Pulmonx Corporation (NASDAQ:LUNG) Q4 2023 Earnings Call Transcript

Jason Bednar: Okay, very helpful. Thanks so much, Glenn. Congrats again.

Operator: Thank you. And one moment for our next question. Our next question is going to come from the line of Rick Wise with Stifel. Your line is open. Please go ahead.

Rick Wise: Good afternoon to you both. Glenn, just as Steve Williamson’s new advisor, counselor, whatever words you used, and a member of the board, what’s the agenda coming in? Is it simply, and I say that in air quotes, is it simply continue to execute the plans that you’ve laid out? I was just struck that you used the phrase about him taking the company to its next commercial growth phase. So just maybe you could expand on what you’ve charged him or asked him to do and maybe give us a little more color on what you see as the next commercial growth phase.

Glendon French: Got it. So Rick, you in particular, I know we’ve talked a lot about sort of where we are in our process and we’ve talked about this three-step process where we have to have really well-trained accounts that are executing this procedure routinely and efficiently. And then we need to engage with the surrounding COPD physicians who control as many as 90% of the patients in a given geography and get them to the right place and then activate the patients that are rolling in. And as it relates to that sort of a third, a third, a third, we are in the early innings here. We are literally, maybe we’re in the second or third inning as we’re trying to bring these accounts forward. So we have a lot of additional work, some of which we’re doing in sort of staggered parallel and geographies that are more advanced in terms of their development than others, but we’re still in the early innings.

And so there’s plenty of opportunity to continue to execute against the existing plan. As we begin to learn about, or engage more and more in the driving patients in off the edges and our more developed geographies, I think there will be opportunities for us to accelerate even further. AeriSeal provides an incremental way to accelerate expanding in the marketplace does. I think we feel like this ship is pointed in the right direction. The sales are up and with regard to Steve’s charge, he’s going to be, I think he’s got a great background of moving markets and as it relates to us, I think, probably finding additional ways to get more wind behind those sales.

Rick Wise: Yes, that makes total sense. And to what degree is international an important or a stepped up aspect of this next phase? I mean, obviously with Japanese approval, that’s going to make a difference in the post-market study underway, but maybe give us that larger perspective and at the same time, help us better understand just as we look ahead to next year, should we expect that the international business is going to be, sort of returned to more compelling growth or how do we think about that set up for 2024? Thank you.

Glendon French: Okay, see, we’re talking about 2024 cause you said next year. I just want to make sure we’re talking about the same year.

Rick Wise: I’m sorry, the same year, yes, 2024. Well, 2024 and beyond.

Glendon French: Okay. Yes, no, I think it’s a great question. We have, it’s a really good question. So let me try to answer it concisely. I think that we have demonstrated what good looks like and what essential is to our business in the United States. We have always known that everywhere in the world, the great majority of patients are controlled by doctors in geographies that are sort of outside the field of view of the treating centers. We feel very strongly that centers of excellence is the right approach. And so I don’t care where you are in the world. Most of the patients are sort of “outside” the field of view of the treating physicians. So in the United States, we might have a dozen different tools that we are testing and using and identifying the things that work and work really well.

Some of those tools are processed. Some of those tools are literally, selling tools and so forth. We also know that the sales reps that are most productive in this kind of environment have a certain personality, certain skillset. And so with regard to our team outside of the United States, we have been intentionally evolving it in the direction of having the kind of profile that we’ve demonstrated works really well in the United States. We’re identifying that subset of tools that have worked really well in the United States. And I think really this year, 2024, is going to be about taking a handful or fewer of those key tools that are working great and making sure that we put them in place, the processes and tools in our major markets. We’re in 25 different markets, but 80% of our international business is in Europe, and it’s probably in about four different countries.