ShockWave Medical Inc (SWAV) Q2 2020 Earnings Call Transcript

ShockWave Medical Inc (SWAV 0.04%)
Q2 2020 Earnings Call
Aug 11, 2020, 4:30 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to ShockWave's second-quarter 2020 earnings conference call. [Operator instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Debbie Kaster, head of investor relations at ShockWave for a few introductory comments.

Debbie Kaster -- Head of Investor Relations

Thank you all for participating in today's call. Joining me are Doug Godshall, president and chief executive officer of ShockWave Medical; and Dan Puckett, chief financial officer of ShockWave Medical. Earlier today, ShockWave released financial results for the quarter ended June 30, 2020. A copy of the press release is available on the company's website.

Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward-looking statements. All forward-looking statements, including, without limitation, statements relating to our sales and operating trends, business and hiring prospects, financial and revenue expectations and future product development and approvals are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties, including the impact of COVID-19 pandemic that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.

Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors section of our annual report on Form 10-K on file with the SEC and available on EDGAR and in our other reports filed periodically with the SEC. ShockWave disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 11, 2020.

And with that, I'll turn the call over to Doug.

Doug Godshall -- President and Chief Executive Officer

Thanks, Debbie. Good afternoon, everyone, and thank you for taking the time to join us to review ShockWave's results for the second quarter of 2020. I hope this call finds you all in good health and doing your best to adjust to this new normal we are all facing. We reported $10.3 million in revenue for the second quarter, representing a modest increase from $10 million in sales in the second quarter of 2019.

As we mentioned in our last quarterly call, April was a low watermark for procedures and sales, and we have seen a consistent recovery each month since then. I will go into a bit more recovery-specific commentary later, and Dan will, of course, provide more details regarding our financials during his portion of the call. But first, I'd like to start with a quick snapshot of some recent operational achievements. We completed enrollment in CAD III, our U.S.

coronary pivotal trial in March. In early April, we completed enrollment in CAD IV, our coronary pivotal study in Japan. In early June, the Center for Medicare and Medicaid Services, CMS, issued codes for IVL procedures performed in peripheral arteries in both the hospital outpatient and inpatient settings. In preparation for our coronary launch, we continued our expansion of our U.S.

field team, ending the quarter with 85 individuals in the field, up from 78 on March 31. We completed a very successful $89 million follow-on financing priced at a positive file-to-offer value. We very much appreciate your support. I continue to be highly impressed with the dedication of our team members who have consistently executed and successfully hit milestone after milestone despite having to operate under new rules and challenges due to the impact of the global pandemic.

Many companies have already described the recovery of procedures throughout the second quarter, and what we are seeing is similar to what you have heard from our peers. Throughout the second quarter, our international and U.S. businesses followed remarkably similar patterns: down meaningfully in April and then steadily increasing month over month. To give a bit more detail, using February as the peak month in terms of demand, April was down 60% from February on an average daily sales basis.

And by June, our average daily sales number was almost double the April average daily sales and down only about 20% from the February peak. We continue to see an upward trajectory in July. In the U.S. specifically, the cases performed in the early part of the quarter were, of course, the most urgent and non-elective cases, particularly TAVR access and critical limb ischemia.

As the quarter progressed, a broad spectrum of PAD cases came back as physicians were able to start treating the symptomatic patients that had been put on hold. As U.S. hospitals continue to learn how best to manage COVID patients and to balance the need to continue elective procedures, we believe volumes will continue to grow through the remainder of the year. However, we also believe the broader resurgence of COVID will cause some dampening of U.S.

activity, whether it'd be due to hospital bed capacity for inpatient procedures or patient anxiety about entering the hospital. Internationally, coronary drove the procedure return with peripheral lagging a bit, as we expected to be the case, with nearly half our global revenue coming from the 46 countries outside the U.S. where we commercialize. We are fortunate to be in a position to benefit from the more capable COVID management that most other countries displayed.

Our German region, where we are direct, was the least impacted by COVID, which is not a big surprise since Switzerland and Germany were among the best at tamping down the outbreak. Our distributor sales largely maps the elective procedure pattern in their respective countries. And there has been variability in the recovery rate given the different levels of disease transmission by country. Most countries are in a better position than the U.S.

now, but there will be COVID flare ups as we are already seeing sporadically. And those will likely have local impact on procedures, but we don't expect to see broad new disease outbreaks. We are quite encouraged by recent trends in the business and are confident that procedure volumes will continue to increase generally, but the ongoing COVID wave in the U.S. and the pockets of challenges internationally makes it a bit difficult to confidently predict the procedure volume return through the end of the year.

And while we have been navigating the uncertain waters of COVID, we have remained focused and continue to execute against the key milestones in front of us. Our CAD III activities have progressed very efficiently. And we remain on track to file our final PMA module within the month, with anticipated approval in the first quarter of 2021. We are optimistic that the data from the study will be accepted as a late breaker at TCT and look forward to discussing the results at that time.

Turning to our peripheral studies. We continue to enroll patients in our PAD III registry with an exclusive focus on S4 cases. And as previously announced, we completed the randomized arm of PAD III at the end of the last quarter with 308 patients enrolled and are currently compiling with data from the study. We look forward to sharing the results of this trial potentially as soon as VIVA later this year.

To be prepared for our first quarter coronary approval in the U.S., we are expanding our sales team more aggressively now and will continue to do so even if there is more of a COVID slowdown than we anticipate. We are well on our way to having over 100 people in the field in the first quarter of 2021 and fully expect to have a team of at least 110 come January 1. Our territory manager and clinical specialist hiring has progressed very well since June, and we continue to add exceptionally strong new team members to the excellent group we have in place in the U.S. On the international front, we are starting to put some infrastructure in place in Japan, where we are pleased to have just hired a strong country manager to oversee our operation there as our clinical and regulatory activities progress.

We restarted the S4 launch in the U.S. with a series of KOL meetings and Advisory Boards, all of which turned out to be highly productive and help validate the various use cases for S4 from the eyes of both IVL users as well as several nonusers. And a nice side benefit of these sessions is that a few of the nonusers have now become customers. We're also beginning a limited launch of S4 in Germany.

You may recall that the two smaller sizes of S4 had been held up during the European Union's move from MDD to the new MDR rules. But an unanticipated benefit from the current COVID situation was the European Union's decision to delay the transition, which allowed our notified body to approve S4 under the previous MDD rules. As we launch S4 in Germany, we will build off this experience and expand to other key European PAD markets. Some of the busiest critical limb ischemia operators in the world are in Europe, and the vast majority of their cases are done with plain angioplasty.

So we believe S4 will be a valuable clinical tool for them. Another very positive change for our business and our U.S. sales team in particular has been CMS' recent approval of new codes for IVL procedures performed in peripheral arteries in both the hospital outpatient and inpatient settings, which we announced in June. As a reminder, CMS issued four IVL-specific outpatient codes, which map to the current endovascular payment levels for above-the-knee procedures; and 17 in patient ICD-10 codes, which map to DRGs in the same manner that atherectomy procedures do in the inpatient setting.

With these new IVL codes, CMS has validated that intravascular lithotripsy is a unique procedure, and thus far, the customer response to these new codes has been quite positive. They are encouraged that they can now see a pathway to improve payment over time. As a reminder, while the codes we were granted by CMS related to hospital procedure payments, or Level II CPT code; Level I CPT codes, which also include physician payment, are dependent on the CPT panel, which is overseen by the American Medical Association. The next CPT panel meeting is in early October, and the agenda was published on July 31.

The various societies that perform peripheral procedures submitted a proposal to eliminate the current 16 codes that are used for lower extremity procedures and requested that they be replaced with 32 new codes to reflect current endovascular technology and practice. That is all we know with certainty at this time, but as an interested party, we will request details around this proposal under a confidentiality agreement and participate in a process consistent with the rules of the AMA. That said, the details will not be public until the CPT panel meeting in October. As a reminder of the CPT process timeline, if the meeting in October results in these 32 codes being approved, the design would go through a valuation process with the RUC.

This would then lead to approval next October, and the codes would go into effect in January of 2022. If the panel requests more work to be done on the codes, then everything slides by a year. The new basket would be approved in October of '21, valued by RUC '22 and implemented in January of 2023. While we would be delighted to find IVL in the proposed basket of codes, we see that as an upside to our trajectory as we will continue to sell our devices based on their unique ability to treat calcified vascular disease more effectively and more safely than other technologists are able to.

Better payment is always better, of course. There was a bit of attention to our patents a short while ago, and I wanted to reiterate our confidence in the strength of our portfolio and our ability to protect our proprietary IVL technology. We are pleased the PTAB validated a very broad and important claim in our '371 patent, and we'll be appealing what we believe were erroneous decisions by the PTAB on other claims. During the appeal process, all the claims on all the patents remain valid.

We expect to prevail on appeal given the gaps our council has identified. But even if we are wrong, we're still in a great position. We have 41 patents in total in the U.S. covering the design and use of our technology and continue to file more cases to build upon this sound foundation.

Additionally, an under-appreciated aspect of our portfolio is the strength and breadth of our 50 international patents, which can't be challenged with IPRs. Anyone who has the mistaken impression that the initial IPR findings somehow opened the door to copy IVL, you'll realize how challenging it will be to navigate the many layers of our patents in the U.S., and it certainly won't be any easier to deal with our formidable international portfolio. We take great pride in our patents, of course, but what put us in this leadership position was our ability to create exceptional technology that uniquely treats patients with complex cardiovascular calcification. That is what wows our customers, creates sustained value and what drives us every day.

Lastly, while we spend a lot of time speaking about our sales, regulatory and clinical activities, I would be remiss not to mention the superb work of our R&D operations and quality teams. Throughout the COVID challenges, those teams have continued their steady performance without disruption. We produced more catheters with fewer hours last quarter. Our R&D projects are moving very efficiently, and we have made impressive strides on our pipeline projects despite COVID.

Great work on all fronts by a great team. And with that, I'll turn the call to Dan.

Dan Puckett -- Chief Financial Officer

Thank you, Doug. Good afternoon, everyone. ShockWave Medical's revenue for the three months ended June 30, 2020, was $10.3 million, a 3% increase from $10 million in the same period of the prior year. U.S.

revenue was $5.5 million in the second quarter of 2020, representing a 7% increase from $5.2 million in the same period of last year. The modest increase was driven by the fact that although the U.S. sales have been growing nicely through 2019 and into early 2020 as we expanded into new sales territories, the Q2 2020 growth was muted by the impact from the pandemic. As Doug noted, April was a low point in terms of sales.

And since then, we have seen activity increasing back toward the levels we saw earlier this year before COVID. International revenue was $4.8 million in the second quarter and was consistent with $4.8 million in the same period of last year. Similar to the U.S., we've also seen a gradual recovery from the international market since the April low point. And sales activity in the second half of Q2 has steadily recovered toward level similar to earlier this year.

Looking at our product lines, our peripheral products, M5 and S4, accounted for $6.5 million of the total revenue in the second quarter of 2020 compared to $6.2 million in the same period of 2019, a 4% increase. Our coronary product, C2, accounted for $3.7 million of total revenue in the second quarter of this year compared to $3.5 million in the same period last year, representing a 5% increase. All of our C2 revenue is currently international. In addition, the sales of generators contributed $135,000 in revenue in the second quarter of 2020 compared to $300,000 in the same quarter last year.

Gross profit for the second quarter of 2020 was $6.7 million compared to $5.9 million in the second quarter of 2019. Gross margin for the second quarter of 2020 was 65% as compared to 59% in the same period of last year. Contributors to gross margin expansion included continued improvement in manufacturing productivity and process efficiencies. Total operating expenses for the period were $24.7 million, a 44% increase from $17.1 million in the same quarter last year.

R&D expenses in the recent second quarter were $8.1 million compared to $6.9 million in the same period of last year. The increase was primarily driven by head count increases to support product development, regulatory and clinical efforts. Sales and marketing expenses were $11.2 million in the second quarter of this year compared to $7 million in the same period of the prior year. The increase was primarily driven by sales force expansion.

General and administrative expenses for the second quarter of 2020 were $5.4 million compared to $3.2 million of the same period of last year. The increase was primarily due to head count increases to support the growth of the business. Net loss for the second quarter of 2020 was $18.1 million compared to a net loss of $10.6 million in the same period of last year. Net loss per share for the period was $0.56.

We ended the quarter with $231.4 million in cash, cash equivalents and short-term investments. This number includes net proceeds of $83.4 million from the follow-on financing completed in June. In regard to guidance, due to the continued uncertainty around the impact of the COVID pandemic on procedures through the fourth quarter, we do not feel that it would be prudent to reestablish guidance at this time. I will now turn the call back to Doug.

Doug Godshall -- President and Chief Executive Officer

Thanks, Dan, and thank you all for joining us today for our call. While the uncertainty and turmoil brought upon us all by COVID are tough to navigate, one silver lining for ShockWave is that this time has really brought to light how highly valued our intravascular lithotripsy technology continues to be as a safe, effective, efficient option for our customers who treat severely calcified artery diseases. These are challenging times for everyone. And thus far, the ShockWave team has continued to rise to the challenge as we seek to positively impact one another, our customers and the communities we live in.

Take good care, everyone, and be well. With that, I will open the call to questions.

Questions & Answers:

Operator

[Operator instructions] Our first question comes from David Lewis with Morgan Stanley. Your line is now open.

David Lewis -- Morgan Stanley -- Analyst

Oh good afternoon. Thanks for taking the questions. Just a couple for me here. Doug, it sounds like, based on prepared remarks, the SFA segment sort of not surprisingly was sort of -- kind of lagging recovery.

I just wonder if you could share with us sort of where that particular segment was as a percent of normal in June and how that sort of trended in July. And what I'm most interested in, is that sort of beginning to catch up the other vessel beds? Or is it still lagging behind? And then could you just give us some broader sense of how you're thinking about recovery as we head to the deeper part of this year? Most of your peers have sort of suggested fourth quarter is some percent of normal. How do you kind of shake out relative to that expectation? And then just one quick follow up.

Doug Godshall -- President and Chief Executive Officer

Yes. So SFA was particularly light in the April, May time frame. Most SFAs are for claudication, not critical limb, although some are critical limb. And so we were more heavily biased toward either below the knee or critical limb, SFA and then the large-bore access cases for TAVR.

As we've seen the return of cases, SFA and we don't break out percentage by vessel anymore because it's gotten increasingly challenging to track them. And it was particularly challenging to track during COVID because we didn't get to go on as many cases. But SFA has seemingly returned back to a sort of primary vessel bed for us, albeit not anywhere close to a majority of our peripheral cases. And iliac, sort of thinking back to your conference last fall back when we got to do conferences, iliac has been the real pleasant surprise vessel.

Still not so much because of large-bore access, but symptomatic iliac continues to really be a meaningful sweet spot, that plus common femoral in terms of a symptomatic disease. And then the fourth quarter, as Dan noted, we're cautious about a little uncomfortable particularly given the rate of COVID expansion in the U.S. to say with certainty, OK, there's not going to be another slowdown on electives. We've been very pleased that even in places like Houston, where there was a push to reduce electives, we continue to see cases in Houston.

And it's even more of an inpatient elective that was being put off versus outpatient elective. So we didn't really see an effect in the few spots where they were pushing back. So we are hopeful that the fourth quarter does sort of better approximate normal. Obviously, we all had a bit of a setback in terms of the procedure acceleration and new account penetration during the April, May time frame.

So that still has to get back to normal. But the VAC committees and the like seem to be meeting now, not all of them. And they're still sorting out how they're going to process new technologies, etc., but that also is starting to become somewhat more normal.

Operator

Our next question comes from Larry Biegelsen with Wells Fargo. Your line is now open.

Kevin Farshchi -- Wells Fargo Securities -- Analyst

God afternoon. This is Kevin on for Larry today. Thank you for taking the question. My first one is, Doug, since you completed enrollment in CAD III in April, the follow up is 30 days, I assume you've probably seen the data by now.

The question is, were there any surprises, positive or negative, from the trial experience or any safety, efficacy differences that were inconsistent with the data already published on IVL in your previous two coronary studies? And I just had one follow up.

Doug Godshall -- President and Chief Executive Officer

We look forward to everybody joining us virtually at TCT to review the data. We're not going to speak to the data. We'll let Dean Kereiakes present it at TCT.

Kevin Farshchi -- Wells Fargo Securities -- Analyst

OK. Totally fair. So earlier this year, Doug, you had announced some plans to initiate a continued access program in coronary. We didn't hear any updates about that on the call.

What is the status of that currently?

Doug Godshall -- President and Chief Executive Officer

Yes. The continued access study became sort of illogical in a COVID era when enrolling any trial was challenging. And initiating a new trial, that was simply a sort of nice-to-have opportunity to maintain access to C2 for our customers. The sort of millions, more than $1 million that would it have taken to run that trial or maybe dozens of patients whom we wouldn't have been able to accrue just didn't make a lot of sense.

So we elected to pass on moving forward with that study. It would have been a lot of money for not a lot of return.

Kevin Farshchi -- Wells Fargo Securities -- Analyst

That makes sense. Thank you.

Operator

Our next question comes from Cecilia Furlong with Canaccord Genuity. Your line is now open.

Cecilia Furlong -- Canaccord Genuity -- Analyst

Great. Thanks for taking our questions. Doug, I wanted to start with the S4 market launch in the U.S. Just the impact you've seen recently from having the smallest balloon, the 2.5 millimeter.

And really, what you've been able to do in this COVID era in terms of either opening new accounts or what you're seeing from an account utilization standpoint. And then how you're thinking about the second half of this year.

Doug Godshall -- President and Chief Executive Officer

Yes. So as I mentioned, we had to think differently about how we were maintaining some momentum on the S4 launch. Certainly in April, awfully hard to do much of anything when you can't even go to a hospital and meet with a customer. So toward the end of the quarter, well, middle of the quarter, we held an advisory panel on S4 and below the knee, generally.

We mixed a sort of collection of strong ShockWave advocates, as well as a decent number who certainly were aware of the company but had not started using technology yet and used that opportunity both for them to learn from the users but also for us to learn from some of the nonusers how can we better target -- what are their concerns? Like, how concerned are they about embolism for -- when treating with other technologies and potential for no flow when they're trying to save somebody's foot. It seemed obvious to us that, that would be a concern for them, and it was helpful to be able to validate that even though they had not started using our technology as they thought about it, like, oh, yes, that would be a real advantage to have a technology for that kind of situation, and at least in our experience historically, once you start dabbling with ShockWave and IVL use, you find more use cases. So we started with that advisory group and then branched out to a series of multiple KOL meetings, generally with folks who are familiar but not yet adopting our technology. And we, again, used that both to learn from them and for them to learn from us.

And that has been a supplement to the great work that our sales team has been doing now that they are sort of able to get out of their basement and actually go meet with customers. So the KOL meetings have already gotten some of those folks to start using ShockWave both above and below the knee, which they had not been -- many of them had not been doing before. So that was a nice benefit to what was for us an outreach and educational process. It also has turned into a supplement to the great effort of our sales team.

To your question on the 2.4 and the 3.0, it's pretty evident that it would have been very hard for us to muscle through a launch without those smaller sizes. They are -- below-the-knee vessels are delicate. You really don't want dissections or embolization or any complications that you can avoid. Bigger balloons make people nervous.

And so the smaller sizes were sort of necessary to continue to roll out. And we continue to sell the whole -- we're now able to sell the -- sort of the complete iliac down to the ankles solution for these severely calcified patients. And we see S4 as becoming an essential tool within a broader armamentaria in the tools that these sort of high-end critical limb ischemia operators will be able to pick from.

Cecilia Furlong -- Canaccord Genuity -- Analyst

Doug, I guess if I can follow up, just as you do think about second half of this year, continued focus within your sales force on that BTK opportunity. But then rolling into 2021, how do you balance that with the coronary launch? And I guess, where are you targeting having some of your new reps that you're planning to hire back half of this year, really focus their initial efforts? Thank you.

Doug Godshall -- President and Chief Executive Officer

Yes. So the clinical specialists and territory managers we're hiring now are certainly -- their mandate is to become the consultative partner, expert, etc., with our current vascular surgeons, cardiologists, radiologists who use our devices; and obviously continue to strengthen our business on the peripheral side. We're starting training very soon on coronary, so we'll be adding in their spare time to their sort of to-do list. When they're not selling, we're going to want them learning about coronary so that, come early next year, they're ready to start selling both.

And the stronger we are on the peripheral side, both above the knee and below the knee, the better that will serve as a springboard for our coronary business. We are launching S4, but we're making sure that we are not sort of saying you have to sell S4 at the expense of M5. It became pretty evident pretty early in the launch that you have sort of differing opportunities by account and by physician. If somebody's doing a lot of work in the EVAR space but not a lot of work on the peripheral side, you're probably going to sell that doctor an M5 for iliac access and large-bore access versus trying to convince them to use S4 below the knee.

Conversely, if you have somebody who's 80% below the knee, you're going to be talking to them about S4. And while we hope every interventionist uses a ShockWave for every appropriate calcified case, we don't want to legislate to our reps you must go sell S4 at the exclusion of M5 or vice versa. So what we're seeing so far is they are highly, highly complementary to one another and, in some ways, enables you to have something to talk to different doctors about depending on what their personal practices versus only having an M5 when a doctor might do a lot a below-the-knee work and that we can do both.

Yup.Thanks, Doug.

Operator

[Operator instructions] Our next question comes from Adam Maeder with Piper Sandler. Your line is now open.

Adam Maeder -- Piper Sandler -- Analyst

Hi guys. Thanks for taking the questions. Kind of to start on the OUS coronary business, just hoping to get a little bit more color there. How are you guys thinking about that segment going forward and just the recovery kind of in the back half of the year? I'm guessing it varies greatly by country, but maybe you could comment just on expectations, even at a high level, for the key markets in Europe? And then I had a follow up.

Doug Godshall -- President and Chief Executive Officer

Yes. So your comment about it varies by market is so accurate. Even this morning, we were looking at some countries that, like Germany and Switzerland, yes, they were down in the second quarter, but relatively speaking, it was more like they were off a little bit. And then you look in our last call, we talked about India.

India went from an encouraging start to the launch to basically zero in the second quarter because they were late to get COVID, but when they got it, they shut everything down pretty effectively on the elective procedure side. And so as you look across all the different distributors in all the different countries that we serve, the second quarter was sort of a range from off to shut down. And we're starting to see through June and into July, for sure, almost everybody is turning back on, and then it's just a degree of how close it is back to normal. It was fascinating because I had assumed international would spring back before the U.S.

because of my presumption, which I think the data suggested that, internationally, they got the disease earlier and addressed it earlier, so I thought they would come back faster. But I think a lot of countries just stayed shut down longer to make sure things were really contained. So the reduction was incredibly similar in April and the return in May came at almost the same rate in the U.S., international and same with June. And then both continue to show encouraging signs of improvement in July, and we're certainly anticipating that growth will continue through the year.

And the challenge is, of course, as one of my first questions tonight was, sort of will it be "normal" in the fourth quarter. We certainly anticipate and expect procedure growth to return, and that will accrue to our benefit. It's so hard to define what normal is now, sort of what's your baseline for normal. And can you predict with confidence if any countries will suddenly have to pause again? Will parts of America have to hit pause again? It's just so challenging to predict this disease right now pre vaccine.

Adam Maeder -- Piper Sandler -- Analyst

Got it. That's helpful color, Doug. And just for the follow up, maybe I could flesh out just some of the commentary earlier on the call just around VAC committees here in the States. So I guess my question is, at present day, how receptive are VACs to new technology? Obviously, the large bore strategy has worked really well in the past.

But would just -- it would be helpful to kind of hear just real time kind of what that environment is like and maybe how you're thinking about the pace of just broader new account adds in the second half. Thanks so much.

Doug Godshall -- President and Chief Executive Officer

Yes. So like so much of this recovery, it depends. So it varies by geography. And where the "reopening" has been more aggressive earlier and has not had a setback yet, VACs have been receptive to remeeting and starting to process new product introductions.

So certainly, in April and May, they were not meeting. They were not planning on meeting. Everyone was just in a hunker-down mode. June into July, we started to see new accounts come on board, and we anticipate that, that will continue to thaw.

And we also anticipate that we will continue to benefit from common femoral, large bore, iliac, symptomatic and now supplemented by the ability to offer a solution for below-the-knee disease as well. And not that we ignore SFA, but we pull SFA through once we're in versus leading explicitly with SFA as our primary sales strategy. So we are anticipating continued new customer adds and a benefit of having the expanded sales and clinical specialist force that we are -- we now have in place and will continue to augment. And it enables us to expand additional sites where some of our new hires have relationships that they can leverage from their prior sales experience, and it also just gives us better account coverage, generally, as we're leading into the pre-coronary launch phase.

Adam Maeder -- Piper Sandler -- Analyst

Got it. Pretty clear. Very clear. Thanks Doug.

Operator

And that concludes today's question-and-answer session. I'd like to turn the call back to Mr. Godshall for closing remarks.

Doug Godshall -- President and Chief Executive Officer

Thank you very much, and thanks, everyone, for taking the time this afternoon. I know everyone is very busy and hunkered down probably working remotely. Looking forward to chatting with many of you over the next quarter and hope your summer ends well and safely. Take care.

Operator

[Operator signoff]

Duration: 43 minutes

Call participants:

Debbie Kaster -- Head of Investor Relations

Doug Godshall -- President and Chief Executive Officer

Dan Puckett -- Chief Financial Officer

David Lewis -- Morgan Stanley -- Analyst

Kevin Farshchi -- Wells Fargo Securities -- Analyst

Cecilia Furlong -- Canaccord Genuity -- Analyst

Adam Maeder -- Piper Sandler -- Analyst

More SWAV analysis

All earnings call transcripts