AxoGen, Inc. (NASDAQ:AXGN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 04:30 pm ET

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AxoGen, Inc. (NASDAQ:AXGN) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Raj Denhoy

any sort of rough framework around what kind of new hires we should look for over the next 12 months?

Executive
Karen Zaderej

We'll continue to hire. It will be at a slower rate than what we've done over the last year.

Executive
Peter J. Mariani

We've doubled over the last two -- more than doubled now, over the last few years. It's been 40% plus over the last few years -- or a couple of years. And so we'll be moderating that back. We will continue to add, but it will be at a -- and we haven't completely settled in on what that number will be for next year. But we'll dial it in, based on the growth metrics that we're seeing, and the improvements in productivity that we continue to monitor and drive in the organization.

Analyst
Raj Denhoy

Right. Yeah, I guess, that's kind of what I'm trying to get at, but it didn't sound like you guys are going to give us much on that front. But the -- when the sales force starts to mature over the next year, right, so its 100 plus reps you have. I mean I guess, right now the average rep is doing kind of well less than $1 million or right around that number, we don't have exact numbers, but something like that. Does that number go to $1.5 million, does it go to $2 million, like what's the kind of sweet spot that you think these folks can get to, on an average basis over the next couple of years?

Executive
Karen Zaderej

Well, when we modeled this, we see the opportunity for reps to come in around the $2 million mark. Now we're not there yet. So it will take us a while to ramp to that. But that's what we think is very possible. We've certainly demonstrated that, as territories have matured. Now as we've talked before, we still split territories when they become very large. So somewhere typically between $1.5 million and $2.5 million, we would split a territory. But we believe that is the level that we think reps can get to, and continue to show growth at that level.

Analyst
Raj Denhoy

Okay, that's helpful. Maybe just one follow-up as well, so you mentioned pain, you're still moving forward with neuropathic pain next year. You said first quarter '20. I realize it's going to take a while for that to ramp and to build the data needed and everything that goes along with that. But do you have some thoughts around what that could start to contribute, just given the size of that market opportunity?

Executive
Karen Zaderej

I think it's too early to give you a direction on that. It's an area that we think has a tremendous amount of ***12***

amount of clinical need. But the rate-limiting factor of the referral pathway is something I think we need to get more data on, before I can give you some guidance on what the actual growth rate will be. So again clinically, I think there is a tremendous opportunity, but