MDXG - Earnings call transcript Q1 2024

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Operator

Good afternoon, and thank you for standing by. Welcome to the MiMedx First Quarter 2024 Operating and Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Relations Investor of Head for MiMedx. Notarianni, you. Thank

may begin. You now

Matthew Notarianni

are afternoon, to and and the you, today's Results operator, First Chief Welcome good and call on Rice. me Operating Thank Financial MiMedx Officer, Joe everyone. Quarter Call. With Executive Doug Chief Officer, Conference Capper, Financial XXXX

are today's that displaying you can As part simultaneously of follow. webcast, we slides

of some will You our and provide will kick Joe website at can mimedx.com. will financial and access the highlights some then Doug off operating slides updates. opening with results from a quarter, and the summary conclude Investor Relations the additional remarks, us for with Joe

We will then available be questions. your for

EBITDA, may results would reimbursement and include our and factors. to cash sizes factors, free Before circumstances those I Actual factors. like we number the access a results and will remind balance risks including and growth, delays comments forward-looking and future anticipated you unforeseen begin, and for uncertainties, many of competition differ to statements that sizes and and subject margins expected depend including market materially are today sales, on customers, to from cash environment, our statements. expenses products. flow actual will other to future market due expectations These regarding

press include which www.mimedx.com. our Additional today to we the Also, non-GAAP and shortly. our factors our we report include Risk measures that a file comments quarterly on website is annual GAAP release, which measures, results could on in impact XX-K Form to our outcomes Form Factors described financial our reconciliation plan provide available in at and those and our report section of on XX-Q,

the to pleased call Capper. to now Joe? over I'm that, Joe turn With

Joseph Capper

the today's everyone. for of We results pleased and call another report thank to Matt, on you Thanks, quarter. we outstanding are as very us good joining afternoon,

what we of the happened. XXXX As year, and quarterly into we generated exactly quarter first on that's this momentum we our last the expected call, continue in communicated to

a XX% In fact, few expected we performed On could of be we rate our QX, even as of establish hear, ago, we months That stressed climbing year-end a the with taken than the business stronger year-over-year. you seems build will we at which a transformative in revenue in what to upon. foundation strong had is happening. from to the XXXX exactly importance steps call

growth As a profitability a the key with and for being profile. initiatives, and while team's drivers debt This as our remaining we position execution completed January, flexibility provides highly of market strengthen tech seek result sheet focused balance in our our greater leadership coupled improved on profitable additional with establish on refinancing are to we and growth-oriented now business. solid operating med much a

the I we success short the create face in profile strategy confident care of the the financial encounters. to value substantial a improving right Given of am of regulatory company our in uncertainty any relatively time, business and the reimbursement period health the in have even typical business

help of in we areas. the advisers do working industry endeavor outside we an will shape to As these proactively continue that. Rest to to just assured, are conversations with leader,

first a we the the quarter minutes provide why and few regarding development discuss our last late ultimately MiMedx a we the think call, on our is But were initiatives. that the progress positive initial in determination we results to coming Later and published beyond. you on take will coverage and quarters local week we made need this update first, strategic to proposed thoughts for outstanding our

from quarter. to profit XX% was in of quarter, approximately first assets prior of XX% year-over-year the the an million or product. first the paving XX% quarter acquired $XX the the distribution first for [indiscernible] our with established agreement increase Adjusted another year introduction a of to $X.X over or net Gross in margin growth million quarter. XenoGraft grew representing the outstanding For $XX marking $XX certain sales [indiscernible], sales million, EBITDA by We improved million quarter. way

debt dramatically under facility improving more terms refinanced previously profile. As January, financial in competitive our we announced, our

the using $XX with million We to in cash and quarter transaction, credit line our $XX ended revolving And down to to $X other million after QX whose cash obligations. expertise million the to pleased [indiscernible] to the deep make the complete the able of them finally, addition with will pay forward. new valuable quarter accomplished moving highly med of X to Board X appointments were [indiscernible], be during tech directors we assets add individuals in

proxy our contributions Juliane, disclosed Gardner play over Dr. our challenging during Phyllis we last for will in [indiscernible] Mike upcoming pivotal and the of roles at incredibly reelection years. and thankful Dr. the be shaping Additionally, meeting. standing as company filing particularly the their for last Michael direction in week, are and times, we not will several annual

management, the improvement. surgical and and three, in developing provided a I on continuous two, drivers; executing enhancing to our at continuing primary drivers, strategic markets now progress position we On One, growth Turning opportunities rationalization X last and by geographically; wound our adjacent following the building beginning markets updates X which laid our out in create our and to expanding build leadership on portfolio to the process discipline quarterly growth XXXX. on calls, around of focus. our additional product expense

I team the fueled am with to the has continues which make in these success. progress pleased incredibly our areas,

growth we'll have updates our for Given provide XXXX, of we refined business, the the plan the following around evolution initiatives. and

that the market. First, are to and from surgical have we the products innovate [indiscernible] markets serve increasingly we brought to of portfolio diversify the our within will benefiting to It we growth. and continue sectors maximize clear become product has all

feedback X exceptional one on received derived X of widespread market office, being exceed we been toward XX we our introduced new expectations. which surgical [indiscernible] geared launch have to the private have last months, All the X allografts, and continues Over the and met [indiscernible], the products the benefits clinical each. market, acceptance, for from have with

we in developing quarter, in grew due in have off again in of by products. continue to QX. first EpiFix we fact, Japan all business the once low XXX% our market are one, In sales needs. these designed confident is meaningful products of service, We albeit to of over base. we time. with from that leverage. part sites develop our grew with meet continue success us into proven the course, advantage competitive a experiencing large where the success to remain And during This a will this must to themes emerging Number me continue contributor expect to overriding to going customer X This forward. innovate we we to need leaves

as readily our the hits this the two, mark. mind, first X as strong focus, our more introducing product when hope has area will to core to market xenograft a programs into adopt With in segue over good at is in the will to experienced, footprint products products surgical As the we have which expand segments. of deploy be This it XX market. the various introduce new our many Number is intended the our and to a next customer organization one of product. months, we base which competency second develop

of from various every use the performed suspending resources products. program surgical to for rationales redirect millions many surgeries U.S. the last of of in capitalize in our tens to was of of opportunities on settings. better [indiscernible] the could summer There benefit year, are new our One which

and improve has we surgical of continue ramping and this This presence to where will our While and marketing our up evidence are added focus select areas. target of clinical refining been our strategic products. to surgical We to year, our is mounting medical our efficacy group importance. in resources in to as investments settings liaison add support increasing the

with [indiscernible]. from surgeries We are nilosurgery key colorectal and to opinion in publish like on partnering markets corinectomies, for in leaders dermatology on outcomes

the of to for with grow. solutions more reasons. Xenograft enhanced soon for for of these the And course, wide range with we appropriate our more body of footprint products will may remains offer that product, the bright, applications portfolio the such procedures excited across fund particularly launch for a continues are activities a of upcoming first real-world evidence We various belief to surgical of be growing a our of variety firm future as

As heavily of indicated the college bleeding. a to minor control XXX(k) a for matrix particulate reminder, to and management bovine-derived wounds this cleared is moderately exiting that is

third We expect soft of product the launch in market this a full with release ready quarter for to be year. this later

designed customer Our enhance to intimacy. programs introduce to third initiative is

wonder why our rises of of that might it X most importance The answer You is initiatives. of this level such to X strategic is simple. important the

to markets, customer-centric turnover opportunity the customer customer We relative We high industries, margins. offering, this of lower is customer. much each have an lifetime an stickier increasing want believe association In value which a we build to and to impacts other to change churn. expand thereby our our

dealing when price-sensitive especially easy, This will not be noncontracted markets. with

and of practices of with we during intimacy connection implement were portal, in launch quarter, improve the development. it MiMedx bedding the excited initiatives a end, customer we the DNA that providing into enhanced with new streamlined and to designed to referring far However, digital to plan interconnected organization. many first our series more Connect, features a To more customer

acceptance far initial early projections. are We experiencing adoption excess and significant enrollment, customer in our of

a Doug, quick to our the provide [indiscernible] to path I forward. call turn again update I Before on want over and

biologic as manipulated drug. will taken to position as As and It a is recall manufactured has because FDA previous from particulate. a you XXX subject minimally product communications, than Section that [indiscernible] regulation for the a more therefore,

XX-month As recall, pre-RFP followed RFP, designation of to and we also at the later the maintained their response both is position process a will you In the agency for request suggestion. FDA's the Axiare product. the

sending in nearly one to They appropriate more a and a also One is designation, XXX(k) expensive went FDA product nearly XXX which responses This a RFP the are being tell human as XXX(k) path XXX(k) for There on a [indiscernible]. identical and classified has way identical in tissue since requiring our why the to the time-consuming is all was February, issued response. has the most products now clearance out particulate both us the approval. confusing of [indiscernible], XXX their X a clearance derived to pathway prior market. not

figures. of the legal process to further to in less we a the Our only court, take regulating in the manner and of we filed be nature expect proceedings, appeal available to which file X in FDA estimated capricious given year means federal March for administrative which a arbitrary lifetime cost a in is at these these claim the Because or the products. was

In the continue we will meantime,

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which efficacy amazing has and an safety record.

any fight we per the our of owner. stakeholders on should the the have be solutions a product the for this skin This product, particulate would reasonable fighting shine burden good resolution regulatory to consistent patient that support. year. performance, allografts, for all, a to application ultimately in overall on our for [indiscernible] could this transition XXX(k) characteristics the [indiscernible] our [indiscernible] market. XXX(k) in product we fail will manner. as continued increased a to as [indiscernible] Above and resolution a and substitute potential immaterial result may to all That for similar efficacious to [indiscernible] a in reach clinical than a most, we loss market. addition commercial believe which else, hope XXX(k) access a approval, formal reasonable mitigation safe on like a and regulatory many later by calls remains [indiscernible] revenue is [indiscernible] of a regulatory, plan pathway a proceeding we human-derived light to keep XXX In revenue ultimately of And if product clearance, to offset mentioned, toward because XXX an clarity the launch not providing submission and access for need all aligned will

financial the results. Doug over me to turn on Doug? call our for more let Now details

Douglas Rice

afternoon everyone with for Thank you, another today. good on to be all once you I'm us. quarter to strong you call. of Joe, joining again and Thank pleased sharing today's results

the as in of and measures are financial basis. covered Matt a call non-GAAP today's reminder, on As mentioned, a many

non-GAAP So please regarding refer and further reconciliations for to release disclosures. earnings information today's our

in as discontinued financial results our Additionally, comments historical current on as operations, to reflect filings. a XXXX refer QX cost of a and our of most the XX-Q reminder, GAAP medicine and regenerative our XXXX, are the Medicine discussion operations. and recently For these continuing recent the quarter made bifurcated business first the operations unit, of Accordingly, a disbanded impact Regenerative we discontinued basis results full XX-K my quarter which reporting to on our suspended segment today beginning during please exclude XXXX of of historical was the fourth

Moving to on results. line our top

following QX's net line XXXX grew XX%. sales continued in a growth. prior to consecutive quarter first very XX% performance which year million, growth top double-digit business $XX of Our reflecting period, quarter strong of our we our the represented momentum demonstrates sixth the by compared XXXX,

results site of to service. by Turning our

the growth strong see across contribution continue particularly private with them a We in office. of all to

saw sales strong also albeit newer growth We in of driven the AmnioFix quite you'll year, good of quarter martial grow was which, setting, last first year, products X our Those hospital and the [indiscernible]. in as recall, of products, comparisons. continue off by the of this to

service include sites and also [indiscernible] quarter, that quarter. our provide of our same breakup enables commercial our In by other sites acquired and and and [ were which [indiscernible]. effect, and this more strong VA EpiFix, Our recently strategic provides effectively. revenue of which are Beginning Amneal meaningful a progress of our and and care, believe dynamics, to products, priorities including that we wound report products, sales our our evolving surgical include multiple ] Epiffect in us of new lead of specifically changing the across the industry product and consistent our light [indiscernible] type, Joe sites many product to products view other international, comparison this by more with agreements will us our EpiCord also through mentioned,

$XX XXXX was quarter $XX first million million profit last year. compared to Our gross

point over Our sales favorably a and was that gross improvement of relative reflecting gross the was the by Based compared basis margins profit a impacted margin our for favorable XX%, higher year. XXXX. QX XXXX. of more modestly expected prior benefited the quarter remainder levels gross XXX mix the first roughly Gross from product quarter first margin from decline mix, to we to will product expect our our on

top result in compared year remain on we pay general solid achieving to first as as in to revenue compensation expenses QX the of million operating XX% commissions prior SG&A, stock-based expenses. as and we higher We million spend sales we continued grow Selling, the our a in was as for or percentage period. or a $XX our to as dollar even Turning leverage sales expenses, timing line the XXXX. increase administrative the the SG&A of a operating quarter or $XX SG&A XX% committed as to increased remainder certain to Due basis will decline well likely moderately expect and higher of of expense. growth, sales as of net

period. sales, roughly million compared prior R&D or about of X% Our expenses to first $X quarter the were flat net year

modestly relative to mid-single to expect We XXXX basis a percentage increase as compared a continue of our to R&D sales. to digits on spend net

We some be robust specifically will mentioned generation in data investments utility expect we last products quarter and a the our that for will that of driven part on for this confirm [indiscernible] care rate R&D XXXX. spend we the XXXX in negligible by as an GAAP QX for was are income expense to solution. compared an in XX% important tax million, effective wound seeing marketplace of reflecting QX in $X trial tax amount a

tax statutory to compared our due as vesting. income was to rates in valuation award expense rate, favorably stock-based tax comparison, effective by By tax XXXX impacted negligible allowances. quarter this Our was QX

we a to long-term XX% earnings. rate adjusted use As tax to adjusted will continue effective report a reminder,

in from the Our or a $XX to loss [ per million first quarter loss $X continuing million net GAAP operations Adjusted $X.XX share to year prior of net million in net income the million period. per of income period. compared $X.XX share $X for prior a quarter the year was or $XX of ]compared

XX% period. net EBITDA XX% quarter adjusted million $XX was sales net the First in or to about an XXXX of year EBITDA $X million prior or of adjusted of compared sales

to Turning our liquidity.

our on of as payment $X Televio the repaid revenue had $XX million our quarter In in the cash year, our we are a compensation product that flow evolving in first the well and cash drawn customary refinancing part Biosciences, borrowing of facility to with portfolio [indiscernible] and year outflow. as impacted crew period. to this the the cash prior earlier year. Reginity in expansion million made quarter other million under we by and seasonality $X same we typically first also related seasonal as Our

will back call to Joe? I turn the Joe. now

Joseph Capper

Thanks, Doug.

up sales were we XX%. $XX Net Gross $XX in again heard, increased was had quarter, profit margin sites again debt expectations. all grew product. XX% first net or and the Adjusted in exceeding we rights of million, our acquired million in once the financed of service, commercialize to just you've quarter. our sales EBITDA XX% The unit As to outstanding another quarter. the

turn for in cap call late year's skin proposed case. contractors let the equivalent proposal, me last creating coverage utilization coverage of to per applications [indiscernible] a a LCDs, substitute policy. to Now of Medicare new the of or Similar determinations, local by all the week, were last effect, LCDs the X administrative X that national in

proposal medical year's or based achieving a necessity this in needs on allows patient for additional Importantly, on when applications closure. instances help

approved had powered which have date. trial on underway. be for the recent This [indiscernible], Unfortunately, Even MiMedx. including to What evidence sufficient to our products, is nearly list comment while and significantly of are effect end X nonbiased a the of on not be Two we reimbursement products is XX The highly line matter among they based X, October the published proposed controlled and the into the market. designed the effect mean products the We a the on thereafter, will time for product June published on the other does period, at announcement and for will of specifically XX product LCDs follow simply which [indiscernible]. soon go committed before EpiFix same if for XXX also on as randomized LCDs flagship the likely number will this year. limit again a outlets, our last is not reimbursement later than currently prohibits lack funding There for for finalize clinical due of reimbursement. timing. approved nonapproved a sometime

building evidence body introduction. been a have we of strong since Additionally, real-world market

we the If to such, of the MAX as LCDs order in at engage some coverage. in market, ensure least term. certainly or the path to will level even in effect the a directly implemented modified these As expeditious short CMS cause format, will with in disruption slightly and qualified of most proposed at the

this of be the to trust structure. business some payment The profile, on gotten and in changes time. system believe it medicine of us given has inflicted portfolio, done. our access benefit are the than The and abuse hand. much to the balance new continued this is positioned we while ensuring improved and for clean market expect something the blatant commitment out had vocal most the to However, to longer been solutions. term the cost financial our way under our reimbursement navigate clearly evidence-based bad about better to line bottom in need much-needed behavior up the Medicare fund to fairly We've healing I

evolving We this most as to situation. input will an likely continue provide be will

terms when wound just our believe outstanding proposed the will compete it's making what And is of any have advanced finalized will we to the guidance, we the quarter [indiscernible] be LCDs, care strong or given everything not guidance to the In products. market been we be had. grow would potential for position point this share associated on changes MiMedx disruption raise been communicated in we based with not with a at in able the for and

more. keep as you will learn we informed We

large improve potential team navigate to like delivering growing I entire which congratulate In in with and With our continue these strategy would market, I treated Importantly, the underpinning product think future would with the [indiscernible] the addressable thank helping to portfolio. a the are I and we to for not as we surgical closing, many on we am who to the MiMedx another stay confident particularly expand and people focused lives and a our call of will has like do market excellent quarter. business, bright our products. any to open that, changes questions. LCDs

proceed. our now ready question. for are first we Please Operator,

Operator

Hallum. comes with our question Craig [Operator the Instructions] first And Jay line of from Snickerbacher

Unknown Analyst

customers? in was me, we the when the to fall you guys a wound how market today? the then as is What list noncovered disruption kind any particularly far little [indiscernible], of last physician in adoption considering First from the it's are going are change And of that as And LCD you behavior expect that you about first how to this? on bit sits goes thinking market react with product hearing released. [indiscernible] from around saw do care

Joseph Capper

too by potential So question start some what short-term me Chase, the is kind this much. disruption. if early welcome heard first your of is we're of let part It's there a even on, hearing. we to is that change saying, But have just

for As we changes advocating frankly, some we mentioned, a right are the see And No been care. direction. in as change in for in we've step market this segment any typical in them this time. through through health believe the for strongly will this. dust the times past upside MiMedx. several and downside I've settles, that when we more navigate I potential be lived will than there reimbursement

that If approximately you the products going are nearly XX% XX% to to to the longer volume market to look is reimbursed. permitted XXX going today, no private of be be the office the at

So share. frankly for that's of lot a up grabs. It's

concerned, trial to far on We some [indiscernible] timing. as that a during had for place that it's really As in matter for said randomized controlled product. put my me of working a time comments been I is

we evidence improve invest to efficacy. That we patients market, right? When trial start a into get habit, our that to is As like marquee comes June. in will product enroll to to

well we're underway. even trial that Clearly, the So to before will MAX to be have a is the to over, CMS. and period communicated going comment

predict ensure So pretty the if we're the confident that market. remains we the in to effect but that we're can't steps and right taking all when,

industry The a uncertainty, believe have side So is good value on today. which major on again, cleared overhang is I other change, this a this will thing. the of

positive. much just but see attractive be that. just I business, Look, And that's -- you'll we'll it as industry, determine more a your board across thesis, will a this as investment an the

last we'll look financial find As requires -- at the if to be positioned business you'd the you you over -- changes the more, improved this that us of better There's we the business much if adjustments, look to But balance that's think made balance at than were we'll the current make us. our company adjustments. portfolio, navigate profile. I a year, it sheet learn to make hard-pressed if to

Unknown Analyst

And of And that there kind XX% as you just said there speak you Yes. grab those as in kind obviously, the do well. the talked as covered positioned in kind that a list. are I think of quantify that -- the your kind would long-term answer a we to becomes competitive just you just quantify little how of private How of of is positioning a your share you're benefit and Can expect come benefit? of numbers you maybe as what us bit of far and to about volume kind on then about there kind kind of as in that that available? guys that of remarks of the that to certainly perspective? products that to XX% deeper that majority in couple And XX to times dive noncovered know from help you products. office we volume is prepared potentially

Joseph Capper

quantify at Yes. market point. Difficult this to available

are overutilization. is certain imagine, that there's of guess lot market inflated level due you And then to of pricing. a As dollars my can a

are regs put place. when in So new

dollar slightly smaller as much a see to going you're smaller TAM well. but probably volume a think TAM, I

-- far this so As quantify hard to at point.

the product to the that price were we share ASP behavior the of some office private picking [indiscernible], launched up slow was starting discounting were [indiscernible] onto the down of even and moving in some little list think some importantly, before a bit. are competitors of I as we

there's within better as some just hard-pressed as to products, as So I empty. market performance is our that that and that find you'd much likely be think as on on was evidence particularly, list of to a Look, in sales the much our acceptance product organization. well execution drive -- that has

macro very good about back forward. where we from feel at level, to industry So opportunity again, are say, it look, good look up, I thing . today a behind for would we get But moving the this and real us. the

Unknown Analyst

ahead this there quick on basically volume we kind there's of on a going kind how impact list. fall, long adjust And on If get on look some kind kind chance -- of covered of people of of of CMS Do that a then with you kind you were here not that to you [indiscernible] you to And their the go the then a more was think just trial, one do on it could time kind the And conversation exactly get effective? that the timing then for you would as impact guys just how list, know when goes could kind behavior results? just question and the of this effective. expect then the on those [indiscernible] to on trial. that you, covered would of pick back of that up assuming

Joseph Capper

Yes.

will to when start comments. about trial. committed And conversations be we're those meet with them, funding in entire we it will to it. And our have immediately. We we'll opportunity almost the talk an

we points somewhere I the get a way, readouts. think it's going will will there year, interim but be around along to last

along good likely have we'll the the X will produce published papers. trial So way. data X or

lot put of good evidence the So a into it literature. will

about And -- new the before evidence-based been Long So We've not we my this feel this is company commitment a pretty good a been company. is us. to that doing the committed for . here, time practice of medicine. this has it. [indiscernible], again, is is

Operator

Lake line the comes O'Neil Street. with of from Brooks Our question next

Brooks O'Neil

potential of a short target the expect you a -- it's listening for disruption Obviously, one negative on MiMedx. just any comments just thing I'm be I'm moving if to . comments, your the think you to But term the all I'm nuances little a curious appreciate that? LCDs. of why I is here. sort And curious in your the about

Joseph Capper

committed to I I'm Brooks, you. that sorry Well, if

obviously threat for think to be industry. is and it's plus still better didn't frankly, or, through [indiscernible] indicated because We impacts a I navigate that. I out. ultimately point this or what long it is the I unknown, -- it. we're see near-term a through ultimate takes potential going there's much position to don't If mid view to enforced work our as behaviors we have process disruption a when plus, it of it change see as term much it or for right? long rolled changes We think to guidance a I as midterm a form where this and some us,

like. has it's we don't been yet. we that don't So what to format is -- And somewhat implemented. look final date before This going not actually know determined again, tweaked may the be

think the thing little just remarks, given the I been would our indicated up as prudent changing the out likelihood, for at So in came guide beginning we prepared we're is it the bit. of this this in the have in us of chute way to not all not had year, we say a And I do point. guidance

Brooks O'Neil

Yes. All that makes sense.

a mean, just just to that's human-derived just about I'll there's bit them talk market not relative Okay. about of products, I commented are I your talk you've growth near-term many Xenografts, And you on of alternate excitement the for surgical curious call and MiMedx a the -- you? are little have you Obviously, business departure of little alternate the opportunities a but -- side you there. them history. of let's think just Obviously, they're these products. not some for know a want I to some things big Can I'm shift that about opportunity pursuing the of bit gears. big And source about call opportunities then recognizing for

sort big to of do an do opportunity go after how you see what your So think is in that? path you

Joseph Capper

[indiscernible], .

Unknown Executive

available a the XX% submarket the which than bit the amniotic the is skin to and and in Based place are more looks represent of us, products like play we on to Xenograft [indiscernible] the half then XX%, today. the data probably market little it only really

opens So it up us. more a for lot opportunity

it. commercial compete So about we done you to additional because period the the works. us continue another else for hospital production see for tract tissue know we'll for channel, This question in different of your the develop because in nonhuman we needs. it's there. same results Brooks. or of the gives Look, not anything reason those we win don't human-derived to tissue. out But we've have it's and Same We past. and instances. and derived know bag prefers something -- in to in have tissue channel, We use it that the cases to where clearly placental offerings to there's something one believe It's though,

this So pretty about. a we're is step that . excited

Brooks O'Neil

sense. popped are think strong or international last just there's makes I into and obviously, it a [indiscernible] That this will some question markets favored my And my decision. [indiscernible] is, where be have Absolutely.

about what bit your are just a market. see and So you attacking the plans little what international for talk

Joseph Capper

gives internationally. If us you're in exactly it another arrow right, the [indiscernible]

Some of markets to the are penetrate a difficult with tissue. more human drive only much

is us Japan, and success that a pick the to time the really, order we physicians albeit what steam low know nice we enroll taken product, physicians indicated good in but really starting a that's we're and which base, market repeat but up see. growth off you some As quite continue continue I develop to that of rate, to to relatively to some had more there. a

we're to opportunity us to that But markets there's look we to as other grow. markets to abroad. develop to but this look on. international So too expect And starting clearly, . we're we gives more early at, that continue report

Operator

Mizuho Next Petrone question line from the of is Anthony from Group.

Anthony Petrone

year the on have I'll and gate. on of LCD, [indiscernible]. Maybe Xenograft out back really the Congrats a strong to performance, follow-up XQ

just $XX how look over On million now, in physician did list in versus a XX much And then we physician number? that couple follow-ups. I'll of EpiCord the the and you're office XX U.S. guess, the -- U.S. I non-covered that versus EpiEffect? covered office on breaking when XQ list -- little million So quarter. out, EpiFix U.S. have out at today you office of looking a what's physician is

Joseph Capper

Anthony, effect way I'll the start space. the the saying beginning in office aren't at products, at of just office super since mix, first clear a quarter. started to We're out the growth with for QX, With the to contributor it's regards by private pleased we big the thanks breaking we really but individual it's certainly but launched [indiscernible] we congratulations.

you we go look in with at QX, growing were if office and And like back EpiFix. private QX,

that going indicated, But again, to accessible well on portfolio is of we're -- see I positioned think we're grow back can continue delta. so. as it's And the to hard as work and we sector, products -- well. you sure you to calculate the and that to So to the go effect continues real in make do can

Douglas Rice

The [indiscernible] portfolio. Yes. only on rest is on the kind and in of the product thing launch I'd to EpicEffect flagship Joe mentioned the prepared me EpiEffect the add, Anthony, of second remarks, of as quarter

Anthony Petrone

That's Medicare Joe, some that products, maybe base Within XX% there's quantifying those XXXX. you you number helpful. and also look that number XXXX then that I on XX% XXXX noncovered when using activity say, billion. of $X let's that a was north pricing mentioned of in year some think helpful at of even here, the to And overutilization or

pricing, office that there kind billion was any set of terms there for on CMS $X.X is and rough out estimates what we been just So skin of think XXXX think level physician U.S. kind . has for overutilization to of you premium $X.X in substitute in products. what number billion,

Joseph Capper

was what that looks 'XX We XXXX. like. Yes, go

that seen yet. haven't We number

So higher. comment in we probably volume this of much is I it price. on there. is marketplace, that's put bifurcate seen my would have based say to Is I cautionary the I what out can't majority just the guess price. versus

that health out, If incentives think economic every some care right? there's, do equation in crazy of things. seen overwhelming, every you [indiscernible] -- probably the price some I I've part When there's logically, ever the overutilization, take . there's in. Because people been Anthony, has it

Anthony Petrone

sneak warning clinical we that it's coming just last the And then letter prior major the thinking evidence overly hurdle. under can doesn't you basically be for onerous authorization it one, just appear a in the When And Xenograft at on in. and look I'll then [indiscernible] are extension, moment. that that at

do of I was that And XenoGraft. year guys roughly that [indiscernible] $X addition you the million. think with around number still offset exiting how Is you . number the much right? quoted last

Douglas Rice

as ring-fenced we've [indiscernible] our than of contribution. sort of less Anthony, that X% numerically, Just total of revenue terms in

I'll the LCDs. to we let evidence clinical on requirements sort Joe that around proposed first of expect

Joseph Capper

Yes. documentation around I it's I necessity get don't if that medical pre-off needing to least medical to some for going a a know but see or burden as at necessity don't be pre-offer overly to it just mergers question I appropriate. navigate get and be for other see And your cases will as about payment. where then cetera, audits, those et [indiscernible]... et cetera don't that

Anthony Petrone

What is Xenograft a standpoint? bring XX-month from lower in

Joseph Capper

products you been team and we putting out pretty to go fairly think would say yet. our we not that's to well I product, and market tell X in successful. pretty position the work of X We're going like products And darn it's launched good accepted. development months, the that Yes. The be that the feel this look, will all done I has about been back XX it. has I company projection last

we may products. organization everything, but at new muscle not the well-tuned be around So launching a commercial perfect has fairly

So of I well. some a with when feel confident in 'XX to we And with headwinds started this. when highly this out have that product deal started level early as to we'll [indiscernible] hit success this come

be XXXX, today. this been So would dealing that I had I with much than throughout it not is product would imagine, larger

lost talked feel potential we revenue about steps there. about So we we're taking it. to pretty mitigate any other good And

Operator

Carl the Byrnes question comes of from Capital. next Northland . with Our line

Carl Byrnes

the to a potential to of tuck that infrastructure? be of the in desirable something M&A been will players quarter. have for at LCD a up Most there Congratulations Is under struggles that do in questions follow-up of they contemplated? in where I space, end their up some financial the my XX% blow grabs. any out that's may XX% and candidates terms looking see guess the you around be been answered of for companies to on the kind is

Joseph Capper

people. I where of Yes. lot say I X going were from that, fortune a when that an we comment Carl. with versus dealing is I I better standpoint ago don't type profile same feel on our will the would financial much opportunity think today I too on year other issue.

what see soon happens. it. it's may to but about be talk we'll There think too So opportunity, I

Operator

from Wainright. the H.C. from The RK next question is line of

Unknown Analyst

in if Joe. that's have One the data hand on the you're reviewed be to to convince some every final so this for or get reviewed, a And reviewed can something that quick won't annually? folks reason, require data? it going again time to see soon Is if question how really clinical often you gets by these LCD. because they unable

Joseph Capper

Yes.

proposed November and time of a on imminent with there's something your or sometime to in question this in physician be fee and a then First reset usually frame-ish going not in schedule about the part has cycle, rules thereafter. dealing like we're whether July well-known annually. finally Clearly,

system. Clearly, taking cost aren't standpoint. all year. cycle So determinations of and frankly, MAXs this of every pricing we'll part be because issue there. out the bad the of runaway behavior category from in loopholes with typically overbilling that a and People Coverage the dealing Medicare advantage a the reset were are

and I not perfect, So these go believe said again, good there be they charged have the hook specifically and Trust iterations patients are might might to pretty copays taking settles the should attempt It times, are that. skin through a in when were be darn for before they solution. on Medicare But Fund for And good of industry, pretty some down. well key. good what as is -- steps, for this excess for this the I it being charged that be to to for for a address might pretty us of couple who they're substitute

So good, all it's this good industry and this mess clean is for the really up. to

Unknown Analyst

of itself product in xenograft in how than the was X% general, less regarding in -- for terms on Okay. was when it product, long torment. board, this, your -- can you and run? become you like maybe And revenue then X% it into which of to better what you know in structure your next come such question like which But also integrate the does doing, take around bringing up even guidance I Anthony's forward Axis said a that bring we're way cannot commercial the a for how or than meaningful with

Joseph Capper

there. for too to provide me soon color Probably

until we product kind in acceptance the of have. wait Let's the see get we what market,

it of will the I see has the I based far. get little kind product organization's know to a doubt the it marketplace. acceptance I But to so what we well-received on suspect indicated, be have we As what product ability no into in

to it that. about So I'm optimistic come pretty were on

Operator

the Our Vandermosten of from comes line Zacks. final John question with

John Vandermosten

start just sales the start the about the product. you hands that before I'll [indiscernible] before do of selling do you required gets your team? What to asking that in out with preparations . need

Joseph Capper

XXX(k) you clinical a as developed amount a with work Well, product there and as perspective done a from well. clearance that of it a certain been was know, was in had place,

GPO been pricing, training, So underway. we a start had so when cetera, lot there's a et that's good we cetera, contracting, acquired of it. running et

So a frame. We're put little with that market, you'll full the a bit soft move start to once we into in comfortable little -- that launch QX. in year. kind then of you product in phase and And early the time cetera, you more about pretty talk the you'll make when later launch a to bit a adjustments, et learn .

John Vandermosten

think penetration that . is your that going And the help that to you sales platform -- product ago, of few weeks new to the new platform accelerate do to our a you announced customers? your will

Joseph Capper

Hard to drive say it. that that, will

improved practice just standpoint, I tool. a about workflow a that it's think from much because excited we're

levels when it. And customer I one good way intimacy, higher about of using to do is driving technology talk so

this. we're an pretty product it so like just from about excited new process improvement standpoint. I don't drives overall And that that know a

they're think I a different. little probably bit

Douglas Rice

puts say Yes, environments focused but certainly our office customers' would . and hands MiMedx a care mostly Connect versus on that center environments. wound terrific it's on, private tool is I hospital

John Vandermosten

you it. to, or head that drive come when that, sales, guess, Got sale. count unit incremental do . per And incremental that salesperson forward will look will think productivity you better from sales additional think you I unit -- you

Operator

sales X When both. it's organization, scale an organization, you

XXX% our if you about productivity, at improved doing is FTEs. last -- on with double about less FDA look talked that in XXXX, And this, productivity We dramatically was by volume year-over-year. We think, nearly sales You're were was I sales per up we looking grew call, probably driven. productivity. XX%, that for it which revenue force the because

But continue improved opportunity, you . you're the organization get opportunistically. to invest. -- look then we'll as So yes, productivity going should to you obviously, we're the to to scale, and resource continue

John Vandermosten

already the baked guidance trial Got side it. and provided cost... that, R&D the regarding for the the you costs into related EpiEffect And previous are to on that those

Douglas Rice

it's we of no, the line, full we had expect year digits. X% would a to modest top QX spend for at good up mid-single that pick while But for a really question. John, in to

year So get rolling as north back of QX and X% half and in of other the activities the trial that certainly . in underway.

Operator

this for remarks. closing floor back At . management turn time, I will to the

Joseph Capper

questions the operator. Appreciate . We're company. and quarter. Thanks, call, today, wrap you. next all up ahead the go guys. and we'll Appreciate it. appreciate Thank to I support the talk the going for you to

Operator

Thank you call. today's conclude will for your This participation.

You this may disconnect time. lines now at your

MiMedx (MDXG) 30 Apr 242024 Q1 Earnings call transcript