Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Visioneering Technologies Inc (ASX:VTI, Financial) reported a 1% increase in net revenue for Q2 FY '24, reaching $2.4 million.
- Shipments to US Eye Care Practitioners (ECPs) increased by 4% over Q2 of last year, indicating strong patient-level demand.
- The company achieved its highest quarterly gross margin in history at 57.2%, up from 54.9% in Q2 '23.
- Cash receipts from customers were up 18% from the same quarter last year, showing improved cash flow.
- The PROTECT clinical trial interim results showed that NaturalVue Multifocal is 89% effective in slowing myopia progression, outperforming the only FDA-approved treatment by 50%.
Negative Points
- Net cash used in operating activities was $872,000 for the quarter, indicating ongoing cash burn.
- Despite revenue growth, the increase was only 1%, suggesting limited top-line expansion.
- The company plans to explore additional financing in the next several months, indicating potential liquidity concerns.
- Private label sales for Menicon, which have a lower gross margin, increased, potentially impacting overall profitability.
- The number of US active accounts only grew by 3% from the same quarter last year, indicating slow customer base expansion.
Q & A Highlights
Q: Can you provide an overview of Visioneering Technologies' flagship product and its target markets?
A: Visioneering Technologies' flagship product is the NaturalVue Multifocal, a daily disposable soft contact lens. It targets two main patient populations: children with pediatric myopia progression and adults over 40 with presbyopia. The market for pediatric myopia is projected to grow significantly, from 10 million patients today to 57 million by 2030, with the market value increasing from $2 billion to over $17 billion. The presbyopia market is also expected to experience strong growth.
Q: What were the key findings from the PROTECT randomized clinical trial?
A: The one-year interim results from the PROTECT trial showed that NaturalVue Multifocal is both safe and effective in slowing the progression of myopia in children. The lens was 89% effective in slowing myopia progression as measured by refractive error and 58% effective as measured by axial length change, outperforming the only FDA-approved myopia control lens by approximately 50%.
Q: How did Visioneering Technologies perform financially in Q2 2024?
A: Visioneering Technologies reported net revenue of $2.4 million for Q2 2024, a 1% increase from the same quarter last year. Shipments to US eye care practitioners (ECPs) were $2.1 million, up 4% year-over-year. The company achieved its highest quarterly gross margin of 57.2%, up from 54.9% in Q2 2023. Net cash used in operating activities was $872,000, a 27% improvement year-over-year.
Q: What are the company's plans for expanding its market reach?
A: Visioneering Technologies has entered supply and distribution agreements in several countries, including Belgium, Vietnam, and the Middle East, and is negotiating additional agreements in China, the Netherlands, Germany, Austria, Switzerland, and South Korea. The company expects growth in its Europe Asia Pacific segment to accelerate in the second half of 2024 and 2025.
Q: How is Visioneering Technologies addressing the needs of presbyopic patients?
A: Visioneering Technologies recently completed a clinical study on the functional visual range of NaturalVue Multifocal for presbyopic wearers. The study showed that participants could see fine print at various distances while maintaining clear distance vision. The results, published in the Journal of Clinical Ophthalmology, indicated high satisfaction with lens performance and comfort.
Q: What are the company's future financing plans?
A: Visioneering Technologies plans to explore additional financing in the next several months. The company finished Q2 2024 with $1.8 million in cash and believes this is sufficient to finance operations into the first quarter of 2025.
Q: How is Visioneering Technologies leveraging the PROTECT trial results in its sales and marketing efforts?
A: The company is focusing its sales and marketing efforts on the positive interim one-year PROTECT results, providing eye care practitioners with data that corroborates real-world studies showing NaturalVue Multifocal's effectiveness in managing myopia. The lens is marketed as safe, providing good vision and comfort, which are crucial for effective myopia management.
Q: What is the company's strategy for managing myopia in children?
A: Visioneering Technologies emphasizes that children may react differently to various myopia management interventions. The company suggests that eye care practitioners might need to use multiple products, including NaturalVue Multifocal, to address the diverse needs of their patients effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
