TransEnterix, Inc. (NYSE MKT:TRXC) Q3 2018 Earnings Conference Call - Final Transcript

Nov 08, 2018 • 04:30 pm ET


TransEnterix, Inc. (NYSE MKT:TRXC) Q3 2018 Earnings Conference Call - Final Transcript


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Q & A

(Operator Instructions) Rick Wise, Stifel.

Drew Ranieri

It's Drew Ranieri on for Rick tonight. But first, let me just start on the US Senhance commercialization. With Senhance being FDA cleared for about a year now, you're getting to that four to six quarter sweet spot for capital sales. Can you just touch on that a little bit more? I know that you said you had a couple orders in hand already, were they US or OUS? And how should we be thinking about 2019? What do you need to do to accelerate US growth?

Todd Pope

Drew, thanks for the question. Yes, we feel great about the pipeline. As you said, we've talked a lot about the pipeline really getting going after four to six quarters. We're coming into that and we feel like we're right on track. There's not any one specific catalyst for a pipeline. I think when you're selling capital, there's a lot of blocking and tackling. As we look at our pipeline in the US, we have a lot of activity that's getting closer working its way through admin, the administration side of the hospital, after a lot of the clinical advocacy has been validated, which is very helpful for us. It means that's getting a little bit toward the back end of the pipeline. And I think when you're talking about conversations with the hospitals, any time you're able to add instruments and talk about where we're going with new technology, it always helps the clinical interest and the clinical conviction. 3-millimeter helps.

We just got that approved about a month ago and are starting to roll that out cynically later this month. We're excited about ultrasonic. As we talked about, we got that approval in Europe and are beginning those cases now and the US is excited about getting that. We think that's going to be continuing to be enabling. And even though we don't like talking too much about futures, the MST technology, I think our pipeline is really excited to see a company even though we're an emerging revenue company making acquisitions in the space that really solidifies our future product pipeline. So the last thing I would say is we found that when people are going to buy a piece of capital like the Senhance with that type of commitment, they sometimes toward the latter part of the pipeline discussions they want to go and watch surgery being done.

And up to this point, we've been taking our US pipeline over to Europe because that's where we've had the majority of our placements and the majority of our surgeries and that's not really scalable for the long term. So now that we have multiple systems up and running in the US and we'll continue to add to those, we think that will be another catalyst to get the sales pipeline going in 2019. So, all those things cumulatively add up to putting us in a really good position. We're not going to really talk about mix