AngioDynamics, Inc.

Good morning and welcome to the NGO Dynamics fiscal year 2021 first quarter earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded. The news release detailing the fiscal 2021 first quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being webcast live over the Internet at the Investor section of the company's website at www.angiodynamics.com, and the webcast replay of the call will be available at the same site approximately one hour after the end of today's call. Before we begin, I would like to caution listeners that during the course of this conference call, the company will make projections, or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings, and gross margins for fiscal year 2021. Management encourages you to review the company's past and future filings with the SEC, including without limitation the company's forms 10-Q and 10-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. A slide package offering insight into the company's financial results is also available on the Investor section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. I'd now like to turn the call over to Jim Clemmer, Angio Dynamics President and Chief Executive Officer. Mr. Clemmer?

Thank you, Melissa. Good morning everyone and thank you for joining us for AngioDynamics Fiscal 2021 First Quarter Earnings Call. Joining me on today's call is Steve Trowbridge, AngioDynamics Executive Vice President and Chief Financial Officer, who will provide a detailed analysis of our first quarter financial performance. I am excited that we're able to report a strong first fiscal quarter while remaining focused on profitability, and on managing our cash and balance sheet despite the impacts of COVID-19. Throughout the quarter, we observed solid improvement across our end markets as hospitals and local governments continue to navigate the pandemic. These effects have been largely localized. We are observing variability in the pace and magnitude of recovery throughout our various geographies. We view these positive signals as encouraging, but we do not anticipate the demand environment to return to pre-COVID levels in the near term, and we currently expect that demand for this year will be roughly 10 to 15 percent below pre-COVID levels. Despite this headwind, we have a line of sight into growth, and we expect that we will be profitable this fiscal year, which Steve will cover in more detail shortly. Turning to our results for the quarter, first quarter revenue of $70.2 million increased 6.3% year over year, inclusive of the order in the UK we discussed with you last quarter. In addition, we reported adjusted earnings per share of two cents for the quarter, reflecting our commitment to growth as well as our ability to manage expenses and cash. in response to the COVID-19 pandemic. I am extremely proud of the entire AngioDynamics team for the way it has continued to execute in the face of this difficult market. Our team's ability to constantly adapt to such a dynamic environment has resulted in year over year sales growth, while our dedication to expense management has allowed us to maintain profitability. The team also continues to demonstrate an unwavering commitment to upholding the quality of our products and to helping patients and customers attain better outcomes. Additionally, we remain committed to supporting and progressing our key growth initiatives, as demonstrated by our recent announcement of the commercial launch of our Arion atherectomy system, which I'll discuss a bit later on the call. As we continue to progress throughout the year, our ability to provide products to customers and patients remains our priority. I am pleased with our ability to balance growth investments, operating expenses, and disciplined capital management. And I believe that we remain well positioned to return to a more normalized level of growth as the macro environment begins to stabilize. We've maintained a solid financial foundation and continue to execute a compelling strategic transformation led by our key technology platforms. To drive these key technology platforms forward, we continue to focus our spending on two areas during the quarter, internal research and development, and clinical and regulatory pathway expansion. Let me update you on our accomplishments in each of these areas. On the R&D front, we continue to focus investment on our three key technologies, AngioVac, Arion, and NanoKnife, while seeking out ways to increase the profitability profile of our other products. We continue to see strong interest in the recent launches of our NanoKnife and AngioVac platforms, and we remain focused on further developing these platforms. During the first quarter, we saw continued strength from our AngioVac platform. And as we've mentioned in the past, we are investing in the expansion of this platform in calendar 2021, which will open up a significantly larger piece of the addressable market. I am thrilled that we were able to announce the commercial launch of our Arion atherectomy laser. Our team has been working diligently for nearly a year to establish a robust and efficient supply chain, build out a dedicated sales and marketing channel, and develop physician and sales training programs in preparation for this product launch. We have already seen strong interest and significant traction during the limited release phase, as evidenced by the more than $1 million in Ariane revenue and the 500 cases that were performed during the first quarter. as well as the fact that we currently have 47 lasers in the field and a robust pipeline of upcoming installations. We continue to anticipate Ariane revenue in the range of $7 to $10 million in fiscal year 2021. Now that the commercial launch is officially underway, our sales force is committed to educating potential customers on the benefits of this revolutionary technology, and I am optimistic that they will quickly see the value of this product for both their patients and their practices. The second driver of our transformation is clinical and regulatory expansion and data generation, which are foundational pillars of our strategy. Our pathfinder and direct studies remain a primary focus and continue to require a certain level of flexibility in this current environment. We continue to see hospitals gradually opening back up and activity in these two studies continuing to improve. As of today, 23 direct study sites have secured IRB approval, as we have added two additional sites since our last quarterly call. Additionally, last quarter, we announced our expanded indication for our Unifuse thrombectomy product, that now allows for the administration of fluids into vessels that are impacted by thrombus, including both the peripheral and pulmonary arteries. This additional indication is consistent with our long-term strategy of building out along the continuum of thrombus management and developing a robust technology platform that will address thrombectomy of any complexity. While, like last quarter, I didn't specifically mention M&A as an area of focused spending in the first quarter, it will continue to play an important role in our transformation. We continue to pause any M&A activity until we are comfortable that the COVID pandemic is behind us, at which time we will then resume our disciplined approach of identifying appropriate M&A targets. and assessing strategic opportunities. With that, I'd like to now turn the call over to Steve Trowbridge, our Executive Vice President and Chief Financial Officer.

Thanks, Jim, and good morning, everyone. Before I begin, I'd like to point you to the presentation on our investor relations website, summarizing the key items associated with our quarterly results. Similar to the last two quarters, I'd note that with respect to the first quarter and our business moving forward, We will provide slightly more inter-quarter detail than we would in a normal operating environment. Our net sales for the first quarter of fiscal 2021 increased 6.3% year over year to 70.2 million. As has been true in our recent quarters, the ongoing recovery has had a varying impact on each of our three businesses. Our VA and VIT businesses performed the strongest during the quarter. as the number of procedures improved off of the COVID lows we saw in the second half of last fiscal year, but still remained below pre-COVID levels. Our oncology business continued to face pressure from COVID-related procedure headwinds and a tough capital spending environment. We performed a deep analysis of our business on a same customer basis, and that analysis has indicated that volumes are still down 10 to 15% from pre-COVID levels. We expect this to remain consistent throughout the course of fiscal 2021, assuming the recovery continues along its current trajectory. Our total DIT business increased 3.3% year-over-year, driven by AngioVac sales growth of 46% compared to the prior year's quarter, somewhat offset by a 16% decline in venous sales as a result of a lower number of elective procedures being performed. Our Venus business is the business we would expect to be most impacted by elective procedure delays stemming from the COVID pandemic. Our VIT business also benefited from 1.1 million in sales related to Arion during the limited release phase. As Jim mentioned, we are very excited to have officially launched Arion, and we anticipate this product will represent an increasing part of our VIT business moving forward, with sequential quarterly improvement anticipated throughout the rest of this year. Vascular access revenue increased 21.4% during the quarter. Growth in this business was driven by solid growth in picks and midlines for the second straight quarter, which helped to offset slight declines of ports and other access. As discussed last quarter, we had a sale of approximately $5 million to the NHS through our distribution partner that we do not expect to repeat. Excluding this sale, our vascular access revenues declined 1.2% year over year. Revenue from our oncology business declined 12.3% during the quarter, as oncology procedure volumes continued to be negatively impacted by COVID-19 in many of our key geographies. Total nanonife sales declined roughly 25% year over year against a difficult capital sales comparison. Excluding capital sales, nanonife probe sales declined 5% in the quarter, as 7% U.S. probe sales growth was more than offset by softness in China due to the ongoing impacts of COVID-19. As a reminder, many nano knife procedures occur subsequent to multiple rounds of chemotherapy, and patients are immunocompromised as a result. As you can appreciate, many of these patients are cautious about returning to hospitals and operating rooms, resulting in procedural volumes that are below pre-COVID levels. Moving down the income statement, our gross margin for the first quarter of fiscal 2021 was 50.9%, a decrease of 700 basis points compared to a year ago. As we mentioned last quarter, this decline was anticipated given the ongoing focus on employee safety and product availability. Approximately 500 basis points of margin headwind was related to the planned underabsorption in our manufacturing facility. However, we reported a significant inventory reduction during the quarter of 7.2 million leading us to take the full impact of the underabsorption during the first quarter. Our plans will have an impact on our full year gross margin as we continue to assess the shape and timing of the COVID-19 recovery, but we expect to finish the year with quarterly gross margin running closer to pre-COVID levels. Our research and development expenses during the first quarter of fiscal 2021 were $9 million, or 12.8% of sales, compared to $6.3 million, or 9.5% of sales, a year ago. As we discussed in previous quarters, we remain focused on strategically investing in R&D to further develop our NanoKnife, Angeovac, and Aurion products, while continuing to drive the profitability of our other businesses. We remain thoughtful about our investments in light of the current environment. However, we intend to maintain investment in our key growth drivers while being more judicious in our investment in other areas of the portfolio. While we reserve the right to pull back on these investments if the environment changes meaningfully, For fiscal 21, we now anticipate R&D spend to be between $35 and $40 million, with the increase over our prior expectations coming as a result of additional investment in expanding our angiovec and nanonife platforms. SG&A expense for the first quarter of fiscal 21 decreased to $26.3 million, representing 37.4% of sales, compared to $27.8 million, representing 42.1% of sales a year ago. We expect a slight increase in SG&A expense in the second quarter as we support the commercial release of Arion. We're continually assessing controllable discretionary spend with an eye toward cash management while maintaining investment in our key technologies. So we continue to anticipate SG&A expending during fiscal 2021 to be between 123 million and 127 million. Our adjusted net income for the first quarter of fiscal 21 was 0.6 million or earnings of two cents per share. compared to adjusted net income of $3.2 million, or $0.08 per share, in the first quarter of last year. Adjusted EBITDA in the first quarter of fiscal 21 was $4.5 million, compared to $7.3 million in the first quarter of fiscal 2020. Turning now to our balance sheet, in the first quarter of fiscal 21, we began with roughly $54.4 million in cash equivalents, and we used $5.4 million of cash in operating activities, with a significant portion of that attributable to seasonal Q1 expenses. During the first quarter, we had capital expenditures of $1.8 million. As of August 31, 2020, we had $47.9 million in cash and cash equivalents and $40 million in debt outstanding. Turning now to guidance. Based upon what we are currently seeing, we anticipate that fiscal year 2021 net sales will be in the range of $278 to $284 million, and full year adjusted earnings per share to be in the range of zero to five cents. We are obviously in a very fluid environment as a result of COVID-19, requiring us to analyze a number of different scenarios. The guidance we are providing you today is predicated on the current trajectory of the COVID-19 pandemic. If the environment changes meaningfully between now and the end of the year in our key geographies, we may need to adjust expectations and we will communicate any changes accordingly. With that, I'll turn it back to Jim for a few closing remarks before we begin the Q&A portion of the call. Jim?

Thanks, Dave. As I mentioned in my introductory remarks, I am pleased with our performance this quarter. I am proud of the great job that our team did to maintain focus on our key growth initiatives while remaining disciplined and continuing to execute despite the dynamic environment brought on by the COVID-19 pandemic. While we do not anticipate a return to pre-COVID levels of demand in the near term, we are continuing to see positive trends emerge in our end markets. Our team will continue to adapt to the ever-changing macro environment, and we remain committed in our transformation, which is driven by the execution against our key priorities and continued investment in our key technologies, key technology platforms and growth initiatives. I want investors to understand that we are dedicated performing a transformation of our portfolio through the development of higher technology products that drive measurable clinical improvements in patient success while empowering our customers to receive reimbursement while they use our products. As the adverse effects of the COVID-19 pandemic continue to subside, I know that AngioDynamics will be well positioned to achieve profitable long-term growth. With that, I'd like to turn the call back to Melissa for questions.

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Matthew Mission with KeyBank Capital Markets. Please proceed with your question.

Good morning, and thank you for taking the questions, guys. First, can you help bridge us between the 10% to 15% procedural declines that you're expecting and your guidance, which clearly differentiates from that?

Matt, good morning. It's Jim. So what we did, Matt, we looked back and we did really deep analysis in our different product categories and geographies, trying to get, I'll call, quote unquote, same store sales. You know, a lot of our categories. When you look at some of our vascular access business and some other businesses, we can measure current customers and measure their demand over the last few months. So we're seeing that run rate mapping down about 10% to 15% on average in many of these customers. Now, why I say that to you is we know we're a bit soft on current customer demand in some categories. We're also doing well winning some share in some categories, gaining new customers and new traction with new products, like you saw with, again, AngioVac performing really, really well based upon the customer pleasure with the new product, the new Arion revenue. So it's really a balancing act, Mac. You're asking good questions. We're trying to give folks good transparency. But the takeaway is our current customers are still below levels that we expect and even below prior year in their purchasing rates and their delivery of care rates. but yet we expect the guidance we gave you based upon that slowly coming back a little bit and our ability to gain share and do well in the other categories.

Good morning, Matt. So the way that we think about it is as a very high-level generality, we're seeing about 10% to 15% declines across the board. So it's clear that we're not back yet to full pre-COVID levels. But as we've talked about at the end of our Q3 call and at the end of our Q4 call, And we'll draw that hypothetical line of procedures that are elective, and then some of our products will fall on one line and some will fall on the other. So even though there's a general consensus that procedures are about 10% to 15% off their pre-COVID levels, it is different depending upon the type of product we're talking about. AngioVac is a great example. So we saw 46% growth in the quarter. We talked about that in our Q4 call that June was a record month for angiovec. So angiovec procedures are clearly coming back faster, and I wouldn't consider them to be in that bucket of 10% to 15%. Laser, on the other hand, has clearly been the most impacted by COVID, so that's probably off of that 10% to 15%. You can think of our VA business as being a good bellwether, and as Jim mentioned, we're seeing same customer sales kind of at that 10% level, but we're also getting some wins, which is allowing us to have a line of sight to growth. So when you think about our overall portfolio, you add in Ariane. We're very pleased with the first quarter performance. We expect that trajectory to continue through the rest of the year, as well as strength in AngioVac and that some of these wins we're seeing throughout the other areas of our business. It's clear that the overall market is off 10 to 15 and not back to pre-COVID levels. But on top of that, we absolutely have a line of sight to growth, and that's embedded in the guidance that we gave you today.

Excellent. That all makes sense. And then I modeled out the guidance this morning fairly quickly just for a splash. Sales don't necessarily need to change too much on a sequential run rate from where you're at today. Don't need to change too much from the quarterly run rate. But gross margin has to increase dramatically given your SG&A and R&D guidance to hit the EPS. What changes over the next several quarters that allows you to get back to that mid to high 50s? from where you're at in the first quarter?

Yeah, Matt, there's a couple things that will change. So we talked about the significant underabsorption that was planned in Q1 and the fact that we were able to bring our inventory levels down by 7.2 million. That's a big change. So that led to a significant decrease in our inventory turns, which led us to take all of that underabsorption as a period cost in Q1. We don't expect inventory levels to continue to go down 7 million each quarter. We're going to bring it down more. But without that type of decrease, the underabsorption will start to minimize a bit from where it was in Q1. That we also had some mix. So we talk about the UK order. It was a big order. It was one time. But that was at a gross margin that was slightly diluted to what you would expect on all of our corporate margins. So that's going to have an impact that won't repeat. So mix as well as a decreasing pressure on underabsorption. will allow us to see some significant improvement in gross margin going forward.

And then just lastly, just your thoughts on free cash flow for this year. It wasn't too different from where it was from the first quarter last year, but you also did have that inventory wind down that would have been a working capital boost. How are you thinking about free cash flow for 2021?

Yeah, so we expect that we will generate cash at the end of the year. So when we exit our 21, we expect to have increased our cash balances from where we finished FY20. You know, it'll be a moderate increase, but the reason we're able to get there while we're balancing the increased investments that we want to have in areas like Angie Vacari on a nanoknife is what we talked about through this COVID pandemic and some of the levers we've been able to pull, making sure we're cutting back on discretionary spending and Clearly across the board, travel and entertainment isn't happening as much as it used to in the past. So we've got some areas where we can definitely tighten down expenses while maintaining the proper investments and growth. And so we expect that we'll be exiting the year having created some positive cash.

Excellent. Congratulations on a nice quarter, and thank you very much for having the confidence to give guidance.

Thanks, Matt. Good morning. Thanks.

Thank you. Our next question comes from the line of Jason Bedford with Raymond James. Please proceed with your question.

Hi, good morning. Just, I guess, a few questions. One, to follow up on the last line of questioning, gross margin was outside of the NHS order. Was pricing in the quarter fairly consistent?

So, Jason, it's Jim. Good morning. We didn't adjust price, you know, very much at all. It wasn't really a factor. You know, I want to remind folks again, I think we spoke about in our Q4 call, you know, back when the pandemic hit us in mid-March, you know, we ran our manufacturing quality operations. And we also did things to reduce efficiencies that we always strive for. Quality is number one in our plans, efficiencies, you know, are number two. But we had to take care of patient safety. And that really, I mean, our employee safety. So we did things that affected our efficiencies, making sure our people were safe. operating in this COVID environment. So we gave up some of that room on efficiencies that will slowly get back during the course of the year as our people now are working in this new environment, but they're even helping us be more efficient along the way, keeping their safety priority. So some of that Jason's baked in. It's a couple of things. I wouldn't look at price. If anything, we've actually had a little bit of price because of our technology shifts with AngioVac, the new launch last year. I think we talked to you, that price went up. We've seen some positive price with the nanoprobes now with the new nanonife system being launched last year. So it can be a little challenging, but you have to trust a few factors went in, and price wasn't really one of them.

Okay, that's fine. You mentioned earlier in the call variability in the recovery across geographies. If I back out the NHS revenue, international looked a little bit weaker than I would have expected. U.S. was pretty stable and certainly improved from last quarter. Are there any pockets of geographic weakness you would call out?

We think you kind of identified it when we talked about that. You know, so our European business is under some pressure in pockets. You know, operating feeders, if you could talk about just the UK for a moment. You know, we're very, very close to some of our large customers there who've walked us through the changes and challenges they face in their operating feeders of how their efficiency levels are down, the treatment opportunities are down, so their volumes are down. And at some point, they were off in many cases. In China, we talked about, I think, in the prepared remarks, we've had some nano slowdowns in China. So we look at Europe and China as our two softest markets. But there's still issues like you look at Brazil right now with issues with volumes in Brazil, Latin America. Canada had issues. They're coming back slowly. But we'll probably see that, Jason. The U.S. will probably outperform our outside of U.S. markets, even going forward for the next little on the horizon here.

Okay. And Can we assume that trends have improved in the month of September as well?

We can. I know we gave, in the last call, we gave folks a little bit of a look into the June numbers here. We're not done September, the way this call fell this week. But we have seen, you know, similar to what we've said before, just anecdotally, customer behavior, even engagement with us, Jason, you know, small levels of engagement. anecdotal behavior. They're asking our reps, hey, come on in and talk. Maybe your product's going to come up on a value analysis committee that was delayed for three months. So we're seeing some of these small anecdotes that are positive in those effects. And so to answer your question, yes, small, good incremental gains again in September that we can report to you soon.

I think that's right, Jason. And more than anything, I would talk about the stabilization that we've seen kind of July, August, September. So we talked about April as being clearly the nadir with some steady improvement happening in May, and then nice increasing improvement in June, and then steadiness in terms of July and August into September. And I think that's what also gave us that increased visibility and that increased experience to come out with the guidance.

Okay. And just the last line for me, the Orion launch, can you just give us a little feel for how the device and where the device is being used, meaning Are you displacing laser in terms of case mix? Is it a little bit more above the knee versus below the knee? Any flavor there would be helpful. Thanks.

Sure. So right now, Jason, in many of the cases, the first that we just mentioned earlier, we have 47 lasers placed in the field already prior to the official launch, which is last Monday. Most of those cases, the customer had experience with the other laser in the market. In a lot of the cases, they're going to use our laser with one of the other mechanical options that a few companies provide. You know, we think the balance of our product and one of the mechanical options really gives them the confidence to treat any lesion today, above or below, hard or soft calcification. Now, as you know, we believe our product can probably do all of those over time. But as we're gaining confidence with our physicians, you know, they're going to use a blend of products over time. So I think most cases have been above the knee out of the gate, Jason, out of our first the first about 500 that we've treated during the limited launch phase.

Okay. Thank you.

Thank you.

Ladies and gentlemen, as a reminder, if you'd like to join the question queue, please press star 1 at this time. Our next question comes from the line of Cecilia Furlong with Canaccord Genuity. Please proceed with your question.

Great. Good morning. Thanks for taking our questions. I guess if I could follow up off of the last question. Just as you're looking at building a pipeline, can you talk about the pipeline you have today with Arion, specifically the centers that you're targeting? And then just if you could provide further color on Pathfinder and really the trends you've seen as the COVID burden has lifted.

Sure. I'll answer the first part that Steve will mention, Pathfinder. So what we've done out of the gate, it's really been customer-driven. You know, when the data was published by XMO that got us interested in the technology, you know, other physicians have seen the data too, and it's really, really, really compelling. So, you know, as I mentioned before, we've had a limited market release. We didn't do any advertising or promotion. As you know, we started to hire our selling and marketing team, you know, in the last couple months. We've got a really, really good team of people. So they bring with them some customer relationships because they were engaged in the atherectomy business prior to joining AngioDynamics in almost every case. They've also had customers who sell the data and said, hey, guys, can I give that a try? So now we have a staged approach in our limited market release period, which ended last Monday, about being able to service some of those folks, letting them try our laser. As you know, there's a balance of the office-based laboratories that do these procedures and in hospital areas. We probably have had much more OBLs out of the gate, almost because with the COVID pandemic, situation. Some of the hospital customers have delayed value analysis committees and purchasing decisions, which has been fine for us because we've been able to service some of the OBL demand that was created. Over time, we'll see more hospitals come on. But really, Cecilia, with very limited marketing, not until last Monday we put our website online. I hope you go look at it. But now we also do have a backlog of interest and orders already that we'll service. And we're being very judicious in our manufacturing and quality capabilities making sure that we make the catheters to the quality level that angiodynamics customers can expect, and also producing the lasers to the level that we can service these customers out of the gate. And that's really where we are. But we have a good pipeline. We're pleased with it. As we add more sales reps on each quarter, they'll build that pipeline out as well.

And then with respect to Pathfinder, Cecilia, we're very pleased with the way that the Pathfinder study and registry is progressing. We typically don't give the play-by-play in terms of enrollments, However, what we can say is that this registry, if you compare it to something like our direct study, a little less hurdles to get into it, and we've clearly noticed that. But our users have been very supportive of our data generation activities and our commitment to continue to collect data as we launch Arianne. And the registry enrollment is going right along with our expectations, so we've been pretty happy with it.

Great. Thank you. And I guess if I could turn to Angie back, could you talk a little bit more about some of the specific areas driving strength in the quarter, as well as really just the broad market dynamics that you're seeing in the field and really how those dynamics have evolved as COVID has progressed. Thank you.

Sure. So a few things happening, and we'll take you back again to last fall when we launched the new AgentVac 3.0 version. And it really took into account what some of the customer feedback was on our past device. So we've seen a really, really strong uptick in a couple different ways. We're watching new users. have it now using the 3.0 version that didn't use our past device. So we have new users that have not used it as a treatment option for people with severe clot. And we're also seeing people who have used the device in the past use it in more cases because of the significant outcomes they're experiencing. So as we mentioned to you in the last call, we saw June was a record month for case procedure. You saw the numbers reported this morning. Really, really strong, not just sales, but more importantly, the actual cases performed were the most we've ever performed in a quarter. even while COVID was impacting it. I think it's a testament to what the device does, how well it works in this case. Now back to your larger overriding question. Again, we, like a few other companies, see mechanical thrombectomy being chosen as a treatment platform at a more rapid pace, really because I think physicians are gaining confidence in not only our device, but three or four other good devices on the market as really good treatment options. So we believe it's a really healthy growth area as mechanical thrombectomy will be chosen by physicians to treat folks afflicted with clot. So as we've also said, and I mentioned earlier, in calendar year 21, we plan to launch a new device using the basic fundamentals of how angiovac works, but a much more appealing product of physicians who want to treat less acute clot, less acute cases. So for us, what does that mean? We're going to open up our market. So today we may compete in a market that you could argue is you know, $50 to $70 million of a total addressable market. And now we're going to go into much, much larger market expansion. And over the next couple quarters, Cecilia, we'll walk you through with more details when we get closer to that launch next year.

Great. Thank you. Thank you. Ladies and gentlemen, this concludes our question and answer session.

I'll turn the floor back to Mr. Clemmer for any closing comments.

Thank you, Melissa. So I'd like to remind the folks on the call today, Again, I'm pleased with how our company responded to the COVID-19 pandemic. We have a really strong base of employees who are dedicated and committed to producing quality products that treat people and provide high outcomes for our physicians and the patients that get treated. We are also, as a management team, transforming our company. And again, we've shown you through our actions more importantly than our words that we're driving our transformation through our portfolio, getting into markets that are larger, and also driven by outcomes that our technology drives. So this is the future of Interdynamics, a technology-driven company that provides measurable outcomes to patients in need. So again, thank you for joining us today. We look forward to further conversations in the future.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your