EDAP TMS S.A. (NASDAQ:EDAP) Q2 2023 Earnings Call Transcript

Frank Takkinen : Got it. That’s helpful. And then on the procedure side. I know one thing you’ve spoken about in the past is related to the disposable ASP with the renewed reimbursement at the beginning of this year and maybe having a little bit of flexibility to increase that ASP or slowly increase that ASP over a number of years. Can you maybe update us on that dynamic and whether or not you still think there’s more room to go on the ASP related disposables?

Ryan Rhodes : So great question. I would say, yes, there is an opportunity. And I would say, historically, since I’ve been in the company, the ASP on procedures has gone up. We continue to look at it closely. We work very closely with our legacy customers, and we’ve had some price increases, notably with certain accounts. And continue to see that average — call it, average sales price per procedure going up. Now again, we pay close attention to that. And we monitor, and that also plays true for the new accounts that acquire our technology. So I’d say we would say there’s room to grow for sure. And again, I think we enjoy some additional advantages from the reimbursement that’s in place.

Operator: The next question is coming from Jason Bednar of Piper Sandler.

Jason Bednar : I wanted to follow up just really on the Focal One placements. And sorry to ask another one here, but I wanted to check to see just how or whether the rate environment and the broader macro dynamics out there are just influencing the attitude of hospitals, both on the large academic side and the community centers. Are your prospects moving forward at the same pace as what you’ve seen historically? I may know the answer just based on how you responded to Frank’s question just there regarding business strength here in the third quarter. But I just wanted to check to see if that’s a dynamic at all that’s influencing conversations you’re having and whether business actually might even be stronger than what you’re seeing in the third quarter, if not for some of the macro factors?

Ryan Rhodes : Yes. I don’t — we don’t see — we don’t really see any headwinds related to that. I know with interest rates going in the direction they’re going. We have not seen the impact on that. It’s — we are in a category of disruptive capital equipment. However, we’re also in the category of strategic capital. So again, hospitals, as you know, routinely buy capital equipment. But again, adding Focal One and adding Focal therapy or in our case, Robotic Focal HIFU, we see it as a strategic initiative, and we work very closely with our hospital customers as we move through that buying process. So again, I don’t put us in the category of operational capital. We are strategic capital. And again, you can back it up in the state of, hey, it’s clinically necessary to offer something today, we believe, in focal therapy it’s also strategic for a hospital, and it can bring strong economic reward. So we have that in our narrative.

Ken Mobeck : Yes. Jason, the only other thing I’d add regarding your question is we have seen in the hospital environment and the purchase environment taking time in improving their purchases, okay? We had a few systems get stuck in the buying process in Q2. We see going through in Q3. So if anything, they’re just taking a really good look at these purchases before they buy them.

Jason Bednar : Okay. So maybe just a longer sales cycle, but not actually influencing the yes or no decision?

Ken Mobeck : Exactly.