Hansen Medical (HNSN)
UBS Global Life Sciences Conference
September 19, 2012 03:00 PM ET
Bruce Barclay - President and CEO
Previous Statements by HNSN
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Thanks David. Good afternoon everyone. It’s a pleasure to be here. Thanks again to UBS for inviting us to participate in this year's Life Science conference. With me today sitting up in the front row here is Pete Mariani. Pete's our Chief Financial Officer and he'll be available with me at the Q&A session which immediately follows. So some of the statements made during this presentation maybe considered forward-looking. This slide as well as our securities filings contain important information in this which I would encourage you to read and consider carefully.
Hansen Medical is a leading provider of intravascular robotics poised for growth in a $2 billion plus medical robotics market. While intravascular robotics is truly a platform technology, with many different clinical applications possible. We're focusing our efforts on two businesses. One, in electric physiology or EP for short in the second in vascular. For EP in 2007, Hansen launched its first robotic catheter system in the US and Europe known as the Sensei Robotic System. The clinical use of this system is growing as it has been used in over 8,000 patients to-date and we generated a significant install base of recurring revenue shipping over 110 systems to this point and that number is growing every quarter. Those cases have generated a significant body of data showing the clinical benefit of this product in patients with atrial fibrillation or AF.
Our strategy is to leverage our technology in to new markets and we have a significant opportunity with our new robotic platform which we call Magellan to access a larger, clinical application in vascular disease. In June of this year we received 510k clearance to market the Magellan system in United States for peripheral vascular disease and coupled with our prior CE mark in Europe, we're very excited about the opportunity in front of us with this new product.
Finally, we continue to invest in new technology. We're developing a suite of catheters for use in multiple EP and vascular applications. We're also developing what we believe to be a game changing technology, visualization technology which we call shape sensing which has many potential benefits including the reduction of radiation exposure during most of the interventional procedure, so more on both those topics in just a minute.
Hansen medical was founded in 2002. We went public in 2006. Company realized early on that it could not fundamentally change the way intravascular procedures were performed by itself and so entered into a number of partnerships with both large and small companies to commercialize the products as well as to develop new products for future applications. These partners include Philips, Siemens and GE on the capital side, St. Jude Medical, Intuitive Surgical, Luna Innovations and others for product channels IP and new technologies.
There are a number of clinical segments within the medical robotics industry which make it a new and very exciting business to participate in. As mentioned earlier, it's expected that more than $2 billion worth of medical robotics will be sold in 2012. Most of those sales will come from Intuitive Surgical which is in the surgical robotics space. We're also in good company in this segment with MAKO Surgical which is in the orthopedic space. Our technology uniquely addresses challenges associated with robotics in the intravascular space.
So intravascular robotics also supports multiple clinical specialties within the hospital. Our EP product addresses the needs of and our new Magellan vascular system addresses the needs of those specialties performing minimally invasive peripheral vascular interventions namely endovascular surgeons, interventional radiologists and interventional cardiologists.
By meeting the demands of these specialties, increased utilization should occur in more varied diseases and with more budget dollars available within the hospital to help pay for this system.
The vascular market is a very large one as well. In 2009, over three million payments received some form of interventional vascular procedure representing a much larger catheter base market than EP is today.
So let`s start with a look at our vascular business and our Magellan product. So we believe there is a very significant unmet clinical need for the use of intravascular robotics in peripheral vascular disease. For many interventionists including those more skilled, cases can be long, complex and unpredictable in both duration and outcome. This unpredictability can lead to lab and efficiencies and efficiencies cost overruns for the hospital.
Second, there can be wide discrepancy in training and skill sets among the various physicians performing these cases today.
Third, given the fact that the operator wears heavy lead and stands next to the C-arm which is the radiation source in these cases, for the entire day, day after day and there are multiple documented cases where physicians suffer from excessive radiation exposure and orthopedic injuries often leading to unexpected costs and to shorten careers.
Finally, complex cases can lead to costly complications including even open surgical procedures which we believe the robot can minimize due to its ability to raise the skill level of the operator and create more consistency and outcomes from physician to physician. Given these multiple unmet clinical needs in hospitals today, we're very excited about this new opportunity in the vascular market which we believe the Magellan system can help address.