MiMedx Group, Inc. (NASDAQ:MDXG) Q2 2015 Earnings Conference Call - Final Transcript
Jul 30, 2015 • 10:30 am ET
Good day, ladies and gentlemen. And welcome to the MiMedx Group Q2 Earnings call.
I would now like to turn the conference over to Mr. Thornton Kuntz, Senior Vice President of Administration. Please go ahead, sir.
Thornton A. Kuntz
Thank you, operator, and good morning, everyone.
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon the current beliefs and expectations of our management and are subject to risks and uncertainties. Actual results may differ materially from those set forth in, contemplated by, or underlying the forward-looking statements, based on factors described in this conference call and in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2014, and our most recent 10-Q. We do not undertake to update or revise any forward-looking statements except as may be required by the company's disclosure obligations in filing it makes with the Securities and Exchange Commission under Federal Securities laws.
With that, I will turn the call over to Petit, MiMedx's Chairman and CEO.
Parker H. Petit
Thank you, Thornton. Welcome and thanks for joining us for our second quarter conference call.
I have with me today Bill Taylor, our President and Chief Operating Officer; Mike Senken, our Chief Financial Officer; and Thornton Kuntz, our Senior Vice President of Administration. There are also other executives in the room. We concluded another very strong quarter. We would like shareholders to take note of two key developments that should clearly signify that MiMedx will not experience a revenue drop because of some type of dramatic change in demand for allograft products.
First, CMS has issued its proposed payment policy for 2016 for skin substitutes. There are no significant changes in proposed reimbursement. I think there was some considerable misinformation circulating that there would be huge reimbursement reductions by CMS.
Frankly, the MiMedx EpiFix allograft should save the Medicare and commercial system significant amounts of costs, and we continue to find ways to provide the most cost-effective solutions for our patients, providers and payers. We do not foresee any significant issues in reimbursement area in the near future.
Second, but just as important, it has been reported by SmartTRAK, that Medline, a major supplier of healthcare products to the hospital sector, has announced it will be withdrawing its amniotic tissue from the market in September. This should be a clear indication that when a large well-established healthcare supply organization cannot develop significant revenues so that they decide to leave the market, the MiMedx presence should be considered to be the major deterrent.
Over the last several years, we've established a very strong leadership position in advanced wound care sector of healthcare. This has been accomplished through investments in clinical and scientific studies, other investments in corporate infrastructure and significant investments in a sales force that is very well trained, and a majority of whom have significant experience in advanced wound