IART
#So I think that was three questions in there.
Let's see how we'll get those.
So, look, I think first of all, we just launched the product in second-quarter with 50 reps.
We pretty much had our plans laid out on the target approaches that we would go through.
And as we ramp up to a level that we'd start seeing the kind of saturation we think with the 50 reps, we'll add additional, which is pretty consistent with what we communicated.
And I would say, at the end of this year, going into the beginning of next year and throughout the year, we'll continue to add additional reps.
And so that's part of the plan with the reps.
Relative to clinical data, as you know, we've got the most extensive study that's ever been done really to date within the space.
And we already have, as we bring new users through the value committees, these are many of the folks that are actually interested in doing studies.
We have some people very much interested in doing health economic studies ---+ closure studies, closure rates beyond the traditional windows, what happens to a patient after a year.
A lot of those things that can drive some transformational changes within the industry.
So we have a lot of interest to work on that.
And I think you'll see some of those types of studies coming out next year.
There's also, because of the size of our studies, some very interesting opportunities to do retrospective work, just based even on the foundry study that we have out there.
And your third question was.
Yes.
So we actually have an amniotic product that we have in the doctor's office and other areas.
We have plans, I would say, next year to be in a situation that we could bring it actually into the wound care clinic.
And so we're working on those right now with some smaller studies and things of that nature to be able to bring it into the outpatient area.
So I would say in 2017, our plans would be to have a full-fledged 3x3 product line strategy, which is our Omnigraft, PriMatrix, and amniotic in the wound care setting.
And it's also a part of our strategy, just as we brought Voltec in, is to bring a few other products within to that portfolio, to give us more of ---+ I'll say a fuller bag of advanced products that can make a difference in the eyes of those clinicians.
So look for hearing more about that in early 2017.
Yes, we pre-negotiated the constructs for the international rights for Salto.
And we have some rights that are coming up to take advantage of those in the second half of 2017.
So, we'll make some decisions probably at the beginning of 2017, what we ultimately decide to do for that.
Sure.
Thanks.
Hi, <UNK>.
Yes, I would say there's a couple of points ---+ one is we had some softness in private-label, which is probably earlier in the year, which was more so around our expectations about what volumes would be.
And I'd say that's been stabilized, and we're running at a new baseline.
So I think on a go forward basis, we've kind of got that set.
But that was off our expectations earlier in the year.
This part is really more so around our impatient product, and that ties to two aspects of it, which is within the area of plastics and reconstruction, there was a warning letter for all types of players that touched into the breast area for a nonhuman product.
And those sales right after we purchased, kind of planed and flattened out.
We've got plans that our focus is to be able to do some broader clinical studies in that area.
We think that's going to be a really interesting growth area over time.
That's really the two main areas I talked about in the past that we distinctly have some opportunity with some channel additions and tweaks.
And we're actually looking at that right now.
We have a specialist group that will spend more time focused on some of those products.
We just recently did training with our groups in those areas.
And the fact is with the success of a lot of the new products we've brought out, there's been a little bit of a bandwidth issue that we talked about in Q2, and we started seeing that ---+ I'll say improve in Q3, as we saw sequential growth.
And we think that's going to continue here quarter over quarter as we add folks, and I'll just say get the products more integrated into the family.
I'm still very, very optimistic about what we have here.
Again, we have some new products that are going to be coming out in that area.
And part of our investments that we're going to make next year ---+ and really into 2018, for that matter ---+ are also in our broader inpatient regenerative channels where we've been growing significantly.
And that's going to help us be able to have more focus on some of those product families than we've had in the last two quarters.
Yes.
So if you look at, for the Company, which would be the Dural repair products, and then all of the tissue products and plastics and recon, and then the advanced wound care products, it's about 43% of our total sales.
And probably back in 2011/2012, it was around 30% or just below that.
Yes.
So if I think about the work we've done to date to bring our G&A costs down as a percentage of sales, a lot of it had to do with some of the organization changes we made back in 2015, where we moved to a two-division structure from five segments.
So that was an organization change that has helped us.
A big enabler for us, though, is moving to a common ERP platform.
And so you know, the work we've been doing to move towards Oracle R-12, getting on a common platform is important for us to centralize a lot of our back-office resources.
We've got about 90% or so of revenue going through one platform and 95% going through two.
So we've made great progress around that, including a lot of enhanced reporting across the Company.
In addition to that, we've got a lot of other initiatives as we look forward in terms of locations that we're looking at and things that we want to do relative to cutting a lot of our outside spend.
And we're going to continue to take another bite of the apple as we look at these types of things, including the outside spend.
But you'll hear more about some of the initiatives, <UNK>, I would say in about 12 months, but we do have plans that we're working on.
And a big part of it is continuing the consolidation of our manufacturing footprint, which enables us to continue to reduce our G&A.
We've made great progress in the past.
We closed two facilities this year; that has helped our G&A.
And then as you move forward, we'll continue to look for opportunities to consolidate facilities.
So those are just some of the enablers.
And you'll hear more probably in about 12 months of additional things we're working on.
Sure.
I'll give an update on enterprise and maybe <UNK> can comment a little bit on what we're doing with private-label.
So the enterprise selling organization has become an integrated part of kind of who we are.
I think for a diversified small to mid cap company, it's a really important tool in how we take multiple brands and products, and leverage our scale, and compete against some of the biggest players in the industry.
And so it's enabled us and some of the larger IDNs to be able to have multiproduct contracts, which become quite important for us.
We clearly see a trend across the industry.
We've talked about value assessment committees being a trend.
I think another trend is to really be on contract within a given IDM, even for your sales rep to be able to show up in that count and make calls.
And so to us, it's become quite important.
We've been able to leverage contracts where we're one of two in many cases, and that's driven a significant amount of sales through that channel.
But it's also helped us be able to take a look at areas where we're quite strong in one brand ---+ say, in neurosurgery and a large well-known IDN.
And we may not be as well-known in some other product lines, and be able to take a look at how that might be able to position us to be able to bring those brands in.
So, it's ---+ I would say our sales through accounts that actually have contracts has gone up quite a bit over the last two years.
And we only expect that to continue.
So that would be my view on enterprise and the importance of it.
<UNK>, why don't you comment a little bit about private-label, and maybe how we're taking about the added capacity and its role.
Yes.
So <UNK>, you know in the past couple of years, we've been supply-constrained with respect to our collagen implants.
Now that we've got our new facility up and running here in Plainsboro, it's given us the added capacity to now not just support increased demand from our existing large private-label contracts, but also go out and get new contracts in areas like the dental area ---+ dental collagen.
So we're seeing a combination of increased end-user demand in a lot of our existing contracts where we can now actually supply the product, which is helping our overall private-label business.
But also going out and winning new deals in private-label.
And this is clearly an area that's helped us.
I mean, we've grown this year double-digits.
We had another quarter of double-digit growth in Q3.
As we look to next year, I'd expect it to continue.
And so this will be a nice additive growth driver for us as we move forward into 2017 and 2018.
Thanks, Catherine.
Thanks, everyone, for all your questions and taking some time, I know, on this busy afternoon.
I'd like to briefly reiterate just a couple of the messages that we talked about ---+ <UNK> and I, in the prepared remarks.
First of all, we're exceeding our 2016 financial targets, raising organic growth rate to a range of 9% to 9.5%, and increasing adjusted earnings per share to $3.47 to $3.53.
Second, we're on track to achieving our long-term 2018 financial targets, while continuing to invest in these future opportunities we discuss, including M&A.
And we see our 2017 growth near the high end of our 6% to 8% organic revenue target.
Third, we continue to look forward to the growth of our advanced wound care strategy and believe Omnigraft, through its differentiated technology and economic advantages, will become a franchise product.
And finally, given our positive long-term outlook, we're pleased to announce plans for a 2-for-1 stock split, subject to shareholder approval later this year.
Thanks again for listening and we look forward to speaking with you all in the near future.
Have a nice evening.
