SI-BONE, Inc. (NASDAQ:SIBN) Q2 2023 Earnings Call Transcript

And that’s on the core primary SI joint fusion business. If you actually look at our Granite business, it’s actually quite easy to go in. And we do what we call an instrumentation review, typically in the Office of the Surgeon, because this is a procedure that they’re used to doing already, they’re just going to be using the Granite technology, that’s replacing some of the existing technologies that are out there. So in terms of adding active service, I do believe that we have a number of different ways to engage these new surgeons, and that we have significantly improved our ability to onboard.

Operator: And our next question will come from Kyle Rose of Canaccord.

Kyle Rose: Hi, great. Thanks, everyone. And congrats on a strong quarter. Wanted to just have, look, you’ve had the entire out of market growth over nine months now. Just wanted to see if you’ve seen a material changes in the amount of plans, we used for procedure. There’s been a lot of talk of going to the potential for or somewhere along that path. And then secondly, I don’t know if I missed it. Did you get the number of CFS reps you have in the field as well?

Laura Francis : Sure, thanks, Kyle, for the question. I will answer the question on the end cab. So just as a reminder to others that are on the call, we have an end cap in place that a little over $98,000 for Medicare cases, it’s exclusive to Granite and it does create a pretty strong competitive advantage for us. And that’s really combined with the efficacy of the product. The goal here for surgeons is to ensure that they don’t have fixation failure in these long construct cases, and these cases, on average can cost a couple of $100,000 for the initial case and can cost in the range in total of around $125,000 for revision, and obviously, the patient impact as well is significant. So what the end cap does is it really, it’s economically beneficial to the surgeon, to the hospital, and for the payer, and we have seen strong interest in that particular end tab.

So we’re pleased with that. In terms of our CFS reps, this — our typical pattern in prior years, look, actually give out both numbers. And it became a little bit confusing. And also, given the push that we’ve had for agents sales as well. What I’ll tell you is that the CFS is similar to prior years are a little less than one CFS, two to one, senior quota carrying rep. And then as I said, we’re also bringing on additional agents that are helping to increase this productivity that we’ve seen, on an average productivity increase of 32% this past 12 months if you compare it to the prior year, and it does show that we can really grow the territory rep productivity in 2021, it was less than a million last year with around 1.2. And now we’re at $1.4 million.

And those quota carrying reps are supported by the CFS is that you asked about, and then also the addition of agents who have been particularly helpful with Granite cases.

Operator: Next question will come from the line of Samuel Brodovsky of Truist Securities.

Samuel Brodovsky: Hi, thanks for taking the questions. Just the first one. And thanks for the color around the certain dynamics to start 3Q, with new TORQ, should we think about a steady cadence of new competitive surgeon conversion through the second half? And or is that more of a onetime thing? And how should we think about what’s contemplated in guidance in terms of new surgeon add this [inaudible]?