MiMedx Group, Inc. (NASDAQ:MDXG) Q3 2023 Earnings Call Transcript

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Operator: Thank you. Our next question comes from the line of John Vandermosten with Zacks. Please proceed with your question.

John Vandermosten: Thank you and good afternoon, Joe, Doug and Matt. I wanted to understand the medical collaboration a little more. That sounds like a great opportunity to get involved with clinical trials, you know, more further proof that the FDA has recognized a new product. Are there any other opportunities like this in with MediWound does that guarantee that your product will be used with their device, what if it’s approved?

Joseph H. Capper: Yeah. First, yeah, we’re excited about it and we’re glad to be supporting that trial we think important. It’s probably going to be the largest [DFU] (ph) trial in at least a decade, and the product looks very promising. With EPIFIX was selected because it has more evidence and more around its clinical efficacy than any other product in the category. So they know it works. They want to ensure closure, throughout the trial so they get the best results. And I think they said that in their press release when they announced. As far as other opportunities, we’re always looking to work with people who have complimentary products. I don’t have anything to talk about today. But certainly, working with other people in and around our product category makes a lot of sense.

John Vandermosten: Okay. And then thinking about free cash flow, should we expect a sequential expansion in that in the fourth quarter?

Doug Rice: Yes. John, we’re really pleased with where our free cash flow ended up in the quarter, sequentially an increase versus Q2 $7 million. I would expect Q4 to look similar. I think there’s a lot of puts and takes in Q4. But, we signaled in our prepared remarks that we expected adjusted EBITDA to be north of 20%. That’s what it was in Q3. We would expect the same in Q4. And I would expect, that our free cash flow would look similar.

John Vandermosten: Okay. Good. And I wanted to expand on the earlier, analyst question about EPIEFFECT. Do you feel that having more products in the wound product portfolio will actually provide some kind of synergistic benefit there or might there be, you know, cannibalization in the group of product?

Joseph H. Capper: Yeah. I think a little bit of both. Clearly, EPIEFFECT can be used in other procedures, which we talked about specifically when suturing is required. So it’s going to expand utilization, but there effective it might be some cannibalization of EPIFIX as well.

John Vandermosten: Okay. Great. Thank you for taking my questions.

Joseph H. Capper: Thanks, John.

Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Joe for closing remarks.

Joseph H. Capper: Thanks, operator, and thanks your questions after your continued interest and support in the company. That concludes today’s call and we will talk to you after our next quarterly report. Thank you.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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