Anthony Petrone: And then just on that prior authorization extension, it doesn’t appear that it’s overly onerous for clinical evidence. Are you thinking that can be a major hurdle? And then the last one, I’ll just sneak in, when we look at Xenograft coming in and AXIOFILL basically under the warning letter at the moment, I think the AXIOFILL number you guys quoted exiting last year was roughly around $5 million. Is that number still right? And how much do you offset that with the addition of xenograft? Thanks.
Doug Rice: Just numerically, Anthony, we sort of ring fence. That is less than 5% of our total revenue in terms of AXIOFILL contribution. And I’ll let Joe respond to sort of clinical evidence requirements that we expect around the proposed LCD’s.
Joe Capper: Yeah, I don’t see that as a burden needing to get some, pre-offer for medical necessity, or at least I don’t know if it’s going to be a pre-authorized documentation around medical necessity to navigate audits, etcetera, etcetera, and get payment. I just don’t see that as overly burdensome for those cases where it will be appropriate and then your other question about AXIOFILL and xeno.
Anthony Petrone: Yes. What would xenograft bring in from a forward 12 month standpoint?
Doug Rice: Yeah, we’re not putting out that projection yet. I will tell you that I feel pretty good about it. The work that’s been done for our market development team. We like the position of the product, and we think it’s going to be fairly well accepted. And look, I would go back and say this company has launched three products in the last 15 months. All three products have been pretty darn successful. So we may not be perfect at everything, but the commercial organization has a fairly well-tuned muscle around launching new product. So I feel highly confident that we’ll have a level of success with this product as well. And AXIOFILL hit some headwinds early in ’23 when this started to come out when we started to deal with this.
So I would imagine had I not been dealing with this throughout 2023, that product would be much larger than it is today. So we feel pretty good about it, and we talked about other steps we’re taking to mitigate any potential loss revenue there.
Operator: Our next question comes from the line of Carl Byrnes with Northland Capital. Please with your questions.
Carl Byrnes: Thanks for the question and congratulations on the quarter. Most of my questions have been answered around the LCD. In terms of the 60% to 80% that would be up for grabs. I guess a follow up there is kind of looking at the players in the space, do you see any potential for some of the companies to end up in financial struggles where they may be desirable M&A candidates to tug under and blow out their infrastructure? Is that something that’s been contemplated? Thanks.
Joe Capper: Yeah, I don’t think I would comment too much on that, Carl. I’m not going to wish misfortune on other people. I would say that I feel a lot better from an opportunity standpoint where our financial profile is today versus one year ago when we were dealing with the same type of issue. So we’ll see what happens. There may be opportunity, but I think it’s too soon to talk about it.
Carl Byrnes: Fair enough. Thanks.
Operator: The next question is from the line of RK from H.C. Wainwright. Please proceed with your question.
Swayampakula Ramakanth: Thank you. Good afternoon, Joe. One quick question on LCD; is this something that going to be reviewed every so often or annually? And if for some reason you’re unable to convince these folks because you won’t have the data in hand by the time it gets reviewed, how soon can that get reviewed again if they really require to see final clinical data?
Joe Capper: Yeah. First part of your question about whether or not we’re going to be dealing with something like this annually; clearly, there’s a reset on the physician fee schedule annually. It has a well-known cycle. Proposed rules in July sometime, usually final in November, timeframe-ish, and then implement it thereafter. So we’ll be part of that cycle. From a pricing standpoint. Coverage determinations typically aren’t reset every year. Clearly, they are; Medicare and the VACS are dealing with, frankly, a runaway cost issue in this category because of all the bad behaviour out there. People who are taking advantage of loopholes and over billing the system. So these are steps I believe that they are taking specifically to attempt to address that.
And it might be, this might not be perfect. RK might have to go through some iterations before it settles down. But again, as I said, a couple of times, this is pretty good for us and pretty darn good for the industry, pretty good for the Medicare trust fund and for patients who are on the hook for co-pays when they’re being charged well in excess of what they should be charged for a skin substitute solution. So all this is good and it’s really good for the industry to clean this mess up.
Swayampakula Ramakanth: Okay. Thanks for that. And then in terms of the xenograft product which you’re bringing on board, I know you said you cannot come up with the guidance for the next, for Anthony’s question regarding forward 12 months, but in general, how when you bring in a product like this, how long does it take to integrate itself into your commercial structure in such a way that it can become meaningful and also maybe even better than what AXIOFILL was doing, which was like less than 5% or around 5% of your revenue run.
Joe Capper: Probably too soon for me to provide color there. Let’s wait till we get the product in the market, see what kind of acceptance we have. As I indicated, I have little to no doubt in the organization’s ability to get the product into the marketplace, but let’s wait and see what kind of acceptance it has. I suspect it will be a well-received product based on what we know so far. So I’m pretty optimistic about it. More to come on that.
Operator: Our final question comes from the line of John Vandermosten with Zacks. Please proceed with your questions.
John Vandermosten: All right, thank you and good afternoon, everybody. I’ll start out with just asking about the preparations that are required before you start selling the Regenity xenograft product. What do you need to do before that gets in the hands of your sales team?
Joe Capper: Well, as you know, it was a developed product with a 510(k) clearance in place, and there was a certain amount of work that had been done from a clinical perspective as well. So we had a good running start when we acquired it. So there’s pricing, GPO, contracting, training, etcetera, etcetera. A lot of that’s been underway. So when we talk about kind of a soft launch in early Q3, we’re pretty comfortable with that timeframe and that you start to, once you put the product in the market, you’ll learn a little bit, you’ll make adjustments, etcetera, and then you’ll move more into a full launch phase a little bit later in the year.
