EDAP TMS S.A. (NASDAQ:EDAP) Q3 2022 Earnings Call Transcript

Frank Takkinen: Hey, thanks for taking my questions wanted to kind of follow-up on some of the previous questions that were asked obviously, the reimbursement doesn’t go into effect till the start of the year. But was just curious if you expect any pull forward into Q4 given your comment around buying patterns and Q4 typically being the strongest quarter for cap placements?

Ryan Rhodes: Yes, we’re certainly socializing this with hospitals that were currently in our pipeline and those that may be further distant out. As noted, Q4 tends to be a stronger quarter. We’re obviously guarded optimistic in terms of, you know – where we land end of the year, but I think it’s really allowed us to go back as I mentioned earlier, to speak with hospitals that we spoke to maybe months and months earlier in the year or even dating back to last year. When we did some proforma analysis, especially in community hospitals, looking at reengagement and if you combined the facility payment with the professional fee, it’s really attractive on the on the economic front. Certainly the clinical merits of the treatment, the procedure, the outcomes, and all that are mission critical But I think it really does help us.

And we’re going to take advantage of it, take advantage of it where we can, as we exit 2022 and march into next year. So we’re well versed at our top tracks. And again, we’re having those conversations currently with our customer base.

Frank Takkinen: Okay, that’s helpful. And then maybe one on the commercial side, obviously, commercial normally follows CMS’ lead, but maybe could you just talk to how we should be thinking about commercial reimbursement for HIFU. And when some of these reimbursement changes could come into effect on the commercial side?

Ryan Rhodes: Yes, so – again, and so that goes into effect in January, on January 1. We’ll be doing our best to make sure that the commercial peers are educated. We have a team that helps run process for any claims that come through, they sit outside the company they help hospitals. There’s an 800 number in the team that helps with that. Again, we’ll see probably more of that coming online as we get into the New Year. But we are still very active, supporting hospitals, indirectly, on reimbursement related issues and make – and helping where we can. But again, I think you’ll see more of this as we move into next year 2023.

Frank Takkinen: Okay, and then last one more of a housekeeping question. Can you refresh us around how many Focal Ones are installed in the U.S. market today?

Ryan Rhodes: Yes, based on our install base were nearly 30 placements. And we added the three here, so it’s 27 placements.

Frank Takkinen: Okay, perfect. I’ll stop there. Thanks for taking my questions and congrats on all progress.

Ryan Rhodes: Thank you.

Operator: Thank you. Our next question comes from line of Sean Lee with H.C. Wainwright. Please proceed with your question.

Sean Lee: Good morning, gentlemen. And thanks for taking my question. Most of my questions have been answered already. But I just want to have a bit of a follow-up on some of your programs. So first for the U.S. commercial side – do you – would you say there are still any major geographies or medical systems that you have yet to penetrate or is it more of a going back to hospitals that you’ve talked to before and kind of getting them to see the benefits of HIFU now that’s a more established therapy?