Ron Menezes: So let me start with Viality. Obviously, we just launched and we will be at a very accretive gross margin, but in Q4, we have to get up to full capacity. And obviously, we’re moving from prototyping to nothing but production. So we’ll see those efficiencies in Q4. Until such time, it really won’t create a downward pressure in margins because the volumes are low when you’re launching. In terms of SimpliDerm, this is really an exciting partnership for us. It’s a uniquely efficient project for both companies. And an casing point, we worked on a great deal with here, working out a cash friendly project for both sides. On our side, we are working where the inventory is . So we’re not carrying the inventory load. So that’s very friendly for us on a cash perspective.
And we’re working on other mechanisms in terms of order to cash to get the cash working for their site too. So it’s a fantastic partnership. Now it is a distribution agreement for us. So it will be similar to our international work we do to where technically it will probably be lower than 40% gross margin. We don’t have the pricing nailed down yet. However, that drops all the way down to contribution margin. Just as Ron said, we’re selling to the same customer and the same procedures, et cetera, in hospitals. So we’re not adding additional staff, additional costs, we really start levering the sales team. So we think it’s very exciting from a cash perspective and contribution margin perspective.
Operator: The next question will come from Anthony Vendetti with Maxim Group.
Anthony Vendetti: Just on the Viality launch. What have you been seeing in terms of the reception so far first impression and what are sales reps saying about cross selling opportunities?
Ron Menezes: I’ll start with Lisa talking about from the commercial side and then Denise can talk about her experience talking to some of the early users from a clinical experience, Lisa?
Lisa Rosas: So early feedback has been very positive. What we’re hearing is that the Viality technology is truly a game changer in this space and will be the gold standard in the fat transfer market. We also know based on our input and our research that 70% of the market has been dissatisfied with options that have been on the market and the main reason for that is lack of retention and predictability. And that’s where I’ll turn it over to Denise to talk a little bit about the clinical results that show our high retention. So we’re hitting on that number one pay point. We’re also hearing other feedback about ease of use and other things. So surgeons and our sales force are collectively very excited about the advantages and a lot of that has to do with the selling process and also the just the feedback and the way that our key opinion leaders are helping reinforce those benefits.
Denise Dajles: Anthony, it’s important to consider that this product was specifically designed for fat grafting in plastic surgery and we gathered feedback from any potential — from end users on what was important for them. And what we’re seeing right now is that, that is being translated into early users, really appreciating the technology and the outcomes that they have. Some of the early users that we’re seeing are even new to Sientra. They were not Sientra customers on our implants or our standards. But because this technology is so appealing and because the early results are so impactful on a first of its kind clinical study like the one we are running with multicenter variability in the patients and seeing exactly what the early data and the preclinical data that Origin had by telling us, which is you get predictable and consistent results with very high quality fat.
