Avinger (AVGR) 7 Nov 24 2024 Q3 Earnings call transcript

Avinger, a leading company in the field of peripheral vascular healthcare, has recently released its third-quarter 2024 results, highlighting significant progress and strategic realignment. The earnings call, led by CEO Jeff Soinski and Principal Financial Officer Nabeel Subainati, outlined notable achievements and future plans, emphasizing the company's commitment to advancing image-guided treatments for coronary artery disease and expanding market access in China.

Operational Efficiency and Cost Savings

In the third quarter, Avinger implemented a cost savings program that reduced overall head count by 24%, including a 1/3 reduction in the commercial team. This strategic move led to direct reductions in operating costs, improved efficiency in gross margin, and revenue per sales head. The company's field sales team, now comprising 16 professionals, is dedicated to supporting high-volume user sites, ensuring superior patient outcomes, especially for complex peripheral artery disease. Despite the leaner sales team, Avinger maintained approximately 90% of revenue in the third quarter compared to both the prior quarter and the same period last year.

Pantheris LV and the Future of Large Vessel Treatments

Avinger made significant strides in the commercialization of its Pantheris LV large vessel peripheral atherectomy catheter. This new device, designed to streamline the atherectomy procedure, is expected to expand the mainstream appeal of Avinger's image-guided platform. The company's ongoing clinical study evaluating Pantheris SV for treating advanced disease in smaller vessels below the knee continues to demonstrate exceptional clinical outcomes. With a 100% freedom from major adverse events at 30 days and 97% freedom from target lesion revascularization, Avinger is set to revolutionize the treatment of large vessel peripheral artery disease.

Advancements in Coronary Artery Disease Treatment

Avinger's strategic focus on developing its first coronary product application, an image-guided CTO crossing system, is a promising step towards addressing the underserved market of coronary artery disease. With successful completion of all Phase III verification and validation testing, Avinger is poised to file an Investigational Device Exemption (IDE) application with the FDA. This innovative technology, with its low-profile catheter system and real-time OCT guidance, aims to provide physicians with a more effective and streamlined solution for crossing coronary CTOs, potentially reducing procedure times and improving success rates.

Strategic Partnership with Zylox-Tonbridge

Avinger's strategic partnership with Zylox-Tonbridge, a leader in the peripheral vascular and neurovascular markets in China, marks a significant milestone in expanding market access. This partnership, comprising investment alignment, market access, and cost-effective manufacturing, is expected to unlock the vast and growing Greater China market for Avinger's image-guided devices. With Zylox's extensive sales and marketing network and Avinger's innovative technology, the companies are set to revolutionize the treatment landscape for peripheral artery disease in China.

In conclusion, Avinger's third-quarter 2024 results showcase the company's strategic progress, operational efficiency, and commitment to advancing image-guided treatments for peripheral vascular diseases. With a focus on developing groundbreaking solutions for coronary artery disease and expanding market access in China, Avinger is well-positioned to redefine the future of vascular healthcare.