Medtronic PLC (MDT) CEO Geoff Martha Presents at Goldman Sachs 41st Annual Global Healthcare Conference (Transcript)

Medtronic PLC (NYSE:MDT) Goldman Sachs 41st Annual Global Healthcare Conference Call June 9, 2020 8:00 AM ET

Company Participants

Geoff Martha - Chief Executive Officer

Conference Call Participants

Amit Hazan - Goldman Sachs

Amit Hazan

Hey, good morning, and welcome to Goldman Sachs Healthcare Conference virtually this year. I'm Amit Hazan, the Medical Technology Analyst, and we’ve got a full day of Medical Technology presentations today, and we're going to kick it off with Medtronic.

Before we do that, just because it's the first session and before I introduce Geoff, maybe read a couple of disclosures and get that out of the way. We're required to make certain disclosures in public appearances about Goldman Sachs' relationships with companies that we discuss. The disclosure relates to investment banking relationships, compensation received or 1% or more ownership. We're prepared to read aloud disclosures for any issue upon request. However, the disclosures are available on our most recent reports to you as clients on our current portals.

Disclosures and updates to those disclosures are also available by ticker on our website. In addition, disclosures applicable to research with respect to companies if any mentioned herein are available through your investment representative. Also, the views stated by non-Goldman Sachs personnel do not necessarily reflect those of Goldman Sachs. That's the disclosure. I'll also remind people, there is a survey as we've done in years past, we have a very quick survey being hosted on the conference page and in your e-mail in lieu of live polling this year, and we'd love to get your feedback and really appreciate your participation.

So, with that out of the way, we're really excited to kick this year’s conference off with Medtronic, and we've got Geoff Martha, President and Chief Executive Officer joining us. So first and foremost, Geoff thanks for joining us in what are obviously very challenging times for you?

Geoff Martha

Thanks for having me. We’re looking forward to it.

Question-and-Answer Session

Q - Amit Hazan

Yes, great. And I actually want to start with you, Geoff. And just obviously, you know the Company extremely well. You've been groomed to take over and had one strategy to start the year and then the world changes. And we know a lot about how Medtronic has responded so far, but I think investors are still getting to know you as CEO at least. So, I thought we could just kick it off by just asking you to give us a sense of what it's been like for you in your new role as you've gone through this. Geoff, can you hear me okay?

Geoff Martha

[Indiscernible].

Amit Hazan

I am. Did you hear -- we've got --.

Geoff Martha

I don’t know what you asked there. We had one strategy to start and the world changes, and then the -- it seems like the Internet dropped here.

Amit Hazan

So, the crux of the question is basically, we know how Medtronic has responded so far. I think investors would love to hear and get a sense from you of what it's been like for you and your new role going through this crisis in these first months as the CEO?

Geoff Martha

Well, it's certainly been intense, right? I mean, there is -- I find that in times like these, the amount of communication that needs to happen is quite a lot, all types of stakeholders, your employees, your leadership team, your customers, your Board, investors, the amount of communication is one thing. The other is just the, you have to be decisive and clear. So, clarity of thought at times like these are important because there's really no playbook.

And so those are -- this is -- in many respects, though, I feel actually pretty fortunate, it’s crazy as it sounds, because I'm getting a lot of support. I'm getting a lot of support from leadership team, from my predecessor, Omar. He has been very active. He was very active all the way through the end of April and still is very supportive and mentors me on a number of issues and is still Chairman of the Board. So, he's able to help with a lot of this communication to stakeholders that he's had relationships with like government officials, so that's been very helpful.

And look, we're fortunate to have a healthy balance sheet going into this thing, so we could focus on playing – on our employees, our key stakeholders, and playing offense. So, in many ways, the crisis, like I said, it's forced me to be more decisive than maybe otherwise would have been, maybe I would have been a little more tentative. I don't have a choice now. And so, I feel like the kind of the transition period has accelerated.

And for better or for worse, I feel more comfortable in the job that I otherwise would have. So, a lot of bad things have happened because of COVID-19 in terms of first and foremost the impact on people's health and our economy and Medtronic’s financials, but there are some -- so there have been some benefits, which I'm sure we'll get to throughout the day here.

Amit Hazan

Yes. So, let’s stay big picture for a little bit before we get to some of the recovery question that everybody wants to know about. And just to ask you, it's been a few months now and so just thinking about your medium range plan, the next three years, what’s changing so far in your strategy as a result of COVID? Is there anything that's evolved for you?

Geoff Martha

I think even like immediate and over the next couple of years as well would be this all -- this concept of remote and virtual capabilities. So, remote, like for us, remote case support, so today, as you know our reps are in the hospital and in the OR supporting the procedure. Can you provide that level of service because the hospitals and the physicians want the service, but can you provide it remotely? And there's technology solutions for that, and then remote device management.

So, like implantable cardiac devices, can you do device checks that are in some cases quarterly? Can you do those remotely so the patient doesn't have to come into the hospital? Can you do a remote patient management in general, beyond the devices? Can you do high quality digital medical education? So, do that virtually. So this whole concept of, we're calling it remote everything, I feel that’s like an irreversible trend, and it's something that it's always been a key element of our strategy, but I think we're accelerating it.

And we're fortunate though, because our, particularly in our cardiac rhythm business, we have a number of product launches. So, this is a timely convergence of our product launches and those features around distance programming and remote programming and remote patient management, all of these features or these products have is coming out at a time when hospitals and physicians are valuing the most.

So, I think this is an area where Medtronic, we are talking to other technology companies, outside of the med tech space. I do think there'll be a convergence of digital technology in the med tech. And we're -- one of the benefits of being big and having a good reputation as these partners -- these companies are willing to partner with us to try new things. And so, I think this is an area we'll be investing in at the Company level as well as bottoms-up at the business unit level.

Amit Hazan

And I'll probably to get back to a couple of those things, but taking a different angle on just how things might evolve for you as a company from a manufacturing and a supply chain perspective, you've actually gone through the tariffs now and now the virus, does Medtronic need to evolve towards regionalization or even domestication of the supply chain?

Geoff Martha

So, we got a -- back in Hurricane Maria a few years ago, we learned that we were too concentrated in certain areas of our supply chain and in our manufacturing, and that was a real wake up call. I mean it hit Medtronic maybe harder than other companies because of this concentration. So, we started to rethink the whole balance between growth and efficiency and resiliency, and resiliency kind of went up in our calculation in terms of importance.

And so, we started putting together business continuity plans and going away from single source suppliers -- or not going away from them, I should say, but providing secondary sources and where we had single source but we had a lot done in Puerto Rico, especially for our implantables businesses in cardiology and neuromodulation, we put business continuity plans in place in alternative sites. And that's something that you have to manage from a margin perspective because you lose a little bit of economies of scale, but it helps your resiliency. So, that has helped us a lot.

The other area in terms of regionalization and that was more just kind of business continuity. But in terms of regionalization, that's another theme. And we've been going down that path, like for China, for example. For different reasons, but you get the same benefit. I mean, I believe that the Chinese healthcare system, for example, and many other emerging market health care systems, but China being the biggest. The differences in the healthcare system are meaningful enough versus like the United States, and they're big enough of a market that the Chinese healthcare system, the physicians, the hospitals are asking for certain features that are customized to their healthcare system.

So, we've been working on our local innovation capabilities and localizing products there for that reason, plus the Chinese government provides a series of incentives and sticks as well to incent you one way or another to localize. And so, that’s the path we’ve been going down quite differently. I'd like to accelerate that, it's another kind of in one to three year, like accelerate the investment and localization in China for multiple reasons right, because that's what I think that'll be a competitive differentiator in that market. I think it also de-risks us from certain shocks to the system and/or potential tensions between China -- trade tensions between China and the United States.

Amit Hazan

Then, on capital allocation, you mentioned that you've got a pretty healthy balance sheet coming into the crisis, and we certainly thought 2020 we would see maybe more activity from you when you started. Just given the market environment, how long realistically before you start thinking about doing deals? Is it too uncertain at this point of an environment for us to think that you could strike a deal? When's the right time? How much visibility do you need before we could actually see you do some form of M&A again?

Geoff Martha

I think there is enough certainty in environment, quite frankly, and there are -- we do feel the market is coming back and we can debate the speed and what segments are coming back faster, what regions are coming back faster, but overall the recovery there and we believe the market is going to get back to pretty, very healthy levels. And so, it's less of a certainty thing. And if there is a second wave, we believe not just us but the whole healthcare ecosystem is better equipped and the economy is better equipped to handle it.

So, it's not -- we don't anticipate another shut down of the economy like this, we don't anticipate another shutdown of elective procedures. It may slow the recovery down, but it won't shut it down. And so we feel there's an certainty to do M&A and like you said, our balance sheet is strong, and I still think innovation is going to get paid for and create value for this company.

So, we're going to augment our organic innovation with inorganic innovation and some of the assets you might think there'd be a lot of depressed assets, but the ones that we’re interested in, most of their valuation has maintained, I mean they have got access to capital, but there are a couple that maybe the prices were out of range and now have come in range. And so, we're taking another look at them.

Amit Hazan

Okay. That's good color. So one more question before we get into some of the recovery update, and that is bulk orders and just this opportunity around the evolution that you've had prior to the crisis and now into the crisis. So, obviously, this is long history across med tech for end of quarter both purchases, it's not unique to Medtronic. So, the big question we get it from investors a lot is why now? Why Medtronic? Are customers clearly like this for the leverage that they get? And how do you take that away from them? And at the same time, differentiate yourself in a positive way versus your customers versus…

Geoff Martha

We're not going to totally take it away, okay. I would say 30% or so maybe 25% to 30% of our quarter-end deals or bulk deals are customer pool, where they liked buying that way. They like buying in bulk. They expect a certain discount from buying in bulk, but a large piece of this Medtronic also pushing these in order to maintain a certain growth level or what have you. And I just think in certain segments of the Company and with certain customers, it just got too big and it impacted our ability to execute because there's a lot of logistics that have to happen at the end of the quarter.

It makes it more difficult to really understand your market share a position in these customers because that's a big focus area of mine in pushing our team to focus on market share, if it makes it harder to hold your reps accountable. Because when you go in and you're adjusting what you think might be a performance issue, there's all this confusion around the bulk of the quarter end deals. And so, there are a lot of issues that it causes because they've gotten to a certain level. And so our goal is not to sacrifice market share here. And then we're customers that want to buy this way.

We'll continue to support them, but in doing that, we can eliminate quite a bit of these. And I think it's going to make for, I know it's going to make for a healthy business. I think I mentioned this publicly before, when I mentioned this on our fiscal Q3 earnings call. I got a lot -- I got besieged with e-mails from reps saying thank you. I didn't even know our reps listen, so it was the lesson. I didn't know that our reps listened to the earnings call, but apparently they do because they're looking forward to it and I think it's going to help us, but we're not going to give up market share for this. We can still bring this down quite a bit and not -- we won't share.

Amit Hazan

But you have to give up something, right. The comments about the reps, too, I mean, the challenging for them I'm sure because of the pressure on them, but that's the leverage that the other side has. So, it's just not material enough what you're getting, whether its price or something that -- okay, all right. So, so, so let's go to the recovery. You set expectations for Q1 your fiscal Q1 to be, to be lower than 4Q for you. Many of the companies are talking about procedure recovery continuing ahead of plan all the way through their latest update conferences up to last week. I think you've indicated that if the early May trends you saw were 2%, you'd be looking for better results than what you guided to. That's pretty intuitive. How much can you say about May and early June procedure recovery versus what you anticipated?

Geoff Martha

I would say that they continue to outpace what we anticipated, pretty much across the board. There are some segments that are more in line with what we've anticipated, but our cardiovascular businesses, parts of our neuroscience businesses including spine have outpaced what we thought. And so I'd provide an update and say, look instead of Q1 being worse than our Q4, I'd say it should be in line.

And with Q4 and look if these trends consider, if you continue to go up, but the trends we saw in early May, which we talked about in our earnings call have continued and in some cases even improved. And again, it's totally across the board, it tends to make sense with emergent procedures versus more deferrable procedures. All those fine. I got to admit surprises a little bit, that is doing much better.

And it's hard for us to determine also where we're taking share and how much has the recovery, because our cardiac rhythm business has a lot of momentum with their ICD launches that have the remote technology that I mentioned. And our spine business continues to build momentum just in general with robotics and everything. But, but yes, things are things continue to do better than what we had thought.

Amit Hazan

That's good news and good to hear. Let's talk about the regions maybe let's focus on the U.S. first and then we'll come back to Europe and maybe Asia. And in the U.S., I thought what we could do is talk a little bit about high-risk patients in particular coming back to the healthcare system. We're also thinking about a recovery from a trough, but at the same time the CDC released data last week that emergency department visits still are down 26% last week of May. Psychologically that tells us something I suspect about high-risk patients and how they're interacting with the healthcare system.

The new patients funnel, I'm curious in particular, you know, what you're hearing about new patients coming back to clinics and getting into the referral funnel for procedures. So, it's a different way of asking. Is the recovery that we're seeing now mainly folks that have deferred coming back? Or are you -- are you more confident about where you might've expected new patients coming back into the clinic as a rate as well?

Geoff Martha

Yes, it's hard to tell exactly, but you were clearly seeing in addition to this bolus of patients that have put off their care for several months now or several weeks at least. They're moving through this, they're going into the healthcare system and the hospitals have figured out a way to maintain a safe environment and a social distancing and whatnot, and still be pretty productive. So, I think that's what we're seeing.

But in addition to that, clearly, patients are going back into -- new patients are going back into the queue. So, it's a mix of both. What we're trying to figure out now is once this bolus of I'll call them more desperate patients, it gets through. Do we see a step down and then recovery from there? Or do we just keep going? Because these patients are going in, and yes, I just talked to, I'm talking one benefit of Zoom and all this and less travel target.

I am talking to customer a lot more. And so, I got to figure out how to keep that going because I am learning a lot and I think it's helping them, it's helping us. It's not just me or it's our whole leadership team. But look when they're talking to patients, they're saying if you put off scheduling it could be patients and they're telling me patients are entering the queue. But it's hard to quantify it at this point. Because of that one more bullet couple of like two, three weeks ago.

Amit Hazan

And I am just curious. If we take that bullish comment, if we think about elective patients in particular against high risk, could you envision how these elective procedures coming back to a 100% of normal before vaccine or treatment is available?

Geoff Martha

Most of them, yes. I think that what we're seeing and what we're hearing from hospitals. I mean, look, they're working aggressively and we're partnering with them with medical societies as well. We just launched a program with American Heart Association regarding coronary procedures and stroke and things like that. There's a lot of creativity and effort going in to build up patient confidence. And so, yes, I think that even without a vaccine -- now it's different than the office, right? People going back like you and I and our colleagues, going back into the office, I think there's, there's a lot of a number of people that saying in companies and local governments will continue to hold back normal activity in society until there's a vaccine.

But I think I do feel like there are health care. You'll get back to a fairly normal, there are procedures, for example, that have a more challenging referral path like bariatric procedures. And we participate in those. And before you get a bariatric procedure there's all kinds of activity psychological work that needs to be done and nutritional guides that used to be done. Some of that can be done via telemedicine. But those longer, some of those longer referral pathways I think are, and maybe those don't come fully back to a vaccine. But the lion's share of them, I think will actually.

Amit Hazan

So let's touch on hospital CapEx in the U.S. before we move to Europe. And maybe just remind people generally what capital is as a percent of total Medtronic? And a key question here just how you're thinking about the recovery capital versus what you just described for procedures and what you're expecting for procedures?

Geoff Martha

So for us, we do expect capital to lag a little bit, okay, the rest of our business. It's about 10% of our -- let me check. It's 10% of our overall revenue. And it's mainly in our today or a lot of it's an RTG and our neuroscience business units. And -- but I -- it might, it'll lag our more emergent procedure, but I wouldn't lump that in with general capital equipment like general imaging equipment and things like that, because the benefit we have is our capital is tied to profitable procedures. So, we don't run out a general capital equipment provider, like a GE, Siemens or Philips, we're more very specialized imaging, navigation, robotics that are tied to specific, integrated in two specific procedures. And typically our products work better with this capital equipment that's why we're in that business as to enhance the procedure.

What we’re hearing and what we anticipate is that they will not dip down as far as maybe some of these other players that don't have such a clear line of sight to a reimbursed procedure as we do. And so, the other thing that we'll do because of there's a linkage with the procedure and the consumable products that we sell, we have different business models that will enhance this and we'll use our balance sheet as well. This is one of the ways I think we use our balance sheet to help our customers get through this extent their capital budgets are constrained.

Amit Hazan

And we'll get to robotics, hopefully, in a few minutes and talk a little bit more about this. But just sticking with the recovery kind of theme, in Europe, you obviously were impacted as bad, but the numbers were still pretty down a lot at 10% in May, I believe. Has that -- have you -- your comments previously about procedure recovery, does that apply to Europe as well as that covering faster than what you've expected?

Geoff Martha

It is. I think Europe and U.S. in particular are the two that are coming back faster. China has been more of a steady recovery. I would say compared to initial thinking, because remember this started in China lot sooner and compared to our initial thinking back in, I'll call it January timeframe. China's gone a little slower, but since it's been on a steady recovery since then, I think we underestimated and didn't fully understand some of the social distancing and the quarantining requirements. The ways that Chinese healthcare system is set up with the base with the more advanced procedures are done in these tier one cities.

So if you're going to go to Beijing for a procedure from an outline, rural city, you have to stop quarantine for two weeks afterwards. And so it's just, plus in China the equipment before patients to a room and analyze only one because social distancing. So it's impacted their productivity and it's a patient hassle factor of having to self quarantine. So, it's been more of a steady increase there, but Europe, but nothing surprising over the last month or two. It's been steady and then Europe and U.S both faster than we anticipated.

Amit Hazan

This one category specific comment and then we will move on. TAVR is obviously just something that investors care a lot about, so I am just curious how that they think of what you described? Has that -- it didn't seem to decline as much as some others categories, but just how do you think about that recovery versus your comments? And then looking forward, is TAVR one of those referral patterns that should recovery fast age-related as well and high-risk patients, but at the same kind of very necessary procedures? Just how you're thinking about that recovery versus broadly the comments you made about procedures for Medtronic?

Geoff Martha

Well, the hospitals are working through their RA referred patients. And we're seeing, again, they're two patients entering the referral pathway. And so, I wouldn't put this on the fastest recovery. It's more middle to fast and we have a couple of things factoring in here, right. So, we got the data that we talked about at ACC and that's helping us. We've got a bunch of new reps that if you recall, we did, we didn't -- we underestimated I think the amount of reps we would need for this as the low-risk indication came to be.

And so, you know, those reps are now getting gone through their training are hitting the market. Plus, we have the -- all hemodynamic data, the information that came out at ACC. So, that's helped us as well. So, I would put the, the recovery on TAVR to be somewhere the between and the fast, probably closer to the medium side of things. And then, we're seeing some other tailwinds relative to like our Q3 performance.

Amit Hazan

Okay. Let's go back to the reasons for a second. I didn't ask before, obviously, Latin America, Brazil in particular is a developing story since the last time we talked. Do you want to just remind people what percentage of revenues Latin America is for you guys? And just color on development there? Is that an area that you're getting more concerned about? Or what's the impact to Medtronic?

Geoff Martha

It's not huge, I mean, it's sort of 3% of our revenue, Latin America, and I think Brazil is roughly like a third of that. And so, clearly, it is in more of the peak if you will of the pandemic impact. And -- but we're continuing to working with our customers and our team down there, but it is relatively small for us.

Amit Hazan

Okay. So, one of the things, we're obviously encouraged to hear everything you said. Hopefully, we'll hear that throughout the day and in terms of the recovery, but we're all thinking about the uncertainties of what could happen in the second half of the calendar year. So you guys, I'm sure, look at all kinds of scenarios and I'm curious, what the downside case looks like for you? So, you're obviously looking at some of those uncertainties, it's possible, so whether we think about that as infection rates rising, what have you in the U.S. and Europe, again, in the fall. Can you talk through your preparation for a downside case? And what incremental actions you would take at the management team, if that were to develop?

Geoff Martha

Well, I mean, first, we learned a lot from the first go around here and so has the healthcare system. So, if there is a "second wave", like I said earlier, I don't -- I think everybody the hospitals, physicians, industry, patients are better equipped to deal with it. And I don't anticipate a shut down again. And our approach would be largely the same. I mean besides the lessons learned, which I think will make it more efficient, we want to continue -- we have -- look, we have a pretty healthy product cadence coming hitting the market now.

And we've been working on this for a number of years and the team is focused on making it count, making it count and driving incremental share for us. And so, I want to keep our team focused on that, keep all the way from operations in terms of making sure that the manufacturing plants are opened up and running smoothly, to our distribution centers, through our sales team, that they can focus on, on the customer. And then working with customers on -- the other thing that we're preparing for here is, customers have to do more with less. I mean -- and that means less vendors.

I mean they just can't understand like "audit" so many vendors coming in and out of the hospital. And so you have to work with them and make sure you reps tested and they understand the protocols. And so the safety is a big deal and they just are more careful about what vendors they're going to let in. And so this is an opportunity for companies like Medtronic, that one, we have the scale and the breadth of portfolio. The two, over this crisis, we've been able to work with them proactively versus -- and our reps versus having to worry about their jobs or whatnot. And so, I would largely take that approach.

Now, the other thing that we'll constantly look at here is expensive. If we think there's -- we are having contingency plans, if we're caught by surprise in this and we need to kind of right size our expenses. We'll do that and we've got experience from the Covidien acquisition. That integration, I personally where I personally was involved there and taking out over a $1 billion of cost in a way that you can keep the organization going.

So I think we're putting those contingency plans in place, but our thinking right now is that this is an opportunity for us to, even though revenue is lower than and EPS is lower than I've ever thought it would get. If we do think it is coming back and so opportunity for us to change our competitive -- improve our competitive positioning.

Amit Hazan

Let's talk about a couple of product categories that interested in is the surgical robot, obviously being towards the top of the list of exciting new product opportunities you have. What I'd like to do is just first kind of make it clear what the most recent delay was about. Is it all about COVID related? Or is it also an issue around software? And if so, how much can you tell us about the challenges -- software has been something that had come up in prior delays as well, about just the challenges this time around, as it relates to software. And we all get, this is a very complex system, but just would love a little bit more color on what's going on specifically with the delay.

Geoff Martha

The software -- again, we're just addressing head on the software delays that we've experienced over the last year or so. Those, I would say, we believe are behind us now. And, you can see, I just had a review and this is an area that I've asked, Omar because, if you recall more is an engineer by training and is very good at these project management and he gets a lot of energy from this, but he's working with Bob White and in our robot team on a project basis.

And they -- I was with those guys the other day and they showed me the -- you could see where as we’re burning down software risk, there's a graph. The lines weren't going down. The risk wasn't going down for a number of months earlier in 2019, which caused the delay, but there's been a steady reduction of the risk.

And we've gotten over several internal hurdles either, milestones, if you will, in our development process and are feeling very good that the software issues, which had been the ones that have been causing delays, because it is like you said, a complicated system and we want to make sure we get it right. So, we do think those are behind and now we're into this preclinical testing.

And unfortunately the preclinical and the clinical work is -- and that tends to involve more face-to-face and bringing people together, including third-party physicians, not just employees, that is the primary delay here. And I hate to say, it the most recent delay. I mean, I am going to own it that we've -- this robot, we've had the delays on and under club some of the development requirements, that’s a legacy Covidien, this is the biggest R&D program they've ever taken on and it is very complicated.

So -- but that being said, we're feeling good about it. And exciting it and excited with this clinical work going. But that is really the bulk of the delay and it was also exacerbated a little bit by the fact that, a lot of this work is up in the Northeast in the Boston area where the coronavirus and the restrictions were much tighter than like what we were experiencing in the Midwest here. So -- but that's how I provide the color. We feel much better, not that we didn't feel good before, it just, wasn't certain. And we're feeling -- you're never 100% until it's -- you see it out there working on patients, but feeling pretty good about things now.

Amit Hazan

Do you have enough visibility to say kind of like you did prior to the crisis we all had kind of a sense of timing for seeing marking at least and ask with the FDA. Are you able to say today, whether, the timelines we should be expecting for…

Geoff Martha

Yes, we haven't really changed those timelines. I was just looking at these -- we really haven't changed. I think we said on our third quarter earnings call that despite some of the delays, we felt like we would be able to hear our regulatory timeframe. And so, we haven't updated those yet because of the preclinical work. So, we haven't moved down from that Q3 earnings call because we give you new dates and I want to make sure we have high degree of confidence. And we’d love to see how effectively we are in this COVID time period for you to new dates on that.

Amit Hazan

We have a minute left, let’s hit diabetes. It's another area where people are excited about some of the products you've got coming in. And the 780G is kind of maybe most imminent in terms of impact. So here too in -- as best you can in a minute, apologize for that, just give us a sense of what exactly happened there to cause a little bit of that delay and what you can tell us about timing of getting the 780G out?

Geoff Martha

Well, we'll be going through the 780G data this week at ADA and as well as the CE Mark data and we just got CE Mark in Europe. And so, we'll be talking about this week at ADA. And the reason we decided to celebrate the 780G is really, there was a lot of, quite frankly, a lot of pressure to get something out there for that younger age range.

And it does have this -- you're basically getting the 780G device without some of the algorithms, which we can now do kind of over the year updates. So in order to get this out there to serve a certain younger patient cohort, as you know, the diabetes patients are pretty vocal. And so, we wanted to take care of that because the 780G data and we just weren't ready.

So we'll talk about that this week, but we're excited about this. We think we got the best clinical outcomes you're going to get here. And I feel good about where that -- where the whole team is headed with Sean Salmon there running that business. He's probably, if not the best, one of our top product development guys in the Company.

Amit Hazan

Great, well, we're just out of time. And so Geoff, I want to again thank you for your time for taking the time to be with us today. I know it's busy out there. And best of luck to you today and we'll talk to you soon. Everybody else, we'll talk to you in a few in the next presentation.

Geoff Martha

Thank you, Amit. Thanks everybody. This has been fun. Thank you.

Amit Hazan

Thank you again. Bye, bye.