Greetings, and welcome to the CryoLife 2020 first quarter financial conference call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lynn Lewis from Gilmartin Group. Thank you, Ms. Lewis. You may begin.

Good afternoon, and thank you for joining the call today. Joining me today from CryoLife's management team are Pat Mackin, CEO and Ashley Lee, CFO. Before we begin, I'd like to make the following statements to comply with the safe harbor requirements of the Private Securities Litigation Reform Act of 1995. Comments made on this call that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements made as to the company's or management's intentions, hopes, beliefs, expectations or predictions of the future. These forward-looking statements are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from those forward-looking statements. Additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today. With that, I'll turn the call over to CryoLife CEO, Pat Mackin. Pat?

Thanks, Lynn, and good afternoon, everyone. I appreciate you joining us. Before I discuss CryoLife's achievements from the last quarter, I want to express our heartfelt thanks to the healthcare providers on the frontlines battling the COVID-19 pandemic. Having worked alongside these dedicated professionals for many years, their commitment does not surprise me. Our industry is filled with remarkable individuals whose purpose is to assist those in need. I also want to acknowledge our employees and partners at CryoLife. Our team is working diligently to ensure that our products are available to save or enhance lives worldwide. Today, I will provide an update on our expected performance during the COVID-19 pandemic and our progress towards our goals this year. Ashley Lee, our CFO, will cover our first-quarter financial results, including details about our loan structure and liquidity. After that, I will make some closing remarks and invite your questions. It's clear that the COVID-19 pandemic has impacted CryoLife and nearly every other company globally. However, our strategy to drive higher growth while investing more to support that growth remains unchanged, aside from this temporary disruption caused by the pandemic. We stay cautiously optimistic; even through the worst of the pandemic, we've managed to maintain relatively normal operations, reach key objectives for long-term growth, fund critical R&D projects, and ensure liquidity for the near future. Additionally, many of our products are involved in procedures that cannot be postponed, even during a pandemic. Looking at our achievements, we had a strong start in the first quarter, which was proceeding well until the effects of COVID-19 began to manifest in March, particularly beyond China. In the first quarter, we restored the CE Mark for AAP, acquired CE Mark for E-vita OPEN NEO, improved our supply of JOTEC products, and our clinical trials for significant growth opportunities were progressing as planned. Despite the pandemic beginning to impact us in mid-March, we posted Q1 revenues of $66.4 million, a decrease of 2% compared to the first quarter of 2019, and less than a 1% drop on a constant currency basis. Excluding TMR, our growth for the first quarter would have been around 1% to 2% over the same period in 2019 on a constant currency basis. I believe we are well-positioned to navigate through the COVID-19 challenges and have a solid year in 2021. I want to share my expectations for our business performance in 2020 based on current information. Typically, we wouldn't address certain aspects of our financial performance beyond quarter close, but we feel it's essential to provide you insights on how we expect the pandemic to impact us in the following quarters. The virus and its effect on the global economy have been unpredictable, and likely will continue to be. However, we anticipate that April will be our weakest month year-over-year, and Q2 will likely reflect the weakest quarter month-over-month. While we are still finalizing our April revenue results, we expect them to show a decline of roughly 40% compared to April 2019, and we anticipate sequential improvement in our revenue in May and June, as well as throughout Q3 and Q4 relative to Q2. There are two main reasons for our belief in these improvements. First, even during the peak of the pandemic, our business remained robust because up to 50% of our products are used in non-elective procedures that cannot be postponed indefinitely. In March, the main U.S. government healthcare agency recommended which surgical procedures to avoid during a pandemic, and about 50% of our sales derive from these procedures. Products like BioGlue and E-vita OPEN are utilized in urgent surgical situations, and vascular tissue products are critical for limb salvage operations. Based on the CMS recommendations, we estimate that 40% to 50% of procedures involving our products wouldn't be postponed in March and April. Furthermore, our sales team's productivity has been commendable; they have remained active globally, ensuring the supply of our devices during emergency procedures and maintaining customer service and patient care. Second, we foresee revenue improvement moving forward. April likely marked the peak of the lockdowns in the U.S. and Europe, where we faced a 40% reduction in business, a result better than what our models predicted based on CMS guidelines. We are already observing hospitals in the U.S., Europe, and Asia beginning to reschedule more elective procedures. The procedures not performed in April were largely elective but given the progressive nature of the diseases our devices treat, such as aortic aneurysms, they cannot be delayed for long. Therefore, while accurately projecting our revenue for the remainder of Q2 amidst the uncertainties remains challenging, we believe revenue performance will markedly improve in May, June, and thereafter. On the expense side, we've made significant efforts to cut costs and bolster liquidity during Q2 and Q3, as we believe these will be the toughest months for CryoLife due to the pandemic. We're safeguarding cash and liquidity in the short term, while also investing for growth post-pandemic. To this end, we have continued funding R&D programs, particularly those that will drive revenue in 2021 and 2022. Ashley will provide details on the specific expense reductions we've implemented and their anticipated impact on the business. Moving to manufacturing, we’ve not encountered significant supply chain issues to date, and our three manufacturing facilities have maintained almost full production capacity during the pandemic since we instituted mandatory work-from-home measures in mid-March. We’ve implemented protocols to ensure the safety of the employees who need to be onsite. In past earnings calls, we've discussed challenges in meeting demand for JOTEC products and how that affected our revenue. We believe the slowdown in elective surgeries due to the pandemic will increase the likelihood of improving our JOTEC inventory position over the next 90 days. We are also progressing with our second sourcing sewing supplier, which we expect to contribute to JOTEC production by the fourth quarter of this year. A frequent question during this crisis is regarding our liquidity. As we announced early in the crisis, we took precautionary measures to enhance our liquidity, including drawing down our $30 million line of credit under our facility. We've also renegotiated our maintenance covenant under the facility for the remainder of 2020 and into 2021. During this period, compliance with the covenant will only be necessary if we make specific restricted payments or if our combined cash and undrawn credit fall below $12 million. Given our current cash balance and business projections, even without additional actions for liquidity, we do not expect to fail this covenant of our amended credit facility. Despite the pandemic, we are positioning ourselves for future growth. We are making strides with our next-generation JOTEC products, aiming to introduce three new products in NEXUS in the EU. Our teams are preparing for physician training and building inventory to support the product launches; we have ample NEXUS stock. In 2020, we still plan to execute limited and full market releases for E-vita OPEN NEO, E-nya, E-nside, and resume the launch of NEXUS. With surgeon training and product launches set for 2020, and full inventory available for each product, we'll be very well-prepared to market these in 2021. Additionally, we have received Breakthrough Device designation from the FDA for our next-generation frozen elephant trunk, E-vita OPEN NEO, and Endospan has similarly achieved the designation for NEXUS in connection with its IDE. This recognition suggests that both devices may offer superior treatment for certain aortic diseases compared to existing products. It also aims to expedite the FDA evaluation and commercialization process for E-vita OPEN NEO and NEXUS, allowing more patients to access these devices sooner. On the PROACT Xa trial, we successfully held our investigator's meeting in the first quarter with participation from over 40 sites virtually. This trial aims to assess whether patients with On-X aortic valves can be safely and effectively managed on Eliquis instead of warfarin. If the trial meets its primary endpoint, we believe the On-X aortic valve could become the leading product in the mechanical valve market, also taking market share from existing bioprosthetic valves. While our investigators are ready to start enrollment, it may be delayed due to the COVID-19 pandemic affecting hospitals’ ability to carry out clinical trials. In the meantime, we continue progressing with IRB approvals and contract negotiations. Lastly, in February, we renewed the CE Mark for our ascending aortic prosthesis, known as the AAP, which had been suspended since late 2016. We now have a complete range of On-X products available in Europe, enhancing our competitiveness and opportunities for market share growth. The AAP is indicated for treating damaged or malfunctioning heart valves in the aortic position involving ascending aortic aneurysms, conditions present in about 10% of all aortic valve replacements. We are pleased to have this product back in our portfolio. Now, I'll turn the call over to Ashley for a detailed financial review of the quarter.

Thanks, Pat, and good afternoon, everyone. Total company revenues were $66.4 million and slightly behind the first-quarter 2019 due primarily to the absence of TMR revenues and the impact of our business from COVID-19. Results are slightly higher than the amount we announced on April 1 and just below our original range of revenue guidance of between $67 million and $69 million. Overall, revenues declined 2% on a GAAP basis and declined 1% on a constant currency basis. In the first quarter of 2020 versus the first quarter of 2019, tissue processing revenues increased 5%, On-X revenues increased 4%, BioGlue revenues decreased 3%, and JOTEC revenues decreased 4%. Performance in each of these product lines was adversely affected by the COVID-19 pandemic. Our gross margins were 66.5% for the first quarter and reflect better OUS distributor performance versus performance in our direct markets, especially in EMEA where performance was impacted by COVID-19. On the bottom line, we reported a GAAP net loss of $6.7 million, or $0.18 per fully diluted share, in the first quarter of 2020. Non-GAAP net loss was $3.0 million, or $0.08 per share. Net loss on both a GAAP and non-GAAP basis reflects a $3.7 million pre-tax loss, or $0.07 per share, primarily related to non-cash unrealized foreign currency losses on intercompany payables. Please refer to our press release for additional information about our non-GAAP results, including a reconciliation of these results to our GAAP results. As of April 24, 2020, we had over $63 million in cash and cash equivalents. I would like to take a moment to talk about our capital structure and measures we have taken to ensure that we will have more than adequate liquidity to support our business for the foreseeable future. We are continuing to monitor our expenses carefully and have significantly reduced our spend for Q2 and Q3. These initiatives include: a hiring freeze, unless related to manufacturing, sales and other critical positions; a reduction in discretionary spending; restrictions on non-essential business travel; deferment of merit increases for members of top management; and a temporary slowdown of most clinical and R&D programs that are not directly connected to revenues before 2023. Additionally, for six months we have imposed senior management cash salary reductions in exchange for cash payments in the second quarter of 2021. And our board of directors will receive CryoLife stock in lieu of cash compensation. However, we are, as Pat said, continuing to invest in clinical and R&D programs related to products that could deliver revenue in 2021 and 2022, including our PerClot PMA, BioGlue in China and ProAct Mitral. In addition to expense reductions, we have taken additional measures to ensure we can support our business model and growth initiatives and comfortably service our debt. On March 27, 2020, we borrowed $30 million under our credit facility to maintain financial flexibility during the uncertainty stemming from the COVID-19 pandemic. We will also benefit from a significant reduction in capital expenditures, favorable tax provisions of the CARES Act and other tax deferral benefits made available by OUS governments. Finally, as Pat said, we have successfully renegotiated our credit facility to modify our debt covenants to reduce the risk of a covenant compliance issue or loan default. With the spending reductions we have put in place and the credit facility covenant modifications, we believe we have ample liquidity for the company. Due to the potential for continued uncertainties from the COVID-19 impact, we will not be reinstating 2020 revenue guidance at this time. I will turn it back to Pat for his closing comments.

Thanks, Ashley. So as you've heard, 2020 was off to a good start prior to the global pandemic. But at least for the near term, we have shifted from offense to defense. Times like these are putting every company to the test, and I can say with confidence that we are well-suited for the challenge. The bottom line is that the products that we make have a fairly durable demand profile, even during the pandemic, and their use either cannot be delayed or can only be delayed for so long. We estimate that about 50% of our business falls under the non-deferrable CMS procedure categories. And we're beginning to see the deferrable procedures rebound, which is the other 50% of our products. We expect our recently approved JOTEC products, as well as NEXUS, to be rapidly adopted by clinicians, given these products' strong clinical differentiation. The company is sound financially. Our manufacturing operations, supply chain and commercial teams continue to function at near full capacity. We are working hard to support our customers with an uninterrupted supply of products and case support, while reducing expenses that will not impact near-term revenue or long-term prospects for the company. I am confident we have taken the right steps to ensure we are positioned to deliver on our initiatives over the next several months. In sum, looking past the next couple of quarters, we are poised to enter 2021 from a position of strength with the following programs: the limited and full market releases for E-nya, E-nside and E-vita OPEN NEO will be complete; JOTEC supply issues will largely be resolved, as well as our second source supplier will be onboard and contributing by the fourth quarter; we'll be relaunching NEXUS in 2020; the reintroduction of our AAP On-X device in 2020; PROACT Xa enrollment in 2020; BioGlue China approval in 2021; U.S. PerClot approval in 2021. So as the COVID-19 pandemic continues, I want to close by thanking our team for their continued commitment to our mission to improve the lives of patients with aortic disease. I commend you for what you're accomplishing during these challenging times, and I've never been prouder to lead this exceptional company. With that, I'd like to open the lines for questions. Operator, please proceed.

Thank you. Our first question comes from Jason Mills with Canaccord Genuity. Please proceed with your question.

So, the question is really about 2021, but let me add some context. We really want your perspective on conversations with physicians and hospitals and how they're thinking about capacity through this year. And then as you get into 2021, are they expecting to be at full capacity for "elective procedures"? And I understand there are varying degrees of electiveness or deferability. But just in general, procedural volume running through the hospitals within your target markets, I guess in both the United States and Europe, are they expecting to be running at 100% of capacity by the end of the year, or will capacity take in for a while to prepare for any relapse of COVID in any geography? I guess that's what I'm trying to get my arms around for everybody.

I can provide some insights based on conversations I've had with various hospital executives and surgeons globally. Our observations, which have been reflected in the media, indicate that the pandemic doesn't affect all areas simultaneously. As a result, different locations will experience peaks and troughs at different times, which helps to moderate the overall impact. I'm pleased to report that despite what we considered to be a challenging month in April, 60% of our procedures were still completed. This is notable due to the lasting nature of our products. The remaining 40% consists of more elective procedures, which, as you know, cannot be delayed for too long—for instance, with worsening aneurysms and heart valve issues. We're already hearing that several states and cities are starting to reopen for these procedures. Some hospitals are planning to operate seven days a week, while others are aiming for six days a week. I cannot predict how long they will maintain this schedule, as the situation remains unpredictable due to the virus. It wouldn’t be fair for me to assume I know exactly how things will evolve. However, I can say that hospitals are facing significant financial challenges and are eager to resume normal operations. Many large institutions geared up for a surge of COVID-19 cases that never materialized, leading to unoccupied ICU beds and operating rooms. We are starting to see these facilities ramping up their activities again. While specific cities may face setbacks, others will likely return to full operational capacity, balancing those fluctuations. Hospital leadership has clearly communicated their intention to ramp up beyond five days a week.

And then just as a follow up, either Pat or Ashley, with respect to your operational expense infrastructure, you've obviously had to make some difficult choices. You mentioned you're on the defensive now. But when you do go back on the offensive, have you found, do you think, operating expense cuts, projects or perhaps efficiencies that you can continue to garner well after the COVID crisis has dissipated? In other words, have you become can you become more efficient? Is that a silver lining possibly after this crisis has abated? Thank you, and good luck with everything.

I think one of the things we've talked about, this is a balancing act. As I started off the call, really nothing about our strategy's changed. I think we're very confident with our strategy to focus on patients that are suffering from aortic disease, and we've ramped up our spending to fuel future growth, because we believe that our current platform with our pipeline can really start to accelerate growth here. That being said, we've obviously had to shift to defense just because of the nature of this pandemic hitting our procedures. Now, I don't think we've been hit as bad as a lot of companies have been hit. The fact that we delivered 60% of our revenue in the worst month is very reassuring and really provides us a lot of strength as it relates to our cash balance and our liquidity. As far as the expense side, I do think one thing you're going to see from everybody is the travel budgets were probably going to be down for a while. I don't think you're going to see a lot I mean, I had a trip to go to China in July. I don't think that's probably going to happen. So I do think there's going to be a total whether it's WebExes and working from home or telecommuting or whatever you want to call it, I do think that the travel spending is going to come down for a lot of people. I also think there's ways, I think, you know, necessity is the mother of all invention. I think our employees have been extremely responsive. And function, just as an example, our finance organization, on March 13, we told everybody that could work from home would work from home. Obviously the people who work in the factories and the sales teams that are out in the ORs couldn't do that. But everyone else started working from home, and that's been almost seven weeks. Our finance team went through their full Q1 audit remotely and did a fantastic job. So I do think it's created a whole lot of new efficiencies. Whether that's going to play out on our expense budget, I haven't I'm still trying to get through Q2.

Our next question comes from Mike Matson with Needham and Company. Please proceed with your question.

This is David Saxon, on for Mike. Thanks for taking the questions. I guess I just wanted to start taking a look back at Q1. Can you talk about the growth you were seeing in January and February and then when in March you saw some disruption? And then second to that, I hear your comments around being down around 40% in April. Can you give any color on what you're seeing exiting the month, if you're seeing any improvement?

We don't typically provide weekly data during quarters; that's not something we've done in the past, and we won't change that. We shared April numbers this quarter due to the pandemic, which we thought was a positive development. Regarding Q1, we were on track to meet our guidance and fell just $0.5 million short. We maintained a solid trajectory throughout the quarter, although we did experience a significant decline in procedures starting March 15. The last two weeks of March were quite comparable to the same period last year, even with the pandemic impact, indicating we were performing better than expected. In April, we've noticed a consistent improvement in revenue week over week. Each week shows stronger revenue as more elective cases are returning. We're only one month in, which offers limited insight, but we believe the worst is behind us based on current trends. Many operating rooms are beginning to reopen, so we anticipate positive changes ahead. We expect May to surpass April, and June should be even better than May. We will see how Q2 unfolds, but we are optimistic based on the indicators we are observing for our business.

And then just with the limited launch with the three JOTEC products in Europe, can you just talk about the initial feedback you're hearing from both the physician community and maybe the sales force as well?

We were preparing for product launches, but there have been delays. For these launches, we need to train the surgeons and conduct cases. None of the three JOTEC products have started their limited market releases yet. We anticipate that the NEO will begin in Q2, and we expect to see cases for that since those procedures were performed at the peak of the pandemic in regions like Italy and Spain. We plan to start the NEO's limited market release this quarter, followed by E-nya and E-nside, and will provide updates in the following quarters.

And then just last one for me, and then I'll hop back in queue. I thought in your closing remarks I heard you're expecting BioGlue in 2021. I guess any update there? Has there been any positive movement on the China front?

We have been going through the approval process for about a year, and it typically takes around one to two years for this type of product, which includes a clinical trial that usually takes longer. We had planned for an in-person panel meeting with the Chinese FDA in March, but due to COVID-19, that couldn't happen. Instead, we held the meeting remotely via WebEx. We received some questions from the Chinese FDA and will be addressing those as part of the usual process. We are optimistic about getting this product approved in 2021.

Our next question comes from Suraj Kalia with Oppenheimer and Company. Please proceed with your question.

So, Pat, obviously, you guys did pretty well in Q1. Understanding the lack of visibility with Q2 and Q3, let me come at it from a different angle, Pat. One of the things that companies across the board are there's this notion out that there is pent up demand. I'm just asking for your general opinion. But what you're also picking up in the field, Pat, is that a number of these patients, especially emergent procedures, there are deaths that are happening that are not reported and probably won't come back. Love to get your thoughts on what kind of visibility do you all have in the patient funnel specifically for CryoLife and in general?

I've spoken to some doctors about this, and it makes sense logically. However, it's challenging to determine the impact because we experienced a period of nearly two months during which many elective procedures were not performed. Unfortunately, some patients who may have needed those procedures might not be around due to COVID-19 or other reasons, which adds complexity to the situation. We lost two months of cases altogether. So, we need to consider how that affects the overall patient flow. There isn't an established reference to consult for something like this. The information I have comes from field reports, and I just learned that a hospital is scheduled to implant seven to ten On-X valves next week, indicating that there is significant pent-up demand. Regarding the eight weeks of elective cases that didn’t occur, I can't determine how many will actually be completed since some patients might no longer be available. However, I assume that because those two months are lost, the situation will eventually balance out.

And, Pat, just hopping in between calls, maybe you guys already talked about PROACT Xa. Any update there on delays? Your update on the process?

We were initially scheduled to hold an in-person investigator meeting in early March, specifically the second week. However, we opted to switch it to a virtual meeting, which was well attended, with around 40 of our 60 sites participating in the kickoff. We’ve made significant strides in getting IRBs and contracts in place, with a couple of sites already approved to begin enrollment. As a result, we are close to starting enrollment for the trial. However, some centers, particularly those in areas affected by COVID-19, have had their hospital resources redirected, which may delay the start-up. Nonetheless, we are progressing well in getting our centers operational. Notably, this trial is unique because it involves a drug that patients already have, meaning they won’t need to visit the hospital, as we will be shipping them the medication. The main challenge remains navigating the hospitals' IRBs and contracts given their resource limitations.

Thank you. Our next question comes from Jeffrey Cohen with Ladenburg Thalmann. Please proceed with your question.

So a few questions. I guess firstly, Ashley, it looked like the SG&A was a bit heavy for the quarter. Were there any one-time items worth calling out? And then looking forward, as you talk about the net reductions of procedures for April and through to Q2 and Q3, could you talk about what we might expect on that line item as far as reductions based on a previous year or Q1?

So for Q1, Jeff, as we spoke about in the fourth-quarter conference call, this was going to be a year of investment for us, especially in channels and other areas to support the growth in the business. And so when we came into the year, actually we started spending money, January and February. And it wasn't until we got into the March time frame when it became apparent that COVID was going to have an impact, and we immediately put the brakes on a lot of the programs that we had. So I don't know if there's really anything in specific to call out other than like the corporate rebranding project that we spent $300,000 on. We have now put a halt on that program. But other than that, Q1 is typically a heavy quarter for us because we have sales meetings and lots of congresses and so forth. Going forward, I don't want to get into specifics from a percentage standpoint or quantify what the expense cuts are. Because based on the revenue progression that Pat laid out earlier in the call, we have cut expenses accordingly to ensure that we have adequate liquidity for the foreseeable future. Now, with that being said, if revenues perform better than what we're anticipating, we're probably going to spend some more money and start reinvesting again. And if for some unforeseen reason and unfortunate reason revenues are worse than we anticipate, let's say there's another breakout, then we have additional levers that we can pull to even cut back even further on spending. So, I don't know if it's really constructive to give you a percentage that we've cut our expenses, because it's going to be a moving target and it's going to be largely dependent upon how the top line plays out.

So one of the things Ashley mentioned in his remarks was this is one of the projects on the R&D side that we've kept full funding for BioGlue in China, full funding for U.S. PerClot, full funding for ProAct Mitral in the U.S. And the testing and basically the package that has to go in for the U. S. PMA, the R&D team is still working on that, and we're planning on submitting at the end of this year. So that work is still ongoing.

And then lastly for me, did the AAP for Q1 have much of a chance to embed within the sales organization outside the U.S. And if so, was there any pickup from kind of that feeding the portfolio for JOTEC and vice versa? Or there wasn't much of a chance to...

It came, the CE Mark, by the time the CE Mark got here and we had to do all the paperwork and the labelling and all that kind of stuff, by the time we landed it in Europe was kind of when Italy and Spain were going through the peak of their crisis. So I think it was modest to some distributors, but it wasn't significant in the quarter.

And then lastly for me. I know you've been asked a few different directions, from a few different directions. So it sounds like on the elective side, generally speaking, that through a transition back to getting the elective procedures, there may be some bolus where there's some catch up phase in a number of institutions. So perhaps if X was the previous run rate, that that may be X plus something as far as catching up. Is that how we should read into it when you're talking about procedures being done six and seven days a week?

I think, so it's really hard. This is part of the challenge that we have. It's really hard to predict what 1,000 heart hospitals are going to do. Every one of those cities has different dynamics going on with their ICUs or not. What's the hospital's financial position? I think one of the real advantages for a portfolio like ours is the cardiac procedures tend to be the most profitable procedures in the hospital. And I've heard centers say they're going to prioritize the cardiac procedures. So, again, I can't predict what's going to happen. I do know that I'm hearing from a number of centers that given the slowdown in the ORs, that they're looking to ramp up their ORs to pick up these elective cases, which is obviously going to be helpful, number one. Number two is that there's a big backlog, and they're going to work, whether it's six days, seven days, I think it'll be different in every hospital. But clearly they're going to be trying to make up for some of these lost procedures and to make sure these patients get treated appropriately.

Thank you. Mr. Mackin, there are no further questions at this time. I would like to turn the floor back over to management for closing comments.

We appreciate you taking the time for this call. We hope everyone stays safe and healthy. The past seven weeks have certainly been interesting. I want to thank our team for their efforts. Our three manufacturing facilities have continued operating smoothly, and our commercial team has been actively managing cases even during the peak of the pandemic. It has been a balancing act, and we have taken the necessary steps to navigate through Q2 and Q3. We are pleased to report that we managed to deliver on 60% of our procedures during what we believe was our toughest month. We expect improvement in May, June, and Q3 compared to Q2. We are optimistic about the future and excited about 2021. We have three JOTEC products and the new NEXUS product coming, along with improvements in our supply chain, the PROACT Xa trial, and upcoming launches for BioGlue in China and U.S. PerClot. We feel very well-positioned and confident in managing through these circumstances. Thank you for your attention during this call.

Ladies and gentleman this concludes today’s teleconference. You may now disconnect your lines at this time. Thank you for your participation.