So have to be really disciplined. Wish we have the capital but have to maintain that in the public markets.
James Philip: All right. So it sounds like you’re going to continue to invest in R&D, but it doesn’t sound like you’re going to get back to the fiscal 2022 level.
Tim Arens: Jim, I think what we’re providing the guidance here for fiscal 2024 and you noted the reduction in R&D spend over the last few years there’s clearly investments in certain platforms and other platforms are seeing a deceleration in spend notably SurVeil, which has been less than — certainly not fully offset by increase in other platforms. But yes I think we like the trend and we like the investments that we’re making and what we think the long-term value creation can be from those investments. Not a whole lot to add for 2025 or later. But I’d say you’re probably right to think about the trend.
Gary Maharaj: Yes. And one thing Jim is R&D includes clinical right? And so we have the PROWL registry you have to commit to those registries and the PROWL registry is going just fine which is for the Pounce Arterial. And eventually when we do launch the Pounce Venous product line to get the claim expansion to DVT versus removing clot will require at a minimum registry or very small single arms. So that’s more out in the 2025 time frame.
Tim Arens: There’s puts and calls Jim.
Operator: Thank you. Our next question comes from Mike Matson with Needham & Company. Please go ahead.
Mike Matson: Yes. I wanted to ask one on POUNCE versus Sublime. Just reading between the line, but some of the comments it sounds like Pounce is kind of the bigger growth driver there than Sublime. Is that right? I know you’re not going to break out the sales or anything, but can you just qualitatively comment on how the two are doing relative to each other?
Gary Maharaj: It has been Mike and one of the reasons for that remember in the whole debacle with the PMA not-approvable letter the VI commercial team took the largest hit in the company. We had to unfortunately reduce the size of the sales team by a lot right? And so — and what we had to do at that point because we have to make sure we got to hit our revenue plan the incentives for the sales team when you look at a $4,00-plus product in Pounce versus several hundred dollar product in Sublime catheters we were compelled to redirect the team that we’ve had towards making sure we’re able to hit that revenue. With the new commission plan that goes out — that went out in October we have now put Sublime back in its rightful place.
So there was a specific conscious decision at that point. What I would say is that the addressable market for Pounce Arterial is bigger than it is currently for radial devices. And remember radial is also an adoption curve not just a competitive winker. What I’ve told our sales team though is we’ll do well in thrombectomy. I have no doubt. But their grandchildren will remember them for Sublime right because that is changing the face of healthcare towards the positive. I don’t know a single other product and again it’s early innings that has better patient outcomes right much better health care economics and a huge impact on patient satisfaction. Hitting that trifecta we’re patient with it but for the moment, yes, the high ASP of things like Pounce Arterial are outpacing Sublime.
And that’s okay by the way for us right now.
Mike Matson: Yes. Okay. And then just on the Preside coating I mean is that I know you’re continually iterating on those offerings. So I mean is this something that could have any sort of impact on the growth? Or is it more just kind of incremental?
Gary Maharaj: And you know how that business runs like — the cycle time so we just got the first FDA clearance. I don’t think we mentioned that, but we do have an FDA clearance of the first device for Preside. And so what that sets the stage is — I’m generalizing a little bit here so the chemistry is on file with the FDA of having seen it now. And it gives our customers an opportunity to leverage that knowledge and working knowledge of that dossier on file with the FDA. The time cycle is you’ve got to get customers who’re interested help them through their development and their regulatory offerings right effort to get clearance for these devices. And only then do we see the royalty when these devices hit the market. So a longer offering, but it’s significant because we’re talking about royalty cash flow here. So I wouldn’t expect Tim in our guidance we’ve put anything for fiscal 2024 for any royalty things there unless people get approvals pretty quickly.
Tim Arens: Yes. There really isn’t. It’s look to be clear Preside is something that is highly complementary to our Serene coating which has really been growing well over these last few years. And we continue to expect it to grow well. I think we’ve commented previously that there are 60-plus customer opportunities where we get to dial in our chemistry with our customers’ devices. This just — Preside gives us an opportunity to really claim certain application spaces. I think going distal in the neural crossing really challenging lesions like total chronic occlusions it really gives us an advantage with this coating relative to even some of our internal coatings, but more importantly to competitive coatings. And I think that’s why the team has really been focusing on this Preside coding over the last few years is to meet some of the needs where quite frankly we felt that we could provide some additional performance enhancements.
So as Gary mentioned it will probably be a few years to grow the trees, but we’re planting the seeds today.
Mike Matson: Okay. All right. Got it. Thank you.
Operator: Thank you. And that concludes our conference call for today. Thank you for your participation and you may disconnect at any time.
