PTE - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen, and welcome to the PolarityTE Incorporated Second Quarter 2019 Earnings Call on today the 8th of August 2019. to our today’s recorded presentation all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]

Ladies and gentlemen, at this time, I would like to turn the conference over to your host Mr. Haerle. Rich sir. ahead, go Please

Rich Haerle

me you, Mann, Seaburg, operator. joining results. you for Hague, Officer; Executive Relations. and Rich Office Operating of of Chief the Financial of Good call to Corporate Officer. morning Chief With Investor PolarityTE's of XXXX includes Vice thank are discuss members Haerle, the Chief David everyone which President Thank Paul today President second I'm Richard and quarter Development;

cause that forward-looking I today's the Safe begin provisions indicated. Act Before statements actual of differ purposes would statements under materially these plans Reform remind everyone of risks will like about discussion forward-looking Securities are we company's that and the Litigation to XXXX. subject include We prospects may and statements the expectations, results from Private future to those caution that Harbor to constitute that for uncertainties

differ filed as made call, August only with reflect today's or later XXXX law. to statements including factors the forward-looking are update statements Factors June and we report to call such after based on ended XXXX our forward-looking caption as SEC the filings more variety circumstances in Form by occur except statements XX-Q of on to expectations disclaim quarterly quarter current events XX, a SEC Risk our actual with materially be may and that Any detailed on of today. under X, today's to the the These our that from Thursday, fully are for statements speak this required date any due obligation

is the being highlight to recorded. that like I'd investors call to

webcast our following and replay the investors Relations website and of a on shortly be are We will it making to conclusion call. section the Investor the in available the media available via

form of strictly any and written PolarityTE's call of rebroadcast the property retransmission in is is prohibited. it redistribution, or without the any expressed Additionally, PolarityTE consent

of Corporate Seaburg, Development. call to I over turn like to the would President David now

David Seaburg

Rich, for joining us Thanks all and today. you thank

marks evolution chapter second in a The the quarter new of PolarityTE.

have as To positioned to Office initiatives been execute OCE. in made the are the the forth Chief several put that Over multiple Executive significant we the by organization and strategic we end, of quarter. recently or have an months, progress second new set on into initiatives the place past well

Paul, with board for Richard established focus the specific of the fiscal commercialization I and of organization; or and namely, in prioritization pipeline our conjunction have SkinTE, financial areas -- discipline. and three

ways advance the market. our from target and efforts commercialization have in specific learnings -- -- of that demands who more match closely our from release market that feedback SkinTE deployed each physicians each We in most to incorporated have segment in the

working We also unique learned address. that are we to has challenges, which each segment actively

DFUs VLUs, from removed chronic foot in unrelated or the had the presented or days. data was median American at our SkinTE XX Diabetes we study eight as In pilot who of of studies infection patients XX ulcers a within to presented venous wounds wound. XX ulcers in weeks with due recent an patient had the in graft the diabetic most take patients closure healed such leg June. very an One graft All and from had time compelling and data Association DFU take

discussion. randomized actively Richard controlled elaborate are this later enrolling on will We in our also in trials, which Hague

goods eight of to significantly challenge life to of with facilities. economic to and their full-thickness us market complexity in our roll time skin. we reduced often care which feedback, to customers. the to burns, quality cost significantly allowed of large reduced to building XX and results our Based improved Deployment we has In we've size burn, weeks on produced a burn are The more face takes clinical boxes, value pricing SkinTE out encouraging our and Harvest is SkinTE favorable patients addition In has provided structure. for evidence, and regenerate several which listening also closure. for It

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our advance materials personnel In that closely June, priorities customer clinical field, we the the held with the more In drive needs collaborated and our bring home refined our arm with together team address our meeting our accurately team segments. of and of individual national a field expectations. to to sales meeting marketing

announced clinical that brings the in bureau also speakers' a education of content We value facilitate unique to peer-to-peer and creation designed market segment. provide each

for We SkinTE revenues. are pleased month to record was June that announce a

a does we in drive recently commercial the indicate acknowledge we month help trend, one put believe will that While strategies continued place not adoption.

in we To progress, various will of established our this recently give later better understanding provide with Richard hospital networks. details a investors on presentation commercial much several partnerships

priorities steps of Another Later -- already to accountability. Paul that taken reduce have and create outline Mann for fiscal OCE burn will important this budget the around area focus discipline. and the been been process in is presentation cash necessary taken

R&D the Finally, efforts Simply technologies. prioritizing related term, in R&D near our we intend to bone skin, put pipeline. and our on focus

Richard to to over our like I'd and the turn priorities. initiatives on call results, commercialization greater Hague commercial to detail pipeline provide Now

Richard Hague

Thanks David everyone. morning and good

commercial to newly mentioned created David is advance initiative for As the most SkinTE. the the efforts for important OCE

blocks QX regard. highlight place in for and I'd building important in that growth the it's earnings I our like our to call, in greater put in to SkinTE detail position we As progress mentioned that

five terms, large a for First outline network. in simplest like adoption stages SkinTE I'd the hospital to in

engage the early influential engage to is identify First, -- adopters. and

is evaluation positive product Second, to a facilitate experience.

the Fourth, influence is utilize to broad engaging multiple early within and by Third, technology specialties. penetration system to adopters the pricing. hospital is is gain and system hospital SkinTE fifth, approval to the for peers;

complete, are tenure steps the and months. and not first is this it I in that where We our stage begin company, the months timeline process described, finding is surprising reps approximately generating inflect. have the nine fifth top nine can the longest the XX take to that to six three Considering process with revenue revenues to to roughly

We hospital of are an penetration these in at efforts for the systems. several have excited that broad recently resulted individuals large opportunity

the These actual example in SkinTE case hospitals currently have of fifth represent now and additional describe working clinical to we and I throughout appreciate recognized the would that that we these users an bring financial are the benefit opportunities To where diligently to offers these value like networks. stage are on both adoption.

a utilized the their us impact Northeast large than be After and clinical partner SkinTE treated entire outcomes a allow hospital affiliated hospitals dozen of patients system with to with to series of felt the to in network. evaluating across more with financial compelled SkinTE, their initial

spends Excluding on $XX skin skin per we estimate wound-healing various substitutes graft year this that products. and procedures, greater a than of network million size hospital

are system-wide. aggressively patient advantage by care We physicians taking educating full new of this teams and engaging focusing opportunity their on

seven six regular across which by sales and in hospital the approved systems example Overall penetration now our in hospitals, in cases our of generating systems country systems six accelerate driven just these just are of one the XX large force adoption these and Collectively upside and mentioned. other represent I to XX we the at QX. currently following physicians. This SkinTE for a hospital paid have total been clearly including and initiatives implemented represents the opportunity significant identified has

hospitals. on candidates focus to profile have meet hiring criteria. existing our that these reps To and May hired experience care with new within modified targeted we've relationships XX First, since hospital-based we wound end, deep that physician

are education to marketing be training customer segment and Second, which improved we designed have materials, significantly sales our and specific.

earlier, effectively need has be needs customer mentioned and unique each David that specific discuss As to and to able segment we address.

that acquired identify and are us to market utilizing hospital by detailed specialty. have Third, now data physicians high-value target and by and we allows

their become David fourth, to experiences utilizing speakers earlier present has of champions a are program. physicians growing to of SkinTE product with their programs And These base a educational create mentioned bureau group peers. a allow to as what we

are my year during of the significantly We the educational can programs of throughout process half country programs in peer-to-peer second the a in these number adoption. these of experience accelerate and scheduling the

both key metrics of metrics variety specific cases; These I of increasing to the progress will performing the At paid an better like our point, performance the a SkinTE this share forward the early plan and on that give new help of towards our would metrics to revenue for metrics growth. we repeat; quarter. course shared on show help performance project insight paid physicians with adoption. total update of revenue. call number this cases future that include believes and and OCE of key number focus into going past we've the goal and Starting the In

process, the will We certainly continue sales discuss during which desired. of the Q&A track if we to other components can

QX can larger increase physician to wounds in in increasing XX be paid SkinTE. uptake cases attributed of This which revenue revenue were cases on traumatic So resulted in a versus QX, XX% performed roughly XX confidence quarter-over-quarter. an in increase based in

size. volatility stage to as this see to wound at of we relates However, expect it continued commercialization

To physician users with quarter. consistent supplement a important develop is base of it physician core and establish us we of SkinTE new believe each a for growing repeat and to revenue, strong of them users

and as who we who XX To physician has a end user compared We define a had we performed cases define users repeat QX. that new user first a nine in QX has to a paid in performed their multiple paid case. as physician repeat

in we from in users our driving in focus Additionally existing QX XX to QX. this new Reflected additional in QX. had XX these data users cases compared on was

the and SkinTE we grow this off hospitals our using the educational programs later new repeat to further penetrate in coming peer-to-peer quarters both expect considerably as month. kick currently users and We

by strong fronts progress point time and that business grow place in this commercial QX. our confident At are have made a in multiple early are encouraged QX on plan have in we the we into to and we

progress we Additionally, I'm building report made evidence. that scientific to pleased have

abstracts presented posters composed nine In five presentations. of were QX, and XX SkinTE-related podium

granted series XXX were year's podium conference. have at case of in pilot accepted awards treatment clinical the abstract the to and was a a recognitions. American Annual received honored Surgery XX Podiatry by Association a XXXX following presentation special wound as this We types The from designated late-breaking are top Plastic at top We study Today. our Society abstract in highlighting as a innovative the Diabetes use multiple Meeting. was A named American data of and DFUs SkinTE

Podiatry Finally, the a Journal. study the the in Watch Diabetes DFU in Medical column Today pilot results from featured were

of course, future drive help Of adoption component I'd highlight commercialization are our some so the reimbursement. taking to and steps of like to clinical are important initiative, trials an we

reaching conference anticipate interim trial We are in currently expect we next trials, enrolling early the two multicenter be DFU enrollment or control trials in XXXX We those reporting to year later analysis results the and their which next randomized be this completed more slowly as will is spring later historically prevalence. year. enroll VLU interim VLU lower due in expected cycle. reported to The

to of plan positive interim and feedback later our the burn regional conclude and year. Given at we this trial, a conference study head-to-head this safety profile results report

Additionally, of more we treatment will as clinical the working useful wounds enrollment, commence to ultimately are surgeons burn trial physicians We be burn gain evaluating adoption SkinTE. a to that practices. enhance investigators that prospective evidence is and their rapid our this data result in relevant with with additional large study burn more will burn, anticipate to focused produce on

regarding like team optimizing and our an SkinTE of I'd comments can focus to having is input David's react in R&D and finally, developing they OsteoTE onsite A quickly that products. providers' expand our to And benefit R&D technologies. on related on

bring KOLs we to Last year, first in-human the R&D it FDA working was the and and to hospital to where now initiate registered point use. able with OsteoTE systems the with team was the are

human expect commercial We data for partners use pursue OsteoTE. potential early this to to

we our to and bioactive technologies knowledge pipeline. of develop leverage continue Additionally, to our further regenerative

taken the extract term. prioritize pipeline the value of action to our conclude near decisive and To has in to OCE order SkinTE to in accelerate adoption the

a financial call Now, to the Paul turn for update. I'd to over Mann like

Paul Mann

morning everyone. you, and Richard, Thank good

approximately timing second we in service were $X.X which revenues, total includes million from the to quarter from QX, $XXX,XXX, internal XX% $XXX,XXX, external were versus contract being versus and conducted. the research from in approximately For and our Revenues quarter revenues of up milestones projects SkinTE Revenues organization. research project down XX% approximately from SkinTE during services reported QX. due increase contract XXXX, the approximately of approximately

first quarter. used For quarter, of second we in lower At the operations cash achieve said remainder that we or XXXX, month million $X the per end than year the operations second pleased the the quarter cash the approximately first operations able to that target will we expect $XX.X was of during we month, cash $X.X of used used million in the than were be the are that per and in quarter. less for in million XX% on

one and of David both the of fiscal is Richard OCE As the mentioned mandates discipline. three

multiple Over the reviews resource to include which outsourcing of conducting taken short-term most we've further the of steps to months, and several near generate our that the business areas those cash, of reduce We in sheet. the prioritizing our on past cash are department likely XXXX million to balance by various our budget business, investments cash with aspects burn quarter revenue finished $XX.X second equivalents and approximately term. allocation of

second million quarter As was month. $X.X mentioned, operations cash during per used in the

sheet believe recent the months. liquidity balance further we there's weeks the fund taken operations XX our With burn, steps numerous sufficient in reduce -- the cash to to on beyond next reduce we've to

there considerable ahead and on accomplishing highlighted offers the acknowledge significant pipeline work discipline The and enhanced to opportunity capitalize revenue today. of that is prioritization. we SkinTE, financial this Finally, initiatives SkinTE through we're the commercialization

look encouraged forward, following. we we by As the are

the we've progress forth that with to set by First, respect made OCE. the amount of initiatives

of quickly the subsequent more fifth, Second, to clinical the we our a fourth, adverse reported third, scientific to we in to in to upon and and drive July; continue performance and outcomes any to reactions follow-through level; cash patient the saw build June burn ability without see sustainable evidence adoption our SkinTE. continuing reduce

the of shareholders abilities to management PolarityTE future. our in value our three of deliver have extraordinary the at I'll to confidence close the us people the who and team collective work that saying by tremendous in

Thank today. you pass for I'll your to time back Rich.

Richard Hague

this time questions. like the Operator, Thank call we'd for open you, at to Paul.

Operator

Certainly, from Our Tyler Buren Piper from ahead. sir. Thank Jaffray. you. [Operator first Please Instructions] go van question comes

open. is line Your

Tyler van Buren

Thanks morning. the Good guys. Hey, taking questions. for

graft but potential why for comment saying you I made skin guys how closure. to to you seeing XX respect can takes challenge viewed X you're you I'm guess, us that a just a for I results that time for guess wounds takes several to to that's burn overcome the and but with weeks drive it alternative You patients to encouraging that as that remind a split-thickness disadvantage that plan quickly use burns? it of and close how in to

Nik Sopko

be this – that's great a Sure. is Hi We'd Tyler, Nik. question.

graft a wound shortly will with there's still days would the split-thickness that graft that some five so that's period that to both allow wound. – become for a epithelialization to from protect that When next wound over bit you so weeks. then SkinTE and standpoint and convenience typically time the physiologic when procedure really the process get a really little to healing SkinTE couple occur, patient the comparing generally closure closure during you're it a take epithelialization provider so way the that And that does that wound and that the skin the the you and to to continue attach will you surgical graft and to after of for longer the or critical the after skin full that get about time then and achieving heal compare dressings will do and

the that that end life for a skin But SkinTE you important in get we the necessarily about short-term what's functional better treatment that with of really isn't at gains long-term quality more the a getting feel patient. that gains you're of brings those most the but

Tyler van Buren

That it. sense. Got makes

could cared upon dressings way the improve that think wound for? that remarks based just and the time you so closure by to And it's your you potentially improving

Nik Sopko

getting by that couple and accelerate a we that convenient make more is think potentially some Yes, provider. weeks and it days for the again can that and additionally, showing patient process the I early We yes. healing data both or we're comfortable potentially of do and the

Tyler van Buren

mentioned be sizeable it? increased chronic helpful. that's due increased cases That's paid that's you Okay. two and you one I wounds driving XX% that's but mix the cases or more there in And or that obviously did saying you would to imagine revenues will exact XX% get is there the say without volatility by so burn

Richard Hague

Richard Hague It's Tyler. here. Hi Yeah.

more traumatic So due it the some actually was uptake SkinTE larger wounds. of in to

little So in from a especially approach that to experience they're we're a more some one types more those bit aggressive confidence there physicians seeing center where seeing gaining of we're now treating wounds.

Tyler van Buren

was great. to were users. And repeat the physician paid you focused it and Okay. new obviously yes repeat mentioned users but see so that nice That's increase the guys in physician on number users, of declined you

both that on increasing to of need towards focus more to ability speak you increase able moving forward? be new think those reps quarter-over-quarter guys and the to you the users you or number do repeat perhaps So both can of

Richard Hague

question to forward. board to we the in early these absolutely get about. several peer-to-peer means, usage additional we had the have great do Really wanted do yeah I couple as systems go in as from a well months educational to we that our so last came expansion mentioned we're at focus aggressively stages since and bring going real that last the of users But strategy just undertook moving all a and existing sales there. program place as was obviously time get to try repeat both to can but That's of we cases over this our on force new do by to both which on both physicians quarter that we of deep their talked SkinTE we're same we users through and

increasing new steady users. that to of strategies have a repeat we both So we get ensure stream multiple users and

Tyler van Buren

you right out guys the now? How field do reps in many have

Richard Hague

XX. Approximately

Tyler van Buren

so Okay. Great. much. Thanks

Richard Hague

you. Thank

Operator

Thank you.

go Please ahead. will DeGeeter to from question move now Oppenheimer. We our Kevin from next

Your now is line open.

Kevin DeGeeter

important questions and a for on Hey, number guys. initiatives. taking of congrats Thanks my

paid. may think to at still and track regard disclosure have you that I with payment? session you ratio do appreciate an for of going have so you forward, that percentage paid look don't aren't some So we for of sort where cases the paid cases which the have I top immediate cases or folks kind How think get immediate much. of where paid expectation a very of we early you an to incremental If that -- expectation can about about cases or I deliver product adopter appreciate the where funnel don't getting

Richard Hague

very a that's Yes, question good Kevin.

as increases where reps deeper through products, going think see that, in new the larger we evaluation a bring trial the not in focused we're in new going be product some we that but it's where approval, I as account. systems approach giving to away hospital challenging territories, little on cycles go get initial you're have we And and have drive trying on we to we certainly to new to in every usage. to are go

As fact, paid as contracts in well. of a trial got we've matter some evaluation place

pretty So cases. I about look been mean in a the as similar it higher QX, paid than trialed if cases was it, the of it's -- was quarters although certainly you of over ratio last a couple in at number

is going time, the sophistication on over the or given evolve it's vary of to ratio that based a going but maturity something to So is territory.

David Seaburg

And that. -- it's just David to Seaburg. I'll add -- I'll

I think question. it's a great

within network our of that we're that. around sense of amazing about of really within on focused to to that the have what comfort that healing think systems where paid new I is and force and Richard's working users and experience see I had some the that's users point and really a results results. on the into deep focus aggressively to sales seeing going these hard And have think best to paid current SkinTE process it the with our system the now right progression is champion gives do

Kevin DeGeeter

think as probably on you extent question Listen in quarter if just tracking QX? third what visibility it that's lot in as this be how is you is pronounced Specifically, quarter-by-quarter the it Does timeframe, of a when much backdrop to you may we related I at looking should begin case as November of big we the any disclose paid or on the paid we to business? about observe sense. cases a that to And of quarter the we do not to just seasonality a that? that number, seasonality have business? that about when about think a level do seasonality project and think there tend to pertains that follow-up in basis makes seasonality really A question kind

Richard Hague

to of a not see I of Overall, the due seasonality. It's do bit that and rate issue months, change. seen really a the bit in little -- the like in those a But in being physicians or there's during especially in patients August to things but and in are the see that, there's treated patients you that mean, summer of being drop-off pronounced terms vacations doesn't the incident are little in historically a generally see that available general, a QX of timeframe? and you ramp-up QX. bit

David Seaburg

to And revenue what of really which the increase to as nice pointed out, in the as we're more the far variability seeing an is that of And been and wound Richard size So us. for sort which it do wound on size. has are experience wound predicated size, -- average sort in the revenue seeing a we're is surprise to right? seeing we and concerned has is add uptake of lot with a the

try way. to of comfort continue in into here a drive that get wounds larger around that So to move to pretty we expect and we continue that significant term the long to over for providers the to our a going us will sense story are have revenues

Kevin DeGeeter

as may. on provide governance if as thinking you can might single just question an I specifically perspective well. CEO? last One you provide on and update board's and be the for the an to update helpful the identifying Can process current a to That leadership extent

David Seaburg

I'll myself comfortable first we this I'm incredibly of together to I'll and three again. say the manage David that are this us Paul, is of -- look Seaburg collaborating business. Well -- all working Richard,

around organization think the way. we in of entire basically way a think the very very strategize like-minded the I positive and sense we We're I exact comfort together Real feels same think. way.

properly. on much Dr. will Denver really as have than change, already those circumstances other concerned, everybody that. once a on informed and sure is paid couldn't overwhelming to say add belief work to thrilled sort reported an we've and be that make is that or to guys, is within of this we leave what the is current structure stronger absolutely But administrative don't with theme I'm Lough I far entire As work I at that leadership -- would we the thrilled these company, organization. think

Kevin DeGeeter

Thanks commentary. the Appreciate much. so

Operator

you, sir. Thank

We ahead. will now a Piros Fitzgerald. from go Cantor Elemer from Please move to question

Your open. is line

Elemer Piros

Yes. Good morning gentlemen.

So I was in-process wondering the had XXX you if you could update couple users a over previously first metrics. of disclosed quarter, active of and metric sites. or By a end XXX

us could in-process those product users did this you quarter? If sites the in number numbers so-called users active place the March physicians went the that XXX users were quarter, the where help of by end to the the versus and active with of in reconcile during used and paid

Richard Hague

Sure. Good morning this is Richard.

you had look XXX. for at we So those we the of in that performance. QX things. reasons the because better felt were reported QX new transitioned performance active, we we that metrics that numbers definition future metrics used some it of that applied definitions to XXX. And a to reflective if is If couple I of we've and would same be for of set the mean in one our we

measurement there in what of soft comfortable be the feel that were would But to caution like I that definitions a measure. didn't and a to those think we'd the we bit I great going able were little you -- forward

caution So that regard. you just in I would

combination the and -- of active, accounts the define I In in and was -- should both physician this. of in-process facilities. terms a This

So this combination. was a

think correlation indicator uptake direct and really are focus a So the true to the trying right physicians now because we to that's on and revenue. I themselves

Elemer Piros

if bit. little you Yes. And maybe this on expand Richard a could

is That maybe into the XX that second physician responsible for there or in of two a the couple quarter. that were one per dozen translates conducted was physicians per paid were quarter. that So cases cases

next quarter? is go How to installed -- do numbers quarter we at cases XXX XXX This losing X% are these quarter XX, from just in but another seasonality, X, fourth to to and -- in take this do by growing going how to I of not we think per XX are X sight this orders to XX% really to XX so-called interested of by due the base looking we magnitude we higher? and

Richard Hague

Yes.

systems thinking a You're just terms earlier and go those outcome. you that it inflection the And think get to these that deep of hospital way systems increased the these with that cases. to shared our in we large if get of ability the about we that and we product, treat now are follow revenue it into takes -- about patient and comfortable with and time think and experience patient physicians the some what

that's where time. in this we're point to And at getting

you're in per pretty two So to that seeing a or cases of here opportunity increasing being physician real terms and able one forward. multiply that significantly going

along freedom where thinking that the and of physicians the these being not we physicians timing terms existing to the engagement system? deep it's that but we're comfort, newer product, accelerate and only increase physicians in of the Obviously that their certainly go due have able matter matter work to we within those with in now systems but are obviously usage of fact very lines that's using to those a with a can their

David Seaburg

Yes. Elemer, it's David Seaburg.

within six that to the the penetration about represents scratching add and hospital segment platform. particular he where I large of the to a Just the not to put we we surface that venues. think even about earlier call systems we're and on have really Richard's currently discussed example this those It into point that talked

the really an in way systems. incredible have penetrate do that It again shows aggressive in them those And the upside within to short really, we our is focus term.

do that. really curve significantly you as the ramps think I adoption

systems Again with. are only cases XX we paid physicians out currently of those X doing

X that's to think that we the systems. at of allow to incredible an upside data people just have those I in look sort point

Elemer Piros

along you we David cases building -- facility, when And location? when first might the burn center, if understand see from where processing these JMS you lines might a large that could think Yes. us do help you're up a

Richard Hague

node the that is that seeing Well, believe seeing cases And we increase now now. to usage next we're year-end that's will particular really I that targeting mean, not something facility right but help we from early or year. and about. completion uptake, we're excited at right we're Obviously towards the are JMS that

Elemer Piros

by XX was Okay. Of this companies? question that there were last completed them of And get back the I all queue. or before quarter, you've any reimbursement one paid challenge cases the into insurance

Richard Hague

help Yes, reimbursement know, that to as that a them as have they case. and work is that so each we to we're ensure going experience comfortable with positive We were certainly far all closely facility provider each the we believe reimbursed. to they're

Elemer Piros

Thank you.

Operator

Ladies now question Carl and Capital go we'll to Northland our Markets. gentlemen, from from Please ahead. Byrnes move

Your open. line is

Carl Byrnes

the potential the Thanks the U.S. tied may timing us that updates for acute taking give Can outside for with And registered to of of the any be to readout a line top Thanks. partner you question. wounds? clinical respect trials?

Richard Hague

Mann. Paul Now,

Paul Mann

these right to It's utility trials have here. we'll not and parties on assume -- we're really timing believe partner and to update that the Hi, an and I've related this discussions had would in any as geographies guidance and product obvious conducting. we probably it discussions not We're pursuing giving is that the Paul any time has and We multiple have partner be get timing information. are when we we now OUS do OUS those, the Carl. you of world said but around with multiple further of take

Carl Byrnes

much. so Thanks Great.

Operator

Wainwright. Kang from Please We'll ahead. go take Sean H.C. our from next question

Your is line open

Sean Kang

for of morning, about Hi. have question guys. my I two head-to-head -- the trial a burn for Good questions treatment questions. the wounds. Thanks taking

plan So at to Also to the drive are to data? which data present how do the you planning you adoption? conference utilize

Nik Sopko

always that those to We're haven't gone least conferences yet that data. our hope and the and that But for so head-to-head trial is several season it regional out burn interim we once multiple there's Great questions, make results conference one for abstract could be This submitting be we'll acceptances Sean. the when notifications but we'll this Nik at conferences. fall -- again. we presenting known have

Sean Kang

I see…

Nik Sopko

then… And

Sean Kang

ahead. go -- And

Nik Sopko

second repeat can then And you sorry? the question,

Sean Kang

you utilize the adoption? to Yes. How plan do to drive data

Nik Sopko

and follow-up to necessarily with again great trial. burn see another sort question of really the they than more of patient randomized sort the control the it's outcomes population Yes, longer-term and and a providers like burn

the -- SkinTE by for the healing that potentially wounds really it them the differently with sort of how the helps patients. understand of heals those quality better collecting us quality of life So aspects of and treated and

Sean Kang

color -- engaging I you that kind traumatic per paid increase One but XX% is and number was -- the difference? the more was color because more well the number but -- that you also the right? that? it total could a of was Because so centers cases larger you you as question see. mentioned more was previously on revenue revenue of provide what's whatnot, could of should So provide increase more maybe quarterly answered you. this quarterly increased but on case then Thank little right? XX%, are then implies the partly So as increase cases

Richard Hague

Of course, yes.

of wounds accurate different So you're and QX very I in the larger that in centers. related in couple that as earlier mentioned average a increased the traumatic uptake was to size wound

number confidence what now increase with paid So to comes correlate of in we're but in comes an And -- confidence to to an and the experience about it is increase increase it doesn't experience necessarily we're in wounds additional revenue. correlate usage. excited and seeing more that with certainly does types cases, those of

number over So to we cases customer time. it believe that particular will do segment in lead increased of that

Sean Kang

quick One Thank I question. see. last you.

to cost-cutting long see in that place. I are So do trend? how How this - the maintain do you you strategies plan

David Seaburg

this intend and well. address let We in to David our is we protect it. This I'll will and -- cash incredibly We Seaburg Hi. Mann efficiently. join managed as Paul manage

sure will properly. we're We investing that make

now. managing appropriately are this We business

very and investing We've position absolute our on in to in growth whatever cash properly we without of our -- opportunities. sure considerable impeding a are put that place make process

this believe keeping our very going to we as So long-term costs far is line. in be a as and process managing the here setup

Sean Kang

Okay.

Sounds good. you. Thank

Operator

Fitzgerald. you. now from take Instructions] Piros We question a ahead. from Elemer Thank go [Operator follow-on Cantor Please

Your line is open.

Elemer Piros

to ideal a are just identified type would initially what on of Yes, the Have and you Osteo case first try the product couple more conduct study? you to be close please. how patient

Nik Sopko

Nik is Sopko, again. This Elemer. Hi

a in although great different potentially or space we're ankle patients familiar replace for use been working Osteo So there's the with, many because providers of regenerate and uses and with it's bone. space. also question need with looking foot the applications, to the that some of both for some early you a we've could We're that at and our

just start Osteo. to testing and We and those to place also have it's providers out when access patients those a great

Elemer Piros

And how close are you, there? Nik, to identify the first patient

Nik Sopko

working first the our before year-end. getting our evaluated, patient right are we treat providers system, with being to We're into but their now the going through of hoping process hospital

Elemer Piros

pricing a And Thank Okay. you. question.

there mentioned and in is You change can size. it's on imagine based a structure that I that

versus were X-centimeter-square acute? to chronic XXX-centimeter-square, the So a if wound an compare for versus pricing you on a

Richard Hague

When say you

David Seaburg

Price.

Richard Hague

But from you of Yes. pricing, the pricing pricing? mean old in new compare to terms the

Elemer Piros

between large setting wound a Yes. small if wound. office burn in ulcer any a there difference versus is foot Or an

Paul Mann

Yes. It's Paul here, Hi, again. Elemer.

So past you created of wound rather the size of -- it individual although think the in single you the assume should product we've done is helpful. we SKUs charge, -- kind have now modeling a we've extremely item, guidance been to and size for what line facility when about ranges different items. that we've given price and the providers probably line that that's the allows bill than And multiple found in that the

wounds, lower cost goods the the We of wound our as the past. to in larger sizes. period in the short had of last But we of the to in the smaller smaller -- reduced now of cost lower over assume product allowed cost have the last of lowered you at goods we have we've time. us ranges pricing -- kind dramatically The get That's wounds.

Elemer Piros

Okay.

squared So $XX still? centimeter about it's roughly per

Paul Mann

fee in the if it's about $XX range still priced really to probably the It formula, sense. $XX longer makes but and that that fixed out applies, $X,XXX in of works no per-square-centimeter Yes. probably

Elemer Piros

you Thank much. Yes. so

Operator

have audio Haerle Ladies our Q&A, for as questions. back further the you. no gentlemen Rich in Thank questions conference now web and we the turn will to we

Rich Haerle

success the ahead I'm and that I a question this Thank that what you, is, question think to Sopko. going been have go Nik The with the rate And product? Dr. is has Doctor? we webcast operator. turn to over

Nik Sopko

Thanks.

have way one our saw look and you data, SkinTE such that why randomized is ulcer pilot question ongoing. of excited we're had But with take. the the trials really the we when about patients diabetic recent So foot best some as reason all we at that answer that's that very trials pilot two to data, clinical

However, be achieving that one in infection a those could days. withdrawn on patients we an But about of XX develop separate to did closed. before were wound looking data, happened at that closure and them that caused be they

Operator

-- Ladies gentlemen and

Richard Hague

there's no if further Operator,

Operator

Yes.

the no thank and ended. confirm now your that session call Just further to questions our have concludes now call. Ladies has both queue, so in we that you today's gentlemen, for The conference question-and-answer and participation.

may disconnect. You

Polarityte (RGTPQ) 8 Aug 192019 Q2 Earnings call transcript