AVITA Medical, Inc. (NASDAQ:RCEL) Q3 2023 Earnings Call Transcript

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Operator: Our next question comes from Ross Osborne of Cantor Fitzgerald.

Ross Osborne: Maybe just one for us on OpEx. Now that you’ve had full thickness out for a handful of months, how do you feel about the number of reps you hired ahead of that expanded indication? Do you foresee the need to increase headcount next year or no?

Jim Corbett: Straight away, Ross, we feel very good about the number we hired. Having said that, when we foresee the average territory size approaching 2 million, we will be expanding, because that — there is so much opportunity out there. I happen to be traveling and had dinner with some physicians and one of our CTSs, which are — they are commissioned, but they do a lot of the case coverage. We were in New Orleans and this particular very good rep of ours was talking about covering consecutive days in Jackson, Mississippi, New Orleans and Memphis. So we are far from being geographically populated. So I’m sure that during next year — and you might recall in my comments during the script, we do project that next year we’ll increase again our commercial team.

Operator: The next question comes from Madeline Williams with Wilsons.

Madeline Williams: I was just wanted to ask, you sort of mentioned that with the label, extended label indication that there’s sort of a longer, I guess, sales effort there. Is that in regards to sort of more education for those new sort of trauma surgeons that you’re bringing on in regards to the retail device?

Jim Corbett: In a sort of indirect way, Madeline, if you think about it this way, and the burn center was real straightforward. There’s a head burn surgeon in every hospital, you go right to that person. What we find with full-thickness is there is many constituents with many different indications. And so when you go to the value analysis committee, you find yourself being asked about many different indications. So there is what I would describe as a time element that slows us down a little bit but it’s benefited by the expanded opportunity. So it does cut both ways.

Madeline Williams: And then so I guess with the Q4 expectations, I mean, is there any sort of color as to what you expect for the rest of world, I guess, opportunity? Does that sort of come through straight away or is it mainly just growth in those soft tissue and/or the full thickness and burns?

Jim Corbett: I think for the fourth quarter, we’re really focused on what happens in the US in full thickness and in burns. Rest of the world will start to take some time to develop, but it’ll become more meaningful as 24 rolls on.

Madeline Williams: And if I can just ask one final question in regards to the vitiligo. I mean you’re obviously doing the studies now and importantly the TONE study. But just sort of maybe a comment around what your expectations are for sort of pricing in regards to vitiligo and reimbursement? And knowing that it’s sometimes difficult to get those commercial payers, I mean, have you already started those conversations? And I guess, what has been the feedback if you have?

Jim Corbett: Well, first, it’s a little bit early for us to answer those questions, because you need the data from TONE, you need the healthcare economics data that we’re working on with the healthcare economics firms. So you really need those inputs. So with respect to ASP, what kind of adoption one might expect, I think, we’re a good nearly 18 to 24 months away from being able to really give that type of level detail in terms of guidance.

Operator: This concludes the question-and-answer session. Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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