Q4 2023 Senseonics Holdings Inc Earnings Call

Okay.

Operator: Good evening, and welcome to the Senseonics fourth quarter and full year 2023 earnings release and conference call. All participants will be in listen only mode.

Good evening and welcome to the Sun, She Onyx fourth quarter and full year 2023 earnings release and conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad. After today's presentation, there will be an <unk>.

Operator: Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two.

Opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to trip Taylor from the Gilmartin Group. Please go ahead.

Operator: Please note this event is being recorded. I would now like to turn the conference over to Tripp Taylor from the Gilmartin Group. Please go ahead.

Philip Taylor: Thank you. This is Tripp Taylor from the Gilmartin Group. Before we begin today, let me remind you that the company's remarks include forward-looking statements. These statements reflect management's expectations about future events, operating plans, regulatory matters, product enhancements, company performance, and other matters and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. A list of the factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements is detailed under risk factors and elsewhere in our annual report on Form 10-K for the year ended December 31, 2023 and our other reports filed with the SEC.

Thank you. This is trip Taylor from the Gilmartin group before we begin today, let me remind you that the company's remarks include forward looking statements. These statements reflect management's expectations about future events operating plans regulatory matters product enhancements company performance and other matters and speak only as of the date hereof.

These forward looking statements involve a number of risks and uncertainties a list of the factors that could cause actual results to be materially different from those expressed or implied by any of these forward looking statements is detailed under risk factors and elsewhere in our annual report on Form 10-K for the year ended December 31 2023.

And our other reports filed with the SEC.

Philip Taylor: These documents are available in the Investor Relations section of our website at www.senseonics.com. We undertake no obligation to update publicly or revise these forward-looking statements for any reason except as required by law. Joining me from Senseonics are Tim Goodnow, President and Chief Executive Officer, and Rick Sullivan, Chief Financial Officer. With that, I'd like to turn the call over to Tim Goodnow, President and CEO.

These documents are available in the Investor Relations section of our website at Www Dot Cynthia Alex Dotcom, we undertake no obligation to update publicly or revise these forward looking statements for any reason, except as required by law.

Joining me from Cynthia, Alex or Tim Goodnow, President and Chief Executive Officer, and Rick Sullivan, Chief Financial Officer with that I'd like to turn the call over to Tim Goodnow, President and CEO.

Jim.

Timothy T. Goodnow: Thank you, Tripp, and thank you all for joining us this afternoon. Today's call will start by providing some highlights of our 2023 performance, followed by an update on Senseonics' strategic initiatives, including ongoing measures to support Essentia in strengthening Eversense's commercial performance. I'll also provide an update on Senseonics development programs to advance our product pipeline. Then our Chief Financial Officer, Rick Sullivan, will discuss the 4th Board of Financials in detail, and we'll then open up the call for questions.

Thank you trip and thank you all for joining US. This afternoon today's call will start by providing some highlights of our 2023 performance followed by an update on <unk> strategic initiatives, including ongoing measures to support its cynthia strengthening ever sensitive commercial performance I will also provide an update on development programs.

Grams to advance our product pipeline then.

Then our Chief Financial Officer, Rick Sullivan, who will discuss the fourth quarter financials in detail.

We'll then open up the call for questions.

Timothy T. Goodnow: 2023 was a successful year across the business for Senseonics as we made solid progress on each of our strategic growth initiatives. On the clinical and regulatory front, we completed our enhanced clinical trial and subsequent data analysis supporting our imminent submission for the 365-day submission, and we filed the FDA submission for the ICGM designation. We expanded market awareness notably with an increase of over 300% in website impressions as a result of ADC's direct-to-consumer advertising campaign, and we expanded access to Eversense for millions of patients by securing coverage from UnitedHealthcare and Medicare. We also gained expansion through the basal-only and hypoglycemic indications across a significant number of commercial payers.

2023 was a successful year across the business for Cynthia IONICS as we made solid progress on each of our strategic growth initiatives.

On the clinical and regulatory front, we completed our enhanced clinical trial and subsequent data analysis supporting our imminent submission for the $3 65 day system.

And we filed the FDA submission for the ICM designation.

We expanded market awareness, notably with an increase of over 300% and website impressions as a result of ADC direct to consumer advertising campaign, and we expanded access to ever since for millions of patients by securing coverage from United Healthcare and Medicare.

We also gained expansion through the basal only in hypoglycemic indications across a significant number of commercial payers.

Timothy T. Goodnow: Financially, we achieved our full-year revenue guidance and strengthened our balance sheet by reducing our debt and increasing our liquidity. We see 2024 as another year of key progress, as we work towards delivering our plan for development milestones, regulatory approvals, patient expansion, and progress across other strategic growth initiatives. In 2023, we achieved our revenue guidance. Senseonics generated total revenue of $8 million for the fourth quarter, representing 44% growth compared to the prior year period, and generated total revenue of $22.4 million for the full year 2023, representing 37% growth compared to the prior year period. In the U.S., fourth-quarter sales totaled $6.1 million, and sales outside the U.S. totaled $1.9 million.

Financially, we achieved our full year revenue guidance and strengthened our balance sheet by reducing our debt and increasing our liquidity position.

We see 2024 as another year of key catalysts as we work towards delivering our plans for development milestones regulatory approvals patient expansion and progress across other strategic growth initiatives.

For 2023, we achieved our revenue guidance.

Cynthia on X generated total revenue of $8 million for the fourth quarter, representing 44% growth compared to the prior year period and generated total revenue of $22 4 million for the full year 2023, representing 37% growth compared to the prior.

Here year period.

In the U S fourth quarter sales totaled $6 1 million retail outside the U S totaled $1 9 million.

Timothy T. Goodnow: Through our collaboration agreement, AUSENCIA has the responsibility to drive awareness and access and increase adoption of Eversense in the market. While both awareness of Eversense and access to the product notably improved in 2023, new patient insertions fell short of Ascentia's and our expectations. In 2023, the patient base did increase nearly 40% to approximately 4,500, and U.S. users increased more than 50% year over year.

Through our collaboration agreement, our Cynthia has responsibility to drive awareness and access and to increase adoption of ever since in the market.

While both awareness of ever sent an access to the product, notably improved in 2023, new patient insertions fell short of our sense is and our expectation.

And 2023 the patient base did increased nearly 40% to approximately 4500.

In U S users increased more than 50% year over year.

Timothy T. Goodnow: However, we believe Eversense holds the potential for greater growth and recognize, together with Essentia, the importance of further strengthening the commercial support Eversense receives in order to drive stronger results. We believe a set of positive dynamics will improve this commercial performance. Most importantly, having key payer wins from 2023 in place for the full year, such as UnitedHealthcare. The establishment of a wider inserter network to make access easier. Cynthia's CGM-focused organizational changes and hires, together with a further build out of their commercial, argue that this positions them more strongly to take advantage of the demand and potential for Eversense adoption. Encouragingly, ever since, user retention remains high.

However, we believe ever since holds the potential for greater growth and recognized together with a cynthia the importance of further strengthening the commercial support ever since received in order to drive stronger results.

We believe a set of positive dynamics will improve this commercial performance. Most importantly, having key payer wins from 'twenty to 'twenty three in place for the full year, such as United Health care.

The establishment of a broader in certain network to make access easier.

Cynthia CGM focused organizational changes and hires together with a further build out of their commercial team.

Our view the dispositions them more strongly to take advantage of the demand and potential forever since adoption.

Encouragingly ever since user retention remains high.

Timothy T. Goodnow: In many of our key geographies, we are seeing patient retention rates in the mid-80% range, and those rates continue to improve with each subsequent sensor insertion. We know the features and benefits of Eversense, the longest-lasting CGM available, exceptional accuracy, removable transmitter, and predictive on-body alerts are resonating with patients. Not only is this supported by the patient retention figures but also by the success of the direct-to-consumer marketing campaign that was launched in October, which highlights this unique benefit. With that campaign, the number of leads increased by three times, which we see as validation of strong interest in the benefits of the product. As we discussed on the last quarterly call, ADC launched this new integrated campaign that included television commercials.

In many of our key geographies, we are seeing patient retention rates in the mid 80% range and those rates continue to improve with each subsequent sensor insertion we.

We know that features and benefits of ever sent the longest lasting CGM available exceptional accuracy removable transmitter and predictive on body alerts are resonating with patients.

Not only is this supported by the patient retention figures, but also by the success of the direct to consumer marketing campaign was launched in October.

Highlights ever since its unique benefits.

With that campaign the number of leads increased by three times, which we see as validation of strong interest in the benefits of the product.

As we discussed on the last quarterly call ADC launched this new integrated campaign that included television commercials.

Timothy T. Goodnow: We expanded social media and new ad creative to build awareness among patients and healthcare professionals. This was a meaningful investment in direct-to-consumer marketing for every... With the increase in leads, patient enthusiasm was stronger than expected. And we are very pleased to see the patient response to a campaign that better articulated the unique benefits of every. While the increase in lead generation clearly demonstrated and further validated the demand for our implantable CGM, a significant influx of leads stressed EDC's inside sales infrastructure and process, limiting their ability to effectively convert leads. Lead conversion is critical and relies on having the right commercial strategy, resources, and execution.

Expanded social media and new AD creative to build awareness among patients and health care professionals.

This was a meaningful investment in direct to consumer marketing forever.

With the increase in leads patient enthusiasm was stronger than expected.

We are very pleased to see the patient response to our campaign with better articulated unique benefits I've ever since.

While the increase in lead generation clearly demonstrated in further validated the demand for our implantable CGM.

Difficult influx of leads dressed EDC inside sales infrastructure and processes limiting their ability to effectively convert beliefs.

Lead conversion is critical and relies on having the right commercial strategy resources and execution ascent.

Timothy T. Goodnow: Sensia's new leadership is currently redesigning and bolstering their direct-to-consumer and lead-conversion approach, and we expect these efforts will enable them to take advantage of their latent demand for Eversense that the new campaign builds. However, given that the increased demand was offset by lower conversion that was not projected when fourth-quarter orders were placed, Sensia has accumulated inventory that will impact its purchases from us in the first half of 2024.

Cynthia has new leadership is currently redesigning and bolstering their direct to consumer and lead conversion approach and.

And we expect these efforts will enable them to take advantage of their latent demand for ever sent at the New campaign Bill.

However, given that the increased demand was offset by lower conversion that was not projected fourth quarter orders were placed.

<unk> has accumulated inventory that will impact their purchases from us in the first half of 'twenty 'twenty four.

Timothy T. Goodnow: Ascentia continues to implement several commercial measures to strengthen these functions and enhance its CGM dedicated commercial infrastructure, we expect to see improved conversions going forward. To strengthen Eversense growth, PHC has created a dedicated CGM business unit within Eversense.

As a Cynthia continues to implement several commercial measures to strengthen these function and enhance its CGM dedicated commercial infrastructure.

We expect to see improved conversions going forward.

This strength and ever since growth P. H C has created a dedicated CGM business unit within SNCF.

Timothy T. Goodnow: Independent Resources directly reporting into PhD leadership and clearly separated from its blood glucose monitoring, The leadership of the CGM business unit now has full responsibility for the performance of the CGM business unit. This is a very important and positive step, one we believe will provide additional focus and acceleration. To that point, we were thrilled to recently announce that industry veteran Brian Hansen would be leading these efforts. He was appointed president of this new CGM business unit and is a very valuable addition to our collaboration.

With independent resources directly reporting into Phd leadership, and clearly separated from its blood glucose monitoring business.

The leadership of the CGM business unit is now all responsibility for the performance of the CGM business.

This is a very important and positive step one we believe will provide additional focus and acceleration.

To that point, we were thrilled to recently announced that industry veteran Brian Hanson, who will be leading these efforts.

He was appointed President of this new CGM business unit and it's a very valuable addition to our collaborations.

Timothy T. Goodnow: Brian previously served as chief commercial officer for Penn Diabetes Care, where he helped transform the company into a worldwide leader, driving revenue tenfold in the highly competitive insulin pump market. He has built a reputation for successfully launching innovative products, driving revenue growth, and overcoming commercial challenges within the complex, durable medical equipment channel. They're excited to be working with him and look forward to his contribution.

Brian previously served as Chief commercial officer for 10 in diabetes care, where he helped transform the company into a worldwide leader driving revenue tenfold in the highly competitive insulin pump market.

He has built a reputation for successfully launching innovative products driving revenue growth and overcoming commercial challenges within the complex durable medical equipment channel.

We're excited to be working with him and look forward to his contributions.

Timothy T. Goodnow: With this commercial leadership transition, an updated commercial plan for 2024 is being developed. After the current strategies are reviewed, we look forward to continuing to collaborate with Brian and leveraging his experience to improve the commercial strategy and execution going forward. Together, our top priority will be to ensure we are primed for the next phase of growth forever. As we advance towards the planned revolutionary launch of the 365-day, we expect to submit to the FDA for review in the coming weeks and continue to plan for approval and launch of this new platform product this year. Considering Brian's recent appointment, the timing of ABC's fiscal year, which begins in April, and the current patient base, as well as Inventory Dynamics,

With this commercial leadership transition and updated commercial plan for 'twenty 'twenty four is being developed.

After the current strategies are reviewed.

Look forward to continuing to collaborate with Brian and leveraging his experience to improve the commercial strategy and execution going forward.

Together, our top priority will be to ensure we are prime for the next phase of growth for ever since as we advance towards the planned revolutionary launch of the 365 days system.

We expect to submit to the FDA for review in the coming weeks and continue to plan for approval and launch of this new platform product this year.

Considering brian's recent appointment.

Timing of Adcs fiscal year, which begins in April the current patient base inventory dynamics conversion improvement initiatives and the inherent uncertainty in the timing of the approval and launch of the 365 day product today, we are providing our first half outlook for the year.

Timothy T. Goodnow: Since Conversion Improvement Initiatives and the Inherent Uncertainty in the Timing of the Approval and Launch of the 365-Day Product, today, we are providing our first half outlet for the year, keeping in mind that Ascentia purchases will be lower in the first half than their actual patient sales, given the year-end conversion shortfall that they experienced. New patient starts are growing, and Ascensia is on pace to exceed the total number of new patient sales in 2023 within just the first half of 2024. New patient sales are expected to grow over 150% year-over-year in the first half.

Keeping in mind that as Cynthia purchases will be lower in the first half and their actual patient sales given the year end conversion shortfall that they experienced.

New patient starts are growing and as Cynthia is on pace to exceed the total number of new patient sales in 2023 within just the first half of 2024 with new patient sales expected to grow over 150% year over year in the first half.

Timothy T. Goodnow: As a result, we expect Senseonics' first half of 2024 global net revenue to be approximately $10 million, representing growth of approximately 16% over the first half of 2023. We plan to provide the full year outlook in the second quarter following a comprehensive analysis of our current commercial initiatives and a more refined view of our product launch timing and dynamics. Outside the U.S., in Q4, we ended the year as expected with sales of 1.9 million. Consistent with prior periods, growth in Italy and other geographies continues.

As a result, we expect since the Onyx first half of 'twenty 'twenty four global net revenue to be approximately $10 million representing growth.

Of approximately 16% over the first half of 2023.

We plan to provide the full year outlook in the second quarter. Following a comprehensive analysis of our current commercial initiatives and a more refined view of a product launch timing and dynamics.

Outside the U S. In Q4, we ended the year as expected with sales of $1 9 million.

Consistent with prior periods growth in Italy, and other geographies continue in.

Timothy T. Goodnow: In Germany, it appears that the user base has stabilized, and Estentia can now turn its efforts to growing patient demand. In the future, as ABC further builds out the CGM channel in Europe, we expect it to continue to win new coverage and tenders to support future growth in the region. Now, I would like to provide updates on our strategic growth initiatives, particularly focused on our efforts to expand patient access and streamline the healthcare provider experience. Our Eversense Inserter Network is a key component of this strategy, designed to provide more convenient sensor insertion options for patients and a more streamlined workflow for providers. The network, which consists of Eversense-certified providers, is instrumental in expanding access for our fastest-growing segment, type 2 diabetes patients, as the vast majority of type 2 patients are treated outside of endocrinology offices as opposed to type 1 diabetes. It's important that we expand insertion options for the increasing user base. It also allows the Essentia sales force to focus on educating health care providers on the clinical benefits of everything without the need for insertion training.

In Germany. It appears that the user base has stabilized and is Cynthia can now turn its efforts to growing patient demand.

In the future as EDC further builds out the CGM channel in Europe, we expect them to continue to win new coverage in tenders to support future growth in the region.

Now I would like to provide updates on our strategic growth initiatives, particularly focus on our efforts to expand patient access and streamline health care provider experience.

Ever since and Cerner network is key component of this strategy designed to provide more convenient sensor insertion options for patients and a more streamlined workflow for providers.

The network, which consist of ever sent certified providers is an instrumental in expanding access for our fastest growing segment.

Type two diabetes patients as.

As the vast majority of type two patients are treated outside of endocrinology offices as opposed to type one diabetes.

It's important that we expand insertion options, but increasing user base.

It also allows the Cynthia salesforce to focus on educating healthcare providers on the clinical benefits of ever set without the need for insertion training.

Timothy T. Goodnow: Our strategic partnership with NPG has been a significant driver of the network's expansion, with 18% of users receiving their insertions from NPG in the fourth quarter. Proving the patient experience is a two-pronged strategy that is well underway. Part one was to extend the longevity of the center, thereby reducing the number of insertions required per year.

Our strategic partnership with NPG has been a significant driver of the network's expansion.

With 18% of users receiving their insertions to NPG in the fourth quarter.

Improving the patient experience is by a two pronged strategy that is well underway.

Part one was to extend the longevity of this sensor, thereby reducing the number of insertions required per year.

Timothy T. Goodnow: When we moved from the 90-day sensor to 180 days, we cut the number of insertions per year in half. We plan to do that again this year with the 365. In parallel, we are continuing to build the Inserter Network to make it easier than ever for patients to get everything they need. As the two arms converge, we are confident that patients will readily accept one local 10-minute office professional insertion procedure in lieu of having to manually remove and reinsert sensors over 30 times per year.

When we moved from the 90 day sensor to a 180 days.

But the number of insertions per year in half.

We plan to do that again this year with the $3 65.

In parallel we are continuing to build the <unk> network.

It easier than ever for patients to get ever since.

As the two arms converge and your confidence that patients will readily accept one local 10 minute office professional insertion procedure.

In lieu of having to manually self remove and reinsert sensors over 30 times per year.

Timothy T. Goodnow: Every day, we continue to make strong progress toward that end. Moving on to the access front. We are encouraged by the recognition from both commercial and government payers of the value that CGM brings to a broader range of patients, not just those on multiple daily injections. We recently announced expanded Medicare coverage by three Medicare administrative contractors, Meridian, Palmetto, and NGS. These MACs have published final local coverage determinations that extend Medicare coverage for implantable CGMs by removing the MDI restriction and including all individuals with diabetes who use them, as well as non-inflammatory patients at risk of hypoglycemia.

Every day, we continue to make strong progress towards that end.

Moving onto the access front, we are encouraged by the recognition from both commercial and government payers of the value that CGM brings to the broader range of patients and just those on multiple daily injections.

We recently announced expanded Medicare coverage by three Medicare administrative contractors Meridian Palmetto and Ngls.

These macs published final local coverage determination with extend Medicare coverage for <unk> CGM by removing the MDI restriction and including all individuals with diabetes, who use insulin as.

As well as non insulin taking patients at risk of hypoglycemia.

Timothy T. Goodnow: As is typically the case, we are also seeing commercial payers follow suit with CMS's expanded coverage policy. We estimate that these two new indications, basal insulin use, and hypoglycemic risk, effectively double the total addressable market for everyone. Given our product's unique advantages for the Medicare population, such as professional sensor placement, which eliminates the need for self-insertion, long sensor life, and on-body vibration alerts, which serve as a secondary safety mechanism, we anticipate strong adoption within this expanded Medicare population. Moreover, Eversense offers additional advantages for type 2 patients, who typically prioritize simplicity, not having to replace sensors every 10 to 14 days, not having to worry about sensors frequently falling off, and the flexibility and convenience of being able to remove the transmitter as needed. These are key factors contributing to Type 2s now being our fastest growing segment, representing over 60% of our new patient growth.

As is typically the case, we are also seeing commercial payers follow suit with CMS has expanded coverage policies.

We estimate that these two new indications basal insulin use in hypoglycemic risks effectively double the total addressable market for ever since.

Given our products unique advantages with the Medicare populations, such as professional sensor placement, which eliminates the need for self insertion long sensor life, an on body vibration alerts that serve as a secondary safety mechanism for patients.

We anticipate strong adoption within this expanded Medicare population.

Moreover, ever sense offers additional advantages for type two patients typically prioritize simplicity.

Not having to replace census, every 10 to 14 days not having to worry about sensors frequently falling off and the flexibility and convenience of being able to remove the transmitter as needed are key factors contributing to take two's now being our fastest growing segment representing over six.

50% of our new patient growth.

Timothy T. Goodnow: These recent policy decisions further validate the need for an implantable CGM. Throughout 2024, we anticipate the remaining MACs and commercial payers will adopt similar policies, which we see further fueling awareness and penetration of their role. Looking ahead, we are actively engaging in discussions with large health systems and accountable care organizations. These organizations, which assume the risk of managing patient populations, recognize CGM as an effective means to improve patient outcomes while simultaneously reducing healthcare costs.

These recent policy decisions further validate the need for an implantable CGM.

Throughout 2024, we anticipate the remaining Mac and commercial payers will adopt similar policy.

Which we see further fueling awareness and penetration of ever since.

Looking ahead, we are actively engaging in discussions with large health systems and accountable care organizations.

These organizations with this assumed the risk of managing patient populations recognized CGM as an effective means to improve patient outcomes, while simultaneously reducing health care costs.

Timothy T. Goodnow: There is a substantial opportunity for these health systems to leverage their influence over care pathways and directly integrate Eversense into their provider offices, given the inherent long-term adherence that comes with an implanted product compared to the high turnover of a weekly or biweekly transcutaneous sensor. Health systems are beginning to recognize the potential for us to help their patients achieve improved outcomes while simultaneously providing the system with the important diabetes quality measures required by their value-based agreement, supporting a positive ROI from the reduced overall cost of care. Beyond Senseonics' Brown-level commercial efforts, Senseonics is working to prove out a scalable diabetes population health management model in 2024. This is being designed to showcase a comprehensive solution combining product, data intelligence, and services with the goal of offering a compelling value proposition to health systems in ACOs going forward.

There is a substantial opportunity for these health system leveraged their influence over care pathways and directly integrate ever since into their provider offices.

Given the inherent long term adherence that comes with an implanted product.

Paired to the high turnover of a weekly or biweekly Trans Catania sensors health.

Health systems are beginning to recognize the potential for us to help their patients achieve improved outcomes.

Simultaneously, providing the system.

Horton diabetes quality measures required by their value based agreements and supporting a positive ROI from the reduced overall cost of care.

Beyond the <unk> ground level commercial efforts since the Onyx is working to prove out a scalable diabetes population health management model in 2020 for.

This is being designed to showcase a comprehensive solution combining product data intelligence and services with the goal of offering a compelling value proposition to health systems and the Acos going forward.

Timothy T. Goodnow: To close out the commercial discussion, Essentia has been making the moves and investments to support growth, as evidenced by the announcement of Brian Hansen joining the team and their commitment to extending the Payment Assistance and Simple Savings Program to unlimited systems. As the market opportunity continues to expand, effectively doubling with the expanded indication, we are aggressively working to address the challenges that come with being a market disruptor, all while laying the groundwork for growth in exciting new areas such as health. Together with Essentia, we still have a lot of commercial work to do, but we are energized by signals from patients, providers, payers, and health systems. Long-term implantable CGM has an essential role to play in improving diabetes.

To close out the commercial discussions as Cynthia has been making the moves and investments to support growth as is evidenced by the announcement of Bryan Hanson, joining the team and their commitment to extending the payment assistance and simple savings program to unlimited systems.

As the market opportunity continues to expand effectively doubling with the expanded indications we are aggressively working to address the challenges that come with being a market disruptor, all while laying the groundwork for growth and exciting new areas such as health systems.

Together with Cynthia we still have a lot of commercial work to do.

But we are energized by signals from patients providers payers and health systems that long term implantable CGM has an essential role to play in improving diabetes care.

Timothy T. Goodnow: Furthermore, as you are aware, Senseonics' responsibilities in our collaboration with ADC are focused on the remaining business elements of research, development, and manufacture of the Eversense product. Advancing our pipeline through innovation and new products, of course, remains at the forefront of our strategy, and we continue to make important strides on our side of the partnership as we achieve more innovation milestones, starting with our ICGM designation for life. The submission is in active review with the agency, and we believe that we have provided all the information necessary for them to make a decision.

Furthermore, as you are aware since the onyx responsibilities in our collaboration with ADC are focused on the remaining business elements of research development and manufacturer of the ever since product.

Advancing our pipeline through innovation and new products of course remains at the forefront of our strategy and we continue to make important strides on our side of the partnership as we achieve more innovation milestones.

<unk> with our ice CGM designation for ever since.

Our submission is in active review with the agency and we believe that we have provided all the information necessary for them to make a decision.

Timothy T. Goodnow: Integration with other diabetes technologies is essential, and the next steps for Senseonics' ICGM strategy are important for the community. We look forward to providing more updates here this year and, more importantly, providing additional benefits to the approximately 1 million patients who are currently using automated insulin delivery devices. Looking slightly further out in the coming quarters, we continue to plan for approval for our next generation 365-day system in the fourth quarter. With the completion of the Enhanced Pivotal Clinical Study and the data review, we are in the final stages of preparing an FDA submission and plan to submit it upon approval of the Eversense ICG. We anticipate the 365-day system will offer several differentiated benefits of an implantable CGM with a full year of protection from a single sensor and a significant reduction in calibration frequency.

Integration with other diabetes technologies is essential and the next steps for <unk> IC GM strategy are important for the company.

We look forward to providing more updates here this year and more importantly, providing additional benefits to the approximately 1 million patients who are currently using automated insulin delivery devices.

Looking slightly further out in the coming quarters, we continue to plan for approval for our next generation 365 day system in the fourth quarter.

With the completion of the enhanced pivotal clinical study and the data review we are in the final stages of preparing an FDA submission and plan to submit an upon approval of the ever since I CGM system.

We anticipate the $3 65 day system will offer several differentiated benefits of an implantable CGM with a full year of protection from a single sensor and a significant reduction in calibration frequency.

Timothy T. Goodnow: These differentiators are the basis for our belief that our 365-day system will represent a major advancement in diabetes management technology and an inflection point for Eversense in the U.S. market. As we work with the FDA with the goal of securing approval for the planned one-year Eversense system approximately six months after the submission, We continue to target its launch in the fourth quarter of 2024. In addition, the 365-day system platform is also the basis for the development of the subsequent generation Gemini and Freedom self-powered products, with the ultimate goal of removing the need for any on-body transplants. We are excited for the first in-human testing of GemIIni in the second half of 2024. This vision for GemIIni represents another massive step forward in CGM technology.

These differentiators are the basis for our belief that our 365 days system will represent a major advancement in diabetes management technology, and an inflection point for ever since in the U S market.

As we work with the FDA with the goal of securing approval for the planned one year ever sent system approximately six months. After the submission we continue to target a launch in the fourth quarter of 2024.

In addition, the $3 65 day system platform is also the basis for the development of the subsequent generation Gemini and freedom self powered products with the ultimate goal of removing the need for any on body transmitter.

We are excited for the first in human testing of Gemini in the second half of 2024.

This vision for Gemini represents another massive step forward in CGM technology.

Frederick T. Sullivan: With that, I'll now turn the call over to Rick for a review of our financials. Thank you, Tim, and good afternoon, everyone. We appreciate the opportunity today to update you on our business. In the fourth quarter of 2023, net revenue was $8 million, compared to $5.6 million in the prior year period. U.S. revenue for the fourth quarter was $6.1 million, and revenue outside the U.S. was $1.9 million.

With that I'll now turn the call over to Rick for a review of our financials.

Thank you Tim and good afternoon, everyone. We appreciate the opportunity today to update you on our business.

In the fourth quarter of 2023, net revenue was <unk> 8 million compared to $5 6 million in the prior year period.

<unk> revenue for the fourth quarter was $6 1 million and revenue outside the U S was $1 9 million.

Frederick T. Sullivan: Our shipments to ADC in the fourth quarter are intended to support future demand for Everson. As a reminder, Senseonics recognizes its portion of revenue when shipments are delivered to Essentia, and they take title to and ownership of the inventory. This begins the multi-step distribution of patients via Essentia and their distributors.

Our shipments to ADC in the fourth quarter are intended to support future demand for ever since.

As a reminder, <unk> recognizes our portion of revenue when shipments are delivered to our Cynthia and they take title and ownership of the inventory.

This begins the multi step distribution that patients via Cynthia and their distributors.

Frederick T. Sullivan: We manage our manufacturing based on patient demand generated from commercial activities, targeting 60 to 90 days of inventory across the various channels. Currently, inventory levels are greater than our target, and we're working closely with Essentia to return to target levels. We are also monitoring inventory levels with consideration of the plan for the transition to the 365-day product later this year. Our share of revenue for 2023 represents approximately 75% of the expected revenue generated in the global market. The revenue share percentage for Essentia increases according to our collaboration agreement based on the duration of the contract and annual revenue level. Gross profit in Q4 2023 was $1.1 million, an increase of $0.5 million from a gross profit of $0.6 million in the prior year period. The increase in gross margin was primarily driven by an increase in revenue as our volumes increased, which covered a greater portion of our fixed manufacturing costs.

We manage our manufacturing based on patient demand generated from commercial activities targeting 60 to 90 days of inventory across the various channels.

Currently inventory levels or greater than our target and we're working closely with a sense yet to return to target levels. We are also monitoring inventory levels with consideration of the plan for the transition to the 365 day product later this year.

Our share of revenue for 2023 represents approximately 75% of the expected ever since revenue generated in the global market for.

The revenue share percentage for Cynthia increases according to our collaboration agreement based on duration of the contract and annual revenue levels.

Gross profit in Q4, 2023 was $1 1 million an increase of <unk> 5 million from a gross profit of <unk> 6 million in the prior year period.

Increase in gross margin was primarily driven by an increase in revenue as our volumes increased which covered a greater portion of our fixed manufacturing costs.

Frederick T. Sullivan: Research and development expenses in Q4 2023 were $10.7 million, a decrease of $0.9 million compared to $11.6 million in the prior year period. The decrease was primarily due to decreases in clinical trial expenses associated with the enhanced pivotal trial as patients completed the trial. These decreases were slightly offset by planned continued investments in our product pipeline for the development of next generation technology. Fourth quarter 2023 selling general and administrative expenses were $7.3 million, a decrease of $0.5 million compared to $7.8 million in the prior year period. For the three months ended December 2023, the operating loss was $17 million compared to $18.9 million in the fourth quarter of 2022 due to a larger gross profit contribution and decreases in R&D and SG&A expenses.

Research and development expenses in Q4, 2023 for $10 7 million a decrease of <unk> 9 million compared to $11 6 million in the prior year period.

The decrease was primarily due to decreases in clinical trial expenses associated with the enhanced pivotal trial as patients completed the trial. These decreases were slightly offset by planned continued investments in our product pipeline for development of next generation technologies.

Fourth quarter 2023, selling general and administrative expenses were $7 3 million a decrease of <unk> 5 million compared to $7 8 million in the prior year period.

For the three months ended December 2023, operating loss was $17 million compared to $18 9 million in the fourth quarter of 2022 due to a larger gross profit contribution and decreases in R&D and SG&A expenses.

For the three months ended December 2023, total net loss was $17 2 million or three seven loss per share compared to a net income of $11 6 million or <unk> <unk> gain per share in the fourth quarter of 2022.

Frederick T. Sullivan: For the three months ended December 2023, total net loss was $17.2 million, or a $0.03 loss per share, compared to a net income of $11.6 million, or a $0.02 gain per share, in the fourth quarter of 2022. Net income decreased by $28.8 million due to the accounting for embedded derivatives, fair value adjustments, and the exchange of a portion of the 2025 note.

Net income decreased by $28 8 million due to the accounting for embedded derivatives fair value adjustments and the exchange of a portion of the 2025 notes.

As of December 31, 2023, cash cash equivalents and short and long term investments totaled $109 4 million and debt and accrued interest was $46 1 million.

And continued efforts to strengthen our balance sheet in early 2024, we drew an additional $10 million on the loan facility with Hercules capital further enhancing our liquidity position.

Frederick T. Sullivan: As of December 31st, 2023, cash, cash equivalents, and short and long-term investments totaled $109.4 million, and debt and accrued interest was $46.1 million. In continued efforts to strengthen our balance sheet, in early 2024, we drew an additional $10 million on the loan facility with Hercules Capital, further enhancing our liquidity position. Turning to our outlook for 2024, we expect first half 2024 global net revenue to be nearly $10 million. Our guidance reflects time for new leadership to formulate a full year plan, expected inventory dynamics from a new product launch cycle, and our current patient base. In Q2, we'll provide second half and full year revenue guidance, along with expectations for 2024 revenue share percentages, taking into consideration this work, greater visibility on the 365-day submission progress, and the result of commercial initiatives. For the full year 2024, operating expenses are expected to be similar to 2023 at approximately $80 million. With that, I will turn it back to Tim.

Turning to our outlook for 2024, we expect first half 2024 global net revenue to be nearly $10 million.

Our guidance reflects time for new leadership to formulate it full year plan expected inventory dynamics from a new product launch cycle and our current patient base.

In Q2 will provide second half and full year revenue guidance, along with expectations for 2020 for revenue share percentages taking into consideration. This work greater visibility on the 365 day submission progress and the result of commercial initiatives.

For the full year 2024 operating expenses are expected to be similar to 2023 at approximately $80 million.

With that I will turn it back to Tim.

Rick 2023 was a successful year across the business or since the onyx.

Our accomplishments in the year included the completion of our enhanced clinical trial and subsequent data analysis supporting our imminent plan submission for the 365 day system.

Submission of our IC G M designation.

Increasing awareness of ever since through ADC direct to consumer advertising campaign and increased access with expanded coverage with United Health care and Medicare all while strengthening our balance sheet, while we face challenges as noted earlier with commercial execution in the fourth quarter. We are excited about the <unk>.

Positive changes implemented including conversion initiatives and importantly, the new leadership and the new structure within Phd.

In parallel <unk> is also working to create and evaluate additional options to accelerate sensor placements and drive revenue.

As all of these initiatives progress and we develop a refined view of $3 65 day product approval and launch we look forward to updating you on our progress and expected impact on further revenue and new patient growth for this year.

Timothy T. Goodnow: Thanks, Rick. 2023 was a successful year across the business for Senseonics. Our accomplishments in the year included the completion of our enhanced clinical trial and subsequent data analysis, supporting our imminent plan submission for the 365 days. Submission of our ICGM designation, increasing awareness of Eversense through ADC's direct-to-consumer advertising campaign, and increased access with expanded coverage with UnitedHealthcare and Medicare, all while strengthening our balance. While we face challenges, as noted earlier, with commercial execution in the fourth quarter, we are excited about the positive changes implemented, including conversion initiatives and, importantly, the new leadership and the new structure within PAH. In parallel, Senseonics is also working to create and evaluate additional options to accelerate sensor placements and drive revenue.

Finally, <unk> remains laser focused on continuing to advance our strong product pipeline to drive increased ever since adoption in the future.

We believe we are well positioned to grow our franchise to create shareholder value product innovation continues to revolutionize the management of diabetes and Cynthia Onyx is committed to continuing to be a leader in this space.

Thank you for your time today also.

Also joining us for questions local Jain our chief operating officer.

Operator, let's open up the call for questions.

We will now begin the question and answer session.

To ask a question.

You May press Star then one on.

On your telephone keypad.

If you are using a speaker phone.

Please pickup your handset before pressing the keys.

If at any time. Your question has been addressed and you would like to withdraw your question.

Please press Star then two.

Timothy T. Goodnow: All these initiatives are progressing, and we have developed a refined view of 365 day product approval and launch. We look forward to updating you on our progress and expected impact on further revenue and new patient growth for this year. Finally, Senseonics remains laser focused on continuing to advance our strong product pipeline to drive increased Eversense adoption in the future. We believe we are well positioned to grow our franchise to create shareholder value. Product innovation continues to revolutionize the management of diabetes, and Senseonics is committed to continuing to be a leader in this field. Thank you for your time today.

Again it is star then one to ask a question.

At this time, we will pause momentarily.

To assemble our roster.

The first question comes from Mathew Blackman with Stifel.

Please go ahead.

Hi, guys. This is colin on for Matt.

I wanted to start with a bit of a level setting question.

I ask how much did the increase the sense your inventory levels contributed to the fourth quarter revenues and how should we expect those inventory levels to be worked down. During 2024 is this a similar two quarter timeframe and as we saw with that 2023, destocking dynamic and how much of a revenue headwind should we expect.

To be sure.

During the first half.

Operator: Also joining us for questions is Mukul Jain, our Chief Operating Officer. Operator, let's open up the call for questions. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.

Thanks Colin.

<unk>.

As we said we do expect to have.

The inventory buildup of inventory from Q4 worked through.

The first half of this year so over the next frankly for months and since he is building those plans as we said two to work through it.

The total quantification, we don't have yet.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Again, it is star rather than one to ask a question. At this time, we will pause momentarily to assemble our rockets. The first question comes from Matthew Blackman with Stiefel.

<unk>.

Based on the on the volume of the ramp, but we feel pretty confident with the plans that are in place that will we will have it worked off here in the next next four months.

And I was encouraged to hear the 300% increase in the lead generation from the recent campaign could you provide any color on how a sense of your plans to drive those conversions higher and any metrics you could provide on.

Colin Michael Clark: Please go ahead. Hi guys, this is Colin on format. I wanted to start with a bit of a level setting question.

On lead conversion in the pipeline and how you expect that to progress going forward given the importance of this campaign that'd be really helpful. Thank you.

Colin Michael Clark: How much did the increased Essentia inventory levels contribute to Q4 revenues, and how should we expect those inventory levels to be worked down during Q4? Is this a similar two-quarter time frame as we saw with that 2023 de-stocking dynamic? And how much of a revenue headwind should we expect? Well, thanks, Colin.

Sure most of the <unk>.

It comes in through the web and what essentially is doing is building out the capability the tools the training.

And the personnel within their inside sales organization to handle those conversions.

Much of that improvement is being worked on right now and really has been since they they recognize that the conversion rates were not where they had planned in the fourth quarter.

Frederick T. Sullivan: As we said, we do expect to have the inventory, the buildup of inventory from Q4 work through in the first half of this year. So over the next, frankly, four months, and in a sense, he is building those plans, as we said, to work through it. The total quantification we don't have yet, based on the volume of the ramp, but we feel pretty confident with the plans in place that we'll have it worked off during the next four months.

So we're excited about those and we do fully anticipate have seen and we do fully anticipate continued improvement.

And that conversion that we'll always continue to be a focus on a go for us youre always looking to improve that lead.

Lead generation conversion, but we are very excited there is a lot of interest and a long term implantable sensor and especially in these patients type two patients that are on basal.

<unk>.

Timothy T. Goodnow: And I was encouraged to hear the 300% increase in lead generation from the recent campaign. Could you provide any color on how Ascensia plans to drive those conversions higher? And any metrics you could provide on lead conversion in the pipeline and how you expect that to progress going forward, given the importance of it? Sure, most of the input comes in through the web.

So we're excited about the opportunity as we've said we expanded the market by over three 3 million.

New potential patients going on ever set so we're obviously excited about that as well and looking forward to where the same for you to work through all of those internal systems to be much much more effective.

Thank you.

The next question comes from Marie Thibault with <unk>. Please go ahead.

Alright, Ken Rick Thanks for taking the questions.

Timothy T. Goodnow: And what Ascensi is doing is building out the capability, the tools, the training, and the personnel within their inside sales organization to handle those conversions. Much of that improvement is being worked on right now, and really has been since they recognized that the conversion rates were not where they had planned in the fourth quarter. So we're excited about them, and we do fully anticipate, have seen, and we do fully anticipate continued improvement. In that conversion, that will always continue to be a focus and a goal for us. You're always looking to improve that lead generation conversion, but we are very excited. There's a lot of interest in a long-term implantable sensor, especially in these patients, type 2 patients that are on basal insulin.

Wanted to ask a question here on guidance and specifically with the Medicare basal and hyper risk expansion yes.

Certainly he felt with other CGM that that led to an acceleration of adoption. What are you expecting or what have you assumed in your guidance as you think about that when I know the first absolutely just went into effect a couple of things.

Yes.

Correct in many of the others, we anticipate will be up and running here over the coming weeks certainly by the June time period. So it is a portion Murray.

Plan.

Part of this burn off of the inventory that we spoke of here in the first two quarters were still working with the new incentive team. If you will to lay out what that looks like for the full year, but we know that it's a very meaningful opportunity for us and we're certainly looking forward to.

Timothy T. Goodnow: So we're excited about the opportunity. As we said, we expanded the market by over 3 million, new potential patients going on ever since, so we're obviously excited about that as well and looking forward to where the Sam Theta works through all of those internal systems to be much, much more effective. The next question comes from Marie Thibault with BTIG; please go ahead. Hi Tim, Rick, and Mukul, thanks for taking the questions. I wanted to ask a question here on guidance and specifically, you know, with the Medicare Basel and HypoRisk expansions. We certainly saw with other CGMs that that led to faster adoption. What are you expecting or what have you assumed in your guidance as you think about that when, as I know, the first LCD just went into effect a couple days ago here? Yeah, you're correct, and many of the others we anticipate will be up and running here over the coming weeks, certainly by the June time period.

To being able to announce that in the second quarter. We also have some very exciting work with potential ACO partners. We are looking at and there are a couple that we're talking to that are really interested in managing their type two patients as you know those are at risk and anything that they can do to.

To keep them out of the hospital and keep them better care is really valuable for for those organizations. So there's also a big opportunity in that type two space as well.

Okay. That's helpful and then.

It's exciting to think about the 365 days.

<unk> and launch later this year.

I do want to understand that when they see new products coming to market, sometimes we've had.

A little bit of lag on reimbursement or may be working through some inventory or a little bit of pausing as people wait for a new product.

Marie Yoko Thibault: So this is a portion of the plan, Marie, and part of this burn-off of the inventory that we spoke of here in the first two quarters. We're still working with the new Essentia team, if you will, to lay out what that looks like for the full year, but we know that it's a very meaningful opportunity for us, and we're certainly looking forward to it, to being able to announce that in the second quarter. We also have some very exciting work with potential ACO partners that we are looking at. And there are a couple that we're talking to that are really interested in managing their type two patients. As you know, these kids are at risk, and anything that they can do to keep them out of the hospital and keep them in better care is really valuable for those organizations.

No. It's early days, but do you have any thoughts on how that.

That exciting new launch could be impacting sales and inventory here towards the end of the year or even next year.

Yes.

It's not unreasonable to anticipate that coming with a new product there where people will say well I'll just let me wait for that one.

So obviously, that's the planning that we're going through right now.

If people do come in for 180 day product and the 365 comes out then when they stay in cycle and they come in for the replacement.

We will continue to stay on the device with just the new one that will get us $3 65. So all of that planning is going on right now what we do also know that the 365 is just another huge quantum step forward and just that simplicity.

Timothy T. Goodnow: So there's also a big opportunity in that type two space as well. Okay, that's helpful. And then, it's exciting to think about the 365-day approval and launch later this year. But I do want to understand, though, when we've seen new products come to market, sometimes we've had, you know, a little bit of lag on reimbursement or maybe working through some inventory or a little bit of pausing as people wait for a new product. I know it's early days, but do you have any thoughts on how that exciting new launch could impact sales and inventory here toward the end of the year or even mid-year? It's not unreasonable to anticipate that coming with a new product, there were people who said, well, I'll just let me wait for that one.

And the ability to.

Manager life without thinking so much about your diabetes. So we also know that it's going to be much much more attractive people as well.

Cited to be on the cost of doing that submission and.

An approval later this year.

Sure, Okay, and one just quick follow up if I could get the exact number of patients at the end of 2023, I heard 4500 worldwide and more than 50% growth in the U S.

Any chance you can give us the U S or U S breakout.

Rick do we have the breakout on that I'm not sure we have that.

Yes.

Keeping with the 4500 global patients for now.

Marie Yoko Thibault: So obviously, that's the planning that we're going through right now. You know, if people do come in for the 180-day product, and the 365 comes out, then when they stay in the cycle and they come in for the replacement, they'll continue to stay on the device, but just the new one they'll get is 365. So all of that planning is going on right now. But what we do also know is that the 365 is just another huge quantum step forward, and just that simplicity and the ability to, you know, manage your life without thinking so much about your diabetes. So we also know that they're going to be much, much more attractive people as well.

Okay alright, thank you.

The next question comes from Vernon Bernardino with H C. Wainwright. Please go ahead.

Yes.

Hi, Thanks for taking my question.

Congrats on the.

Impressive growth.

Just wanted to follow up on the inventory question.

But before that.

I couldnt readily find the numbers right away, but could you remind us what the.

<unk> sales were for U S.

And ex U S for third quarter and along those lines then.

Was the inventory buildup.

Buildup.

Does a sense yes.

Yes.

Timothy T. Goodnow: And we're excited to be on the cusp of doing that submission and approval later this year. Sure, okay, and one quick follow-up. If I could get the exact number of patients at the end of 2023, I heard 4,500 worldwide and more than 50% growth in the U.S. Any chance you can give us the U.S.-O.U.S. breakdown?

Separate as far as inventory.

Accounting for example, ex U S and U S or is it all one accounting.

I'm just trying to figure out you know, let's say data sales and all of that.

<unk>.

No change in rate.

Sure Rick do you want to take that.

Sure Yeah Vernon.

Hey, Yes first part of your question I think was the breakdown U S and O U S. Maybe it was for fourth quarter and so it's $8 million was the total it was about $6 million in the U S and 2 million O U S for the quarter and essentially it does break out their inventory between the two geographies.

Frederick T. Sullivan: Um, Rick, do we have the breakout on that? I'm not sure we have that. Yeah, we're keeping with the 4,500 global patients for now. Okay, all right. Thank you. The next question comes from Vernon Bernardino with HC Wainwright.

Vernon Bernardino: Please go ahead. Hi. Thanks for taking my question and congrats on the impressive growth. I just wanted to follow up on the inventory question. But before that, I couldn't readily find the numbers right away, but could you remind us what the sales were for U.S. and ex-U.S. were in the third quarter? And along those lines, then, was the inventory buildup? Does Essentia separate as far as inventory is concerned? Accounting, for example, ex-U.S. and U.S., or is it all one accounting?

Okay.

Do you anticipate you said.

The inventory will be a while.

Down in the next four months.

The rest of the first half.

Anticipating further buildup before let's say the launch of $3 65.

I think we expect that by the end of the second quarter that essentially youll get back to our.

Our target of 60 to 90 days throughout the entire channel.

And then after that we'll provide guidance in the second quarter with how we think that transition from the six month to 365 day product will go.

Vernon Bernardino: Just trying to figure out, you know, let's say day sales and all that change in rates. Sure. Rick, do you want to take that? Sure. Yeah, Vernon. So the first part of your question, I think, was a breakdown between US and OUS. Maybe it was for the fourth quarter.

Great. Thanks for taking my question and my follow up.

Sure.

Yes.

The next question comes from Jason Bedford with Raymond James. Please go ahead.

Frederick T. Sullivan: And so 8 million was the total. It was about 6 million in the US and 2 million OUS for the quarter. And Essentia does break out their inventory between the two geographies. Do you anticipate, you said the inventory will be wound down in the next four months, which I guess, you know, is the rest of the first half? Do you anticipate any further buildup before, let's say, the launch of 365? I think we expect that by the end of the second quarter, Essentia will get back to our target of 60 to 90 days throughout the entire channel.

Hey, this is Glenn on for Jason and.

Start off I just wanted to ask if you think the ICM designation impacts commercial adoption or is it more of a vehicle to integrate with pumps.

Well it certainly is a vehicle to integrate with pumps obviously.

Especially in the type one space there are clinicians that see the IC GM is.

As a validation of the system as a whole so there can be MDI patients.

Frederick T. Sullivan: And then after that, we'll provide guidance in the second quarter on how we think that transition from the six-month to the 365-day product will go. Great. Thanks for taking my question and my follow-up. Sure. The next question comes from Jayson Bedford with Raymond James. Please go ahead.

The docs would like to put on the pump in the future.

So I CGM is certainly influence there.

But it's also of course, a avenue to get into the $1 million or so patients that currently are linked together and doing.

Since augmented pumping.

Okay. Thank you.

Just to be clear the two carrier revenue for just for example, <unk> to <unk> X translate to implant and <unk>.

Jayson Tyler Bedford: Hey, this is Glenn on for Jayson, and to start off, I just wanted to ask if you think the ICGM designation impacts commercial adoption, or is it more of a vehicle to integrate with pumps? Well, it certainly is a vehicle to integrate with pumps. Obviously, you know, especially in the type one space, there are clinicians that see the ICGM as a validation of the system as a whole. So there could be MDI patients that the doctors would like to put on the pump in the future.

I'm understanding that correctly.

Approximately yes.

With the target of 60 to 90 days from when we recognize revenue.

To go through the channel.

Okay. So how much of the $22 million and 23 came from new patient cells.

How much of that is in a patient.

Okay.

I mean, we're not providing that level of detailed since we recognize our revenue in advance of the.

Timothy T. Goodnow: So ICGM is certainly influenced there. But it's also, of course, an avenue to get into the million or so patients that are currently linked together and doing that. Since your argument at the top. Okay, thank you. And just to be clear, the 2Q revenue for, just for example, 2Q to Senseonics translates to implants in 3Q. I'm not sure I'm understanding that correctly. Approximately Yes, you know, we would see a target of 60 to 90 days from when we recognize revenue for it to go through the channel. Okay, so how much of the 22 million dollars and 23 came from new patient sales? How much of that is in a pitch?

Insertion into our into the patient and so there's the time dynamic and then there's also the inventory dynamic, which we spoke to being a little bit ahead of our target inventory levels.

Okay that was all thank you.

This concludes our question and answer session I would like to turn the conference back over to Tim Goodnow for any closing remarks.

Great well. Thank you all for joining us once again, we appreciate it and we look forward to further updates here.

A couple of months with our our Q1 call to call.

Have a good day.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Okay.

Okay.

[music].

Yes.

Yes.

Yeah.

All right.

Okay.

Thanks.

Thanks.

[music].

Frederick T. Sullivan: I mean, we're not providing that level of detail since we recognize our revenue in advance of the, insertion into the patient. And so there's the time dynamic, and then there's also the inventory dynamic, which we spoke to being a little bit ahead of our target inventory levels. Okay, that was all. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Tim Goodnow for any closing remarks. Great. Well, thank you all for joining us once again. We appreciate it and we look forward to further updates here in a couple of months with our Q1 protocol. Thank you. Have a good day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. © BF-WATCH TV 2021, ??? ???

Okay.

[music].