InfuSystem Holdings, Inc. (AMEX:INFU) Q4 2022 Earnings Call Transcript

Barry Steele : Brooks, this is Barry. What I want to add to that is when we’re done launching all the GE business, we’re going to have a geographic breadth and capabilities that will be enhanced to a point where we’ll be able to serve the market very, very well. So I think you should look forward to that benefit that will come from that.

Brooks O’Neil : Great. That’s perfect. Let me switch and ask you a little bit more about negative pressure in the wound treatment business. Obviously, to get bit by a second bug in that area is disappointing. But I know you staffed up considerably to prepare for growth in that business. Could you give us a sense for your staffing today and whether you feel that will be fully utilized during 2023 as you ramp the Sanara partnership?

Richard DiIorio : Yes. So we made the initial ramp in the team, I guess, it was in the summer, fall of ’21 to really make a big push on the negative pressure space with Cardinal. That team, I think we bounced up to like 15 people from 2 or 3 at that point in time. It was a pretty considerable investment. We’re down to about 8 now. So we’ve cut back. Some of the people that we hired weren’t what we thought they were and with Cardinal kind of pulling out of the market in the summer, we peeled back that team a little bit to just keep the core team in place, so that they could help us launch the Sanara opportunity. So the investment has been cut considerably. There’s still an investment there for sure, but it’s about 8 salespeople, give or take maybe 1.

So the good news is that team is in place. They are currently working on opportunities, starting to build the pipeline with Sanara that should gain momentum in this year and really start to return results next year. That’s the plan.

Brooks O’Neil : Okay. And I’ll ask just 1 last one. I think you said and wrote in the release that you don’t expect a contribution from Sanara in ’23. It sounds like you think it’s going to begin to ramp up in the back half. Do you really think we’ll see a meaningful contribution in 2024? Obviously, that’s a long time down the road. But is that what you’re thinking?

Richard DiIorio : Yes. So in 2023, nothing from Sanara is in the guidance. We’re hopeful that some revenue will come in, in the back half of the year. But again, the timing of that is a really tough thing to predict. But rolling into ’24, we absolutely expect some meaningful revenue coming from that Sanara partnership.

Operator: The next question will come from Alex Nowak with Craig-Hallum.

Alex Nowak : So I want to ask kind of a high-level overview question to start here. So there’s a lot of moving pieces on the call here. It’s — is it fair to say you’re deprioritizing the ITS segment and really focusing on Biomed in the near term? And that’s really because you just have more line of sight there. And then when you look back, what do you think ultimately made ITS, whether it be Pain or Wound, so difficult to tackle on these new therapies. That’s all despite the market share leadership you have in Oncology. Why is the oncology piece and your strength there? Why didn’t that translate into these other therapies?