Senseonics(US:SENS)2022-11-09 00:09Financial Data and Key Metrics Changes - In Q3 2022, total revenue was $4.6 million, a 31% increase compared to $3.5 million in the prior year period [5][22] - Gross profit in Q3 2022 was $0.8 million, an increase of $2 million from a gross loss of $1.2 million in the prior year [23] - Net loss for Q3 2022 was $60.4 million, compared to a net income of $42.9 million in Q3 2021 [27][28] - Cash, cash equivalents, and short and long-term investments totaled $163 million as of September 30, 2022 [28] - The company narrowed its full year 2022 global net revenue guidance to $15 million to $17 million [29] Business Line Data and Key Metrics Changes - U.S. revenue for Q3 2022 was $1.9 million, while revenue outside the U.S. was $2.7 million [22] - The transition from the Eversense 90-day product to the Eversense six-month product contributed to the increase in gross profit [23] - The company reported a retention rate of 80% or higher for patients transitioning from the first to the second sensor, with long-term users seeing retention rates exceeding 90% [48] Market Data and Key Metrics Changes - Over half of the patients using Eversense have type 2 diabetes, indicating a growing market segment [7][36] - The partnership with the Nurse Practitioner Group aims to expand patient access to Eversense through both in-office and at-home sensor insertions [9][10] - Commercial coverage for Eversense is expanding, with significant health insurance providers issuing positive coverage decisions [11][12] Company Strategy and Development Direction - The company is focused on increasing patient adoption of Eversense through strategic partnerships and marketing efforts [6][13] - Future product development includes advancements in the Eversense 365-day sensor and the Gemini program, which aims to incorporate a battery into the sensor [16][17] - The company is working to improve manufacturing scale and margins while enhancing access to its products [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing expansion of covered lives and the potential impact of new product offerings [31] - The company anticipates continued investment in research and development, particularly for clinical trials related to next-generation technologies [45] - Management is optimistic about the long-term growth potential of the CGM market and the company's position within it [33] Other Important Information - The company has established a patient assistance program to help reduce costs for patients with insurance coverage [12] - The Eversense E3 system has been successfully launched across all markets in Europe, enhancing global distribution efficiency [14][15] Q&A Session Summary Question: How comfortable is the company with consensus for 2023 and the impact of the recent CMS proposal? - Management refrained from discussing 2023 specifics but expressed pride in the product's performance among type 2 diabetes patients [36] Question: How will the partnership with nurse practitioners help address basal patients? - The partnership is expected to facilitate referrals for patients whose primary care physicians do not perform insertions, leveraging existing CPT codes for reimbursement [37] Question: Any updates on the Gemini product development? - The company is working with experts in implantable batteries to develop a custom battery for the Eversense sensor, allowing for autonomous measurements [42][44] Question: How is the patient assistance program affecting adoption rates? - The program is showing good acceptance and utilization, particularly as deductibles reset in Q1 [48] Question: Is there increased interest from pump manufacturers now that the 180-day product is available? - There has been an uptick in interest from pump manufacturers, with ongoing conversations regarding integration [52]