IsoRay, Inc. (NYSE MKT:ISR) Q3 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 04:30 pm ET


IsoRay, Inc. (NYSE MKT:ISR) Q3 2020 Earnings Conference Call - Final Transcript


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Lori Woods

results is our growing leadership role within the brachytherapy industry. We continue to expand our role as a trusted, valuable partner, enabling more practitioners to better treat their patients.

This is evidenced again this quarter by yet another increase in new customers. As of the trailing 12 months ending March 31st, our net new physician customer count increased 33% versus the previous 12-month period. We continue to gain traction by highlighting the unique benefits of Cesium Blu and our supporting delivery devices. In addition, our best-in-class customer service and support and our expanding digital presence should allow us to continue to grow our leadership position.

As we ended the quarter in March, the world saw a significant shift from the unfortunate implications of the COVID-19 global health pandemic. I am proud to report that from the onset, IsoRay has been proactive in implementing plans to ensure the health and well-being of our employees, while remaining focused on providing uninterrupted product flow to the physicians and patients who count on us.

We seamlessly transitioned many employees to work from home and made other adjustments to ensure the continuity of our business through this time. At the beginning of the pandemic, we moved quickly to ensure that our inventory of non-isotope supplies were appropriate in case our supply chain was disrupted.

In addition, we set in motion our strategy to maintain a continuous and uninterrupted supply of isotope from our suppliers in Russia. Our partners at nuclear facilities in Russia have worked hard to adjust to our needs going above and beyond to support us, which we appreciate immensely.

Fortunately, we have not experienced any material supply chain issues to-date. As we think about how COVID-19 is impacting IsoRay's business, it is important to remember the demographics of the patients cancer our customers commonly treat. The majority of the cancers are in prostate.

In general, prostate cancer is a relatively slow progressing form of cancer, and does not often present an imminent life threatening emergency for many of our customers' patients.

As COVID-19 began to spread, many states implemented new guidelines in an attempt to mitigate spread of the virus and to conserve certain medical supplies, such as PPE. Those guidelines led to the cancellation or postponement of elective and non-emergency surgical procedures including prostate brachytherapy procedures.

Consequently, at the very end of March, we saw some procedures begin to be postponed in many markets we serve. This resulted in preliminary revenue for the month of April declining about 20% versus April in 2019.

In the recent weeks, as states begin to lift restrictions on non-essential surgeries, we've received an increasing amount of customer feedback that those implants that had been cancelled in March and April were beginning to be rescheduled. Our order growth has been accelerating since the last week of April.

We firmly believe that most, if not all, treatments in process prior to the outbreak will take place over the next few months. In the meantime, we continue to