AngioDynamics Q1 2024 Earnings Call Transcript

Quartr
Provided by Quartr
October 4, 2023

There are 7 speakers on the call.

Operator

Good morning, and welcome to the AngioDynamics Fiscal Year 20 24 First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics' fiscal 2024 First Quarter Results crossed the wire earlier this morning and is available on the company's website.

Operator

This conference call is also being broadcast live over the Internet at the Investors 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 1 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 2024 as well as trends that may continue. 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 ks, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward looking statements. The company will also discuss certain non GAAP and pro form a financial measures during this call. Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time.

Operator

Investors should consider these non GAAP and pro form a measures in addition to, not as a substitute for or as superior to, This is also available on the Investors section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release I'd now like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Mr. Clemmer?

Speaker 1

Thank you, and good morning, everyone, and thank you for joining us for AngioDynamics' fiscal 2024 1st Quarter Earnings Call. Joining me on today's call is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer, I will provide a detailed analysis of our Q1 financial performance. Unless otherwise noted, all financial metrics and growth rates Provided during the call today will be on a pro form a basis, which excludes the impact of our divested dialysis And BioSentry Businesses in both our fiscal 2024 and fiscal 2023 1st quarters. In our Q1 of FY 2024 was highlighted by the attainment of important milestones in our long term strategy and is a solid start financially against our fiscal year goals. Over the last few quarters, we've outlined for you several areas But we were focused on improving and I'm happy to say that we are seeing improvements here During the Q1, although there is still more to come, we ended the Q1 with revenue of $78,000,000 representing growth of approximately 6% year over year, led by growth of approximately 13% from our MedTech segment.

Speaker 1

Our adjusted pro form a EPS was a loss of $0.13 and was in line with our expectations. This excludes approximately $700,000 in sales from the divested businesses during the 6 business days in June Beyond our financial performance, we made important progress on key milestones Related to our long term strategy, as we have stated, it is our mission to address meaningful treatment gaps in large, High growth markets with a focus on cardiovascular disease and cancer. During our Q1, We enrolled and treated our final patient in our PRESERVE study, which is designed to prove that NanoKnife is Safe and effective treatment for men diagnosed with intermediate risk prostate cancer. We look forward to collecting data from this study at the 12 month follow-up stage, then submitting our data to the FDA in Q3 of calendar 2024 to support an expanded indication for NanoKnife to treat prostate tissue. We believe that the timing of our submission is ideal.

Speaker 1

It is clear that patients with intermediate risk prostate cancer are looking for new treatment options that better preserve their quality of life. The interest and desire for this patient population due to its simplicity, versatility and ability to reduce the risk of undesirable side effects that other treatment options carry. Over the course of this fiscal year, we look forward to providing you with more details as physicians publish additional data detailing their experiences using NanoKnife to treat prostate. Our NanoKnife business performed very well and grew approximately 36% during the Q1, With sales of probes growing 35%. NanoKnife growth was strong again internationally As our international team continues to establish new relationships with partners who assist in supporting our procedures And our strong U.

Speaker 1

S. Growth was driven by continuing interest in this technology as more physicians become aware of our direct We believe that NanoKnife has the potential to be one of the most important breakthroughs for men who qualify For a focal treatment approach to their disease by driving beneficial outcomes and offering significant quality of life benefits. It has the potential to open up a roughly $700,000,000 market in the U. S. And potentially $2,000,000,000 market globally for In the Q1 of FY 2024, Our international businesses grew 26% year over year with impressive growth from both our medtech and our med device segments.

Speaker 1

Our team is strong and we will continue to grow in international markets through a strategy that employs key partners to support our products, Continued exposure through our series of scientific symposiums and further expansion of our medtech portfolio as we gain important regulatory approvals around the globe. We believe this is the right approach And as it allows us to leverage our partners in both the medtech and med device segments without the significant investment That would be required to build out a fully direct global sales force. Our mechanical thrombectomy business, which includes AngioVac and Alphavac declined roughly 6% year over year. We were encouraged to see that AngioVac revenues Well down year over year grew sequentially, and we believe that the steps we are taking to drive this business are gaining positive traction. As you saw in our press release, we recently received a breakthrough designation for the use of AngioVac to remove right heart vegetation.

Speaker 1

We have engaged in productive conversations with the FDA and we expect to finalize our study design in our 2nd fiscal quarter. Our APeX PE study is now more than 75% enrolled. This study is designed to prove That the ALPHAVAC F-eighteen can be a safe and effective interventional treatment tool for physicians To treat patients who are at risk of a pulmonary embolism, we look forward to completing enrollment soon. And after the 30 day patient follow-up period, we'll collect and submit our data to the FDA. We expect the data to support a PE indication around the end of calendar Q2 2024.

Speaker 1

We have been very pleased with the clinical feedback that we've received regarding the success that physicians have had with Alphavec. They tell us that the intuitive design allows for safe and effective clot removal, and they also specifically comment about how quickly and effectively they can steer our device through an often torturous anatomy. This gives Alphavac an advantage over other competitive options. They feel that our product will soon be an important part of the treatment options that they can choose from to treat VTE. In addition to the expected PE indication In calendar 2024, our customers will also see the 2nd generation of Alphavac in a number of important product innovations that will enhance usability even further.

Speaker 1

The rapidly developing venous thrombectomy market is highly competitive and contains numerous unmet clinical gaps. We are confident that we will be one of the top 3 players in this large and growing market For years to come, not only will we win market share with our unique and innovative products, We will also drive adoption to catheter based interventions and help move care in the VTE space away from historic lytic based therapies. During the Q1, we saw continued strong growth of our Aeryon platform, up 26% year over year. This solid growth is a result of the unique way we deliver laser energy and safely treat diseased vessels. We continue to gain share because physicians are gaining confidence in our technology, While they are also getting exposure to data generated by their peers, which is evidence of how special Aireon is as a treatment tool.

Speaker 1

Last quarter, we discussed the Aireon laser micro CT data And its importance, which provides evidence that Aireon can effectively fracture This data has resonated well with physicians and we believe can be an additional reason for clinicians to choose Aireon over our competitors. In addition, there are a number of presentations and podium discussions During this quarter's trade meetings that highlighted the power, versatility and safety of Aeryon. Aeryon is special. We intend to launch catheters specially designed to allow Aireon to treat small vessel DVT in 2025. We believe that Aireon will enhance our venous thrombectomy strength and allow treating physicians a new and powerful options To treat clots in small vessels, we are also pursuing plans to gain an indication for Aireon To treat coronary artery disease, we believe that AURION can be a safe and effective option to treat CAD.

Speaker 1

And we expect that the soon to be released FARO study will support this position. We continue to do our development planning and we'll give you further updates in subsequent quarters. And finally, We anticipate receiving CE Mark for Arianne in the next few months. As part of our ongoing focus To generate additional clinical data, we are proud to be holding our 4th scientific symposium at the end of October, where we'll be hosting global key opinion leaders interested in doing research on our devices to further prove safety and efficacy. We continue to build momentum with these KOLs and we can see how differently our company is viewed by them As our credibility has grown as an innovator that is committed to our physician customers and their patients.

Speaker 1

In addition to the progress that our Medical Technology segment is making, our Medical Device segment posted solid results It continues to provide an earnings and cash generation foundation. Growth in our med device segment It was primarily driven by ports and our Solero Microwave Ablation System. Our ports, which grew over 22%, Illustrate the strength and leadership of our vascular access product portfolio and our commercial team. This is a very competitive market and our team has continually shown the ability to win. With that, I'd like to turn the call over to Steve Trobridge, our Executive Vice President and Chief Financial Officer to review the quarter in more detail.

Speaker 1

Thanks, Jim. Good morning, everyone.

Speaker 2

Before I begin, I'd like to direct everyone to the presentation on our Investor Relations website summarizing the key events from our quarterly results. As Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro form a basis and exclude the results of the dialysis and BioSentry businesses that we divested in mid June. Our revenue for the Q1 of FY 2024 increased 5 point 7% year over year to $78,000,000 driven by continued strength in our medtech platforms. This is exclusive of approximately $700,000 of revenue from dialysis and BioSentry in June. On an as reported basis, revenue for the Q1 was $78,700,000 MedTech revenue was $25,900,000 a 13.3% year over year increase, while med device revenue was $52,100,000 growing 2.3% compared to the Q1 of FY 2023.

Speaker 2

For the 1st fiscal quarter, our medtech platforms comprised 30 3% of our total revenue compared to 31% of total revenue a year ago.

Speaker 1

Our

Speaker 2

Aireon platform contributed $11,100,000 in revenue during Quarter growing 25.7 percent compared to last year. Mechanical thrombectomy revenue, which includes AngioVac and Alphavac sales Declined 5.8% over the Q1 of FY2023. Alphavac revenue for the Q1 was 1,800,000 AngioVac revenue was $6,300,000 in the quarter, representing a decline of 7.7% over the prior year, but from the Q4 and trending in the right direction. AngioVac continues to stabilize and rebound from the challenges we faced in Q2 and Q3 of fiscal 2023 and we continue to take meaningful steps to address those challenges, including new sales leadership as well as a more robust sales training platform. Additionally, we recently received the breakthrough device designation for the use of AngioVac in right heart and we believe this is an of the distinct role that AngioVac can play in the VTE space.

Speaker 2

We remain confident that mechanical thrombectomy will be a significant contributor to our growth strategy and We will continue to prioritize investments in this platform, including the new product introductions that Jim mentioned as well as our clinical initiatives such as the APeXPE study. Nanonets disposable revenue during the quarter increased 34.5% year over year. Now early in the quarter, we announced Enrollment in Preserve is now 100% complete. And as this data starts to be made public over the course of this year, we look forward to sharing it with you. In the Q1, our Med Device segment grew 2.3% year over year, led by strength in our port products, angiographic catheter products and microwave ablation business.

Speaker 2

As of the end of our Q1, our backlog stood at $3,300,000 Moving down the income statement, our gross margin for the Q1 of Fiscal quarter MedTech gross margin was 64.7 percent, an increase of 150 basis points and Med Device gross margin was 43.9%, a decrease of 170 basis points each when compared to the Q1 of last year. MedTech gross margins were positively impacted by sales mix driven by our NanoKnife performance. Med device gross margins were negatively impacted by raw material inflationary pressures and sales mix driven by growth in our international markets. As we've discussed, our strategic business model contemplates gross margin expansion as our high margin medtech segment continues to become a larger portion of our overall revenue base. As mentioned last quarter, the next phase of our transformation is to address the scale and structural limitations of our operating footprint in a capital efficient manner, which will reduce the impacts of many of the raw material inflationary headwinds that we've seen recently.

Speaker 2

And we look forward to continuing to update you on our plans and actions to drive margin enhancement in the short and medium term. Turning to R and D, our research and development expense during the Q1 of FY 24 was $7,900,000 or 10.1 percent of sales compared to $8,300,000 or 11.2 percent of sales a year ago. Spending on clinical programs was 32% of total R and D spend during the Q1 of fiscal 2024 compared to 26% during the Q1 of last year and 16% for the full fiscal year 2021. This mix shift within our R and D spending is well aligned with our long term strategy to support increased physician adoption of our MedTech platform technologies through the generation of data and clinical evidence. SG and A expense for the Q1 of FY 2024 was $38,200,000 representing 49% of sales FY 2024 was $5,200,000 or adjusted loss per share of $0.13 compared to an adjusted net loss of $6,000,000 or adjusted loss per share of $0.15 in the Q1 of last year.

Speaker 2

During the Q1 of fiscal 2024, we revised our annual practice for our non employee directors moving from granting shares with a 1 year vesting term to granting immediately vested shares. The target grant value was not changed from the prior year. This change is reflected in adjusted loss per share for the quarter of $0.13 meaning that approximately $0.02 of the negative $0.13 was shifted into this fiscal quarter instead of radically being included in our second, third and fourth quarters of GAAP net income as reported in our earnings release this morning included a gain on the sale of assets related to our Med Device segment in connection with the divestiture of our dialysis and BioSentry businesses. As we mentioned last quarter, these businesses that were divested on June 8, 2023, 4th quarter ended May 31, 2023. The impairment resulted in a loss of $14,500,000 or $0.37 on a per share basis.

Speaker 2

Due to the timing of transaction, the losses recorded in our 4th fiscal quarter of FY2023 with the offsetting gain on the sale of assets recorded as part of this quarter's results. Results of large GAAP loss in the Q4 of FY2023 and a larger GAAP gain in the Q1 of FY2024. Adjusted EBITDA in the Q1 of FY 2024 was $400,000 compared to negative EBITDA of $1,600,000 in the Q1 of FY 2020 3. In the Q1 of fiscal 2024, we used $25,900,000 in operating cash at capital expenditures of 800,000 In addition to AURYON placement and evaluation units of $800,000 At August 31, 2023, had $57,600,000 in cash and cash equivalents compared to $44,600,000 in cash and cash equivalents at May 31, 2023. So we continue to expect to finish the year with cash balances in the range of $65,000,000 to $70,000,000 and we expect to be cash flow positive exiting FY 2025, Having utilized an aggregate of $10,000,000 to $20,000,000 of cash over a 2 year period.

Speaker 2

Given the timing of Q1 payments and managing our working capital, Q1 exhibited the highest level of cash utilization we will see in FY 2024. As has historically been the case, our 1st fiscal quarter is expected to have the highest utilization of cash During the fiscal year with cash balances building throughout the remainder of the fiscal year. We believe that we have more than sufficient cash to execute on our strategic initiatives as we move to generating positive cash flow towards the end of FY 2025. Turning now to guidance. We continue to anticipate that FY 2024 will be in the range of $328,000,000 to $333,000,000 and we expect full year adjusted loss per share to be in the range of $0.28 to 0.34 dollars As a reminder, this compares to pro form a revenue and loss per share excluding the recently divested assets of 306,380,000 and a loss of $0.43 respectively for FY2023.

Speaker 2

We expect FY2024 gross margin to be in the range of 50% to 52% compared to pro form a FY2023 gross margin of 50.5%. We expect FY2024 medtech revenue growth in the range of 20% to 25% and med device revenue growth in the range of 1% to 3%. We expect medtech gross margins in the range of 63% to 65% And Med Device gross margins in the range of 43% to 45%. We're continuing to transition our company with a focus on delivering value to our global customers. We also understand that investors expect us to be a company that will grow at attractive rates while improving profitability and cash generation.

Speaker 2

We believe that our Q1 exhibits execution against those expectations. Finally, I'd like to thank our team here at AngioDynamics for their hard work and commitment. We're looking forward to executing further on our strategy and delivering a strong fiscal year 2024. With that, I'll turn it

Speaker 1

back to Jim. Thank you, Steve. And before we open up the call for questions, I'd like to say a few words. Like Steve and I, Many of you have had the pleasure of knowing Matt Michon, who sadly and unexpectedly passed away several weeks ago. Matt did an excellent job of following our company for many years, and all of us here at AngioDynamics truly enjoyed working with him, both as an analyst and as a person.

Speaker 1

Matt will be missed, and we offer our condolences to his family And his key bank colleagues, particularly Brett. Now, operator, could you please open up the call for questions?

Speaker 3

Thank One moment please while we poll for questions. Thank you. Thank you. And our first question today comes from the line of Jayson Bedford with Raymond James. Please proceed with your

Speaker 4

Hi. Good morning, guys. Maybe just to start on the business. NanoKnife use is quite strong. I was wondering if you could break out growth U.

Speaker 4

S. Versus internationally. And Internationally, are you seeing it mostly in prostate or are you seeing use in other areas?

Speaker 1

Hi, Jason. Actually, we're seeing in both. So we track the different organs that we treat. There's been some the international team has had Head Start and the U. S.

Speaker 1

Team, they've done a great job establishing relationships internationally with some really strong prostate physicians. And then I'll refer back to the July call we had for Q4. We announced that NICE had upgraded our status in the U. K. So we think that also has a knock on effect in other areas within Europe, Jason.

Speaker 1

So we're going to continue to work with our clinicians and grow in Europe and U. S. Steve, do you have a breakdown?

Speaker 2

Yes. And then Jason, we saw strong growth in both geographies. So in the U. S, disposable growth was 28% And in the international markets, our disposable growth for NanoKnife was about 44%. So we've seen really strong growth both sides of the ocean.

Speaker 4

Okay. On mechanical thrombectomy, you seem to be stabilizing AngioVac. Alphavac still seems like it's kind of stuck in 1st year. Can you just give us a little indication as to why growth should improve in Alphavac? And I You also alluded to a 2nd gen product and I apologize I may have missed the timing there.

Speaker 1

No, it's fine. Again, AngioVac, we're really confident in obviously how the device works and what it does and gaining the breakthrough designation from the FDA is important So they've acknowledged an area of unmet need that we think AngioVac can fit. We'll work with them on the study design and get that communicated soon. 2nd, the Alphavac, we love the product and the physician feedback is really strong. I was at PERT 2 weeks ago talking to many, many physicians Who have used it, want to try it.

Speaker 1

The trick for us, Jason, are 2 things. Completing the Apex PE enrollment, You saw we announced today we're 75% of the way there, which is actually a great time line being that there are other 2 other good products already With a PE indication and we're going at the same pace I think that the first one of those went at a couple of years ago when they got their indication. We're really pleased The take up of the product. So we do we did announce this morning, we have a couple of design enhancements that we'll launch next calendar year, Jason. So You'll see those enhancements.

Speaker 1

So really next year is really important for us. We'll have that PE indication we believe about mid calendar year next year. We'll also have some design enhancements to the product. Anybody does when you after you launch the 1st gen, just based on physician feedback to make it a little more intuitive and user friendly. But We have full confidence that ALFAVAC F-eighteen will be a major player, not just PE, but other clot removal within the anatomy.

Speaker 4

And Jim, do the design enhancements require an additional filing?

Speaker 1

No. No, they are simple enhancements. I think they've just done as letter to file To our current design, again, I'm answering it from my regulatory team, but I'm pretty sure that's the case, Jason, we'll let you know.

Speaker 4

And then just lastly, and I'll let others jump in. On Orion, strong, can you just give us an update in terms of the It's all based and I realize you don't get a lot upfront for the capital, but is this the growth you're seeing, is it Procedure driven or have you seen a bolus in placements or capital sale?

Speaker 5

Yes. So in terms

Speaker 2

of placements, Jason, The net new placements for this quarter were about 10 from where we finished last year, but we have also as we talked about in the past seen a lot of shifting of Lasers from some of the lower volume users and moving into higher volume users. So as we talked last year, we were going to pare back a little bit on buying the new And the cash utilization that goes along with that, but we're going to focus on driving utilization and that's what we've seen. So there's we finished the quarter with Right around 415 total lasers in the field, that's about 10 new net from the end of the year, but then also a significant number of lasers that we've been Shifting from maybe lower performing customers to finding some of those higher performing customers.

Speaker 4

Okay. Thank you.

Speaker 3

Our next question is from the line of Steve Lichtman with Oppenheimer. Please proceed with your question.

Speaker 6

Thank you. Good morning, guys. I was wondering if you could provide a little more detail on NanoKnife performance Side of the U. S, it sounds like that business has been a key performer in your international growth overall. Can you give us any visibility on And what that could look like in the coming quarters years?

Speaker 6

What are you seeing on the ground there? How sustainable is that?

Speaker 1

Hi, Steve. We think it's sustainable. That was a really strong number Q1. I don't know if I expect that number throughout the course of the year. The team did a great job.

Speaker 1

But they're also training our partner network to get clinical support during cases and procedures. We're going to have our In Monte Carlo at the end of this month, our 4th clinical symposium, we'll have physicians presenting on their experiences and their data with NanoKnife and a lot of it is highly compelling. So we've got a lot of things happening. You also have a little knock on effect here as well with our Solero growth. We think that Nano, As it gets more widely recognized as to how it works, the mechanism of action, we're getting doctors also utilizing our Solero at a higher rate.

Speaker 1

We've got some great competitors in the micro We think our Solera is the most effective tool out there. We're seeing doctors also give that a try and adopt it with I think NanoLife side by side. So a lot of good things are happening, Steve. It's going to grow stronger this year. I don't know if I'd expect the same growth rate during the next couple of quarters, but we're also working here in the U.

Speaker 1

S. As you know Wrap up the data collection on the PRISERV, which will be done next summer, submit and then we hope to get that indication in the U. S. Next year, but we should still see strong growth U. S.

Speaker 1

And internationally, even prior to that.

Speaker 6

Got it. Thanks. And then Orion Small Vessel DDT, I think you reiterated calendar year 2025. You'll talk about some docs that are Using it in the field, can we expect any single center data or is there anything you're getting a sense on that From your customer from some of those customers, from in small vessel PVT?

Speaker 1

Steve, we're not sure if you'll see any data published by our customers prior to 2025. We hear anecdotes do where people try it in different areas, we're so confident in how it works. We're focused on our internal R and D process and the research has shown we're really, really excited about what it does. There's a good aspiration device on the market today that does a really good job In small vessel DVT, but we think what ARION does in addition to aspiration, the way our laser can disrupt and break up some of the clot we found in our testing It's really significant. So we're going to continue to focus on our internal testing, get the product ready for launch.

Speaker 1

In the meantime, doctors are always free to do their own research, but I wouldn't expect to see anything I don't Leave prior to our launch.

Speaker 6

Okay, got it. And then just lastly, as you're thinking about the mid devices business, How are you thinking about balancing the potential benefits of additional Sales on the top line gross margin versus I think you mentioned again, Jim, some of the cash benefits that those Products provide to the overall company. So should we be thinking about potential additional product line divestitures ahead or just How are you thinking about balancing those two things?

Speaker 1

Couple of things. We've always talked about our role as an active portfolio manager as we grow our medtech businesses. But the Med Device segment does a terrific job in providing us that cash and the stability to invest in the other side of the house. We really love what the business does. We mentioned today, we highlighted our ports.

Speaker 1

Here we compete against a really great company. The number one company in that Market is a strong great company. Our ports are better and our company is better and our team is strong. So although we're the small guy here, David versus Goliath, we're going to continue to win Categories like ports, our midlines did really well as well. Picks will always be a battle, and we know that.

Speaker 1

But it's a good business, Steve. We like the balance it provides us today. Let's go back 2 years ago when we first talked about our transformation into the MedTech business that we want to be. MedTech was only 15% of our revenue. Now you see it about a third of our revenue.

Speaker 1

So as that continues to grow, we'll be less reliant on the device cash and stability. But today, we still think it has a good mix. Over time, that could change.

Speaker 6

Thanks, Jim.

Speaker 3

The next question is from the line of John Young with Canaccord Genuity. Please proceed with your questions.

Speaker 5

Hey, Jim and Steve. Thanks for taking our questions this morning. First from us, just on MedTech gross margin. It was a great number to see. I know you guide to 65% on the high end of the fiscal guidance for the year for MedTech specifically, but it feels a bit conservative.

Speaker 5

Can you just talk about the puts In case here, I'm in gross margin for MedTech. Thanks.

Speaker 2

Yes. So John, as we've talked about, right, the overall gross margin kind of long term strategy for Angio is that you're going to see gross margin accretion coming from this mix shift as we have the medtech products comprise a larger portion of our overall revenue base. We've seen that, but we've seen it at the corporate level be chewed up a little bit by some of those inflationary pressures that we've talked about. So on the medtech side specifically, Increased sales in NanoKnife as we've stabilized as Jason talked about the mechanical thrombectomy business those are both going to be Pretty good tailwinds for us on the gross margin. And then you've also seen as we've talked about pulling back a little bit on brand new Laser is being put in the field and trying to increase utilization with those lasers on the Aireon business.

Speaker 2

All of those things are going to be supportive of that continued shift with the MedTech business kind of driving that shift over overall gross margins.

Speaker 5

Great. Thanks. And then on Apex too, getting enrollment Now, I saw on the slides, it's now guide for complete by early calendar 2024. It feels like a bit of a push there. Have the other ongoing PE studies in this space impacted the ability to get patients enrolled?

Speaker 1

Hi, John, it's Jim. No, I don't think so. I think if you take a look at when we started enrollment and when we think we'll finish enrollment, it's about an 18 month window, we believe, from start to finish, What you think if you go back and look at the market leader, I think is what they took a few years ago when there's nothing else in the field. So we were a little cautious coming out knowing that we'd be 3rd in behind the other two Players there, we thought it might be a little challenging and it probably was initially. I think there's a lot of momentum building in the product and physicians, their peers that use it, Talked about great outcomes and shared some great outcomes, along the way.

Speaker 1

So I think the momentum is building, John. We're really pleased with the schedule. It fits what we internally have projected, And we can't wait to get on label next year, but we'll do the work to finish it. Right now, your question is a good one. Because it is a space now, we'll be 3rd in.

Speaker 1

And it probably will be harder for others. I can't speculate for them, but we have a unique novel device we're bringing into that space with 2 other good products there. So we think we'll really give people a choice.

Speaker 5

Great. Thanks, Jim. And maybe just my last one, if I can sneak it in. Just on the strategy on capital allocation, Just thoughts on stock buyback given the strength of the balance sheet and current stock price? Thanks.

Speaker 1

Yes. Steve and I talked about that a lot and we have conversations with I think today given the external market kind of disruptions and where things have gone, we want our investors to say, hey, we have a strong balance sheet. Everyone take a time out for a second. Steve has given you guidance as to where we think our cash utilization will be this year. And if people look back a year ago after Q1, Steve gave the same guidance.

Speaker 1

We really hit that by the end of the year. So we're really we think we're in a good position to utilize the cash we have. We do have a good strong balance sheet with cash. We'll always talk about the investments that we're looking at. And I'm sure at some point, it will be a good conversation around A buyback, we believe there's a disconnect in our value today, a strong disconnect.

Speaker 1

We'll take a look at that, but we also want to share with investors, who want to ensure that we have a stable balance

Speaker 3

I'd now like to turn the call back over to Mr. Clumber for any closing remarks. Mr. Clumber?

Speaker 1

Thank you, operator, and thanks again to all of our AngioDynamics employees. We are on a transformation here, changing our company to one that is highly differentiated by our science and technology and provides meaningful outcomes in patient wellness when Thanks again to our tremendous employees who enable this to occur every day. I look forward to speaking with you at the end of our Q2. Thank you.

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