Endologix, Inc. ( ELGX) Oppenheimer 22nd Annual Healthcare Conference December 13, 2011, 09:40 a.m. ET Executives John McDermott - President and CEO Analyst Steven Lichtman - Oppenheimer Presentation Steven Lichtman - Oppenheimer
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So, this is what we do, the picture is on the left, show a catheter base therapy to repair aneurysms, the picture on the right kind of the historical f the standard abdominal aortic repair used to be in open surgical procedure. Today it's down to about 60% of the time through catheter or what we call EVAR, endovascular aneurysm repair. About 72,000 procedures last year in the United States and we are starting to grow on to 60, 65% penetration. And I will talk to you about what’s involved with getting the remaining 35 to 40% switched over to EVAR.This is the market, it's about $1 billion global market, the blue slice of the pie represents the United States, clearly the largest segment and this just for aneurysms below the renal arteries and the importance of that anatomy will become clear as I take you through the pipeline. Here is the competitive set, it's truly us in three other companies, two of which are private, Gore and Cook and Medtronic. As you will see all of those devices which fall into a category called proximal fixation rely upon a similar methodology where the device is inserted through a catheter, implanted and deployed and anchors into the aortic wall with a series of hooks and barbs are attachments to attach itself and hang from the area just below the renal arteries. Our devices you can see over on the left is just fundamentally different. We have a single piece bifurcated system that actually sits right on the patients bifurcation where the aortis splits up and goes down the leg. Instead of attaching via hooks and barbs up near the renal arteries, we sit on that natural junction where the aortis splits up that’s where we get our platform and our foundation, our stability. And then we add a second piece of just to get seal below the renal arteries.
This unique approach offers patient the advantage to preserve that bifurcation for future peripheral cross-over procedures. So, any one of the other devices once you put that in, you have now lost the ability to do a future peripheral intervention, in a cross-over way with ours we preserve the bifurcation and enable patients to have that opportunity which is important because about a third of AAA patients also have PAD. So, that’s really one of the key distinguishing features of our system and has helped fuel our growth, which as highlighted here you can see we have grown nicely over the last several years, 83 million is the mid-point of our recently increased guidance.Most recent product introduction is a new device we called AFX, it stands for anatomical fixation which is that platform sitting on the bifurcation. The features of this new device is it got a relatively low profile system, but most importantly is this new graft materially called Strata. And I will talk to you little bit about this as we go through the presentation. We developed a new graft material for one of our other new product called Ventana. And this graft material is very, very strong and highly conformable and crates very good sealing characteristics for the device. From the sales perspective, at the end of the third quarter we had 72 reps and clinical specialist. We plan next year to be at 66 reps and 11 clinical specialist, they are total of 77 feet on the street in the United States. As you can see over 400 years of EVAR experience, it's important to know that the reps and the clinical specialist work every case. So, we have somebody there to support the doctor for all their procedures and we just this last quarter transition to direct sales operation in Europe, previously we sold in most of Western Europe through our distribution partner and are now in the process of building our own team. We plan to finish this year with about 12 full time folks on the ground in Europe and grow that up by the end of next year to about 30, still covered in Asia and Latin America through dealers. Read the rest of this transcript for free on seekingalpha.com