CryoLife Inc. (NYSE:CRY) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 04:30 pm ET


CryoLife Inc. (NYSE:CRY) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the CryoLife fourth-quarter and year-end 2019 financial conference call. [Operator instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Lynn Lewis from the Gilmartin Group. Please go ahead.

Lynn Pieper Lewis

Thank you. Good afternoon and thank you for joining the call today. Joining me from CryoLife Management team are Pat MacKin, CEO; and Ashley Lee, CFO. Before we begin, I'd like to make the following statements to comply with the safe harbor requirements of the Private Securities Litigation Reform Act of 1995.

Comments made on this call that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements made after the company's or management's intentions, hopes, beliefs, expectations or predictions of the future. These forward-looking statements are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from those forward-looking statements. Additionally, we'll see the additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today.

With that, I'll turn the call over to CryoLife's CEO, Pat MacKin.

J. Patrick Mackin

Thanks, Lynn, and good afternoon, everyone. Thanks for joining us. On today's call, we'll discuss fourth-quarter and full-year results, including progress we're making on our key pipeline products, supply chain headwinds and our 2020 objectives and financial guidance.

Before we begin, I'd like to discuss the positive developments that took place in the quarter that are not only readily apparent by reviewing our fourth-quarter financial results, which were affected by supply chain headwinds.

We believe that we're at the beginning of a multiyear period, over which we'll expect to deliver multiple new product introductions and see market expansion of previously approved products. Our pipeline is one of the most compelling reasons to consider CryoLife as an investment as it has the potential to increase our growth rate and in our addressable market opportunity at the same time.

In early December, we received CE Mark for E-nya, our next-generation thoracic stent graft, and E-nside, the first and only off-the-shelf thoracoabdominal stent graft with inner branch technology. We believe the enhancements designed into these next-generation products provide us with highly competitive and comprehensive stent graft offering.

We also announced our collaboration with Endospan, which provides us with immediate distribution rights in the EU to the NEXUS product, the only off-the-shelf endovascular graft approved for the repair of both dissections and aneurysms in the aortic arch, a global market that could exceed $1 billion once regulatory approvals are achieved. NEXUS complements our JOTEC portfolio of endovascular aortic repair products and will allow us to cross-sell these products.

In addition, we received FDA authorization to commence the PROACT 10a clinical study, a prospective randomized trial to determine if patients with the On-X mechanical aortic valve can be