Ryan Zimmerman: Okay, very thorough. Thank you. Just on the accelerated growth next year, I can appreciate a lot of that is coming from NexoBrid driving the company’s overall growth. I just want to be clear about your comments, though, and make sure there’s no misinterpretation. You guys are exiting right now, above 20% on MACI, and you have the arthroscopic product coming to market next year. Just to be clear, you’re not expecting growth next year, specifically within MACI to accelerate over the 20 plus percent that you’re seeing this year.
Joe Mara : Yeah, so I think at this point, all we talked about is total company growth, just to reiterate and clarify. So we’re saying, if you look at our guidance this year, we’re kind of just under that 20% range. We think, based on kind of the momentum we have, and then the additions on NexoBrid and arthroscopic MACI, we can be at that 20% plus as a company next year. I will say, on MACI, as we’ve kind of talked about, we’ve had a ton of momentum this year, and kind of the key indicators. I think as we think about the framework for next year, it’s probably pretty similar as we think about core MACI, the surgeon growth continues to be strong, biopsies kind of layer in price. So I think we’re set up for another solid strong year on MACI.
And then kind of on the arthro piece, as we talked about, we anticipate a first half launch probably more likely Q2 is a better place to start. So, and I would also say kind of given the sales cycle component on MACI, the time you start seeing kind of biopsies and the arthro usage, you’re probably looking at kind of later in the year or Q4.
Ryan Zimmerman: Right.
Joe Mara : Now, all that being said, we expect another very strong year at MACI but we’re not giving specific growth rates, it’s at the company level. Just to answer your question.
Ryan Zimmerman: Yeah. No, I appreciate that, Joe. I wanted to make sure it was clarified. Thank you. Thanks for taking the questions, guys.
Joe Mara : Thanks, Ryan.
Operator: And one moment for the next question. Your next question comes to the line of Mike Kratky with Leerink Partners. Your line is now open.
Mike Kratky: Hi, everyone. Thanks for taking our question. I guess first just on the manufacturing standpoint on NexoBrid, can you provide any additional color on your expectations of supply continuity for that product and then some of the recent geopolitical concerns that have emerged since the start of 4Q? And then is that part of revenue? I mean, should we be baking that in for the start of 2024? And then I have a separate follow-up on MACI.
Nick Colangelo : Yeah, so I’ll start, Mike. Thanks. So, obviously, we have been monitoring the ongoing, you know, war in Israel and been in close contact with MediWound. At this time, obviously, manufacturing operations continue, and we’ve actually received deliveries during October, after this situation began. So for the time being, the supply issues are under control, and we continue to receive product, but obviously, we’re going to continue to monitor this.
Joe Mara: Yeah, just on the BARDA piece, I would say, again, we don’t expect that in Q4, as I talked about, given the priority is now commercial product. I would not bake that into next year, that’s not our assumption. BARDA, the stockpile is starting to expire, so at some point, it may make some sense to replenish but I think we’ll get more visibility as we get into next year, but at this point, I would not bake that into our assumptions.
Mike Kratky: Got it, really helpful. And then just on the MACI side, just wanted to clarify, in terms of your preliminary revenue growth dynamic comments for 2024, so is it fair to say that that does consider some additional contribution from the arthroscopic MACI side?
Joe Mara : Yeah, no, it definitely does. I think we’re just, when I was talking to the MACI components, we think of kind of the core growth drivers that extend into this year based on what the business is doing this year, and then with a launch around mid-year, it’s probably more like Q2. We’re just saying with the sales cycle, it’ll probably take — it’ll really be the back half until arthroscopic MACI starts contributing, but we certainly do expect it to have an impact in 2024.
Mike Kratky: Perfect. Thanks very much.
Nick Colangelo : Thanks Mike.
Joe Mara : Thank you.
Operator: And one moment for the next question. Your next question comes to the line of Jeff Cohen with Ladenburg Thalmann. Your line is now open.
Jeff Cohen: Hi, Nick and Joe. How are you?
Nick Colangelo : Good morning.
Jeff Cohen: Thanks for taking our questions. Could you talk a little bit about the instrument kit for arthroscopic MACI as far as what will be in an assembly manufacturing delivery of those kits, and then maybe talk about the surgeon audience itself and the opportunity for opening up additional surgeons and centers based upon the approaches?
Nick Colangelo : Yeah. Thanks, Jeff. I’ll take it. So, first of all, the kit, those instruments that you can see on our website are disposable instruments that will be made available to surgeons. We obviously have an implant kit currently that is used. And so, over time the idea would be to try to integrate all of the instruments, whether it’s an open or an arthro procedure. So that’s relatively straightforward. And I think the team’s done a great job in designing a set of instruments that are really appealing those surgeons. In terms of, opening up additional surgeons, as we’ve talked about in the past, we currently have about 5,000 surgeons that we target. And that was based on our sales force sizing exercise and targeting exercise we did back a few years ago, where we were able to acquire CPT code data on cartilage repair procedures and open procedures, and obviously find the intersection of high volume cartilage repair surgeons that did open procedures.
We know there’s a segment of essentially arthroscopic only surgeons out there. At the time, we had data on about 5,000 surgeons that did — that had cartilage repair activity, but didn’t, we didn’t have open procedure data on it. So we, there’s probably half of those that fall into a category of doing high volumes of cartilage repair. And we’re — the commercial team is actually doing this exercise now to identify how many of those, call it 2500 high volume, no open data surgeons, should become targets for us. So we haven’t locked in on a number yet. My guess is it’s probably 1000 to 2000 new targets that we will be calling on. And just as a reminder, the market research said that both surgeons that currently utilize MACI would expect to do more procedures or shift procedures to arthroscopic MACI.
And then of course, the other component is surgeons that do arthroscopic procedures not currently using MACI would be the other part of that growth opportunity for us.
