ABIOMED CEO Discusses F1Q12 Results - Earnings Call Transcript

ABIOMED, Inc. (ABMD)

F1Q12 Earnings Call

August 1, 2012 8:00 am ET

Executives

Susie Lisa - Senior Director of Investor Relations and Corporate Development

Mike Minogue - Chairman, President and Chief Executive Officer

Bob Bowen - Vice President and Chief Financial Officer

Analysts

Brooks West - Piper Jaffray

Greg Simpson - Wunderlich Securities

Anthony Petrone - Jefferies

Steve Beuchaw - Morgan Stanley

Presentation

Operator

Good day, ladies and gentlemen and welcome to the Abiomed first quarter 2013 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. [Operator Instructions] As a reminder, today's call is being recorded.

I would now like to turn the conference over to Susie Lisa. Ma'am, you may begin.

Susie Lisa

Thanks you, good morning everyone and welcome to Abiomed's first quarter fiscal 2013 earnings conference call. I am Susie Lisa, Senior Director of Investor Relations and Corporate Development for Abiomed and I am here with Mike Minogue, Abiomed's Chairman, President and Chief Executive Officer; and Bob Bowen, Vice President and Chief Financial Officer.

The format for today's call will be as follows. First, Mike will discuss strategic highlights from the quarter against the framework of our key operational and strategic objectives for fiscal 2013. Bob will then review the financial results for the quarter and provide an update on guidance for the year. We will then open the call to your questions.

Before turning the call over to Mike, I want to remind you that during the course of today's conference and the question-and-answer session that follows, we may make projections or other forward looking statements that are subject to the Safe Harbor provisions of securities laws regarding future events or the financial performance of the company.

We caution you that these statements are only predictions and that actual results may differ materially. We also alert you to the risks contained in the documents we filed with the Securities and Exchange Commission, such as our annual and quarterly reports on Form 10-K and Form 10-Q. We do not undertake any obligation to update or correct any forward looking statements.

With that, I will turn the call over to Mike.

Mike Minogue

Thank you, Susie. Good morning, everyone. We are happy to report the best quarter in company history with 42% growth in total revenue at $38.8 million and 56% growth in Impella revenue.

We believe our sustained ramp and U.S. Impella growth of 61% indicates Impella is becoming the new standard of care in the U.S. for percutaneous circulatory support. The record results and sequential revenue growth, this Q1 elucidates the importance of the updated ACC/AHA/PCI guidelines, the TCT and ACT clinical and cost effectiveness data and the publication of the U.S. Impella registry.

Impella is now at an annual run rate of approximately $140 million and has grown greater than 30% year-over-year for the 11th straight quarter. The company is off to a fast start this fiscal year, solidifying our position in the industry as one of the fastest growing profitable medical device company. I personally want to thank and congratulate the entire team for our best ever results.

Today, I would like to highlight the quarter relative to our four fiscal '13 corporate goals. So, first on goal number one, achieving sequential revenue growth every quarter by maximizing the productivity of our commercial organization. This goal of sequential quarterly growth alone make Abiomed a unique company.

We achieved this goal despite the reduce customer face time in Q1 compared to Q4 due to our annual headquarters training for the field team, numerous clinical meetings and employee management reviews. We are expecting a challenge to this goal in Q2 after four straight quarters of large sequential growth entering into our summer quarter where cath lab significantly slows down.

The breakdown of reported usage was 50% for prophylactic, 37% for combined emergency support and 13% for all other applications. All grew double digit year-over-year. Additionally, we believe that the steady flow of peer review publications and physician training are key drivers of our growth.

In Q1 there were eight relevant peer reviewed manuscripts published on Impella and we had over 10 events interacting with over 500 physicians. The first of a series of PROTECT II papers were submitted in early February and we are confident in its publication this fiscal year. Additional PROTECT II papers on pre-specified endpoints are already in process.

Our second goal is quantifying and publishing the cost effectiveness and quality of life gains for Impella patients requiring hemodynamic support. Healthcare reform prioritizes quality of life metrics and penalizes hospitals for patient readmissions within 90 days from discharge.

This is the exact opposite incentive plan of the prior coverage policy where hospitals were reimbursed for readmissions, stage PCI procedures and repeat revascularizations and our products have demonstrated the ability to positively influence these metrics.

For example, PROTECT II, in conjunction with the economic study revealed that the Impella arm at 90 days had a 56% reduction in major adverse events from discharge had half the rate of repeat revascularizations and had 67% less per readmissions in hospital charges. The PROTECT II cost effectiveness or ICER study will be submitted for publication in September.

From a quality of life perspective, the peer reviewed publications of PROTECT I and RECOVER I FDA studies, MACH II, the Europella and the USpella have all reported Impella patients had a significant increase in ejection fraction at 90 days and/or improved New York Heart Association Status.

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