Apollo Endosurgery, Inc. (NASDAQ:APEN) Q1 2020 Earnings Conference Call - Final Transcript
May 04, 2020 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to your Apollo Endosurgery First Quarter 2020 Results Call.
At this time, it is my pleasure to turn the floor over to Matt Kreps. Sir, the floor is yours.
Thank you, and thanks, everyone, for participating in today's call to discuss Apollo's first quarter 2020 financial and operating results. Joining me on the call are Todd Newton, Chief Executive Officer; and Stefanie Cavanaugh, Chief Financial Officer.
Before we begin, I'd like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of federal securities laws, including Apollo's financial outlook and Apollo's plans and timing for product development and sales. In addition, there is uncertainty about the spread of the COVID-19 virus and the ultimate impact it may have on our operations, the demand for our products, global supply chains and economic activity in general. These forward-looking statements involve material risks and uncertainties and actual results may differ materially. For a discussion of Risk Factors, I encourage you to review the company's annual report on Form 10-K for the year ending December 31, 2019, as well as our most recent Form 10-Q filed today with the Securities and Exchange Commission. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, May 4, 2020. Except as required by law, Apollo undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this call. During this call, we'll interchangeably use the term ESS for OverStitch and the term IGB for Orbera, and vice versa.
And with that, I'd like to now turn the call over to Todd.
Thank you, Matt. Good afternoon, everyone, and thank you for joining today's call to discuss our first quarter 2020 results. I hope all of you joining us today and your families are safe, healthy and adapting well wherever you are. In hindsight, the first quarter of 2020 had the makings of a true breakout quarter, particularly for OverStitch in our direct markets. We had very good demand through the start of March, when the COVID-19 macro disruption began. Even with the COVID-19 disruption, first quarter OverStitch sales increased 25% in the United States and 15% in direct markets outside the United States, as measured in constant currency.
For intragastric balloons, our direct market sales outside the United States were also trending very well in Q1 prior to the COVID-19 disruption. In the US, IGB sales were trending to decline by a single -- high single-digit rate before the disruption. And Stef will go further into detail on our first quarter sales shortly. As is well known to everyone on this call, in March, a number of countries, particularly countries in Europe that comprise our most important international markets and the United States, implemented several public health interventions to reduce the risk of COVID-19 disease transmission and conserve health care resources for