ViewRay, Inc.

Good day, and thank you for standing by. Welcome to the ViewRay third quarter 2022 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Harrison, Director of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to ViewRay's third quarter conference call. Joining me today are Scott Drake, our president and chief executive officer, and Zach Stassen, our chief financial officer. Earlier today, ViewRay issued a press release and presentation for today's call. The presentation can be viewed live on our webcast or downloaded from our website. Today's call is being broadcast and webcast live. A replay will be available on our website for 14 days. Before we begin, I would like to remind you that the discussion during this conference call will include forward-looking statements. Facts that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. I will now turn the call over to Scott.

Thanks, Matt. Good afternoon, everyone, and welcome to our Q3 call. Today, I'll begin with our financial results. Following that, I'll outline recent events, including commercial wins, clinical highlights, China approval, and key takeaways from ASTRO. Zach will go into depth on our financials and provide an update to our 2022 guidance, and we look forward to opening the line to Q&A. In Q3, we added another eight orders highlighted by key wins at MD Anderson, the Houston VA, and SUNY Upstate New York. MD Anderson is one of the premier cancer centers in the world, and they're looking to take their MR Linac program to a new level. We're excited to welcome them to the Meridian family. Houston represents our third VA order, and we're highly motivated to bring the best care possible to our veterans. Genesis Care announced their next two Meridian centers at Birmingham and Guilford in the UK, which brings their total number of orders to six. Our backlog now stands at $370 million, up 26% over prior year, and revenue grew 38%. Another highlight this quarter is gross margin, which came in at roughly 17%, or 700 basis points over prior year. Solid execution from our team puts us in a position to deliver 40% revenue growth for full year 2022 and for a second consecutive year, improve gross margin by 750 basis points with perhaps a bit of upside this year. Cash used in the quarter was about $15 million. Let me reinforce that we're utilizing cash to fuel growth mitigating supply chain risk by advanced purchase of key components, and investing in manufacturing processes and insourcing to improve gross margin. We expect that revenue growth we are seeing in our order book will continue to drive gross margin and operating leverage, and we're confident in our line of sight to break even without tapping equity markets. Turning to slide four, As we've shared many times, our mission is to treat and prove what others can't. Right in line with our mission and following the success of the Smart Pancreas Trial, we announced Lapablate. Lapablate is a phase three, global, multi-center, randomized control trial in locally advanced pancreatic cancer. The trial will compare current standard of care, chemotherapy, to Chemo Plus Meridian Smart Therapy. It's important to note that conventional radiation has failed to prove survival benefit in several pancreatic cancer trials. Headlining these failures is the LAPO7 trial, which examined a similar patient population to the one we're targeting in LAPOBlade. Survival in that trial was about 15 months in the Radiation Plus Chemo arm versus 16 months for chemo alone. Conventional radiation proved no survival benefit. We are in the process of attempting to prove a meaningful survival increase where conventional radiation has failed. We are striving for this proof in both pancreas and central and ultracentral lung in lap ablate and lung star respectively. With success, these trials will expand the addressable market for meridian therapy and provide a deeply valuable solution our customers seek and patients deserve. These clinical trials are critical in further differentiating meridian and accelerating our path of therapy adoption. Dr. Mike Chung states that he and other investigators are, quote, excited to launch the international LAPA blade trial intended to provide randomized evidence that five-fraction meridian SMART substantially prolongs two-year survival versus chemotherapy alone for locally advanced pancreatic cancer. And in doing so, change the paradigm of how this disease is fundamentally treated worldwide, end quote. Treat and prove what others can't, indeed. Turning to slide five, we're excited to announce the Chinese approval of Meridian. China's the second largest and fastest growing LINAC market in the world. China currently has roughly one LINAC per million people, leaving plenty of room to reach the industry recommendation of four LINACs per million. The Healthy China 2030 policy is focused on improving health, life expectancy, and the expansion of healthcare infrastructure. Meridian is well positioned to help address cancer needs in China. We're excited about this opportunity and the prospect of expanding access to the benefits of Meridian therapy. Turning to slide six, Astra was a great show for ViewRay. We took the opportunity to highlight the remarkable clinical data our customers are generating. there was great response to the full 12-month mirage prostate data. Quick punchlines include the fact that the meridian arm cut treatment margins in half, cut treatment volume by about 30%, and cut healthy tissue toxicity by about 60%. Acute toxicity for these patients takes the form of sexual dysfunction and the life-altering effects of incontinence. We are proud and grateful for UCLA taking on a head-to-head randomized control trial. Too often the calling card in this industry is good enough is good enough. Certainly this isn't true if your loved one is on the table. Clinical science will illuminate the path forward and this is our calling card. There was also great feedback regarding the smart pancreas data. This is the first time anyone has proven in a prospective trial the ability to safely deliver an ablative dose in pancreatic cancer. Customers are also very encouraged by the survival signal. As I mentioned, we're building upon the considerable pancreas data our customers have demonstrated as the foundation for Lap Ablate, our phase three randomized control trial. Also at the show, there was a lot of buzz about A3i. Current A3i users shared their stories about both the ease of use and clinical enhancements of these innovations. We are now expanding the launch of A3i and look forward to our global rollout. All of the clinical and innovation enhancements have led to impactful commercial meetings. It's fair to say interest in Meridian is high. Take a step back to see the combined impact of our clinical and innovation pipelines. I'd highlight three points. Number one, three years ago we had single center studies or small data sets reported as posters or brief talks. This year we had two large prospective trials as main session presentations. Number two, these clinical outcomes are energizing the next generation of clinicians. Young, hungry radiation oncologists and physicists are highly motivated to change the field with Meridian data and see this therapy very much as a career-defining opportunity. And number three, our strategy is working. Clinical data is driving demand. One West Coast customer saw a threefold increase in patients treated on Meridian from Q2 of 21 to Q2 of 22, and an East Coast customer increased their prostate program fourfold in the last four years on Meridian with zero marketing dollars. Both customers are preparing for more Meridian systems. I'm proud of our team and pleased with our progress as we pursue our strategy. With that update, I'll turn it over to Zach.

Thanks, Scott. Today I'll cover our third quarter business results and updates to our 2022 guidance. Full details can be found in today's press release and we will be filing our 10Q subsequent to this call. Turning to slide eight, our team delivered solid results with another eight orders in the quarter, totaling over $47 million in value. Our backlog increased 26% versus the prior year period, ending the quarter at roughly 370 million. The combination of our recently introduced A3I feature set, the clinical data we are delivering, and increasing patient awareness is impacting the market. The positive energy around Meridian at Astro was evidence our strategy is working. Revenue in the quarter grew 38% to nearly $26.5 million, highlighted by 48% growth in product revenue driven by the increase in revenue units. Gross margin during the quarter was approximately 17%, a nearly 700 basis point improvement versus the prior year period. Gross margin was led by a product margin of 19%, demonstrating the leverage driven by additional revenue units. Our team has done a tremendous amount of work to position us well for the gross margin expansion we expect, and this quarter is proof as to why we feel good about the path ahead. Gross margin will bounce around a bit from quarter to quarter based on the timing of installations, but the trend is solidly positive. For the second year in a row, we are in a position to deliver a more than 750 basis point improvement in gross margin. Operating expenses were $28 million in the quarter versus $25 million in the prior year period, demonstrating solid operating leverage. We are continually looking for ways to operate more efficiently and expect sales growth to meaningfully outpace OpEx growth for the foreseeable future. Other income and expense was $2.1 million in the quarter, Other income was impacted by both a gain on the warrants on our balance sheet as well as increased borrowing costs. These increases are largely offset by the interest we are earning on our cash balance. Net loss for the quarter was $26 million or 14 cents per share compared to a net loss of $25 million or 15 cents per share in the prior year period. Turning to cash use, we used approximately $15 million in the quarter. Supply chain risk persistent in order to mitigate those risks we are deploying cash to solidify inventory to fuel growth, we finished the quarter in a strong liquidity position with approximately $147 million of cash on hand. let's discuss guidance on slide nine. Based on increased visibility and confidence on the revenue front, we are again raising the bottom end of our range from $90 million to $94 million. The new range is 94 million to 104 million with an implied implied growth range of 34% to 48% and we are proud of what our team is delivering in a challenging environment. Shifting to cash use year to date, we have utilized approximately $73 million of cash. We now believe the cash use for 2022 will be between 78 million and $92 million. The increase from prior your guidance is primarily derived from timing differences in a couple large system payments. While system shipments for the year on track project timelines can and do routinely change related to construction and permitting and can result in an impact to payment timing. We regularly deal with these types of issues and have high confidence in collection, but the inner quarter timing can be dynamic. We expect the collection day delay will benefit our 2023 cash, which allows us to remain confident in our long term assumptions regarding cash. We believe, given our robust backlog and commercial pipeline that our current available resources, provide us with a clear path to break even and we do not believe we will need to raise additional equity capital to meet these objectives. On slide 10 let's take a look at the progress we are making towards our financial objectives. We said we would deliver approximately 40% growth for the full year. Year to date, we delivered 36% revenue growth and are encouraged by what we see ahead on our path to 40%. We said we would deliver gross margin improvement of 750 to 1,000 basis points. Year to date, we delivered 725 basis points and are set up well to drive additional progress in Q4. And finally, we said we would deliver meaningful operating expense leverage. Our revenue growth continues to significantly outpace OPEX growth as we realize the benefits of our strategy and continue to grow into our infrastructure. This year we took material steps forward on the innovation, clinical, and financial fronts. Our new innovations and clinical data are in the early stages of impacting the market. On the financial front, the trends are positive and we expect them to continue into future years. and bolsters confidence in our ability to reach cash flow break even. Turning to slide 11, we look forward to diving deeper into our strategy, market opportunity, business outlook, and more importantly, for you to hear from some of our key users at our upcoming Investor Day. We hope you can attend in person in New York or virtually on November 17th. With that, operator, will you please open the line for Q&A?

Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from the line of Jason Bidner with Piper Sandler. Your line is now open.

Hey, good afternoon. Congrats on another quarter here, guys. A couple items I wanted to touch on, you know, maybe a big picture one to start here. primarily as it relates to the data we just saw at Astra recently in the phase three trial you were launching in pancreatic cancer. Maybe help us understand, I mean, not question the decision, but why do you need to run another trial? What are you open to accomplish or show? I feel like with all the data you have out there and all the evidence from your customer partners, the evidence is there. The patient safety and outcomes are clearly better for Meridia than conventional radiotherapy. Same goes for survival benefits. So, Again, the question is, you know, what does another trial provide that you don't already have? Do you think you need more data to drive more uptake? Or is an RCT for a single indication like this a sticking point to adoption? Just any color you have there, and then I've got a couple follow-ups.

Yeah, Jason, thanks for the question. I guess let me weigh in first from a macro perspective, and Paul Strong is with us, our VP of Clinical. and welcome him to add any kind of color that he would like. We spend a ton of time, as you're aware, with our MAB and our clinical consortiums. And I would tell you that our customers believe this is an incredibly important and necessary trial to run to change guidelines for pancreatic cancer. It's also one that is really engaging medical oncologists and others in the field beyond just radiation oncology. So I think we have an opportunity, as I said in the prepared remarks, quoting Mike Chung, to really fundamentally change the landscape here. And as I said, I think we're doing that in tough to treat cancers, proving survival benefit in pancreas, and central and ultra central lung. And I think if we nail those, people will give us credit broadly in the toughest to treat cancers and also prove value in more common cancers such that as we've done with Mirage and Scimitar and now we're pursuing Shorter and Fort. So it's very much part of the clinical strategy. Let me ask Dr. Strong to weigh in. And then you're welcome to ask any follow-up there, Jason.

Yeah, thanks, Scott. Jason, I'd just add a little more color on Scott's point about medical oncology and surgery as referring physicians. We would agree that the data that we have is very powerful within radiation oncology, but we know many of these patients might not even make it to radiation oncology. So the need to have level one evidence that convinces a larger set of the referring population moves Meridian into the guideline and really differentiates. And the idea of proving that in one of the toughest cancers to treat halos onto other tumor sites. So it's a strategic investment in a clinical trial to really differentiate. And yeah, that's my only add there, Scott. Thanks, Paul.

All right. All right. That's very helpful, guys. Maybe another bigger picture one, but looking ahead to 2023, I know we don't have guidance here, but You know, Scott, I just wanted to maybe take your temperature, you know, the streets modeling 40% revenue growth on top of what you're doing here in 2022. I think you've mentioned in the past seeing that the P&L transition to one that, or maybe not transition isn't the right word, sustain at a level that's emblematic of, you know, top tier growth in med tech and 40% fits that description. I guess we're a few months closer now to 2023 since you last made those comments. Is that still a growth profile you're comfortable with at the top line? And then, you know, in light of the strength we're seeing in the margins in the quarter you just reported, you know, a similar question for you. And, you know, Zach, feel free to weigh in just how you're feeling about the ability to take another big step forward in gross margins next year. Thanks.

Yeah, of course. Jason, I'm going to stop short of specific numbers, but what I can tell you and hear more from us at our investor day here in a few weeks, we very much anticipate being able to deliver top-tier, top-line revenue growth. That is completely being fueled by our innovation pipeline and our clinical pipeline. just as we drew it up three or four years ago. And you see that happening right before our eyes. We have also said that that revenue growth will really translate into very attractive gross margin expansion. You saw that happen last year at about 750 basis points. This year, I anticipate we'll do that maybe a bit better. And I think that top line growth is going to continue to drive gross margin expansion in the 23 and 24 timeframe. And that's going to be augmented out in that 24, 25 plus timeframe with both our cost down program targeting to take out about a million dollars of our cost of goods and concurrently insourcing. And that top line growth and gross margin expansion along with really tight OPEX discipline is what allows this business to flip to cash flow positivity in that 25-26 timeframe. So we feel really good about all of that. We feel really good that it's happening just as we drew it up several years ago. Again, I'll stop short of any specific comments, but we feel really good about where this business is going clinically, from an innovation perspective, and financially as well.

All right. Very clear. Thanks so much. Thanks, Jason.

Thank you. Our next question comes from the line of Rick Wise with Stifel. Your line is now open.

Hi, Scott. How's that? Great to see all the progress. Scott, you talked about what a great ASTRA you had, and I was hoping you'd expand on what you described as the impactful commercial meetings. What's that mean? Does that mean you received orders? Or just help us understand how having an excellent meeting where you had great data, obviously a transformed company, meeting with folks this year, how should we imagine that translates into orders And the second half of that, in a way, is maybe you can, as part of that, talk about logistics, the macro environment, your ability to install. So if we might, we're seeing the backlog accelerate, are you able to install at a faster rate going forward, given the backlog, given this commercial momentum?

Yeah, absolutely, Rick. So let me take a cut at answering the ASTRO question first, and then we'll talk about logistics and installations as well. The best way that I think I can describe the conversations that we're having today, and ASTRO is just exemplary, is to contrast it in terms of where we were two or three years ago when the conversation centered around technology, which is really emblematic of where this industry has historically been. You find companies generally spending more time talking about what their technology is versus what their technology does in the form of prospective phase two and phase three data. I think we are making a significant impact in that And the conversations that we're having with customers today, in stark contrast, are all about clinical data and how they can really get a Meridian program off the ground if they're a new customer. And if they're an existing customer, we're talking about strategies of deploying multiple Meridians in a given area to really differentiate a cancer center. So we've gone from kind of where the industry was talking about technology, describing an MR LINAC, all of these kinds of things, to today talking about prospective phase two and phase three data. Hard to tell you how different that is, Rick, but hopefully that gives you a little bit of sense in terms of how things are changing. And we're most gratified in markets where there's multiple meridians, how the competitive dynamic is playing out. So we feel very good about that. As it relates to logistics and installations, you know, the environment continues to be challenging as it has been for the past couple of years. We're, you know, playing whack-a-mole, if you will, on supply chain items. Our team has done really a remarkable job managing through these challenges, and I think by and large they're abating, but we still run into difficulty here and there. From a capacity standpoint, I think we are very well positioned for the growth that we anticipate in 2023 and beyond. And we've got plenty of forewarning to expand that installation capacity well in advance. So I think we're very well positioned, Rick. I think we're building a really strong and solid company, and kind of staying with the macro theme of your question and kind of building on where Jason was. A few years ago, we were kind of an orders story. That's the way the street looked at us. Today, I think we're a revenue growth and gross margin story, and orders obviously feed that revenue growth. And I think we switch relatively quickly into a revenue growth and adjusted EBITDA story give balance sheet and where we're taking the business out into the future. So I hope that's responsive, but happy to dig in in any of those areas as you wish.

Yeah. And I mean, I'll, let me move on to one other question. I was hoping you'd expand Scott on your comments about the China approval, as you say, obviously huge, rapidly growing market. I know it's incredibly early days. You know, it's been a month or something. since you got clearance. But maybe help us better understand your early commercialization plans. Does your partnership accelerate, because your partner is an experienced one, does it accelerate the China order funnel in your mind? And when will we start to see initial orders and or hopefully revenues start to be more visible? Thank you.

Yeah, Rick, we're really excited about the China opportunity. You know, the way I'm positioning it with investors is, you know, give us a little bit of an opportunity to dig in. Chindex has been preparing for this launch for a very long period of time. They're a very capable partner in China, very smart on all of the different facets of MedTech that are required to succeed. But I think until we get a little more time under our belt, I would view it as upside to everybody's model. That's how we're viewing it here. As I've said publicly before, it would not surprise me for us to see some orders come out of China in the relative near term. But what really catalyzes markets for us is Meridian programs that are working. that patients are traveling to. We've talked about these examples before, Florida, California, the UK, upper Midwest and Northeast, et cetera. So that's going to take us a little while to get to that point in China. I don't want any of that commentary to come across as us not being enthusiastic. We are, but I don't want the street to get ahead of us with this opportunity and the momentum that's building in our business beyond China.

I'm going to sneak in one extra question, if you don't mind. Electa, your competitor Electa's Unity system recently received CE mark approval for what they describe as comprehensive motion management with true tracking, automated gating functionalities. How do you want us to think about this announcement in the context of ViewRay's Meridian? Is this a headwind? for future commercialization, a validation of your strategy, a non-issue, some combination of all that? Thank you, Scott.

Yeah, thank you, Rick. I think our customer's point of view is much more important than mine, candidly. Our customers are very clear in terms of their definition of clinical success. They want to first and foremost deliver an ablative dose, and they want to do that safely. They want to do it with tight margins, no fiducials, in five or fewer fractions, and low or no grade three or higher toxicity. We look consistently, Rick, for anybody that's able to deliver that kind of therapy and deliver the kind of clinical data that we are. So far as I'm aware, I've not seen anybody else deliver that kind of therapy. So, I'm just going to reserve judgment there and continue to point to clinical data, phase two and phase three data that really is meaningful for our customers as they make therapeutic decisions and for patients that really deserve and require better care.

Thank you, Scott.

Thanks, Rick.

Thank you. Our next question comes from Marie Thibault with BTIG. Your line is now open.

Hi. Thank you so much for taking the questions. Maybe I hear another high-level question for Scott. Wanted to get your take. Certainly sounds like the CapEx environment and the order funnel is quite open and healthy here in the U.S. Wanted to hear if, you know, things are any different in any of your geographies. We're thinking particularly of Europe and APAC. Is there any hesitancy on spending there, or are you feeling similarly optimistic?

You know, Marie, first, thanks for the question. You know, I think we continue to see this area, this line of questioning in the same way that we did a quarter ago and conversations that you and I have had in between. We very much have our eye on it. We really look for any kind of concerning signal. We haven't seen any as yet. You were at Astro and we had, gosh, I couldn't even tell you how many customer conversations really from all around the world. And even talking to for-profit hospitals, they seem to be very interested in Meridian programs and expansion thereof. So we think being in that strategic bucket of capital is very advantageous for us, but I don't want to be Pollyanna. We definitely have our eye on it, but it continues to feel pretty good and pretty positive at the moment.

Okay, that's very good. Thank you for that, Scott. And then my follow-up, maybe just a very brief two-part, both clarification questions. On the A3I rollout, glad to see that's underway. Is there any revenue involved with that? I'm forgetting. Probably should go back and check my notes on that. Just want to clarify. And then for Zach, on the risk around system-related payment and receipt of that payment, is there any impact at all to revenue, or is that completely decoupled from revenue recognition? Thanks again for taking the questions.

You got it, Marie. In terms of A3I, it has been a real challenge driver for us for customers getting on to our highest level service plan that includes tech refresh. So it has been a very attractive driver there, and I think future innovations will bolster that. In the event that a customer doesn't have tech refresh, there would in fact be revenue associated with it. and in fact, pretty significant revenue associated with an A3I upgrade. But I think the vast majority of customers are selecting that high level of service. And as it relates to system payments, I'll turn that one over to Zach.

Yeah. So, Maureen, no revenue risk. I think we feel great about system shipments and machines moving on time. I think What happens in normal course as we get a little closer to install and really add definition to construction timelines is, you know, it can be impacted by months, sometimes a quarter here and there related to permitting delays or things of that nature. And sometimes, you know, just the payment terms on any given deal. But, yeah, no revenue risk, no impact to demand overall.

Perfect. Thank you.

Thank you. Our next question comes from the line of Chris Pasquale with Nefron Reports. Your line is now open.

Hi, this is Devin. I'm for Chris. Thanks for taking my question. Just one quick one as far as hospital CapEx and budgets. Just any qualitative commentary or updates there? I know some of your peers have seen backlogs grow because of supply challenges. And there was also some delays in installation due to staffing and scheduling challenges. So just wanted any updates you could provide there.

Yeah, I would share that, you know, I think we're in a little bit of a different spot than some of our larger industry peers where these macro headwinds impact us differently, frankly. We find ourselves somewhat safe harbored in a strategic bucket of capital versus replacement capital. And the area that probably is a bit similar, as we're alluding to here, to Marie's question on payment timing, these are very significant programs. And our customers from time to time have permitting delays or construction delays. And that can impact timing, but really not the certainty of either revenue or payments. So I think we're relatively well protected there. So hopefully that's responsive to your question, but again, happy for a follow-up if you wish.

Nope, that's great. Thank you very much. Thank you.

Thank you. As a reminder, to ask a question at this time, please press star 1-1 or your touch-tone telephone. Our next question comes from the line of Mike Ott with OPCOS. Your line is now open.

Good afternoon. I'm on for Suraj. Thanks for taking our questions, Scott and Zach. No, you mentioned that the A3I launch is expanding and I believe last call you guys were live at two customers have done over a hundred fractions. Don't know if you have any updated numbers you can share there.

Oh gosh, Mike, we're at a bunch. I don't know what the number is, but our customers are cranking with it. We have our third customer that has A3I almost complete with their installation at this point. I don't know whether or not they've done their first treatments with it, but we're very much opening up the aperture here in Q4, and we feel very satisfied based upon customer feedback and very confident that we're ready to roll this out globally pending any kind of regulatory approvals that are required from one market to the next. So feedback is very positive and we're excited to get this into all of our customers' hands.

Excellent. Thanks, Scott. And then for the increased 2022 cash usage guide up to the 78 to 92, is it fair to characterize that as a mix of kind of the, you know, supply chain inventory investments that you're making as well as some of the collection timing issues that Zach mentioned?

Yeah, exactly, Mike. It's really those two items. And I think it's important to understand cash for any newer investors in ViewRay from both a macro and a micro perspective. From a macro perspective, we've been saying now for years that our clinical and innovation pipeline would drive growth. We see that happening this year, approximately 40% growth. And we said that that growth would drive gross margin expansion. Mike, you've heard many times that that's yielded 750 basis points last year. We'll do that or better this year, and we're set up very well for expansion in 23 and 24. And that top-line revenue growth and gross margin expansion, coupled with really tight OpEx discipline, is what allows this business to flip to cash flow positivity in the 25-26 timeframe. So from a macro perspective, that's the path that we see ourselves on. We do not believe we have to tap equity markets to get to that point of positivity. That's a real milestone for the company that we look forward to achieving. And then from a micro perspective, quarter-to-quarter fluctuations, as Zach has pointed out, both in prepared remarks and in Q&A. That's the stuff that's just indigenous to this business. You know, an installation will push out, a construction project will push out, and then cash collections go hand in glove with that. That's something that we deal with on a very regular basis. So those are the two components. You've nailed it. And I think it's really important for investors to understand both the macro and the micro from a cash perspective in this business.

All right, that's very helpful, Keller. Thanks for the update, Scott. Thanks, Mike.

Thank you. Our next question comes from Young Lee with Jefferies. Your line is now open. Young Lee, your line is open. Please check your mute button.

Oh, sorry about that. Thanks for taking the question. I'm on for Zach. First question, I'm just kind of curious, you know, you have, you presented some really good data at ASTRO, and I guess looking forward to 2023, you know, you have some more clinical trials that's in progress. Was wondering if you can maybe update us on expected timing for some of the key ones, like shorter, long-star, and fort.

You know what, Young, I'm going to turn that over to Dr. Strong to touch on some highlights that are forthcoming.

Paul? Yeah, sure. Thanks, Scott. Yeah, really briefly, shorter, nearing end of enrollment. We expect to see acute toxicity from that study in the following year. The SMART1 study, which many know about, is a clinical trial looking at single fraction meridian treatment for multiple tumors in single patients. That data will come online in 2023, very excited about that. And then LungSTAR is open for enrollment. That will take some time, so I can't project today when we'll see that data, but that is open and ongoing. So I think some big data from some studies that we'll complete, and then we'll obviously continue to look at follow-up data for smart pancreas in the coming years. So hopefully that is responsive to your question.

Yeah, very helpful. I guess one quick follow-up. I was just wondering if you can give us some preview for what we should expect at the capital markets day in like two weeks.

Yeah, Young, I think you'll get a pretty good view of our overall strategy, how we're progressing on our clinical pipeline, our innovation pipeline. our commercial pipeline, how all of that rolls up to our P&L, and we'll give for the first time a view, a long-term view, in terms of where we're going to be taking this business in the next few years Heretofore, it's always been a one-year kind of guidance that we provide at the beginning of a calendar year. And as Zach said, we're really excited to put some of our key opinion leaders in front of you to give investors the opportunity to ask questions about the kind of wonder of Meridian, the clinical data that's being generated in the toughest to treat cancers and more common cancers alike, and we will have an executive there to also answer business questions, because the business of Meridian is also very important, I think, for investors to understand how our customers are doing financially very, very well and why so many of them are reinvesting in a second, third, or sixth Meridian system. So I think those will be the highlights of the event, and we really look forward to sharing that time and viewpoint with our investors.

All right, great. Looking forward to it. Thank you.

Thanks, Jan.

Thank you. And I'm currently showing no further questions at this time. I'd like to hand the call back over to Scott Drake for closing remarks.

Thank you very much, everybody. Thanks for your interest in VIEW, Ray. Thanks. Look forward to much. Look forward to seeing you November 17th in New York. Take care and have a good evening.

This concludes today's conference call. Thank you for participating. You may now disconnect. The conference will begin shortly. To raise your hand during Q&A, you can dial star 11.