Neuropace, Inc. Common Stock Wells Fargo 21st Annual Healthcare Conference

Good morning. Jumping right in.

I think it is a little bit of all of it. At the end of the day, the product has been on the market for a little over 10 years. Neuromodulation is clearly an area, we describe it as the next frontier in terms of medical device and medicine. If you think about the number of patients that are out there is about 3.6 million people in the U.S. that suffer from epilepsy. About 1.2 million of them are drug resistant. Only about 75,000 or so will actually make it to what we call a Level 4 comprehensive epilepsy center. Of that 75 amount, 15,000 will actually get some sort of medical intervention. It is an extremely under-penetrated market.

Where we see the biggest opportunity is the ability to continue to drive within those Level 4 CECs, and get more adoption within each account. But at the same time, trying to increase not only the number of patients that go to a Level 4, but also the number of patients that eventually go and get some sort of neuromodulation. I think a big part of it is awareness. I think, when we hear stories about patients that have suffered from epilepsy for years, decades, one of the first things you ever hear them say is, "I wish I knew about these options sooner." I am sure we will talk about IGE and some other things and some of the adoption dynamics, but I would say overall awareness within the patient community needs to be higher, as well as within the physician community.

We are beginning to start that.

Yeah. We started, probably, maybe over almost two years ago. The thought behind that was to focus on how do we get more awareness in the channel, especially out in the community setting. I mentioned this concept of a Level 4 comprehensive epilepsy center, a Level 4 CEC. For patients to get to there is only about 250 of those across the U.S., so if you are not in a major metropolitan area or further away, then how do we get you, right? How does a doctor be able to advise you on what your options are? At the same time, we started Project CARE, and the concept behind that was more in the community setting. We haven't broken it out as much in terms of the number of patients we see.

I think that gets down to what we are seeing is really the adoption dynamics related to the indication we have today. Right now, we are indicated for adult focal epilepsy. Most of those patients, just because of the nature of that disease state, they do require to go to a Level 4 because they require a full workup, including what we call a stereo EEG at the end of phase II, is what we call it. Fairly invasive, time-consuming step in order to identify where exactly the epilepsy is happening within the brain.

As we think about other expanding indications, which I know we will talk about, we think the adoption dynamics there will be much more favorable, and that is where Project CARE could really take off, because we will be able to potentially bypass that phase II, sEEG, and that will be a big driver, we believe, of adoption and awareness as we go forward.

Yeah. You want to take that one, Scott?

Sure. It is a neurostimulator cranial implant that is continuously monitoring, recording, and analyzing each patient's individual physiology. And in doing so, allows the patient to have tailored therapy and lead placement exactly where the seizure onset or the seizure network is focused, which allows personalized therapy over time, which you see in our clinical data, which we believe is best in class, as well as the data that's generated from the device. So like I said, it's continuously monitoring, recording each patient's EEG patterns. And over time, that allows the physician to better understand lead placement as well as their individual disease state, which you see also in our clinical data that allows our results to get better as the therapy gets tailored.