Q3 2022 ViewRay Inc Earnings Call
Good day and thank you for standing by welcome to the view right third quarter of 2022 earnings 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 one one on your telephone.
Please be advised that today's conference is being recorded.
I'd now like to hand, the conference over to your Speaker today, Matt Harrison Director of Investor Relations. Please go ahead.
Thank you operator, good afternoon, everyone and welcome to view right third quarter Conference call. Joining me today are Scott Drake, our president and Chief Executive Officer.
Our Chief Financial Officer earlier today, <unk> issued a press release and presentation for today's call. The presentation can be viewed live on our webcast or downloaded from our website today's call is being broadcast and webcast live.
<unk> will be available on our website for 14 days.
Before we begin I would like to remind you that.
The discussion during this conference call will include forward looking statements.
Cause actual results to differ materially are discussed in the company's most recent filings with the SEC I will now turn the call over to Scott.
Thanks, Brad Good afternoon, everyone and welcome to our Q3 call.
Today I'll begin with our financial results following that I'll outline recent events, including commercial wins clinical highlights China approval and key takeaways from Astro.
Does that go into depth in our financials and provide an update to our 2022 guidance and we look forward to opening the line to Q&A.
In Q3, we added another eight orders highlighted by key wins at MD Anderson in Houston, VA and SUNY Upstate New York.
Anderson is one of the Premier cancer centers in the world and they're looking to take their MRI linac program to a new level.
We're excited to welcome them to the Meridian family.
Houston represents our third V a.
We're highly motivated to bring the best care possible to our veterans.
Genesis care announced their next to Meridian centers at Bermingham and Gilford in the UK, which brings their total number of orders to six.
Our backlog now stands at $370 million.
6% over prior year and revenue grew 38%.
Another highlight this quarter is gross margin, which came in at roughly 17% or 700 basis points over prior year.
Solid execution from our team puts us in a position to deliver 40% revenue growth for full year 2022, and for a second consecutive year improved gross margin by 750 basis points with perhaps a bit of upside this year.
Cash used in the quarter was about $15 million, let me reinforce that we're utilizing cash to fuel growth.
Mitigating supply chain risk by advanced purchase of key components and investing in manufacturing processes and in sourcing to improve gross margin.
We expect that revenue growth, we are seeing in our book.
<unk> to drive gross margin and operating leverage and we're confident in our line of sight to breakeven without tapping equity markets.
Turning to slide four as we've shared many times our mission is to treat and prove what others can't.
Right in line with our mission and following the success of the Smart pancreas trial, we announced laughably.
<unk> is a phase III global multicenter randomized control trial in locally advanced pancreatic cancer.
The trial will compare current standard of care chemotherapy, chemo plus meridian smart therapy.
It's important to note that conventional radiation has failed to prove survival benefit in several pancreatic cancer trials.
Headlining these failures is the lap O seven trial, which examined a similar patient population to the one we are targeting and lap a blake.
Survival in that trial was about 15 months in the radiation plus chemo arm versus 16 months for chemo alone.
Conventional radiation proved no survival benefit.
We are in the process of attempting to prove a meaningful survival increase where conventional radiation has failed.
We are striving for this proof and bolt pancreas, and central and ultra central lung and laughably and lung star respectively.
With success. These trials will expand the addressable market for meridian therapy, and provide a deeply valuable solution, our customers seek and patients deserve.
These clinical trials are critical and further differentiating meridian and accelerating our path of therapy adoption.
Dr. Mike Chang states that he and other investigators are.
Excited to launch the international Lab Ablate trial intended to provide randomized evidence at five fraction meridian smart substantially prolongs two year survival versus chemotherapy alone for locally advanced pancreatic cancer.
And in doing so change the paradigm of how this disease is fundamentally treated worldwide end quote.
Treat and prove what others can't indeed.
Turning to slide five we're excited to announce the Chinese approval of Meridian.
China is the second largest and fastest growing linac market in the world.
China currently has roughly one linac per million people, leaving plenty of room to reach the industry recommendation for Linux per million.
The healthy China 2030 policy has focused on improving health.
Expectancy and the expansion of health care infrastructure.
Meridian is well positioned to help address cancer needs in China.
We're excited about this opportunity and the prospect of expanding access to the benefits of Meridian therapy.
Turning to slide six.
<unk> was a great show for view Ray.
We took the opportunity to highlight the remarkable clinical data our customers are generating.
There was great response to the full 12 months of Mirage prostate data.
Punch lines include the fact that the meridian arm cut treatment margins and have cut.
Treatment volume by about 30% and cut healthy tissue toxicity by about 60%.
Acute toxicity for these patients takes the form of sexual dysfunction, and the life altering effects of incontinence.
We are proud and grateful for UCLA, taking on a head to head randomized controlled trial.
What's been the calling card in this industry is good enough is good enough certainly this isn't true if your loved one is on the table.
Clinical science will illuminate the path forward and this is our calling card.
There was also great feedback regarding the smart pancreas data.
This is the first time anyone has proven in a prospective trial the ability to safely deliver an ablative dose in pancreatic cancer.
Customers are also very encouraged by the survival signal.
As I mentioned, we are building upon the considerable pancreas data our customers have demonstrated as the foundation for lack of blade, our phase III randomized controlled trial.
Also at the show there was a lot of buzz about <unk> III.
Current <unk> users shared their stories about bolt the ease of use and clinical enhancements of these innovations.
Now expanding the launch of Ace III and look forward to our global rollout.
All of the clinical and innovation enhancements have led to.
Tactful commercial meetings, it's fair to say interest in Meridian is high.
Take a step back to see the combined impact of our clinical and innovation pipelines.
<unk> three points number one three years ago, we had single center studies or small datasets reported as posters for brief talks.
This year, we had two large prospective trials as main session presentations.
Number two these clinical outcomes are energizing the next generation of clinicians.
Hungary radiation oncologists and physicists are highly motivated to change the field with meridian data and see this therapy very much as a career defining opportunity and number three our strategy is working.
Clinical data is driving demand.
West Coast customers saw a threefold increase in patients treated on meridian from Q2 of 'twenty, one to Q2 of 'twenty two.
And in East coast customer increase their prostate program fourfold in the last four years on Meridian with zero marketing dollars.
Customers are preparing for more meridian systems.
I'm proud of our team and pleased with our progress as we pursue our strategy with that update I'll turn it over to Zack.
Thanks Scott.
I'll cover our third quarter business results and updates to our 2022 guidance full details can be found in today's press release, and we will be filing our 10-Q subsequent to this call.
Turning to slide eight.
Our team delivered solid results with another eight orders in the quarter totaling over $47 million in value.
Our backlog increased 26% versus the prior year period and in the quarter at roughly $370 million.
The combination of our recently introduced <unk> feature set the clinical data, we are delivering and increasing patient awareness is impacting the market.
The positive energy around Meridian at Astro was evidence our strategy is working.
Revenue in the quarter grew 38% to nearly 26 and a half million dollars highlighted by 48% growth in product revenue driven by the increase in revenue units.
Gross margin during the quarter was approximately 17%.
700 basis point improvement versus the prior year period.
Gross margin was led by a product margin of 19% demonstrating the leverage driven by additional revenue units.
Our team has done a tremendous amount of work to position us well for the gross margin expansion. We expect in this quarter as proof as to why we feel good about the path ahead.
Gross margin will bounce around a bit from quarter to quarter based on the timing of installations, but the trend is solidly positive.
For the second year in a row, we were in a position to deliver a more than 750 basis point improvement in gross margin.
Operating expenses were $28 million in the quarter versus $25 million in the prior year period, demonstrating solid operating leverage.
We are continually looking for ways to operate more efficiently and expect sales growth to meaningfully outpace opex growth for the foreseeable future.
Other income and expense was $2 1 million in the quarter. Other income was impacted by both a gain on the warrants on our balance sheet as well as increased borrowing costs. These increases are largely offset by the interest we are earning on our cash balance.
Net loss for the quarter was $26 million or 14 cents per share compared to a net loss of $25 million or <unk> 15 per share in the prior year period.
Turning to cash use we use approximately $15 million in the quarter.
Supply chain risk persist and in order to mitigate those risks we are deploying cash to solidify inventory to fuel growth.
We finished the quarter in a strong liquidity position with approximately $147 million of cash on hand.
Let's discuss guidance on slide nine.
Based on increased visibility and confidence on the revenue front, we are again raising the bottom end of our range from $90 million to $94 million. The new range is 94 million to 104 million with an implied growth range of 34% to 48% and we are proud of what our team is delivering.
In a challenging environment.
Shifting to cash use year to date, we have utilized approximately $73 million of cash.
We now believe the cash use for 2022 will be between $78 million and $92 million. The increase from prior year guidance is primarily derived from timing differences and a couple of large system payments.
When our system shipments for the year are on track project timelines can and do routinely change related to construction and permitting and can result in an impact of payment timing.
We regularly deal with these types of issues and have high confidence in collection, but the inter quarter timing can be dynamic.
We expect the collection day delay will benefit our 2023 cash which allows us to remain confident in our long term assumptions regarding cash.
We believe given our robust backlog and commercial pipeline that our current available resources provide us with a clear path to breakeven and we do not believe we will need to raise additional equity capital to meet these objectives.
On slide 10.
Take a look at the progress we are making towards our financial objectives.
We said, we would deliver approximately 40% growth for the full year.
Year to date, we delivered 36% revenue growth and are encouraged by what we see ahead on our path to 40%.
We said, we would deliver gross margin improvement of 750 to 1000 basis points year to date, we delivered 725 basis points and are set up well to drive additional progress in Q4.
And finally, we said we would deliver meaningful operating expense leverage our revenue growth continues to significantly outpace opex growth as we realize the benefits of our strategy and continue to grow into our infrastructure.
This year, we took material steps forward on the innovation clinical and financial fronts.
Our new innovations in clinical data are in the early stages of impacting the market.
On the financial front, the trends are positive and we expect them to continue into future years, and bolsters confidence in our ability to reach cash flow breakeven.
Turning to slide 11, we look forward to diving deeper into our strategy market opportunity business outlook and more importantly for you to hear from some of our key users at our upcoming Investor Day. We hope you can attend in person in New York or virtually on November 17th with that operator will you. Please open the line for Q&A.
Hey.
Thank you as a reminder to ask a question you will need to press star one one on your telephone please.
Please standby will be from Paul the Q&A roster.
Okay.
Our first question comes from the line of Jason Bednar with Piper Sandler Your line is now open.
Yes.
Hey, good afternoon, congrats on another quarter and you guys a.
A couple of items I wanted to touch on maybe a big picture one to start here.
As it relates to the data we just saw at Astro recently in the Phase III trial, you are launching in pancreatic cancer.
Maybe help us understand I mean, I'm not questioning the decision, but you know why do you need to run another trial. What are what are you hoping to accomplish your show.
I feel like with all the data you have out there and all the evidence from your customer partners.
Evidence is there the patient safety and outcomes are clearly better meridian than conventional radiotherapy.
Same goes for survival benefits so that.
Again. The question is what is another trial provide that you don't already have or do you think you'd need more data to drive more uptake.
Or it is an RCT for a single indication like this a sticking point to adoption.
Any color you have there and then I have a couple of follow ups.
Yes, Jason Thanks for the question.
Yes, let me weigh in first from a macro perspective and pulse strong is with us our VP of clinical and welcome him to add any kind of color that you would like.
We spend a ton of time as you are aware with our MA B and our clinical consortiums and I would tell you that our customers believe this is an incredibly important and necessary trial to run.
To change guidelines for pancreatic cancer. It's also one that is really engaging medical oncologists and others in the field beyond just radiation oncology.
I think we have an opportunity.
As I said in the prepared remarks, quoting my tongue.
To really fundamentally changed the landscape here and as I said I think we're doing that in tough to treat cancers, proving survive survival benefit in pancreas, and central and ultra central lung.
And I think if we nailed those people will give us credit.
Broadly in the toughest to treat cancers and also prove value in more common cancers.
Such that as we've done with Mirage and Scimitar and now we're pursuing shorter than four so it's very much part of the clinical strategy.
Let me ask Dr strong to weigh in and then you're welcome to ask any follow up there Jason yes.
Yes, Thanks, Scott, Jason I'd, just add a little more color on Scott's point about medical oncology and surgery is referring physicians.
We would agree that the data that we have is very powerful within radiation oncology, but we know many of these patients.
Not even make it to radiation oncology so the need to have level, one evidence that convinces a larger set of the referring population moves.
Moves meridian into the guideline and really differentiates and the idea of proving that in one of the toughest cancers to treat.
Halos onto other tumor sites.
It's a strategic investment in a clinical trial to really differentiate.
And yes, that's my only add there Scott Thanks, Paul.
Okay.
Alright, that's very very helpful guys.
Maybe another bigger picture one, but looking ahead to 2023 I know, we're not we don't we don't have guidance here, but yes.
Scott I just wanted to maybe take your temperature on the streets modeling, 40% revenue growth.
Top of what you're doing here in 2022.
I think you've mentioned in the past in the P&L transitioned to one that.
Or maybe not transition isn't the right word sustained.
At a level, that's emblematic of top tier growth in med tech and 40% fits that description.
I guess, we're a few months closer now to 2023 since you have made those comments is that still a growth profile you're comfortable with the top line.
And then in light of the strength, we're seeing in the margins in the quarter. You just reported a similar question for you and yet Zach feel free to weigh in just how youre feeling about the ability to take another big step forward in gross margins next year. Thanks.
Yes of course, Jason I'm going to I'm going to stop short of specific numbers, but what I can tell you.
Wrote and you'll hear more from us.
At our Investor day here in a few weeks, we very much anticipate being able to deliver top tier topline revenue growth.
That is completely being fueled by our innovation pipeline and our clinical pipeline.
Just as we drew it up three or four years ago, and you see that happening right before our eyes.
We have also said that that revenue growth will really translate into very attractive.
Gross margin expansion you saw that happened last year.
At about 750 basis points. This year I anticipate we will do that may be a bit better.
And I think that topline growth is going to continue to drive gross margin expansion in the 'twenty three in 2004 timeframe and thats going to be augmented out in that 'twenty four 'twenty five plus timeframe with both our cost down program.
Getting to take out about $1 million of our cost of goods and concurrently in sourcing and that topline growth and gross margin expansion.
Along with really tight Opex discipline is what allows this business to flip to cash flow positivity in that 25 26 timeframe. So we feel really good about all of that we feel really good that it's happening.
Just as we drew it up several years ago.
Again, I'll stop short of any specific comments, but we feel really good about where this business is going.
Clinically from an innovation perspective and financially as well.
Okay.
Alright, very clear thanks, so much.
Thanks, Jason.
Thank you.
Our next question comes from the line of Rick Wise with Stifel. Your line is now open.
Yeah.
Hi, Scott.
Great to see all the progress.
Scott you talked about.
What a great.
After you had and I was hoping you could expand on what you described as the impactful commercial meetings.
What's that mean.
Did that does that mean, you received orders or just help us understand how having a excellent meeting where you had great data obviously.
A transformed company.
With folks this year, how should we imagine that translates into orders in the second half of that in a way is.
Maybe you can just part of that talk about logistics.
The macro environment your ability to install so if we might we see we're seeing the backlog accelerate are you.
Are you able to install at a faster rate going forward given the backlog given this commercial.
Momentum.
Yes, absolutely Rick So let me let me.
I'll take a cut at answering the Astro question.
First and then we'll talk about logistics and installations as well.
The best way that I think I can describe the conversations that we're having today and Astro is just exemplary.
As to contrast, it in terms of where we were two or three years ago when the.
The conversation centered around technology, which is really emblematic of where this industry has historically been.
You find companies generally.
Spending more time talking about what their technology is versus what their technology does in the form of prospective phase II and phase III data.
I think we are making a significant impact in that and the conversations that we're having with customers today.
In Stark contrast are all about clinical data and how they can really get our meridian program off the ground, if they're a new customer and if they are an existing customer we're talking about strategies of deploying multiple meridians in a given area to really differentiate our cancer.
Center, So we've gone from kind of where the industry was talking about technology, describing an MRI linac all of these kinds of things to today talking about prospective phase II and phase III data.
Hard to hard to tell you how different that is Rick but.
But hopefully that gives you a little bit of sense in terms of how things are changing and we're most gratified in markets, where there is multiple radiance.
How the competitive dynamic is playing out so we feel very good about that as it relates to logistics and installations.
The environment continues to be challenging as it has been for the past couple of years.
We're playing whack a mole if you will launch supply chain items. Our team has done really a remarkable job managing through these challenges and I think by and large they're abating, but we still run into difficulty here and there from a capacity standpoint, I think we are very well positioned for.
The growth that we anticipate in 2023 and beyond.
And we've got plenty of fore warning to expand that installation capacity.
Well in advance so I think we're very well positioned Rick I think we're building a really strong and solid company and kind of staying with the macro theme of your question and kind of building on where Jason was a few years ago, we were kind of in orders.
Story, that's the way the street looked at US today, I think where our revenue growth and gross margin story in orders, obviously feed that revenue growth and I think we switch relatively quickly into revenue growth and adjusted EBITDA story.
Alex sheet, and where we're taking the business out into the future. So I hope that's responsive, but happy to dig in in any of those areas as you wish.
Yes.
Let me move on to one other question I was hoping you could expand Scott on your comments about the China approval.
Say, obviously huge rapidly growing market.
I know, it's incredibly early days, it's been a month or something since you've got clearance.
Maybe help us better understand your early commercialization plans.
Does your partnership accelerate.
Because your partners and experience when does it accelerate the China order funnel in your mind.
And when we when will we start to see initial orders.
<unk> or hopefully revenues start to be more visible. Thank you.
Yeah, Rick we're really excited about the China opportunity.
The way I am positioning it with investors is give us a little bit of an opportunity to dig in.
<unk> has been preparing for this launch for a very long period of time. They are a very capable partner in China very smart on on all of the different facets of med tech that are required to succeed.
But but I think until we get a little more time under our belt.
I would view it as upside to everybody's model, that's how we're viewing it here.
As I've said publicly before it would not surprise me for us to see some orders come out of China in the relative near term, but what really catalyzes markets for us.
Is meridian programs that are working that patients are traveling to.
We've talked about these examples before.
Florida, California, the UK upper Midwest and northeast et cetera.
So that's going to take us a little while to get to that point in China.
I don't want any of that commentary to come across as us not being enthusiastic we are but I don't want the street to get ahead of us with this opportunity and the momentum that's building in our business beyond China.
I'm going to sneak in one extra question if you don't mind.
Your competitor like a unity system recently received CE Mark approval.
Or what they describe as comprehensive most management with true tracking automated gating functionalities, how do we how do you want us to think about this announcement in the context of you raise meridian is this a headwind for future commercialization of validation of your strategy a non issue some combination of all that.
Thank you Scott.
Yes, Thank you Rick.
I think our customers' point of view is much more important than mine camp.
Candidly.
Our customers are very clear in terms of their definition of clinical success.
They want to first and foremost deliver an ablative dose and they want to do that safely.
They want to do it with tight margins, no fiduciary and fiber fewer fractions and lower no grade three or higher toxicity.
We look consistently Rick for anybody that's able to deliver that kind of therapy.
Deliver the kind of clinical data that we are.
So far as I'm aware I have not seen anybody else deliver that kind of therapy.
So I'm just going to reserve judgment, there and continue to point to clinical data phase II and phase III data that really is meaningful for our customers as they make therapeutic decisions and for patients that really deserve and require better care.
Thank you Scott.
Thanks, Rick.
Thank you.
Our next question comes from Marie Thibault with BTG. Your line is now open.
Hi, Thank you so much for taking the questions maybe here another high level question for Scott wanted to get your take certainly sounds like the Capex environment in the order funnel is quite open and.
Healthy here in the U S I wanted to hear.
Things are any different than any of your geographies, we're thinking particularly of Europe and APAC is there any hesitancy on spending there or are you feeling similarly optimistic.
Murray first thanks for the question I think we continue to see this.
This area of this line of questioning in the same way that that we did.
Order ago in conversations that you and I have had in between.
We very much have our eye on it we really look for any kind of concerning signal, we haven't seen any as yet.
You were at Astro and we had.
I Couldnt, even tell you how many customer conversations really from all around the world and even talking to for profit hospitals.
They seem to be very interested in meridian programs.
The expansion thereof. So.
We think being in that strategic bucket of capital is very advantageous for us, but I don't want to be pollyanna, we definitely have our eye on it but it continues to feel pretty good and pretty positive at the moment.
Okay. That's very clear. Thank you for that Scott and then my follow up maybe just a very brief two part both clarification questions.
On the eighth III.
Rollout glad to see Thats underway is there any revenue involved with that I'm forgetting probably should go back and check my notes on that just wanted to clarify and then Zach on the risk around system related payments and receipt of that payment is there any impact at all to revenue or is that completely decoupled from revenue recognition. Thanks again.
Taking my questions.
You've got a Murray in terms of <unk>. It has been a real driver for us for customers getting onto our highest level of service plan that includes tech refresh.
So it has been a very attractive driver there and I think future innovations will.
Foster that in the event that a customer doesn't have tech refresh there would in fact be revenue associated with it.
And in fact pretty significant revenue associated with an <unk> upgrade, but I think the vast majority of customers are selecting that high level of service.
And as it relates to system payments I'll turn that one over to Zach, yes, So marine no no revenue risk.
I think we feel great about system shipments and.
Machines moving on time, I think what happens in normal course, as we get a little closer to install and really add definition to construction timelines is.
It can be impacted by months, sometimes a quarter here and there related to permitting delays or things of that nature and sometimes just the payment terms on any given deal, but yeah, no no revenue risk no impact to demand overall.
Perfect. Thank you.
Thank you.
Our next question comes from the line of Chris <unk> with <unk>.
Your line is now open.
Hi, This is Kevin on for Chris Thanks for taking my question.
Just one quick one as far as hospital Capex budgets, just any qualitative commentary or updates there.
Some of your peers 15 backlogs grow because of the supply challenges.
There is also some delays in installation due to staffing and scheduling challenges, though just wanted any updates to provide there.
Yes, I would share that.
I think we're in a little bit of a different spot than some of our larger industry peers, where these macro headwinds.
Impact us differently, frankly, we find ourselves somewhat safe harbored in a strategic bucket of capital versus replacement capital.
And in the area that probably is a bit similar as we're alluding to here to Murray's question on payment timing. These are very significant programs and our customers from time to time have permitting delays or construction delays and that can impact timing.
But really not the certainty of either revenue or payments. So I think we're relatively well protected there. So hopefully that's responsive to your question, but again happy for a follow up if you wish.
Yes, that's great. Thank you very much.
Thank you.
Thank you as a reminder to ask a question at this time. Please press star one one on your Touchtone telephone.
Our next question comes from the line of Mike <unk> with <unk>. Your line is now open.
Good afternoon I'm on for Suraj, Thanks for taking our questions Scott Zac.
You mentioned, Mike Hey, Scott that the <unk> launch is expanding and I believe last call. You guys were live at two customers have done over 100 traction starting off do you have any updated numbers you can share there.
Oh gosh, Mike we're at a bunch I don't want no don't know what the number is but our customers are cranking with it we have our third customer that has <unk> III.
Most complete with their installation at this point.
No whether or not they've done their first treatments with it but we're very much opening up the aperture here in Q4, and we feel very satisfied based upon customer feedback and very confident that we are ready to roll. This out globally pending any kind of regulatory approvals that are.
Required from one market to the next so feedback is very positive.
We're excited to get this into all of our customers' hands.
Excellent.
Thanks, Scott and then for.
So the increased 2022 cash usage guide up to the 78 to 92 is it fair to characterize that as a mix of kind of the supply chain inventory investments that youre, making as well as some of the collection timing issue Zach mentioned.
Yes, exactly Mike it's really those two items.
And I think it's important to understand cash.
For any newer investors.
In view rate from both the macro and micro perspective from a macro perspective, we've been saying now for years that our clinical and innovation pipeline would drive growth, we see that happening this year approximately 40% growth.
And we said that that growth would drive gross margin expansion.
<unk> heard many times that that's yielded 750 basis points last year, we will do that or better this year and we're set up very well for.
For expansion in 'twenty, three and 'twenty, four and that top line revenue growth and gross margin expansion, coupled with really tight opex discipline is what allows this business to flip.
To cash flow positivity in the 'twenty five 'twenty six timeframe. So from a macro perspective, that's the path that we see ourselves on we.
Do not believe we have to tap equity markets to get to that point of positivity that's.
A real milestone for the company that we look forward to achieving and then from a micro perspective quarter to quarter fluctuations as <unk> pointed out both in prepared remarks and in Q&A.
That's the stuff Thats just indigenous to this business.
And installation will push out a construction project will push out.
And then cash collections go hand in glove with that that's something that we deal with on a very regular basis. So those are the two components you've nailed it and I think it's really important for investors to understand both the macro and the micro from a cash perspective in this business.
Alright, Thats very helpful color. Thanks for the update Scott.
Thanks, Mike.
Thank you.
Next question comes from young Li with Jefferies. Your line is now open.
Young Lee your line is open please check your mute button.
Oh, sorry about that thanks.
For taking the question.
Zach.
First question.
I'm just kind of curious.
Yes.
You presented some really good data at Astro and I guess looking forward to 2023.
You have some more.
Clinical trials that's in progress I was wondering if you can maybe update us.
Expected timing for some of the key one like shorter Lonestar and Ford.
What young I am going to turn that over to Dr. Strong to touch on some highlights that are forthcoming.
Sure. Thanks, Scott, Yeah really briefly shorter.
Nearing end of enrollment, we expect to see acute toxicity from that study in the following year. The smart one study, which many know about as a clinical trial looking at single fraction meridian treatment for multiple tumors and single patients that data will come online in 2023 very excited.
That and then Lone Star is open for enrollment that will take some time, so I can't project today, when we'll see that data, but that is open and ongoing so I think some some big data from studies that will complete and then we will obviously continue to look at follow up data for smart pancreas.
In the coming years, so hopefully that is responsive to your question.
Yes, very helpful. I guess, one quick follow up was just wondering if you can give us some.
Preview for what we should expect that the capital markets day.
Two weeks.
Yes, young I think you'll you'll get a pretty.
Good view of our overall strategy, how we're progressing on our clinical pipeline, our innovation pipeline, our commercial pipeline, how all of that rolls up to our P&L and will give for the first time.
Our view a long term view in terms of where we're going to be taking this business in the next few years here to fore it's always been a one year kind of guy.
Guidance that we provided at the beginning of the calendar year.
And as <unk> said, we're really excited to put some of our key opinion leaders in front of you to give investors the opportunity to ask questions about the kind of wonder of Meridian.
The clinical data that's being generated in the toughest to treat cancers and more common cancers alike, and we will have.
And executive there too.
To also answer business questions.
Because the business of Meridian is also very important I think for investors to understand.
How our customers are doing financially.
Very very well and why so many of them are reinvesting in a second third or six meridian system. So I think those will be the highlights of the event and we really look forward to sharing that in that time in viewpoint with our investors.
Alright, great looking forward to it thank you.
Thank you Jan.
Thank you and I'm currently showing no further questions at this time I would like to hand, the call back over to Scott Drake for closing remarks.
Thank you very much everybody. Thanks for your interest in view Ray Thanks for joining us on this call and we very much look forward to seeing you November 17th in New York take care and have a good evening.
This concludes today's conference call. Thank you for participating you may now disconnect.
The conference will begin shortly.
As Johan during Q&A, you can dial one one.
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Okay.
Yes.
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