Senseonics(US:SENS)2021-05-14 01:12Financial Data and Key Metrics Changes - In Q1 2021, total net revenue was $2.8 million compared to $36,000 in Q1 2020, indicating significant growth [27] - Gross profit in Q1 2021 increased by $20.2 million year-over-year to $526,000, primarily due to filling resupply orders with existing written-off inventory [27] - The total net loss for Q1 2021 was $249.5 million or $0.68 per share, compared to $42.6 million or $0.21 per share in Q1 2020, largely due to a $239.4 million increase in other expenses [31][32] Business Line Data and Key Metrics Changes - Revenue generated in the US was approximately $310,000, while revenue from Europe was over $2.5 million, reflecting Ascensia's initial sales support [9][27] - Sales and marketing expenses decreased by $9.5 million year-over-year to $1.6 million, attributed to the strategic changes in market commercialization [28] Market Data and Key Metrics Changes - The company expects global net revenue for 2021 to be in the range of $12 million to $15 million, with an annual revenue cadence split roughly 40% in the first half and 60% in the second half [33] - Ascensia is now active in several European countries, including Germany, Italy, and Spain, with a large sales force of over 250 professionals [20] Company Strategy and Development Direction - The collaboration with Ascensia focuses on the commercialization of the Eversense system, allowing Senseonics to concentrate on research, development, and manufacturing [7][8] - The company aims to enhance the Eversense product's market presence through a comprehensive direct-to-consumer advertising campaign [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the partnership with Ascensia and its potential to drive patient adoption of Eversense, particularly in the Medicare population [18][37] - The company is preparing for the launch of the 180-day Eversense product and is optimistic about the FDA review process [24][66] Other Important Information - The company announced that Centene Corporation is now covering Eversense, which is expected to boost healthcare providers' confidence in recommending the product [16] - Ascensia is implementing new access programs to support patients with high deductibles and those without coverage for Eversense [18][19] Q&A Session Summary Question: Update on installed base in US and international markets - Management indicated that as of the end of Q1, there were about 4,000 patients in Europe and about 1,000 in the US, with no quarterly updates planned [43] Question: Expectations for gross margin - Management expects gross margin for the year to remain in the range of negative 25% to negative 35% [46] Question: US relaunch strategy - The focus will initially be on reestablishing relationships with existing prescribers before expanding to new accounts in the second half of the year [50] Question: ACO partnership significance - Management expressed excitement about the ACO partnership, highlighting its potential for A1c reduction and economic returns [58] Question: Readiness for 180-day product - Management is confident in their ability to ramp up manufacturing capacity in anticipation of the 180-day product approval [60]