STRATA Skin Sciences, Inc. (NASDAQ:SSKN) Q4 2022 Earnings Call Transcript

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Chris Lesovitz: Yes. I mean, we think it will still probably be around the same percentage of our overall revenue makeup as 2022. We finished around 35%.

Jeffrey Cohen: Okay. Got it. And could you talk about alopecia briefly? Are you seeing treatments out there that are going on with XTRAC for alopecia specifically?

Bob Moccia: There is some off-label use. I mean, obviously, we can’t go on and promote that. But certainly, the laser can be used for alopecia successfully. There are some — a few, I think, small studies out there, something we’ve thought about. We’ve done some work around it and looked at the potential for getting that indication. So it’s certainly an opportunity for us.

Jeffrey Cohen: Got it. And can you talk about any recent trends as far as treatments go and number of cycles, number sessions, patient compliance and adherence?

Bob Moccia: Yes. I mean I think the big issue that we faced last year with XTRAC was — we talked about a lot is staffing. It’s still been an issue. Once you get the patient into the program, they — depending on the severity of the disease, whether it’s vitiligo or psoriasis, we think we have a high success rate in getting them through the whole treatment process for psoriasis. As you know, it’s somewhere between 10 and 20 treatments. And for vitiligo, it’s generally more than 20 treatments. We do have a coupon program, which helps defer some of the costs, so that’s been effective. And with TheraClear, we’re just getting started. We’ve had a lot of success in getting placements. Now we’re into the driving usage with those placements and expanding our footprint even more. So we’re excited about that opportunity as well.

Jeffrey Cohen: Okay. And then lastly for us, you brought it up. Can you jump into TheraClear and talk about — can you give us a sense of number of placements, regions, typical treatment numbers for patients and cost?

Bob Moccia: Yes. So we finished the year with 2022 with 17 placements. We’ve had a lot of success in Q1. And obviously, we’ll be reporting our Q1 numbers here in early May. But really saw a big pickup here in the first quarter. And mainly because we’ve put a lot more of our sales force emphasis behind it. As you know, last year, it was a soft launch. We’re really trying to gain a lot of information, market research, putting the plans together. But it’s really started to get traction here in the first quarter. Typical treatment is around five treatments. They start to see results after the first or second treatment, which is great, which makes them come back. What we’re hearing from the dermatology community is the pricing to the patient is kind of across the board, but I’d say, on average, it’s about $250.

We’ve heard as high as $400 in some of the major cities. But on average, it’s about $200 to the patient per treatment. So five treatments is $1,000, which is very reasonable considering some of the other costs for some of the other devices out there.

Jeffrey Cohen: Okay. That’s it. Thanks for taking the questions.

Bob Moccia: Thanks Jeff.

Operator: Thank you. We reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further or closing comments.

A – Bob Moccia: Thanks. Yes. Thank you for joining us today. We’ve made great progress on multiple fronts in 2022, and we are excited to continue executing throughout this year. Our goal is to help those who suffer from dermatologic condition. And with the advancements we have made over the past year, we are better equipped to serve them. Thank you again. We look forward to a successful 2023 and catching up in the first quarter.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

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