Sanara MedTech Inc. (NASDAQ:SMTI) Q4 2023 Earnings Call Transcript

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Chris Plahm: Zach, probably a question for you on Cellerate. Could you give us maybe a little more color on two things? One, kind of the organic growth from the existing 1,000 hospitals you guys are already selling into for this year and beyond? And then, also maybe a little more color on the gap that you want to close on sales with the 2,000 gap on approvals and where we’re selling into today?

Zach Fleming: Sure. Thanks for the question. So, for the 1,000, one of the main things we’re trying to do there is expand the new specialties. We’ve done a good job, I think, getting into ortho and spine and the foot and ankle. Those are fairly straight line for our representatives and as well as the 1,099 agents we contract with. And I think those particular specialties have a great need for this type of product. They’re putting in fairly expensive hardware material, and then, of course, want to make sure that the Tissue closes on eventfully around it. And then, of course, any potential problems they might have where as the wound would move forward, they could use Cellerate to help that wound to heal. And so, we also see a big opportunity with plastics, in general, vascular, primarily those three, but additional specialties as well where they’re really challenging patients and really challenging wounds.

And we think that there’s a lot of opportunity. We’ve seen a lot of this already where we’ve started to access these new specialties. So, we’re coming out with additional case studies. We’re going to do some additional case reports. We’re going to do things to really explore and exploit out those particular specialties. So, they see the benefits of the product just like we’ve seen with ortho, spine and podiatry. So that’s the main goal is to expand kind of horizontally in the facilities, get a little deeper. We’re also doing a lot of education to the clinical staff. So, in every surgery, we have scrub techs, circulators, different types of nurses that support the case as well as nurse practitioners and first assist. And those people are really critical to the closures in the cases as well as the post-operative care.

So, we’ve done a lot of effort just because BIASURGE is such a great product to have handhold Cellerate is really educating the [one-two] (ph) points of those products and the power there. So, you can prepare the wound and then you can close the wound or help biologically support the wound as it continues to healing. So that’s really the goal with the 1,000 is to continue to expand and grow around those. And some of that is just gaining more headcount. We talked about headcount a moment ago. We’re going to have to put a few people in to support larger accounts because there’s just a demand there. There’s a lot of time associated with supporting the cases. So, we can — we want to have people in the cases at all times and really own the account.

So, we do have the TM model, which you may remember that’s a supportive component to the regional sales manager. So that will continue as well. And then, to gain access to the additional 2,000, a lot of those are just an additional partners, 1,099 agencies that we can contract with and access into those accounts. We’ve obviously gotten great data, which allows us to identify and prioritize which facilities have the most opportunity within those 2,000. So, we’re going to target those and have our people run to those particular accounts and then identify the surgeons within as well because that data is available, that — really they’re dealing with potential problems, they’re patients that have high risk, that’s the type of person we would, of course, want to try to call on and use as a champion.

And that happens through a lot of different things. Trade shows where we’re meeting and being on — in front of different surgeons and meeting new distributors. It also happens through podium talks, things of that nature and then additional papers that we’ll have written and published. So, all those things kind of help to bring or surround sound and create more demand in these additional accounts.

Ron Nixon: And Chris, we don’t actually put out a forecast or penetration into what markets we’re going into. But I could tell you that the greenfield opportunities both for the current 1,000-plus the overall approvals that we have is significant. So, we see plenty of potential runway for the Cellerate product.

Chris Plahm: Great. Thanks, guys.

Ron Nixon: Thank you.

Zach Fleming: You’re welcome.

Operator: We have reached the end of the question-and-answer session. And now, I’ll now turn the call over to management for closing remarks.

Ron Nixon: Thank you everyone for joining our call this morning. We greatly appreciate your support, and thank you for being patient and great long-term shareholders with us.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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