Biofrontera Inc. (NASDAQ:BFRI) Q4 2022 Earnings Call Transcript

Erica Monaco: We had ba we had 32 territories slated for the year, but the average or the closing of the year, we had about 29 sales reps on staff.

Bruce Jackson: Okay. And then in terms of the hiring cadence, you already have the new territory hired and you’re going to bring them in and train them, beyond that what are the plans in terms of getting up to the, the 50 to 55?

Erica Monaco: So I think we need to evaluate how the implementation or the integration of this new territory goes before we build out the Phase II step. I think, it’s important to remember that we have no white space across the country. So what we’re doing is bringing people into somewhat of existing territories and reorganizing the sales accounts. So there’s efficiencies to be gained for each of the existing reps and the customers they support and the lifts might be quite fast in a sense of you’re coming into existing territories, but, we need to evaluate how that plays out over the next couple of months. And of course, we need to be mindful of the cash balance and how we handle our liquidity and other operating expenses. But of course, this is such a key lever.

The sooner that we could do Phase II, I think obviously the sooner that we could get to those numbers that we’ve mentioned in terms of profitability. So it really will come down to how effectively we are able to integrate in Phase I and how quickly we can deploy the necessary tools and assets to be ready for Phase II.

Bruce Jackson: Okay. And then obviously you’ve gotten very good at training sales reps in improving the productivity. What do you anticipate in terms of the time it’s going to take to get the new reps seasoned in up to the productivity levels of the existing reps?

Erica Monaco: The productivity of the existing reps, like to get you on par with the average? It’ll probably take a full year for that goal. We do have meaningful revenue contribution from each of these reps slated in the first year. Most notably, we would expect them to have their contributions start gaining momentum in Q4, so they’ll come on and train over the slower PDT period, then they’ll be ready to go for our largest volume quarter.

Bruce Jackson: Okay. Okay. Last question for me. The accident trial seems to be enrolling very quickly. So should we continue to expect this, this enrollment cadence going forward for the rest of the year?

Erica Monaco: Did you say the acne trial?

Bruce Jackson: Yes.