Inari Medical, Inc. (NASDAQ:NARI) Q4 2022 Earnings Call Transcript

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Mitch Hill: Yes, Travis, on the — sorry, on the guidance question, when we put together our 2023 guidance, we really tried to contemplate all of these factors that are going into the business this year, such as the ability to grow our two sort of core VTE markets, the new TAMs that we’re sort of focused on for the year, specifically that’s made available with ProTrieve and InThrill. We also thought about the U.S. and OUS business and the competitive landscape, as you just heard about from Drew. Finally, we considered all the pricing dynamics that are going on in the marketplace. And we tried to reflect all of those in the numbers that we’ve discussed, the $470 million to $480 million number for the year. And we believe that’s reflective of the sort of continued confidence in the growth of our business, the U.S. market and internationally as well.

The new TAMs, specifically to your question, I think the contribution there is going to be relatively modest. It’s kind of early in both of those stories. They’re still launching. They’re doing well. But we’re working through the VAC approval process with our hospital customers across the U.S., and it’s going to be sort of a slow build for those. As we’re able to share some more specific sort of anecdotal feedback on those, we’ll certainly do so.

Travis Steed: All right. That’s helpful. And then a quick follow-up is it sounds like, I guess, six weeks into the FLOW launch. There’s always this worry that maybe you just haven’t seen the full impact of the launch yet. Curious if you’re seeing it in all of your accounts, have you seen trialing kind of widespread or there’s still more to come? And then curious what kind of feedback you got on Artix and the limited market release and I’ll drop.

Drew Hykes: Great. Thanks, Travis. Yes. So we are six weeks in. We’ve seen a pretty steady cadence of competitive trialing. This is not a new phenomenon. This is exactly the pattern that we observed with the CAT 12 launch, for instance. Some of the VAC approvals undoubtedly are going to take longer and some go faster. We see that in our own new product launches. So I would imagine they’re likely in the middle innings, if you will, of the rollout. I think they’ve shared publicly, they’ve entered full market release in early January and didn’t have any supply constraints, and they certainly have talked about navigating their way through VAC approvals exactly as you expect. So I think we’re in the middle innings and I think we’ve got a pretty good sense of how the product is performing, as you heard me describe. Tom, maybe you’d want to talk about Artix?

Tom Tu: Sure, Travis. So — just as a reminder, arterial thrombosis is the smallest of our new TAMs, but still a space that has significant unmet needs. It’s different than our other markets and that it’s mature. It’s got established therapies and a high bar for entry. We completed the Artix LMR recently, and we’re very satisfied with some of the case results and the safety record was pristine, but it didn’t quite meet our very high standards for commercialization. What we want to do is work to improve the ease of use and effectiveness of the device and expect to complete that work in early 2024. This is part of the process. It’s similar to the journey that we undertook with early technologies like FlowTriever and ClotTriever. We’re committed to doing this right just like we did with our core products. And this is still a compelling unmet need. We’re going to confidently bring a solution that our patients deserve.

Travis Steed: Great, thanks a lot guys.

Drew Hykes: Thank you.

Operator: The next question is from Cecilia Furlong with Morgan Stanley. Please go ahead.

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