Priya Sachdeva

Priya Sachdeva asked for an update on capacity dynamics across implanting centers, current backlog, and potential bottlenecks from referring physicians. She also asked about the logistics of the SeizureID opportunity, whether it's a subscription, how it's implemented, and what clinic efficiency is baked into current guidance.

Answer

Joel Becker, President and CEO, indicated that neurosurgeons generally have capacity for increasing device cases, with occasional longer booking times being the exception. He highlighted NeuroPace's focus on patient flow, investing in nurse navigators (doubling the team) to guide patients through the referral, diagnostic, and evaluation processes. Patrick Williams, CFO, added that nurse navigators are key for efficient patient movement, especially with IGE anticipation. Joel clarified that SeizureID is a software capability included with RNS System use, not a subscription, designed to improve clinician efficiency by identifying highly likely seizure activity and encouraging more RNS patient treatments.

Priya Sachdeva asked about the current capacity dynamics across RNS implanting centers, potential backlogs, and bottlenecks from referring physicians. She also sought details on the Seizure ID opportunity, including its pricing model and how clinic efficiency improvements are factored into current guidance.

Answer

Joel Becker (President and CEO, NeuroPace) indicated that neurosurgeons generally have sufficient capacity for increasing device cases, with occasional longer booking times being the exception. He highlighted NeuroPace's investment in nurse navigators (doubling the team) to streamline patient flow from referral to implant. Patrick Williams (CFO, NeuroPace) added that nurse navigators are crucial for patient navigation, especially with the anticipated IGE approval. Joel clarified that Seizure ID will be a software capability included with RNS System use, not a separate subscription, aimed at improving clinician efficiency and encouraging more RNS treatments.

Priya Sachdeva of UBS Group AG asked for more detail on the performance of Project CARE, specifically regarding implant volume dynamics from both existing and newly activated centers. She also sought clarification on the full-year revenue guidance, which suggests a modest slowdown in growth during the second half of the year.

Answer

CEO Joel Becker responded that Project CARE saw strong contribution in the quarter, with a notable increase in implant volumes coming from the existing base of CARE accounts. CFO Patrick Williams explained that the implied second-half guidance reflects conservatism due to tough year-over-year comparisons and the ongoing wind-down of the Dixie Medical distribution agreement, which concludes at the end of Q3. He affirmed the core RNS business momentum remains strong.

Priya Sachdeva of UBS Group AG questioned the conservative gross margin guidance for the rest of the year despite a strong Q1 and asked for physician feedback on the compelling post-approval study data.

Answer

CFO Rebecca Kuhn reiterated that while Q1 gross margin was exceptionally strong, it can fluctuate quarterly, so they are maintaining their established full-year guidance. Executive Joel Becker added that feedback on the post-approval study data has been very positive, serving as a key tool for the sales force to engage customers by highlighting the RNS System's superior efficacy and seizure freedom rates compared to VNS and DBS.

Priya Sachdeva of BTIG inquired about the key drivers and potential risks for NeuroPace's 2025 revenue guidance, asking what factors would lead to performance at the high versus low end of the range. She also requested more detail on the growth contribution assumed from the Project CARE initiative.

Answer

Executive Joel Becker explained that achieving the guidance range depends on executing their three-part strategy: accelerating adoption in Level 4 centers, building out Project CARE, and growing DIXI sales. He highlighted that prescriber growth and expanded utilization within Level 4 centers are key accelerators. For Project CARE, he noted its meaningful revenue contribution started in the second half of 2024 and the goal is to more than double its implants and referrals in 2025, making it a key growth driver.