Milestone Scientific Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Vendetti - Maxim Group - Analyst : Thank you the morning. So I agreed the REMs great milestone and to have the MAC coverage starting in Florida, can you talk about the potential for broadening adoption and getting other MAC coverage. Are you in discussions with other MACs at this point and then them what this means for the in terms of the price to Simon and what your internal plans are and to expand the sales force and drive adoption? I know there's a lot in there, but. Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division Yes, I counted four questions in one sentence. Good morning, Anthony, thank you for asking the question. And just let me make a small slight correction. The JMAC, it's not only in Florida. It's the JMAC in Florida, New Jersey and Texas, right? So like we stated, always that is gigantic for the company. It's a third of the of the total epidural injection procedures in the United States performed annually. So following your questions, you had the pricing, the sales expansion and the rollout. So on purpose, as we are restricted by rules and regulations, we cannot in writing I cannot share what the pricing is, but it is publicly available and we are allowed to share with you. The investment community would the reimbursement price when clinicians and in the claims and show medical necessity. So then these Medicare jurisdictions, all three Medicare jurisdictions have granted payment as Part B physician payment rate of three under $25. In addition to the primary code, which is roughly about $280. So that is the fee. It has been granted by these jurisdictions for procedures, ESI procedures when our technology it is used after sending in the claims and in this necessary documents. So your question about sales force expansion and what it would mean for the company. So you know what we have been doing, and I keep everybody in mind, you know, our focus is strong execution. So if I look at the time line, I'm pretty proud of what the team including myself have been able to perform on June, July 10. We had the first Florida release on July 23, we had New Jersey and Texas. We got on July 30, the patent release on August seventh, we have been able to finally negotiate and announce the relationship with actual biologic. So everything in three weeks time, we have been able to make a tremendous step forward in preparing for the commercialization. In addition, what we have been doing as we have expanded our team towards so the clinical surface specialist and why clinical service specialists because we own and we know and we have the insight know-how about our technology, that means that we can train a commercial partner. So at the same time, we have trained the representatives of actual biologics. We have been in contact with lawyers to set up the right sales agreement. And the sales approach is really that we are focusing what I call quote, unquote, sort of the big fish strategy, meaning that we are focusing on larger institutions, larger clinicians that do not have a problem, so to say, to commit to a reasonable number of consumables per year, and that is in the range of 100 to 200 consumables per year. As a minimum return, we will not sell the instrument at a high price. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 15, 2024 / 12:30PM, MLSS.A - Q2 2024 Milestone Scientific Inc Earnings Call So it is actually a sort of a payback on the instrument or the capital equipment cost for the clinicians. And then taking into account that these clinicians of course, I need to have a price below that $325 because otherwise there would not be an interest to purchase the product. So there is a whole, I call it a discount percentage scheme dependent on the volume that the clinicians are able and willing to purchase our products. And that will trigger then a scale of pricing for these clinicians. Now what it means for revenues, look it is very simple. On purpose we are focusing on the business plan. It is what I say bring a book of business. They know the pain market, they know the players, they know they know the larger chains, they know the physicians, you know, I would almost say inside out, they have more than 20 years of experience variance in this field. And in all fairness, that is not what our company is having. So that's the reason why we are liaising and engaging with actual biologic because they bring the know-how, the customer and the clients know how and the client base that we are currently not having. So actually, this year this week we started with the official rollout. We have a list of institutions that we are targeting at. And like I said, it's a disciplined commercial launch, and I'm very positive and confident that we will be able to get also clinicians that already have used the technology to get them over on that longer-term commitment. Now the question will come up about revenues. You know all know my style, I will not make any forward-looking statements. But of course for me, I sincerely hope that we can and that's what we are working on that we will be able to have revenues in the third and the fourth-quarter this year. And I think it's a little bit tricky to say what that revenue is going to be because it depends on the first sales calls feedback, and it depends on the institutional and the clinician feedback. But I do foresee that that we will get contributions this year. That's the goal. And I think we are in a good shape. We have done our homework are we making long hours as always, but we are positive and suggested and comfortable with where we are and the you know, let's get started selling the inventory that we have at hand and then in the next call, we can share more in detail. I would say what's the projections will be, but I think it is fair. Ask and comment to make that let's first do I worked first be in the marketplace, get the first feedback might be that we have to adjust the pricing if that is needed. That's the phase that we are currently. Does that answer your question, Anthony?

Question: Anthony Vendetti - Maxim Group - Analyst : That's correct. What you said it news early, but it sounds like you'll give us an update following the third quarter our results. One, look, one question on the dental business. You know, I know there were no sales from China this quarter, but the international sales and that has been resolved through. Is it was there lost revenue this quarter that you believe will be recovered in 3Q '24 shifted to 3Q '24? Or is it just that was lost revenue in 3Q and we shouldn't expect any our revenue to shift over into Q3 that was potentially lost in the second-quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 15, 2024 / 12:30PM, MLSS.A - Q2 2024 Milestone Scientific Inc Earnings Call Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division So what I what I meant also in this call, I'm not concerned at all about on, let's say, the dental revenues this year. And you know, I know what in the internal planning has always been in the first quarter and the second quarter this year, we we had foreseen, let's say, lower sales than what we anticipate in the second half of the year for several reasons, seasonality, second-quarter seasonality, feedback from the distributors that we actively reached out to. Well, it is fair to say that of course, the second-quarter results were a little bit lower than we anticipated, but just for everybody to understand what we mean by freight forward issues, those are issues that are in a way out of our control. Just to give you a flavor, by the end of the second-quarter, we had about $250,000 of products that were finally tax that were on the dock that were eight that were believed or planned to be picked up by the freight forwarder that is directed by the distributor. So in the last five days of the month back and forth, back and forth. The distributor was not able to get his or her specific trade war forwarder to get to the dock and to pick up the shipments or to pick up the packages and the products that will lead the pack. So in other words, if that would come in, then we would be quote unquote at par at the initial plans that we had for the second quarter. I can share with you that we had a very strong month of July, and therefore, I'm also making that statement that, our sales are international and both international and domestic will and has to be approved improve by the third quarter or end of third quarter and the fourth quarter this year. So we are on a good trajectory there.