Myomo, Inc. (AMEX:MYO) Q3 2023 Earnings Call Transcript

Operator: The next question comes from Edward Woo with Ascendant Capital. Please go ahead.

Edward Woo: Yes. Congratulations on the quarter and especially on international. Should we expect that continued growth rate — high growth rates in Germany? And is there any possibility that it could increase even faster? And what about possibly or going outside beyond Germany and the rest of the EU?

Paul Gudonis: Well, we’ve been really pleased with the consistent year-over-year growth of Germany. As I said, it was a record quarter here in recent in Q3. We’ve been building up the distribution network. We’ve been very successful in getting statutory health insurance payers to cover this. So we can expect we’ll have continued growth there in Germany. We’re looking at other markets, especially in EU, where we have CE Mark, and we meet the EU MDR rules. Now the question will be reimbursement. It takes often a year or 2 to establish reimbursement in some new markets. And so right now, we’re basically doubling down and saying, look, Germany is a big country, over 80 million population. So let’s keep serving the patients in Germany right now is our first priority for Europe.

Edward Woo: Is there a possibility to push to gas pedal a little faster to take advantage of the opportunity in Germany? Or do you feel like you’re at a very comfortable pace?

Paul Gudonis: Well, we’ve had a good growth clip over there. It requires more marketing spend, more business development staff, more clinical trainers and so on. So we want to go at a good pace, but also do it in a quality manner because we want to make sure, we’re medically qualifying patients, getting all their documentation and following up for good outcomes. So, we’ll continue to see a good pace of growth there in Germany.

Edward Woo: Great. Well, thank you and congratulations again.

Paul Gudonis: Thank you.

Operator: Our next question comes from Ben Haynor of Alliance Global Partners. Please go ahead.

Ben Haynor: Good afternoon, gentlemen. Thanks for taking the questions. First off for me, on the mix between the MyoPro Motion W and Motion G, where does that sit with your typical — in your typical quarter? And do you expect there to be any sort of difference with the Part B population?

Paul Gudonis: Over — excuse me, over 90% of our orders are for the MyoPro G. That’s the more expensive unit because it includes the glass, enables greater functionality of ADLs. And as far as we expect, it should be pretty similar for the Part B population as well as other seniors.

Ben Haynor: Okay. Great. And then on the payers that may not be covering MyoPro, would you expect them to kind of fall in line now that Medicare has made these changes or CMS has made these changes?

Paul Gudonis: We expect that, that will happen over time. Certainly, Medicare Advantage plans are required to provide whatever Medicare standard Part B does. So we think that will open up additional Medicare Advantage plans to the MyoPro. And then as you are aware, often commercial plans will follow what Medicare does as well. So over time, we’ll be having meetings with various medical directors of these plans, the commercial side as well about contracting. But certainly waiting for this Medicare Part B sort of blessing, I think it was very important for the overall reimbursement strategy with these other payers.

Ben Haynor: Okay. That makes sense. And then on the Part B patients that you have in your database right now, I guess, this maybe is more of a mechanics question. But when might you start including those in the pipeline is that something that you just closed to investors? Is that something that we would probably look to hear about kind of in the Q1 report? Or could it be after that before that? What’s the right way to think about that as you look at it today?

Paul Gudonis: Yes, I think that’s a good question. I think after everything gets finalized at CMS, the price category rules in place, these are published and so on. And as we continue to build up a patient pipeline or Part B patients, we can be discussing that as well at that time.