AXGN - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the AxoGen Third Quarter Earnings Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Pete Mariani. Pete. you, Thank

begin. You may

Pete Mariani

Omar, and you, afternoon, good Thank everyone.

quarter Karen me third financial Karen Chief Chairman, recovery today's in our will the I performance, update is an on call Zaderej, analysis third of followed Executive overview then today's our with AxoGen's and ongoing quarter call an on Joining begin an performance will Officer which broadcast is and a on provide question-and-answer Today's markets. and live by via President. our of remarks of being webcast, the end section Within from Karen Investors call, of closing website. the available be the Investors an available in will following call our section session. website. AxoGen company's live is the replay the of a hour,

that, strategies, the on resources include, acquisition from to These to Karen. impact may these like related capital performance. product described potential, to review get turn future without I'd development, you with and/or Karen? and our to company's sales that call XX-Q, factors and started, this COVID-XX expected conference make like XX-K to specific forms marketing limitation, or environment, to company regarding future which forward-looking results may limitation, forward-looking those with statements SEC factors I of and business, statements and identify actual statements you product during the the I'd the the encourage statements. cause events call in differ materially including, that will regarding without And projections the or regulatory the past over company's filings We remind events. the Before operating

Karen Zaderej

and Pete, you, everyone. good Thank afternoon,

year. technologies XX% the growth reflects placed clinical quarter with facilities for for timely execution million, was revenue and economic benefits representing the that nerve believe prior growth the to compared of and very on AxoGen $XX.X the and commercial team, of and and facilities. have of improved return performance the this priority injuries healthcare Our surgeons pleased our of patients surgeons third to I'm the our total repair

were believe navigate third patients, COVID cases adept we as resurgences injuries. results were to to and successfully at of nerve of quarter hospital Our became continue stronger COVID-XX including patients our anticipated, more operating able under local restrictions customers than and many with serve

in for increase we an third in opportunity received to primary Additionally, of which of people, during that our procedures, quarter second be recovery in on of we approximately the our increase daily was deferred injuries. COVID-XX the in traumatic believe business many quarter. third focus some XX% to estimate of to benefit third our a the during from quarter, the of the revenue. resulted turn our core trauma which led previously driver We Similar lifting experience the activities quarter the an restrictions catch-up in

However, we as ER by lower volumes be in believe COVID-XX. quarter our that year-over-year third result dampened of growth a to the continued

procedures, procedure we believe elective volumes hospitals surgeons to returned. the as repair quarter, nerve prioritize During surgical continued and

outcomes optimal in repairing repair months a manner. achieved are after the timely injury, nerve a can result in outcomes nerve nerve While positive by

a Graft utilization, COVID Avance nerve resource in favors minimize the the increase of Additionally, for safety worker procedure and time and to our patient and harvesting desire autograft repair. Nerve to to healthcare environment, use the surgically shorten compared

has across recovery. our product are led Nerve our we While experiencing growth Graft our portfolio, Avance recovery and

throughout business deferred ReSensation procedures. breast the improved on breast centers and Our neurotization resuming up catching with reconstruction previously quarter,

levels. breast return were new time significantly that cancer to reconstruction to the several during pandemic screenings note we reduced the prior for months for take and of it However, also will number patients

to lag the breast neurotization oral and maxillofacial surgical Recovery pain being, as nerve-related time quarters. and choosing the nerve growth to hospitals deferred. have few may a remained have to been we continue enter instead such, that for surgical recovery with these that for continue readily a repair We understand As anticipate medication. pain of surgeries reluctant procedure, our reliance treatment patients more lag pain on of

OMS nerve We we the recover, pain applications and year that of as repair and expect for will to into our remainder through continue XXXX. the progress

kept to team late existing and trauma took on largest broader now Turning commercial the our commercial within and our deeper pandemic, our extensive organization last to opportunity, training. year toward surgeon team rebalanced Throughout we organization the market sales driving extremity refocused penetration execution, our our we sales commercial opportunity provide intact customers. and

access around best remote Our practices hospital surgeons COVID-XX during the developed quarter in our restricted. two the sales XXX appreciated expanded representatives direct been beyond. a and by team customers We remote support support has decrease where case been has ability U.S., support, skills has with We sales shared and third this of during the quarter. ended and to team's representatives believe sales

sales remote who cover agencies, Our more supplemented was independent XX direct generally geographies. sales channel by

XX% third represented our agencies total quarter, of independent quarter. in compared the approximately revenue in XX% approximately to the Our second

in the As pleased solid our our believe of team provide of to an improved penetration quarter, in execute believe footprint and sales accounts, to call, will accounts our our represent In and growth provides active sales to strategy. mature number thereby current of territories, further to of rep several we and The these previous commercial stabilize limit support accounts. that over XXX we from direct resulting in ago. had our headcount independent sales our with We a these customers active the disruption, of XXX accounts noted revenue. consistency plan agencies, We're team, size active sales the We allow we XX% XX% the one to continue productivity. sales year continued of the growth supplemented third and our by next our change this minimizing quarters. XX% increase approximately of increased to top us commercial

of of these were virtually, conferences was and American Oral the injury, the and Association in AxoGen's was independent, from awareness building Surgery numerous focus for Hand American presented of research, European at from represented now Society our Surgeons. ASSH. Federation healthcare of Surgery sessions portfolio well of the of these and and the each and nerve RANGER nerve market economics, and the clinical products. of for repair in clinical with conferences, on and participated of cases. Hand FESDH MATCH on recently AxoGen scientific repair, at Nerve findings Turning in clinical held to that managing featured conference, the including registry Societies We Maxillofacial nerve continued each three sessions, investigator-initiated our our

us digital to efforts us of surgeons long-term with Additionally electronically. fully supplement engage to surgeons more team to efforts and allowing remains access the build digital marketing market These awareness, we've engage sales where hospitals, an with our enhanced, provide capabilities, limited. to to help our expanded capability

quality-of-life feeling excellent We regarding Xst receive, were performed emotional on our and AxoGen on which personal ReSensation an patient is and our the show. This the numb, injured And also can surgeon, continue illustration women is patients breasts, mastectomy. awareness left nerves. of her is website. were available nerve to Today an repair, benefits that to of the to excited we cancer And and breast the segment with to the October following of ReSensation who meaningful, in the restore technique. edition have benefits October featured raise repairing featured neurotization, providers, segment awareness The among month. breast segment

We've field and repair. in advancing educate hand extremity experts our and to to repair. our develop updated we've of surgeon an continuing efforts program, and canceling launched fellows' microsurgery virtual the been about by trauma open passionate education an program, continued early several held quarter. surgeons in-person our who Our held surgeon upper-extremity Similarly, led of fellows. programs to we've nerve held in advocates, invitation-only Since And educating are being training in for events, the also several nerve surgeons virtually. We're career surgeon third March, webinars, all education commitment hosting customers. have surgeon-led

We BLA, July. enrollment body announced RECON clinical Phase increasing adoption. of Biologics support clinical our We targeted to III surgeon reached or pivotal License our in expand that product study its continue supporting Application of previously and XXX our is study, of our RECON subjects in portfolio product will our on for allowance last one-year subject XXX XXXX, window. schedule Section including XXX enrolled, Avance the three-month which on a October no later a the assessment our of from tissue a follow-up transition follow-up product. remains Nerve RECON Section of of completion biologic Graft data, a to than

Nerve A BLA Nerve a XXXX. higher outcomes return Study reconstructions the conduits. and Avance in XX Cohort demonstrated that the up anticipate, and the We XXXX. MATCH the last greater compared study Hand Avance to continue Nerve providing expect in for very Reconstruction, Matched in millimeters, titled were excited have three MATCH of nerve Multicenter to RANGER from of study data article In digital productive, quarter Graft and and And two-point a preliminary recent investigators. Processed Surgery teams. Conduit. been Graft than meaningful study significantly significantly rate report of found conduits. The of months file We Allograft the see to of The Journal to gaps manufactured recovery Digital a discrimination our The Nerve publication, of of trial second XXX from

to discrimination compared a to static to for the two Specifically, compared point XX.X to millimeters millimeters average of recovery static Avance, conduit. the as improved group meaningful rate two-point as reported conduit. manufactured Avance -- The XX% XX%, average for X.X found have for was

XX statistically And group. stratified differences of versus Additionally, than between those and in those those with XX entries the be less group XX% the XX% millimeters the And outcomes significant XX of XX%, XX-millimeter into millimeters. meaningful gap in exceeded and conduit. to groups of found recovery versus less to the rates millimeters. study XX-millimeter were XX% Avance lengths than XX

prominently for interest. data in the cost, Avance management Importantly, like the consider reported all not lengths, individual meaningful clinical repairs the at acute were potential And length. to RANGER Nerve the to of also facility three reported cohort meaningful AxoGen upper for that Graft with for a procedure autograft latest on the of from At on with in the and Nerve study consistent, that found gap study ASSH, be across found harvest. those costs function nerve conduit comparable This the was recovery XXX presentations the I'd was rates for nerve costs, for sensory mixed-nerve outcomes were repairs and repairs And increasing repair traditional comparing autograft Nerve The Avance, nerve and Technologies Avance and were highlight additional the associated Graft clinical declined MATCH the FESDH claims. rates ASSH featured autograft, injuries presented data evaluated particular were did donor registry performance study conferences. study found were that motor included procedure to XXX extremity. and while sensory recovery the of to gap the autograft. with a MATCH site comparable program, The risk loss both that only. procedure hospital autograft Complementing nerve presented. the without Grafts outcomes, from Avance costs complications. of associated to payer

This the observed neuroma phase. controlled the comparative care in Avance the new meaningful such, the Allograft, pain achieving management in will Nerve standard neuroma role of neurectomy resections of compared found of And And meaningful was a do Provides of in offers cases. approach for with gap Graft, Nerve Resection presented surgeons clinically RANGER Painful anticipate in Avance a a scores, of in Promising enroll that, study with Cap, with on management procedure, pain. neuroma. Neuroma, insight to provides for to use option, As XX Nerve Reconstruction Graft. a use of study, as randomized following continues functional XXXX. Dilemma, in titled removal painful subjects. painful to data the from The recovery Nerve study reconstruction, evaluating Processed enrollment we of challenging Solution the Avance REPOSE, and prospective in and evaluated to be this our a the the The AxoGuard into completed to improvement Nerve Graft patients resulting neuroma a reconstructions of study of the with QX of was with XX% these What addition the

related impactful data committed and providing study For we on market our repair pilot AxoGen ongoing to the portfolio. challenges of and performance creatively COVID findings sharing by these in follow-up is utility encouraged a of we phase team of evidence support meaningful clinical the REPOSE pilot our to the and adjust nerve the in to Despite study have adapt challenges. remain are We the underway We XXXX. the anticipate QX visits phase, completed to last subject pilot manuscript. analysis

We and have and well-positioned our learned in growth as remain about we deeper trauma penetration customers drive on from We advance existing surgeon us as of we excited new ever believe focused the our skills driving we in and continue customers. with as to our opportunity continued extremity pandemic. supporting front to the emerge are strategy

believe like year-over-year Before for outlook see I Pete, to revenue may in it's growth COVID-XX turn change to in do procedure the as of not the we the from business. to that that the Coming expect to fourth due be saw expect environment care more our continue momentum procedure anticipate off quarter the to we growth dampening health the And moderate deferred a material revenue in spend quarter. fourth continuing COVID-XX, quarter. We QX overall QX. on we we a the I'd in in have discussing quarter. expect call benefit our will appropriate effect over do the third we moment see rate to absent And the receive a in same strength in to the volumes

our injuries. While strategy. remain for strength a to the we we We the long-term care that we're remain company nerve the to our mission our will execute cautious standard commercial with change as be we growth in to business continue the of pursue patients encouraged by and of ability confident near-term,

turn I'll a over for of Now call to Pete financial review Pete? highlights. the

Pete Mariani

Karen. Thanks

to revenue quarter $XX.X Third increased million. XX%

product also to the included compensation operating the cost charges $X compensation $X.X result the in primarily stock efforts expenses offset prior Sales compensation. million, changes quarter quarter last absorption of of operating facility in Gross million increase revenue Total education profit to in quarter. volume including margin margin $XX.X Total prior $XX result driven in $XX.X $XX.X a expenses third Gross second second processing declined idled expenses was a quarter increased impact pricing as our X% and the programs of of result and to the due for decrease year. by and XX% a partially offset XX.X% compared travel from and revenue variable the in benefit in year. the overhead to expenses a sequentially to Total the production in increase was third $XX.X variable million The marketing result higher of the in by the at Gross operating from third of million was mix. in-person in prior quarter to to a QX XX.X% X% declined our quarter and in million mitigation year. higher expenses quarter unit compared net the by partially XX% the compared restarting compared improved education in down quarter a QX the prior to previously in $XX.X litigation million, in and in year. compared in X% non-cash during and was Our year. levels. third million due surgeon as production million, conference as higher for to reduction were the higher prior-year

the which sales expenses expenses compared in As of costs months our to the total and September the prior approximately decreased in compared is XX% $X.X a XX% percentage year. compared year. of support Nerve clinical Product in to and other third development XX% prior of represented expenses of total Avance marketing and in includes include development, clinical represented three the year. Research QX year, BLA ended Graft XX% research. XX% the in to development spending development for while the R&D to Research product XX% XXXX, quarter XX, revenue, with which consistent and for in last prior third to quarter million, was expenses the

in lower revenues, year. loss professional XX% in third As million $X.XX Net a in partially compensation. of in related year. in research prior expenses the and by compared were the of decreased year, per million year. expenses impact the to share General and the $X.XX to and percentage compared decrease of revenue the offset fees, variable XX% or in third the $X.X per to well primarily travel was prior prior of compared $X.X million or share litigation development XX% $X.X XX% in million quarter revenue, quarter the total as QX, XX% to prior The or increased to $X.X is fees as administrative or

Excluding the of share. year XXXX million of impact as share of adjusted and we million per and are net income in share per and $X.X of $X.XX per and share net $X.XX and noncash net stock per litigation compensation, in income as related the QX loss prior $X.X to loss well adjusted charges, compared reporting

We adjusted the an the EBITDA in litigation quarter loss impact EBITDA also $X.X also million stock and of excludes number year. during prior the related This compared million of EBITDA adjusted $X achieved adjusted compensation, positive to of charges.

third the includes XX million portion offset million including operating capital QX. compared the $X In and million sheet ASC Turning to partially of investments of under cash, biologics of A capitalized and recognized $XXX,XXX The and quarter. with agreement to positive during cash was amount third facilities the Capital, drawn cash balance up provides flow a of end $XXX.X of interest capitalized million XXXX. XXXX new interest this Oberland expense. construction September $X.X period expenditures XX, new a as facility million, capitalized financing quarter, as in as to of commitments announced And which into incurred seven-year and of our balance $XX will by paid of equivalents on $XX interest total the Dayton we on our of interest-only interest, change under required June be million paid cost process June with we processing financing and $XXX,XXX balance of XXX. in that its on the XXth, the as our $XXX.X construction for center

process, our center in our soon will construction one-year be final Tampa processing XXXX. in Dayton As facility XXXX, by to anticipated, of totaling in the the fourth facility XXXX. operational biologics convert are facility we and the center of anticipate of make early quarter. for previously to we followed payments expect We quarter new resuming the will validation as late the a disclosed, third in in construction And approximately $X new production fully completing cash million and

positive Our and and of the $X line cost cash impact we the generation million primarily adjusted quarter result during of top implemented of EBITDA were $X.X April. initiative in million strong our operating that of the revenue mitigation

cost preserving initiative recovery. also efficient mitigation the patients Our and customers run us was to more our on support spend on designed put ability offense to while rate, through a and remain

would flow we this that this us quarters. result the and next in model, was positive unlikely for of would we – strong While are also and we encouraged potential in highlights believe are generation it our of caution profitability the underlying from and the that cash unique to events business profitability by flow same cash our few result the to receive perspective, third over benefit quarter confluence allowed over-deliver that that we a

continue QX, saw the COVID-XX, deferred a growth not healthcare do volumes that and earlier, same in will year-over-year growth dampening on see to we the Karen a we receive COVID-XX more expect we rate in change to that as in procedure anticipate we appropriate to believe the fourth absent the quarter, to quarter. QX, As is environment but material procedure in from be benefit expect the moderate have effect due noted in may to overall expect it we revenue

are and October. to restored of reductions and the XX% on reductions all the into development, growth. XX% Board end ramp slowly that fees salary And hold, product previously trials, for non-executive XX% including key of we at have to executives projects certain which initiatives, marketing to August and we are and sustainable in begun restoring were for investment the Additionally, clinical long-term driving administrative employees

is earlier that that see anticipate fourth will important also cash to productivity. enacted burn moderate in model several expenses quarter. of us operating we a result, the QX, maybe have we COVID-XX in the a into increase a we note path nature and year response to sequential that It operating on in return evolved improved an a As to improved more permanent and moderate the to in will that in initiatives put

strength demand we to We continue are improved our our our realize team's by by commercial third business markets increasing as improvements execution. of and encouraged the the driven across in by quarter,

like normalized the community confident As have business business with and are our making over Karen. emerge and path that from the grow in meaningfully we we the stronger, back operating delivered the a that, healthcare to general will environment, and are specifically, hand a this And to investments we organization call pandemic-related us to the toward that leaner position improvements on I'd profitability. downturn, a moves to

Karen Zaderej

pleased with you, Pete. performance commercial opportunity. on focus with third team are as we our renewed our the quarter, execute the Thank continued trauma during Overall, to core our

during continue and are We open questions. XXXX hospitals. dedication the Omar? the entire repair solutions surgeons, that entering and like quarter, thank I'd repair times, remain I'd expected the for the are committed patients, market. designed recovery encouraged than during line point, their to progressed to these this nerve outcomes fourth well the innovative and quarter like faster team AxoGen to our for At we to as nerve for improve delivering and we developing positioned to challenging resolve

Operator

[Operator right. Instructions] Thank All you.

Raj question from first Our company, coming the from Denhoy is Jefferies.

Raj Denhoy

hear Hi, okay? good me guys. evening, you Can

Karen Zaderej

Yes.

Pete Mariani

we can. Yes,

Raj Denhoy

start side. the can on with you Great, great. I Karen, Maybe, revenue

fourth a So quarter about or can the the I around a so, revenue Is least think $XX so settle kind for up, starting And million base quarter. this I that right? in where you you think point quarter? or XX% noted of catch leaves think as that the good in in something start the probably you that of was

Karen Zaderej

usually, I QX. were sequentially the COVID-XX. Well, happen, because thinking of between deferred sequentially we're think and that in you're impact And injuries that out on QX. back will But those procedures the remember we're QX and flat right to what really happened mindful

we'll year-over-year year-over-year. show not So, growth, think we're anticipating growth significant while we

Raj Denhoy

a perhaps an quarter? something the So, suggest from light having you'd that, during to just maybe account COVID impact little for

Karen Zaderej

Yes.

Raj Denhoy

like to From as as that should goes maybe as I'm quarter sort but as absolute guess do there, on maybe, it's about load to expense parse percentage or I expenses of $XX-ish was it will really, million? expenses, So baseline was not right? of be little you the should you're a times we the drift and a that it? this? trying That Pete, you bit quarter or revenue, forward, number the it out be lower. expenses comments modeling Okay. think going Fair in that that in just made how tend upwards, we enough. sounds around And it now past, been $XX.X up then million in thinking a in operating really the from how low is But

Pete Mariani

do Yeah. that's tick up. right. think continue I going to it's to No,

business on a some we kept around the as very quickly. With we're we from trials – are commercial of projects on put Now, going begun clinical projects on to begin continues trials, we've on are and run some some Look, it's a these to – to to growth a team not and going economy capturing continuing more that around that much open. doing that we – the remained things top efficient good additional marketing things than pretty to go the do about but keeps put recover mode. make we'll growth place on offense just other we'll get We've And – But and hold, opportunity a pre-COVID. hospitals initiatives, are the clinical money hold as and top on – to to job of very a line into line. we investments we're important start back these going the way we the guys perspective. on of in in continue that other that, rate encouraged certainly it, were spending that us as we

Raj Denhoy

Fair. one one, maybe Fair enough. Karen. then just last And

results study, question the the I MATCH well is what as get So there is look I that as for in we're guess, press any that going RANGER guess, highlighted that reasonably see couldn't reason I one from to study good as eventually for when at study you why came really, guess, publication in the RECON proxy cohort, release the data? the the we the a or out. you,

Karen Zaderej

think study. confirmatory one the tells you own next types in we I study see Well, you But so assume the MATCH of study study, this, those is we from to the having it's the coming RECON and planned results that out said, put data same its can't the for every results yes, study when together study. that we

Raj Denhoy

you. Thank good. Very

Operator

question Thank Pasquale you. And our next Chris is from with Guggenheim.

Chris Pasquale

Are on there? guesswork Congrats XX% how Thanks. component, confident occurred? the much a on is when procedure you pretty involved the you guys. into deferred that some nice injuries curious I'm do quarter visibility is have that or number solid,

Karen Zaderej

a very regionally as done but the see noticeable hospitals procedures opened we what up surge did in around was estimation, an country. It's

and time, and nerve community been catching that's it going up had on their they that supplemented care. seems wrapped patient were surgeons like found believed supportive get the And And the majority the really provide to done quickly. good -- and surge a their defining for or that we discrete to out see basis, deferred as of actually They period spike with We repairs told of so surgeons pushed has get hospitals their are thoughts August. procedures deferred they did in would they've big this to what that that's their what procedures we've you'd we're volume. that looks And a case they in a And procedures. deferred doing rolling by and like where interviewing of on and get on that up us that done. they it surgeon

Chris Pasquale

how I'm one sense. hire that's sales for triggers resuming you're slowing is now? me, of this a you how on hiring at the Okay long of improved for point. this force a to about Is efficiency through the makes rep of then lot size productivity go you driving per be pace or efficiency? of that more curious helpful. certain thinking from of gauge revenue the force territory as resuming you're or Just second benchmark using here a to phase driving And rep sales expansion hold the certain level there while expect trying

Karen Zaderej

we Well, haven't number. set a fixed

I see that. we several really basis to to we're looking territories. through some said could the start around We territory. productivity $X that the quarters driving, they're here really We'll disruption per of direction. we front individual productivity than always continue and without move we want the But be we of a get to territory we but a of territories thinking in rolling if that year growth in million in on the of bigger that that bigger lots us theoretically revenue think getting the or obviously thought we're and we've can split that at see get see splitting substantially we've than stability that where gotten territories

Chris Pasquale

Great. Thank you.

Operator

Rich question with from Leerink. And next is SVB Newitter our

Unidentified Analyst

this you for those just kind Erin the segments? could for OMF kind what's XQ, growth across And some was different BRN, hoping just Thanks moderate Hey, in you like types flesh maybe maybe of the on what think outlook contemplated in trauma, is I taking pain. might do for of get of growth our of question. Rich. segments you out and

Karen Zaderej

Sure.

upper-extremity from but That's growth and trauma to segment of we from where growth. that -- look layer you growth, the to our upper-extremity has continue our to of the been to rebound our were business deep COVID, the overall our to really trauma. recover only been growth of majority majority at return If is not first next majority and

so resurgence a treat segment will so a we centers, will that in in total can COVID pocket to mammograms that shifting. think there other breast diagnosis of what there saw April a and months we hospitals centers there may return breast or We several quarters but shorter any overwhelmed to were cases we're frame, an we recovery particular to air are to couple is can our be the mindful quarter of reconstruction is have so or trauma because might are weren't what that periods to be the And way as between reconstruction. sort through we're their ambulatory to move three of there cases often that done they a patients. surgery segment, be level-X cases in hearing become these where especially defer may that from with but the QX full which typical they that's patterns COVID trauma And there in to time surgeons Florida of third large six the we're seeing for some in centers it In trying patient start, Texas hospitals also are the because in all see by some the They reconstructions, time. shut trauma region perhaps to of is regionally, be in and down that of months saw what have to think of going pipeline this not dampened in get don't take the before we flow. and way,

high-risk if And People forward, procedures less. is The delaying COVID of They're for back procedures. dentists malignant going COVID growth and seeing tumors into continued can be mid-part next the in are until less recovery the We dampened. dental delaying get still disease returning somewhat to to And this oral of if continued effect again so of year. the continue saw some are maxillofacial pain dampened believe QX. having COVID some the will starts think in latter benign not of again recovery until the couple QX, surgery is quarters Oral that's sort in they rate but but the because to we to direct a smaller down. next may transmission positive. to of mid tumors. tumors; We are see benign dentist we be patient we segments, will that

the the dynamic, see oral And the but where a This is really the so surgical resolution same that it's we segment midyear timing for the growth to treatment surgical treatment in more in to think of essentially sort pain. market coming be maxillofacial think a significant we the of to they and start new to about of vaccine a little willing new coming a they're us. a comfortable the surgery, of treated different continue willing medications pain, for concerned And It's into this we'll return will continue what then to year. until depressed in found having for we pain setting. patients is never lot think postpone surgically. reliance a it surgery are hospital into environment, a coming their that have to of even And the time instead but do to until hospital not feel on pain period planning of more the to of

growth another be to think frame. we until the get relatively segment low midyear continue that's will we into that time so And

Unidentified Analyst

one of light one shed I could couple And me. seen wondering of quick the just Great. in if Okay. some you've was more first then October. what maybe just on you weeks for

of Given Thank from there's elective the start to cases or rise you may that recent much. be feedback customers be to any you that a in the again? need indicating procedures some slowdown heard deferred so have

Karen Zaderej

they QX, that into course, some And may need -- case. very would happens it trauma in again, hospitals way seen saw is defer procedures signal defer to injuries this same nerve heard not typically is to case even everything can for of in in repair. elective, that but they if October starting that to in this Well, they We've but COVID-XX strength from the that see look considered in regional. traumatic of elective are we we including have

there's in think anything haven't with while that the substantial seen talk I will get possibility as procedures we that date that would deferred look So and locations. consider some administrators hospital we at I to charts as we a

Unidentified Analyst

much. Okay. Great. Thank you so

Operator

next Our from Rose is Kyle question Canaccord. [Operator Instructions] with

Unidentified Analyst

bit. previous This is Kyle. salesforce piggyback a question I to Ian off on wanted the for

versus would an XX% procedures? of on here consistent great? with driving Thank of in XXX% I new XX% that's Any top even COVID accounts well. at opportunity It again. there think fairly Is the do as existing disruption like seems be surgeons their to color grow for that been mentioned Are you. there all? Avance how think accounts using Just for getting users? you sales of those focusing utilization you about those

Karen Zaderej

to users adoption No, we're is expansion some penetration our existing Sure. Yes. And our We'll really we've are penetrated. together to and really of our put is clear the drive the that and extremely with focus existing accounts. existing most to date with because our best lightly among on of driving accounts, that users strength of in procedures see there and continue the environment benefits, where I data but do of even users reasons compared particularly help, that we that this this a where an COVID effective autograft provide in think real in them to think provide we and way more allow it we times -- adoption shorten environment to procedure benefits they've in to are we what real do over historically. opportunity push that done to

Unidentified Analyst

Perfect. Thank you.

Operator

Mariani at over questions further turn Pete this to like to no are I the take back closing the comments. would time. to time floor There for

Karen Zaderej

including the Health very through XXth Jefferies MedTech Sandler Well Thank Conference Karen Piper Genuity attending November December thank joining you, us the forward and you and XXth, Virtual it'll of thank on you Annual conferences Canaccord everybody and the virtual and I the Healthcare at upcoming thank be We we everyone Virtual to for Omar. with you Care November on speaking Xst XXnd Forum the today's Xrd. London many to much. on look want Conference call. are Diagnostics

Operator

today's teleconference. concludes This

and your participation You you at your lines great may Thank have time. this a again for evening. disconnect

AxoGen (AXGN) 1 Nov 202020 Q3 Earnings call transcript