Unidentified Participant: Hi. This is Sam on for Ryan. And thank you for taking our questions. You reaffirmed 2023 guidance at around 11% to 15%. What do you expect the overall market to grow into 2024? I know you’re not providing formal guidance, but any color would be much appreciated. Thank you. Then I have a follow-up as well.
Pete Mariani: Well, good question. But, keep in mind, for us, the trauma is really a function of human activity. It’s not as if the number of traumatic procedures is going to increase any more than population growth. The real opportunity for us in this is not so much how much trauma might grow. It’s the opportunity for us to utilize the data that we have in these new product launches that we have to capture more procedures and convert surgeons from direct repair or autograft repair to the AxoGen algorithm. So it’s less about the market and more about our ability with our data and products and our sales execution to convert that activity. And then on the scheduled procedures, I’d – look, I think we do see increases in breast reconstruction year-over-year.
The number of mastectomies and reconstruction are growing at that rate. And – but again, that’s – the overall population of those is going to grow. But our growth is really based on converting surgeon procedures, training new surgeons, identifying patients and connecting patients with surgeons for these procedures.
Unidentified Participant: Thank you. That’s really helpful. Then I would appreciate if you could provide some update on the sales force productivity. And you indicated that independent sales agencies represented approximately 10% of revenues in the quarter. How should we expect that to trend over time? Thank you.
Karen Zaderej: Yeah. We would expect about 10% for the independent agencies, and the primary growth will be the increased productivity of our direct sales team. And we continue to see that. As we’ve continued to grow, we continue to be able to see through execution improved productivity of the sales reps.
Pete Mariani: Okay.
Operator: Ryan, were you all finished?
Unidentified Participant: Yep, those are all the questions for me. Thank you, again.
Pete Mariani: Okay. Thank you.
Operator: Thank you. Our next questions come from the line of Ross Osborn with Cantor Fitzgerald. Please proceed with your questions.
Ross Osborn: Hi. Congrats on the quarter and thanks for taking my questions and for the incremental data points. So I’ll just go and ask two quick ones. Would you be able to parse out price and volume growth in the quarter? And are there any pricing dynamics we should be thinking about in the back half? And then my second question is, are you still seeing a trend toward the use of longer Avance grafts in trauma? Thank you.
Pete Mariani: Yeah. First of all, on price, we’ve been running about, call it, 3% to 4% increase on price every quarter. And I think that range is probably appropriate in the near-term. We do take – we took a price increase in April of this year, and we’re seeing good uptake from that. We take a price increase every year. So we think as that increase annualizes and customers’ accounts annualize that we’ll continue to see that 3% to 4% range. And then your second question was about increase in Avance in trauma, yes, we’re – I think that’s something we talked about last quarter, where we said that Avance had become – had gotten to the point where it was about 60% of our revenue – total revenue. And previously, it was slightly over 50%.
