Hansen Medical, Inc. (HNSN)
31st Annual J.P. Morgan Healthcare Conference Transcript
January 10, 2013 2:30 PM ET
Bruce Barclay - President and CEO
Pete Mariani - Chief Financial Officer
Chris Pasquale - J.P. Morgan
Chris Pasquale - J.P. Morgan
Previous Statements by HNSN
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Thanks, Chris. Good morning, everyone. Thanks again for inviting us to participate this year. With me today is our CFO, Pete Mariani, and he and I will both be available for Q&A here at the end of the presentation.
So some of the statements made today maybe considered forward-looking. I would encourage you to consider the information on this slide, in our Securities filings and read that carefully.
So Hansen Medical is the global leader in intravascular robotics poised for growth in the $2 billion plus medical robotics market. We truly consider intravascular robotics, a platform technology and so we have focused ourselves in two areas, electrophysiology or EP and Vascular.
Within the EP space as you probably know we’ve been selling our Sensei system since 2007 in both U.S. and Europe. We’ve delivered almost 10,000 procedures on that system since that time. We got installed base of over 110 systems.
Growing body of clinical data. We’ll talk about that here in a few minutes and showing favorable outcomes in atrial fibrillation. We are also leveraging this technology in the new clinical applications, in particular the vascular opportunity which we are very excited about. We just got our 510(k) clearance on that product. Mid last year we have begun our initial launch in the U.S. mid last year and I will talk a little bit about that as well.
Lastly, we continue to invest heavily in R&D. We have a full pipeline of projects and particular we are focusing ourselves on developing a suite of catheters to go with that broad application of the technology.
So very excited to be a part of the medical robotics segment. As I mentioned, $2 billion in sales. Most of that comes from Intuitive Surgical of course. We are also in good company with MAKO Surgical in the orthopedics space but we do believe our technology uniquely addresses those challenges associated with using robotics in the intravascular space.
So year ago we identified a number of goals for the company and we are very pleased to say that we have accomplished most of those goals or exceeded most of those goals since that time, let me walk through those just quickly here.
We have received approval and launch a number of new products for the company, most notably the Magellan System in the United States. We’ve also launched a couple of new products in the U.S. in the EP space as well, an Artisan Extend catheter was approved in the second half in the U.S. last year. It just got approval in Europe and got our CE Mark here in early 2013, so excited about initial launch of that product here soon.
We are generate a number of clinical papers and clinical presentations both on the vascular side and on the EP side, we will talk about the 1700 plus robotic patient paper that published last year, it’s important for our AF business. But we are also seeing a lot of good presentation and publications on the vascular side as well.
Procedure growth as I said now approaching 10,000 cases. We’ve had five consecutive quarters of procedure growth on the robotic side.
Improving margins, we’ve done a number of good things in the -- within the factory in terms of implementing lean manufacturing, margins are improving. We are also reducing expenses as well and doing everything we can to achieve operational excellence inside the organization.
Continue to focus on issuing new patents, 14 new patents issued in 2012, strengthening the leadership team, made a number of change at the senior level and feel like we have a terrific team in place to run the company. And we have added additional capital to the company, we announced in October a new transaction with Intuitive Surgical that added $30 million to the balance sheet.
So now we have some background for the com -- for the folks here in the room that don’t know the company. Founded in 2002, went public in 2006, since that time we’ve established a number of key relationships with companies both large and small in the industry relative to launching the products and using them within the hospital environment but also to help us develop new products and to feed the product channels, and some of those names are listed here.
Business model again maybe familiar with, it is the classic razor, razor blade business model. We sell catheter which is the robotic system itself on the left hand side here on the slide and we have recurring revenue both with catheters and accessories and with service revenue.
So leadership team is very focused around delivering the three pillars of strategic growth here we think that will help drive shareholder value in the future. The first is around launching our vascular business, we’ll talk more about -- that in detail just a second.