Milestone Scientific Inc Q3 2024 Earnings Call Transcript

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

Question: Nick Sherwood - Maxim Group - Analyst : Hi. Good morning. Thank you for taking our questions. How are discussions going with pain clinics and hospitals following the positive reimbursement decisions? Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division Thank you for your question, Nick. I am pleased with the initiatives that we undertook since we launched after the reimbursement refresh our minds a little bit. On July 23, we got our last reimbursement of positive price assignments by the Medicare jurisdictions. In the middle of August, August 10, I think on the top of my head, we were able to sign the partnership with Axial Biologics. We finalized our pricing strategy in the week after Labor Day. So it was the second of September, we officially launched the product, thereby providing the different pricing options for patients and actively reaching out to clinics in the three jurisdictions where we received the positive Medicare price assignment. And in particular, through the knowledge that Axial provided, we have, I think, of now about a 40-plus leads which are hot leads. And I would like to express that and explain that to you because our company did not have any background and history and try the same. Axial Biologics knows them in all these three jurisdictions. So that resulted immediately our opportunity to provide what we call pilots. So the sales process is that we will do a number of cases with the clinicians with support from our people and actual people. Clinicians then we'll do a number of procedures themselves. And then based on their patient schedule and their decision-making process, then they will decide to purchase the equipment and purchase the components. So that has actually resulted in the two clinics that has already adopted this technology. As we speak, last week, we had a major event in New York and New Jersey that was very successful where we were able to sign up additional clinics for demos and pilot. So I'm pleased with the activities that we are undertaking, and I do not have any complaints based on the activities. Look, it's very simple. It's six days a week. We are in clinic, doing demos, doing trials and to get people more interested in the technology that we provide.

Question: Nick Sherwood - Maxim Group - Analyst : Okay. Understood. And then if you allow me a third question, can you share any information on utilization and reorder rates from clinics who have been using the CompuFlo for some time now? Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division Yes. No, absolutely. I think those clinics that has been part of the advisory board or advisory clinics that we used in the beginning. I think our flagship is definitely the clinic of Dr. Demesmin in New Jersey that has a very strong reordering pattern. And as we speak, also increases the utilization of our technology. So that's probably the fifth tier, right, in the sales process that I already explained to you. After converting, then, of course, is making sure that we are able to increase the reordering pattern. Like for example, I'm very pleased with one of the clinics that we recently appointed or purchased products that immediately purchased five boxes of consumables, which is material for first 50 patients. I talked with the doctor in a couple of days, he already did 15. That is very encouraging for us and also is committed to pricing based on the volumes that is very encouraging and very positive for us. I think another question could be, do we get any feedback or pressure on the price proposal for the consumable? And the answer is no. So it tells us that the strategy that we have chosen, the sales strategy that we have defined and identified, is, quote-unquote, accepted by the clinicians as they see the immediate benefit also of getting the reimbursement fee once they have submitted the documentation and the medical necessity confirmation to the Medicare insurance providers within their region.

Question: Bruce Jackson - The Benchmark Company - Analyst : Hi. Good morning. Thank you for taking my questions. If we could just talk a little bit more about the JMACs and the strategy for getting additional JMACs, of course, there's like a process involved. Can you give us a send of how long it takes to get a JMAC onboard and if we're going to see continued progress on that in the next couple of quarters. Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division Absolutely. Good morning, Bruce, and thanks for your question. The last part of your question, if there is a continuous progress, the answer to that is absolutely yes. We are approved or we got the price assignment in the three, Texas, Florida, and New Jersey. We are in advanced steps in four other JMACs. We have reached out to the JMACs, so that goes back to part of your question what the process is. Because based on the positive response because we got from the first three, we reached out to the other four. That has resulted that without going into details who they are, that we will have meetings similar to what we did with the first three, where we are able to explain, educate, and explain in detail what the technology is about with the support of clinicians in those JMACs. And then the clock starts ticking again, depending on the JMACs whether and how fast they will make their decision on the positive pricing assignment for our technology. So again, there as well with a limited team that we are having on positive, and I'm encouraged that we are able to move forward with that process as well.

Question: Bruce Jackson - The Benchmark Company - Analyst : Okay. And then moving over to the revenue numbers, you mentioned that you've addressed the freight forwarding issue internationally and that revenue there should be up year on year for the fourth quarter. In general, for the total revenue number, will that also be up year over year? Jan Haverhals - Milestone Scientific Inc - President, Chief Executive Officer, Director, Chief Executive Office of Milestone Dental Division Well, the goal, of course, is without making a forward-looking statement. The goal for us is, of course, to reduce that gap that we have seen compared to the nine months last year. And we're trying to reduce that gap with all efforts and all resources that we are having. We are pushing it also domestically. Again, we will have a special Thanksgiving campaign that was very successful last year. So we are doing whatever we can to not only, I would say, develop existing customer base. We actively reach out to reactivating customers or dormant customers, so to say, and at the same time, also to acquire new customers. So there is an array of -- an appellate of activities to further support and enhance the total year results for 2024.