TransMedics Group, Inc. (NASDAQ:TMDX) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 04:30 pm ET
[Operator Instructions] And first question comes from the line of Robbie Marcus from J.P. Morgan. Robbie, your line is now open.
Hi, guys. This is actually Allen on for Robbie. I just had a few quick ones. So I guess, as we look to the back half of the year, I was hoping that you guys could maybe provide some additional color on the trajectory of the recovery. I know you said that April was down to almost nothing. To get back up to $3.5 million, you guys clearly had a very sharp recovery in May and June.
So I guess, when we look out to 3Q and 4Q, how should we think about that recovery trajectory continuing? Should we think about it as a bit more sequential even though you are seeing a resurgence in some major geographies and how should we think about you returning to maybe back to like -- say like 100% of what you had last year versus eventually growing above that?
Thank you, Allen. So for the -- as far as the trajectory, it's not linear. We've seen continued improvement. But given the emergence of hotspots in the South and Southwest and the West part of the country, some of that blunted the recovery. So we expect sequential, but it's not a linear recovery line that we see. That's why we're cautious in our optimism.
Are we seeing a recovery? Absolutely, we are seeing a recovery, but it's just these -- with these hotspots coming in major regions in the U.S. that are actually heavy OCS regions, we just think that this could blunt the recovery in one month and maybe recover once they -- once that crisis subsides.
What we know is institutions, hospitals, centers are much more equipped and better equipped today than they were in March and April where once we see a hotspot kind of easing off, we see the transplant activities returning maybe a little bit faster than what was experienced before. But definitely during the -- during the peaks, things kind of gets slowed down.
Relating to the second half of your questions -- your question. I suspect that we are still going to be at last year's level by end of this year. I think it will take us through Q3 and maybe even through Q4 to get to last year's level before we start seeing growth beyond last year's level, that's at least based on what we know today, and Stephen?
Yeah, I would agree with that. I would agree with that assessment.
Got it. And I guess just another quick follow-up, on the clinical trial pipeline. It sounds like you guys have managed to maintain your timelines there a little bit better than maybe some other peers within the Medical Device Group. I guess like how confident are you in that? And I guess, since you've managed to make it through the worst of it, guessing you're pretty confident, but why have you been able to