Myomo, Inc. (AMEX:MYO) Q1 2024 Earnings Call Transcript

Ben Haynor: Got it. That’s helpful. And then on the Part Bs that you’ve had to turn away historically, have you undertaken much activity to try and sort of, I guess, reactivate and add some of those folks in the pipeline that you have their contact information from previous leads.

Paul Gudonis: Yes, these people are in our CRM system. And we’re following Medicare regulations as far as how far back you can go out to reach out to them. I’m trying to reach out to them. I’ve got to add more people in my clinical and call center teams to be able to reach all those patients that may be eligible for MyoPro. That’s why we’re hiring these people right now.

Dave Henry: Under Medicare regulations, we have 15 months to reach back and to be able to contact those people again. So we have some time here.

Ben Haynor: Okay. Got it. So then is the right way to think about it if — is a good — whatever the portion of — of Medicare non-Part B patients that enter the pipeline, you kind of double that figure over the last 15 months, and that gets you roughly to what the number of folks that you could be contacting, if that makes sense.

Paul Gudonis: Well, given that our addressable market has doubled because of these Part B patients, assuming we can evaluate all those patients and get them into the pipeline. Yes, that pipeline should increase again over time.

Ben Haynor: Okay, got it. And then lastly for me, just with the U.S. O&P channel being 4% last year with this year being a bit of a kind of transition year and getting people back engaged on that channel. What do you think that that could ultimately look like over time, whether it’s a year from now or even several years from now, is that going to be a third of your business, half of your business, what does that look like in terms of U.S. revenues?

Paul Gudonis: Yes, I think it could be a significant part of our business just because there are 3,000 of these O&P clinical offices around the country and not all of those specialized in upper extremity or myoelectric devices like this, but there’s certainly been keen interest at the various O&P conferences we’ve already been to. We’re already planning a schedule of classes to certify these CPOs later this year. So I think we’ll see the O&P channel start to kick in for the latter part of the year and then start to grow next year and the years beyond, but it could be the majority of our business over time.

Dave Henry: And we don’t think that the — any — that the growth in the O&P channel that we realize will really significantly degrade what we’re doing on — as our — being our own direct provider to patients because — so we — when we do our advertising, we’re primarily advertising towards people that are in that population of people that have had their stroke probably years ago. They’re out of the healthcare system for their stroke. Whereas the O&P channel are seeing people that are a bit more recent, soon after they’ve had their stroke. And so, it’s a different type of people that they’re seeing as opposed to who we’re being advertising to. And so that’s why we think that a good portion of the growth that we expect to experience going forward in the O&P channel there should be incremental growth and not being substituted by a corresponding decrease in direct billing.

Ben Haynor: Okay. That makes sense. So you guys are going more after the prevalence group rather than the incidence group.

Dave Henry: We have been, yes.

Ben Haynor: Got it. Okay, great. Well, thanks for taking the questions gentlemen and congrats on the progress.

Paul Gudonis: Thanks, Ben.

Operator: Thank you. [Operator Instructions] Our next question comes from Edward Woo with Ascendiant Capital.

Edward Woo: Yes. Congratulations on the quarter and definitely congratulations on your international growth again. Can you talk about what you were doing there that’s maybe different or the same as in the U.S. to be able to have that momentum? And can you talk about the overall market opportunities on how much more growth can there be in this channel?

Paul Gudonis: Sure. Well, I’ll speak to Germany specifically because that’s our best international market at this time. It’s got a significant population, over 80 million, good economy. They like high-tech products. And we have developed a network of O&P channel partners, over 100 different locations now. So, our clinical team goes in there, trains them. These O&P providers see the patients. They work with the insurance companies that they already are contracted with. So that approach is working. Also we’re using social media there to generate demand. But I think it may be a good example of what you can do through an O&P channel. And that’s what’s outgrowing the business there in Germany. So we’ve said we’re doubling down. We’re basically putting more resources, hiring more people in Germany because, again, that’s a big untapped market opportunity. And then we’ll see over time we may enter into other selected markets based on the reimbursement environment there.