STAAR Surgical Company (NASDAQ:STAA) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 04:30 pm ET

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STAAR Surgical Company (NASDAQ:STAA) Q4 2019 Earnings Conference Call - Final Transcript

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Executive
Caren Mason

and ICL specialists. Our online efforts have continued. Many of our larger customers have themselves been actively engaged in online patient outreach programs that include patient marketing, education, and procedure scheduling. The key takeaway is that our surgeon customers and ophthalmic partners are engaged and ready to begin implanting as soon as they are permitted to do so.

A few things to keep in mind with respect to our business in China and Q1 of each fiscal year. First, STAAR has no supply chain or manufacturing risk in China or any other Asian geographies. Second, Q1 is generally our lowest sales quarter of the year, representing about 22% of STAAR's total annual revenue the past two fiscal years. And third, an ICL procedure delayed is most likely not a procedure lost. Many ICL patients spend months planning for their visual freedom after a lifetime in glasses or disposable contacts. The decision is personal and can be very emotional with many patients telling us the decision to have the ICL is life changing. The patient's choice to have an ICL procedure also comes with a tangible financial commitment that is often planned for months or even years in advance. We, therefore, believe the current pause in procedures is simply a short-term defer to sales.

At this time, we clearly have experienced a reduction in expected orders for the quarter. As such, we currently expect in Q1, a potential $5 million to $7 million delay in sales orders. However, given our assessment of the current facts as we know them, we are making no change to our full-year sales forecast for 2020 at this time. I think it's important to reaffirm and I would like to reiterate that STAAR's business momentum was very strong [Indecipherable] coronavirus and continued into the first month of 2020. STAAR remains the clear leader in proprietary, refractive, lens-based solutions. We have a large addressable market that today includes 1.9 billion myopes and in the near future, is expected to nearly double with the anticipated approval of our EDOF Presbyopia lens. Today, there are approximately 1.7 billion presbyopes globally.

In terms of execution, we kicked off 2020 with additional clinical and regulatory milestone achievements focused on further realizing our very large and growing market opportunity. In mid-January, we announced CE Mark approval for the use of our currently approved EVO ICL lenses as the supplemental or piggyback lens to correct residual refractive error in dissatisfied post-cataract surgery patients. We believe use of our EVO ICL as a piggyback lens, especially, after the expected approval to correct for presbyopia and service a growing solution for the millions of cataract patients, annually that end up back in glasses. On January 31, the first patient was implanted in our US EVO investigational clinical trial at Price Vision Group in Indianapolis. Dr. Price stated our practice has routinely sought out opportunities to evaluate the most promising vision correction treatments on the horizon and we look forward to our continued participation in this