Sanara MedTech Inc. (NASDAQ:SMTI) Q4 2022 Earnings Call Transcript

Zachary Fleming: Sure. I’ll take that one too. The challenges, the challenges are no different than they were before. It’s getting, we need our people in the field. It’s a very promotionally responsive product. We need to continue to establish data, research base because you know we have some studies in the works that will come out fairly shortly. And of course we already have printed published data today and that supports us very well. And then I think we want to continue to build that story of what hydrolyzed collagen is. And I think we’re doing a very good job of that in marketing and bringing that as well to light in our research. So those are the things I think that will take us to the next level is continued deployment research and then building the story of why hydrolyzed collagen matters.

Ian Cassel: Okay. Thank you.

Ron Nixon: I also just to add to that, Ian, I think that Zach, correct me if I’m wrong, but I think that we get a lot of positive response from our surgical customers that are using this product. And I think the evidence of that will be the evidence that we will be providing shortly will be evident that it is working in the field. But we get nothing but positive responses about the impact of the product that they’re using.

Zachary Fleming: That’s right.

Ron Nixon: I do think just, Ian, on that, to just expand a little bit, I think the other opportunities that we are continuing to focus on is expansion into additional specialties. So there’s a great benefit in the bone specialties, orthopedics and spine, podiatry, foot and ankle. Those are all excellent spots for people that have wounds in those spaces to use Cellerate. And then I think you have additional opportunities in plastics in general, and we are quickly picking up these additional specialties. But as you know, there’s very many of them. So we just need to continue to create those opportunities to meet those doctors and show them the benefits of the product. And that includes going to those shows for those societies and each of those specialties supporting the physicians in the field as well.

Ian Cassel: Thank you. I just have two more questions. I’ll jump back in the queue. You mentioned the Allocyte supply disruption in Q4. That’s continuing into H1 of this year. Is there any way that you guys can quantify sort of the effect of that disruption in Q4?

Ron Nixon: We haven’t disclosed that. We know pretty much exactly what that is. It’s fairly significant. I think we’re — we’re very excited about that product. It was growing very quickly. There’s a great need for it. The doctors really appreciated the benefits of the handling. I think that’s the thing that you notice in this space for bone biologic type products is that really matters how they handle, how they’re able to be used in the surgery. And this product offers some extremely excellent benefits for the surgeon. And so we’re excited about when it comes back. We definitely believe that that supply will open back up. We just didn’t get, we just didn’t get it in the last, you know, four, five months. And so we’re excited that that will be coming back online. And we are getting a little bit of a trickle of products. So we’re not completely out, but we’re just not seeing it for the supply that we have a demand for.

Zachary Fleming: Yeah, and the good news is, Ian, is that we actually still achieved a record year and a record quarter even without the Allocyte production being at the levels where we’d hoped it would be.