Sientra, Inc. (NASDAQ:SIEN) Q3 2023 Earnings Call Transcript

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Jeremy Pearlman: Hi, this is actually Jeremy on the line for Anthony. So also two questions from our end. The first one also on the Viality and SimpliDerm rollouts, based on the current macro environment, have you changed the strategy of that rollout at all? Or is it just business as usual and then maybe if the conditions continue and you have to change it in the future, you’ll adapt then?

Ron Menezes: Yes, so the impact of macroeconomic is really more on the augmentation side. What we saw in reconstruction in the summer is really the impact of, as I stated before, potentially leisure traveled by patients, delay in some of the surgeries and reconstruction, and also travel by surgeons. We have not seen any impact at all for both the Viality and SimpliDerm. It’s just the process of going to the hospital RFP process, the back committees, to the GPOs. So that’s progressing extremely well for both brands. That’s really falling right within our current strategy of a control launch for both brands. So we’re seeing a really nice pace for both products.

Andy Schmidt: And Jeremy, just to add, you know, we talked earlier in the year as we were looking forward to these launches suggesting that when you consider both launches, we would exit the year at 5% to 10% of our revenue coming from these new products. We still feel confident with that performance. And so it’s going quite well. And we look forward to this performance.

Jeremy Pearlman: All right, okay, yeah, I was going to follow-up with that use [Indiscernible] still applied, because I know you mentioned that on earlier calls. Okay, and then just my other question, just back to the base, the core business augmentation, reconstruction. So I know that diversification is great. You haven’t seen really a fall off on reconstruction due to the headwinds, macro headwinds. Just if these, obviously we don’t have a crystal ball, but if these headwinds do continue, is there a way that your corporate strategy, your business strategy could shift and to focus more of your sales reps or maybe focus more on the reconstruction side to try and make up the difference?

Ron Menezes: Yes, we started that actually interesting enough in early ‘21, they’re really the shift into reconstruction, which is a weird time to do it because in 2021, the cosmetic breast augmentation market went absolutely crazy. And you saw that year, we grew almost 50% of revenues, driven mostly by reconstruction. At that time, close to 60% of revenues came from the augmentation side. What we saw this past quarter, in the last couple quarters, is that well over half of our revenues are coming from reconstruction. And the idea of adding fat grafting or Viality and adding an ADM with SimpliDerm is really to add more products. And as I stated before, there are only two companies in the market right now that have the full portfolio products for breast reconstruction.

We’re one of them and the other ones are not a big company. And that makes it really nice for us to have a portfolio strategy as we negotiate contracts with both hospitals, GPOs, and different institutions that prefer to deal with one vendor.

Jeremy Pearlman: Right, yes, I understand, Okay, great. Thank you for all that additional information, and I’ll hop back into the queue.

Operator: This concludes our question-and-answer session. I would like to turn the conference over to Ron Menezes for any closing remarks.

Ron Menezes: All right. Well, thank you very much for everyone for joining us. We look forward for a great finish into 2023, and we look forward to start ‘24 extremely well. In the meantime, I hope everyone has an upcoming wonderful Thanksgiving. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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