LivaNova PLC (NASDAQ:LIVN) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 07:00 am ET


LivaNova PLC (NASDAQ:LIVN) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the LivaNova Plc Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call may be recorded.

I would now like to introduce your host for today's conference, Mr. Matthew Dodds, LivaNova's Senior Vice President of Corporate Development. Please go ahead, sir.

Matthew Dodds

Thank you, Catherine, and welcome to our conference call and webcast discussing LivaNova financial results for the second quarter of 2020. Joining me on today's call are Damien McDonald, our Chief Executive Officer; Thad Huston, our Chief Financial Officer; and Melissa Farina, our Vice President of Investor Relations. Before we begin, I would like to remind you that the discussions during this call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the Company's most recent filings and documents furnished to the SEC, including today's press release that is available on our website. We do not undertake to update any forward-looking statement.

Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release that is available on our website.

We have also posted a presentation to our website that summarizes the points of today's call. This presentation is complementary to the other call materials and should be used as an enhanced communication tool. You can find the presentation and press release in the Investor Relations section of our website under News and Events, Presentations at

With that, I will now turn the call over to Damien.

Damien McDonald

Thank you, Matt. And thank you for joining us, and I hope you and your families continue to remain safe and healthy during these challenging times.

In the second quarter of 2020, we improved our liquidity, increased our financial flexibility and took actions that allowed us to effectively navigate this new environment. Overall, we saw a steady improvement in procedure volumes as we move through the quarter with some geographies and product lines recovering faster than others.

I'm going to start off by discussing some recent highlights and then results for our primary growth drivers, epilepsy and ACS. Then I will move to our pipeline and finish with the results of our remaining businesses. After my comments, Thad will provide you with additional detail on the financials and our updated 2020 EPS guidance. And finally, I will wrap up with closing comments before moving on to Q&A.

In May, the International Journal of Bipolar Disorders published data that shows combining VNS Therapy with treatment as usual significantly improves outcomes in patients with treatment-resistant bipolar depression. Patients treated with VNS Therapy have increased charters of achieving a response in less time than the treatment as-usual group. 63% of patients achieved response compared to only 39% of the treatment as-usual group. The study also shows that these patients treated with adjunctive VNS Therapy were less likely to be suicidal.

This study was complemented with a separate publication in Contemporary Clinical Trials detailing