Senseonics(US:SENS)2020-11-10 04:06Financial Data and Key Metrics Changes - Total net revenue for Q3 2020 was $767,000, a significant decrease from $4.3 million in Q3 2019 [38] - U.S. net revenue was $509,000, while net revenue outside the U.S. was $258,000 [38] - Gross profit in Q3 2020 increased by $4.2 million year-over-year to $835,000, primarily due to the ability to fill resupply orders with existing written-off inventory [39] - Total net loss for Q3 2020 was $23.4 million, compared to a net loss of $19.5 million in Q3 2019 [42] Business Line Data and Key Metrics Changes - U.S. revenues were $500,000, exceeding the depletion of inventory held at distributors, while OUS revenue was $250,000, also exceeding inventory held by Roche [18] - The installed base of Eversense users exceeded 5,000 patients, with approximately 80% being European patients [18] Market Data and Key Metrics Changes - The company expects to recognize total revenue of approximately $2.5 million in Q4 2020 [31] - Global net revenue is projected to be in the range of $12 million to $15 million for 2021 [31] Company Strategy and Development Direction - The company entered into a collaboration with Ascensia Diabetes Care to enhance the distribution and commercialization of the Eversense CGM system [12][15] - Ascensia will handle marketing, sales, distribution, and reimbursement management, allowing the company to reduce sales and marketing expenses by approximately $50 million per year [15] - The partnership is expected to accelerate growth and expand the commercial footprint of Eversense [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the collaboration with Ascensia, highlighting the excitement and engagement from the sales team [21][54] - The company anticipates a smooth reimbursement process for Medicare patients, with favorable local coverage determinations published [24][62] - The focus remains on product development, with plans for a next-generation sensor with a wearable life of up to 365 days [34][36] Other Important Information - The company has secured financing commitments totaling up to $54 million to support operations and product development [32][43] - A transition process is being designed to ensure continuity of service for Eversense users as distribution agreements with Roche are set to expire [29][30] Q&A Session Summary Question: Early learnings from Ascensia's first month as U.S. distributor and reimbursement update - Management reported positive progress with Ascensia, noting excitement from prescribers and successful initial insertions under Medicare [60][62] Question: Update on iCGM integration and partnerships - The focus remains on obtaining 180-day product approval before pursuing iCGM integration, with significant work already done with partners like Beta Bionic [64][66] Question: User growth expectations and Ascensia's sales strategy - The goal is to add 400 to 500 new U.S. patients over the next two quarters, with Ascensia's sales team actively engaging existing accounts [68][70] Question: Revenue recognition process and expectations for Q4 - Revenue will be recognized upon sale to Ascensia, with expectations for approximately 80% of Q4 revenue to come from Europe [78][83]