Sanara MedTech Inc. (NASDAQ:SMTI) Q4 2022 Earnings Call Transcript

Unidentified Analyst: Oh, yes. Thanks for the opportunity to ask a question. The question I have is related to the quality and efficacy of new products being offered. Now, since most of the wound care related products are surgically related and Cellerate is bovine based. I know that the company is introducing porcine based products from Cook and perhaps others. Now there are religious issues with Jewish and Muslim patients which are prevented from protecting our porcine products. And George Church, Ph.D. is a Robert Winthrop Professor of Genetics at Harvard Medical School reports negative for pork derived products which include pig genomes and have frequent cell incompatibilities with humans more easily transmit disease and have human rejection issues.

Porcine products have potential issues also, according to the FDA, such as PERV, porcine endogenous retroviruses and also xenotransplantation issues. So what is the reasoning for the expansion of porcine based products versus bovine based collagen products?

Zachary Fleming: Sure. I’ll take that. So small intestine submucosa is widely studied in one of the most documented, well researched products, and that is a porcine product from Cook Biotech as you as you noted. It’s widely used across all types of bodily indications, approved and long studied. We felt very comfortable with the science behind that product. The behind that product line, I should say, the platform of SIS, small intestine submucosa of a pig. And of course, the team also had some experience in previous from areas where we had worked previously and sold a similar product. So there’s a lot of internal experience and sort of a leg up on the industry that we have folks in our midst that are extremely impressive with that type of product.

They’ve sold Oasis in the background just to cut through what I’m trying to say there. And so these products, the FORTIFY TRG, it offers a very distinct benefit and that is an implant, an implantable indication for the reinforcement of soft tissue. And it is also allowed to be filled or coated with blood fluid, blood product. And that’s part of the 510(k) and we felt that was attractive and differentiated in the market and allows for the surgeon to use his imagination how to use that to reinforce soft tissue. And then the FORTIFY FLOWABLE that product is a robust extracellular matrix that is very complementary to Cellerate. Cellerate will help to — will seed into that infiltrate and then allow the tissues to migrate and fill up and grow within the ECM.

So it’s a complementary product. However, we also aren’t selling them together. We aren’t going out and promoting Cellerate with one or the other product. We just wanted products that are complementary and serve the surgeon’s needs based on the patient’s deficits. So if you had an area where the soft tissues gotten compromised in a surgery they can grab for FORTIFY TRG. If they wanted to fill a deep deficit and then complement that would be ideal for FORTIFY TRG and it allows for TRG allows for application against gravity. It turns into a gel and you can squirt that up into a cavity that might be deep or even vertically challenged due to maybe it’s on the heel of a patient. And so we thought that was a really good advantage for a product. So those are the main reasons we brought those products on.

And again very strong scientific base with a very big company behind it that has put a lot of research and effort behind all the — all those products. Thanks for the question.

Operator: Thank you. We have a question from online from Adu Subramanian asking any progress publishing clinical studies with Cellerate.