anticipate.
The contribution to revenue looking like this year I mean is it meaningful on its own or does it fall into kind of more of a support supporting role in helping to drive lab procedures.
I think it's a good support resource for us with the lap band and remember, we're agnostic with reshape care. So it doesn't matter what procedure you had even if you had a 10 years ago for your Doctor enrolls U.
We'll support it but I think that it will start to generate more revenue towards the end of the year practices come back they start getting patients enrolled they don't really want everybody in their office right now and patients don't really want to go into the Doctor's office. So I think we'll see more and more and then as we start looking at this opportunity with kind of the medical physician.
Practice practice level that general practitioner I think that can create a big opportunity for us we've done some we've done some studies and some metrics and worked with a couple of key partners to understand what the viability of that looks like and I think that by the end of this year that reshaped Carol are definitely showing up on our revenue lines and start to carry its own weight.
Right now the two think doctors told US was I wanted to laugh at the patients don't ask for it and send them to me I'll do them. We're doing that second thing. They said was help me manage those patients afterwards, so that I'm actually able to get to the ore and do more patient I wanted to do surgery, but I want the patients to do well. So we have to have help on that too we cannot encumber their <unk>.
<unk> with a deluge of patient volume that has to be has to be something that we do so we're doing that we're driving the consumers and we're providing a program that helps them with that aftercare and then it takes away some of that encumbrance I think it's a wonderful.
Thing that we've done during the last couple of years that through the pandemic to develop that strategy and now to be able to execute upon it.
Excellent.
That's all I had gentlemen.
Congrats on the progress in marketing campaign.
That's it for me thank you.
Thank you Ben.
Thank you.
I'm showing no further questions in the queue I would now like to turn the call back over to Bart <unk> for closing remarks.
Thank you.
I hope you can see that the steps we took in 2021 and over the most recent months have positioned reshape for substantial growth going forward. We're very excited about what the future holds to reshape and believe we are at the precipice of reaching significant benefit from our robust multi tiered direct to consumer marketing campaign, creating expanding awareness for our next generation.
<unk> program and suite of weight loss solutions for the millions of patients seeking an improved quality of life.
Thank you to our employees board members customers vendors existing and new shareholders for your continued support of reshape if we progress on our mission to become the Premier physician led weight loss company, we look forward to providing future updates to you.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
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Yes.
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