Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the impact of the National Coverage Determination (NCD) on Silk Road Medical's market dynamics, particularly in relation to transfemoral stenting?
A: Charles McKhann, CEO of Silk Road Medical, noted positive dynamics from the NCD, particularly in increasing awareness and treatment of carotid disease. He highlighted that new account opportunities have emerged from facilities previously reluctant due to the required VQI registry. However, he has not observed a significant wave of new training for transfemoral stenting, indicating that the market shift might not be as substantial as some might expect.
Q: How is the sales force performing, especially with the newer members, and what impact has this had on the company's operations?
A: Charles McKhann, CEO, expressed satisfaction with the sales team's performance, noting high energy and good retention rates. He emphasized the importance of training and developing clinical acumen among sales representatives, which is crucial for fostering strong customer relationships and driving TCAR adoption.
Q: What are the expectations for gross margin and operating expenses through the rest of the year following the Q1 results?
A: Lucas Buchanan, CFO, explained that the Q1 gross margin benefited from favorable variances and strong execution, but they anticipate a step-down in Q2 and normalization thereafter. Regarding operating expenses, he expects them to remain around the Q1 level, emphasizing that the company is at scale across R&D and SG&A, which supports their path to profitability.
Q: Could you provide insights into the pricing dynamics observed this quarter and expectations moving forward?
A: Lucas Buchanan, CFO, discussed the strong price performance at the product level and noted some temporary lifts from new product launches like the tapered stent. However, he expects some normalization in future quarters, with revenue per procedure likely returning to around $7,000.
Q: What is the strategic focus of R&D investments, particularly in relation to thrombectomy versus endovascular carotid artery treatments?
A: Charles McKhann, CEO, emphasized Silk Road Medical's commitment to leadership in carotid artery disease treatment. He mentioned focusing R&D on extending their lead in this area, although specific details on early-stage pipeline projects were not disclosed.
Q: How is the company handling the rollout and adoption of new products like the tapered stent and MPS Plus?
A: Charles McKhann, CEO, reported positive initial reactions to the tapered stent launched in March and is just beginning the rollout of MPS Plus. These products are factored into their guidance, and he anticipates further progress as they continue to be integrated into the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
