Xtant Medical Holdings, Inc. (AMEX:XTNT) Q1 2023 Earnings Call Transcript

And so our jobs are really simple blocking and tackling and giving focus that needs from sales and marketing side. And then really the reimbursement element of making sure the story is tight. We get the coverage that we need. And quite frankly, that’s the beginning steps of growing. So when I think about it, it’s kind of a three-stage thing, right? It’s digest this acquisition; two, start reviving what has to be done in way of the basic things that we all knew or we’ve all grown up around and way of how to put focus around a product line and how you get it growing again; and then part three is really getting it growing and really start to tap into those multitude of opportunities. It is a fantastic product, and it will be incumbent upon us to make sure that we revive those old relationships because a lot of people have used this in the past.

And so I do think that there’s a real opportunity, but we’ve got to make sure our organization and our story is tight as we move down that path.

Chase Knickerbocker: And with your expanding distribution network, I mean that should certainly help in reviving the product. I mean, any initial indication on cross placing your core products into the distributors that came over in the Coflex acquisition and vice versa, you know, placing Coflex in the bag as some of your core distributors maybe disturbing your biologics or core products?

Sean Browne: Yes, two things when I answer this. The first part of it is, I would say, being able to sell biologics into the current Coflex distributors, we just brought 150 of them that just came on. That’s a little bit more difficult because we actually have a queue of other distributors that we are agents or I should say that our — we are now just getting out of the woods of our capacity challenges, if you will. So I’ll make sure to take care of those guys first. So first things first, take care of those guys. But in our core group of 300 plus distributors that don’t have Coflex, by all means we have plenty of inventory and plenty of opportunity there. So there’s actually a fair amount of opportunity that I think is going to take place over time to get those distributors carrying this and getting their surgeons to use it.

And so I would tell you that as we expand our capacity, which I think we’ve talked about in the past, where we see that we’re going to have substantially more capacity work with as we look at the third quarter, those are things that as I look to as the points where we can begin to start working more and try to be forward leaning into those new distributors on our biologics.

Chase Knickerbocker: Yeah, certainly an exciting opportunity. Last one for you, Sean, and I’ve got one for Scott. I know we’ve barely gotten Coflex on board here, but if we look at the marketplace, there’s a lot for sale. Walk us through what you’re thinking on the next small tuck-in acquisition we could see, what’s the priority? As you said, capacity constraints you’re just coming off of, is it an ortho biologics production capacity related acquisition to address some of those constraints? Or is it product focus adding some capabilities or additional offerings within biologics?