Rxsight Inc at Morgan Stanley Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patrick Wood - Morgan Stanley - Analyst : I think maybe if we could start with sort of more of a big-picture view of things. Can you give us an update on how you think the overall cataract market is looking in the US? What are you hearing from customers about patient's propensity to trade up, I guess, to more premium lenses like the LAL and to pay for the process overall?

Question: Patrick Wood - Morgan Stanley - Analyst : And so there's obviously been that penetration rate that has sort of ticked up over time, as you said, but US were kind of 19%, 20% to grow from here and to keep that penetration going, is that a function of things like the LAL converting more monofocal patients who would have into the premium category? Because the -- not to comment on competitors, but the other lenses, the traditional trifocals seem to have slowed out a little bit, whereas you guys have kept growing. Is it that added feature set for monofocal conversion that gets you there?

Question: Patrick Wood - Morgan Stanley - Analyst : Makes sense. We obviously had a fun time last quarter, a bit of a roller coaster weather market got completely panicked. The LDD placements would be below consensus and low. And then you came in spectacularly above it. I get that there's a, you know, sometimes people can myopically over focus on the LDD placements, but how are you feeling about those? How do we think about those going forward and the implications for the business overall?

Question: Patrick Wood - Morgan Stanley - Analyst : And then we've always talked about this being an awkward metric as well, but utilization as defined by LAL per LDD, which is special on a given quarter, an awkward metric for many reasons, but that's obviously been picking up quite nicely. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 1:15PM, RXST.OQ - Rxsight Inc at Morgan Stanley Global Healthcare Conference Maybe any color you've got on what you're seeing at the individual like doc and account level, like the new people who come on board and the utilization of the LAL relative to some of the first-generation docs who are adopting it. At how, within the practice, I know that -- we remember the panel at ASCRS, you have some docs, it's a very high proportion at premium lenses. But what are you seeing kind of overall from a utilization standpoint? Maybe I will let Shelley comment from a quantitative and like I'll be back with some qualitative comment?

Question: Patrick Wood - Morgan Stanley - Analyst : The LAL+ as a new sort of item in the toolkit. I get that you guys are agnostic given the pricing is identical to the LAL and it's about a use case to patients. But how does that land in terms with the customers where you expected it to? Is it being used more or less than you expected, or about the same, like how does that land versus what your original expectations for the lens were?

Question: Patrick Wood - Morgan Stanley - Analyst : Makes sense. And obviously, you both went through the cap raise and you guys came to the market wave, that went well. I mean, what in your eyes prompted the timing of that? And how you're thinking about using that money going forward, particularly because I would argue, you're kind of at or approaching breakeven probably a bit faster than some of us had expected. Like what do you think you want to use that money for primarily?

Question: Patrick Wood - Morgan Stanley - Analyst : (multiple speakers) I mean, US different kind of market, a lot of different dynamics in different countries. It's a big old world, and actually cataracts because of their very nature, a lot of the volumes, most of the volumes by definition is on US, how are you thinking about where even to begin to tackle that opportunity because there's so many places you could start and what the pros and cons of the different sort of approaches might look like. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 1:15PM, RXST.OQ - Rxsight Inc at Morgan Stanley Global Healthcare Conference

Question: Patrick Wood - Morgan Stanley - Analyst : Do we have a sense of potential timeline of what that could look like?

Question: Patrick Wood - Morgan Stanley - Analyst : Maybe shifting gears to something a little shorter term. Q3 and the balance of the year in general, how you feel they are shaping up relative to expectations from your end? Any changes in the market dynamics, out of the summer is a little bit slower anyway, but the more sort of recent trends would love to hear anything any updates you have there?

Question: Patrick Wood - Morgan Stanley - Analyst : With three small kids, I feel like it's currently for me, the largest transfer of wealth in the history of mankind, (laughter) because they're not cheap. I mean, there's another trend in the market, it's very small at the moment, but to your point around aging and this sort of things as refractive lens exchange and that side of things. And given you guys have a lens that is dramatically, I would argue low rates of [dysautopsy] is now side of things and kind of remove some of the surge in anxiety, I guess about doing it in younger patients. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 1:15PM, RXST.OQ - Rxsight Inc at Morgan Stanley Global Healthcare Conference Is that a category that you'd expect to continue to see grow? Could it really become a more meaningfully sized category or just people going away anyway and it clinically and to be in until later?

Question: Patrick Wood - Morgan Stanley - Analyst : You both mentioned R&D and product development and that side of things over time, I'm curious from an outside in perspective, it sounds good, but what does that got to do in terms of like the lenses, extremely well-tolerated, it gets great visual outcomes, there's very few complication rates. Sort of -- is that like -- what is the further development that could help spur that market? And then I guess connected to that, but [I'm serious] the efforts of some people to try and make an accommodating IOL that doesn't require any kind of intervention. I'm thinking of like the [GD] lens some years ago and remember the disaster on the [Crystalens] and whether that's ever something in your eyes likely to happen or just the physics of it too difficult?

Question: Patrick Wood - Morgan Stanley - Analyst : I think that's almost perfect timing (inaudible). Ron and Shelley, thank you so much. Thanks, everybody, for joining us, appreciate it.