SI-BONE, Inc. (NASDAQ:SIBN) Q4 2022 Earnings Call Transcript

Laura Francis: Yes. On the NTAP, very good question on that. And as you recall, the NTAP went into effect on October 1, 2022. So we really have just a little over a quarter of experience on that NTAP, but we think that this is a really important factor for Granite and the adoption of our product here in adult deformity. I was recently at a conference with adult deformity surgeons. And one of the questions that was asked on a panel was how our companies in our industry thinking about these issues of additional cost without additional reimbursement. And so something like the new technology add-on payment is definitely critical to making sure that a disruptive technology like Granite is adopted. And we are seeing that play out at this point.

We are starting to see cases where the NTAP has been paid, and this is going to be important, obviously, to the surgeons and as importantly, to the hospitals as well. So we think that while the additional economics are meaningful, we believe the strong surgeon interest in the product is also due to Granite’s unique design. It seamlessly fits into the surgeon workflow and it actually allows them to drive fusion and fixation to address this major unmet clinical need, and that is the securing of a long construct. So that’s the NTAP. In terms of the increase in the facility fee for procedures that are quoted to 27279 minimally invasive SI joint fusion, we talked a little bit about how things are going in terms of the first quarter and what we’re anticipating.

It’s not clear whether the reimbursement is driving some of the continued acceleration or if it’s really just entering into a normalized environment at this point, but we are certainly pleased with what we’re seeing how to begin it in the first quarter.

Craig Bijou: Great. Thanks for taking the questions.

Laura Francis: Thank you.

Operator: Thank you. Our next question comes from the line of Ross Osborn with Cantor. Your line is open.

Ross Osborn: Hi. Congrats on the quarter and thanks for taking our questions. Just starting off, has there been any progress in turning around your business in Germany and the U.K., following the new leadership team there? And as a follow-up, do you plan to have more resources to the U.S. business this year?

Laura Francis: Ross, thanks for the question. We certainly are pleased with how Neville is stabilizing that business. He is focusing very specifically on the businesses in Germany and the U.K., while helping to support the growth that we’re seeing in France and in the rest of Europe. So I think given that Neville is in the U.K., it gives him a very specific opportunity to get his arms very much around that business. There was also a kickoff meeting in January with the senior leadership team, plus the entire EMEA team. And a lot of this is just very basic blocking and tackling in these countries. It is focusing on the sales force and training of surgeons, getting the surgeons the first case and regularly diagnosing and treating patients.

So that takes time with us. On average, it usually takes 12 months to see the impact of those sorts of moves. And so those things were considered as we were giving information on guidance, but we think the right things are happening there under new leadership.

Anshul Maheshwari: Yes. What I would say, Ross, is our expectation is any improvement that we see OUS will be at best back half loaded.

Ross Osborn: Okay. Got it. And then one more from me. Would you be able to share the latest enrollment numbers from your SAFFRON study?

Laura Francis: I don’t think we’re actually giving out enrollment numbers. I think our plan is to actually provide information at key points in time. And I think that it actually probably will be 2024 before we give a detailed report out on SAFFRON.

Ross Osborn: Okay, got it. Thanks for the questions and congrats another quarter.

Laura Francis: Thanks, Ross.

Operator: Thank you. Our next question comes from the line of Dave Turkaly with JMP Securities. Your line is open.