AngioDynamics(ANGO) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $66 million for Q3 FY24, representing an 8$6.5 million, or adjusted loss per share of $0.16, compared to an adjusted net loss of$5.4 million or adjusted loss per share of $0.14 in the same quarter last year [26] - GAAP net loss for Q3 FY24 was$190.4 million, including a goodwill impairment charge of $159.5 million [27] Business Line Data and Key Metrics Changes - Med tech revenue was$25.7 million, a 12.6% year-over-year increase, while med device revenue was $40.3 million, growing 5.2$11.8 million in revenue during Q3, growing 14.7% year-over-year [21] - NanoKnife disposable revenue increased 19.8% year-over-year, with capital sales growing 230.9% [22] Market Data and Key Metrics Changes - International business grew approximately 21% year-over-year, with med tech growing 53% and med device growing 7% [16] - The company expects to initiate a limited launch of AlphaVac for pulmonary embolism treatment by the end of Q4 FY24, with a full launch scheduled for Q1 FY25 [12][13] Company Strategy and Development Direction - The company is focused on optimizing its portfolio, having divested its PICC and midline product portfolios for up to $45 million, with$30 million received in Q3 [17] - The transition to a fully outsourced manufacturing model is underway, expected to generate approximately $15 million in annualized savings starting in FY26 [18][24] - The company aims to drive growth from key med tech platforms while expanding margins and moving towards profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy, highlighting the FDA clearance for AlphaVac as a significant milestone [12] - The company anticipates FY24 revenue in the range of$270 million to $275 million, reflecting the impact of recent divestitures [32] - Management noted that there are no significant market changes affecting guidance, maintaining a consistent outlook despite operational transitions [42] Other Important Information - The company has zero debt compared to$50 million a year ago, significantly strengthening its balance sheet [28][30] - A settlement agreement with BD Bard was reached, resolving over a decade of IP litigation, providing clarity and allowing the company to focus on growth [31] Q&A Session Summary Question: When will data from the APEX trial be available? - Management indicated that data will be released at upcoming trade shows and through publications from principal investigators [36] Question: What are the rollout plans for AlphaVac in PE? - The company has prepared its sales force and will conduct a limited market release followed by a larger launch [48] Question: Will there be any changes in guidance due to recent divestitures? - Management confirmed that guidance remains consistent, reflecting the divestiture's impact without significant market changes [42] Question: What is the pricing strategy for AlphaVac? - The expected price for AlphaVac is around $9,000 [60] Question: How is the NanoKnife performing and when will PRESERVE data be available? - The NanoKnife is seeing strong growth, particularly in prostate treatments, with data from the PRESERVE study expected to be published following the 12-month follow-up [62]