MAKO Surgical Corp. (MAKO)
Q2 2008 Earnings Call
July 29, 2008 4:30 pm ET
Mark Klausner - Managing Partner, Westwicke Partners
Maurice Ferré - Chairman, President and CEO
Fritz LaPorte - SVP of Finance and Administration, CFO and Treasurer
David Roman - Morgan Stanley
Eli Kammerman - Cowen
Michael Matson - Wachovia
Matt Miksic - Piper Jaffray
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It is now my pleasure to introduce your host Mr. Mark Klausner with Westwicke Partners. Please go ahead, sir.
Thank you, operator. Joining us on today's call are MAKO's President and CEO, Dr. Maurice Ferré, and the company's Senior VP and Chief Financial Officer, Fritz LaPorte.
Before we begin, I would like to caution listeners that certain information discussed by management during this conference call, including answers to your questions, will include forward-looking statements covered under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with the company's business. For a discussion of risks and uncertainties associated with MAKO's business, I encourage you to review the company's filings with the Securities and Exchange Commission, including the Registration Statement on Form S-1, the Form 10-K for the fiscal year ended December 31, 2007 and the Form 8-K filed with our earnings release. MAKO disclaims any obligation to update any forward-looking statements made during the course of this call.
The company's press release of financial results has been released via Prime Newswire. Mr. LaPorte will detail the contents of this release following remarks by Dr. Ferré.
With that, it's my pleasure to turn the call over to MAKO's President and CEO, Maurice Ferré.
Thank you, Mark. Good afternoon and thank you for joining us today to discuss MAKO's second quarter results. On today's call, I will provide you with an update on our business, and Fritz will provide you with the details of our financial results.
As most of you know, MAKO markets in advanced robotic-arms and implants that enables orthopedic surgeons to perform MAKOplasty, an innovative, restorative surgical solution to treat patient-specific, early to mid-stage osteoarthritic knee disease with consistent reproducible precision. Unlike conventional knee replacement surgery, which requires the extraction and replacement of the entire joint, MAKOplasty enables surgeons to isolate and resurface just the disease compartment of the knee.
Having commercially launched our Tactile Guidance System and implant systems in early 2007, we are relatively early in the adoption cycle. Nonetheless, we believe our solutions addresses the limitations of current methods of knee replacement and resurfacing very well, and as a result, we have a very significant market opportunity.
I am pleased with the progress we made in the second quarter. Key highlights, which I will detail later in the call include; number one, our customers performed 140 MAKOplasty procedures, representing a 37% increase over the first quarter of this year. 114 of these procedures were performed at our commercial sites, continuing the strong adoption trends that we saw in the first quarter. Our average monthly utilization at commercial sites increased to 5.4 MAKOplasty procedures per commercial site.
Number two, through June 30, the total number of MAKOplasty procedures performed since our first procedure in June of 2006 is 423 procedures. I should also note that our initial MAKOplasty patients are now over two years post-op procedure, which is an important critical milestone.
Three commercial Tactile Guidance Systems were installed and accepted by customers in the second quarter, bringing the total number of commercial sites in the field to 10. The new commercial sites are North Carolina Baptist Hospital, which is affiliated with Wake Forest University in Winston-Salem, North Carolina, New York Hospital for joint diseases, which is affiliated with NYU in New York City, and Good Samaritan Hospital in Los Angeles. As I will discuss later, these are important placements with five leaders in the orthopedic field.
We also made good progress on the regulatory front during the second quarter, and I am pleased to announce that we submitted a 510(k) for TGS version 2.0. In addition, during the quarter we received 510(k) clearance for our unicompartmental implants and a 510(k) clearance for our patellofemoral implant. These milestones keep us on track to obtain regulatory clearance of our TGS version 2.0 and bicompartmental knee implant system to allow for a commercialization of these products in the first half of 2009.
We attended five orthopedic specialty meetings in the second quarter, including the Dorr Institute Masters Series in Arthritis Surgery in April where Dr. Thomas Coon performed a live MAKOplasty procedure. Finally, we have submitted 36 abstracts to various orthopedic conferences, which will occur over the course of next year. We have also submitted and are in the process of preparing a number of additional manuscripts to submit to peer-reviewed journals. Additionally, two of our MAKOplasty surgeons have written chapters for surgical technique textbooks.
Overall, I remain enthusiastic about our products and market opportunity. I was pleased by the operating progress we made during the second quarter, building on the strong adoption trends we experienced during the two previous quarters.
Now I would like to turn the call over to Fritz, to review our financial results for the second quarter. Fritz?