CVRx (CVRX) investor relations material

Sales force transformation and productivity

• Undertook a significant sales force reset in early 2024, with deeper cuts and backfilling in Q2, resulting in a largely new team compared to the prior year.

• New hires are experienced, often from major medtech firms, and bring a systematic, disciplined approach to driving therapy adoption.

• Ramp-up to full productivity for new reps varies from 6 to 12+ months, depending on territory maturity and rep background.

• Target annual revenue per rep is $1.8 million, up from the current $1 million, with each rep managing 3–5 active centers.

• Currently at 50 active territories, adding about three per quarter, with normalized turnover rates after earlier transformation.

Market adoption and barriers

• Key barriers to adoption are clinical awareness, evidence, and reimbursement, not therapy quality or procedure complexity.

• Ongoing investments in clinical evidence, including real-world data and a planned major RCT, aim to address physician and payer concerns.

• Reimbursement has improved, with permanent inpatient and outpatient rates at $45,000 and a new Category I code expected to ease payer denials.

• About 20% of accounts perform at least one implant per month, with top accounts exceeding 10 per quarter; focus remains on deepening account productivity.

• Competitors' reimbursement wins are seen as positive for overall market growth, with ample patient population for multiple players.

Clinical evidence and trial plans

• Real-world evidence, such as the Premier database study, showed an 85% reduction in hospitalization, supporting payer discussions.

• A new RCT is planned: 2,500 patients, randomized 2:1, with a composite mortality/morbidity endpoint, expected to take 4–5 years to enroll and 2 years of follow-up.

• Estimated trial cost is $20–30 million, spread over 5–7 years, with CMS Category B coverage offsetting some costs.

• The trial aims to expand the therapy's indication, potentially tripling the addressable market.

• The trial design and patient selection reflect feedback from clinicians seeking broader eligibility criteria.