MiMedx Group, Inc (MDXG) Q1 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:04.838 Yeah, I'm going to stay away from forecasting how much of our business might convert 00:00:04.838 -- 00:00:08.644 to a higher-priced product. Look, this was not our first choice. 00:00:08.644 -- 00:00:14.192 This was a step we felt it was necessary to take to protect some portion of our business. 00:00:14.192 -- 00:00:19.680 It's a little bit more niche-y for us. Again, 25% exposure in that category. 00:00:19.680 -- 00:00:24.988 And within our current customer mix, you don't have – the majority 00:00:24.988 -- 00:00:27.429 of them are probably niche. 00:00:32.110 -- 00:00:35.073 not moving in that direction. Let's just put it that way. 00:00:35.073 -- 00:00:39.138 And to the extent that they do, because there's some fear of missing out, they're looking 00:00:39.138 -- 00:00:44.144 for products that are priced higher than our existing portfolio, but more moderately 00:00:44.144 -- 00:00:48.429 priced as compared to what we're seeing out there in the marketplace today. 00:00:48.429 -- 00:00:50.772 What we're seeing out there is rather obscene. 00:00:50.772 -- 00:00:54.116 And remember, when a doctor 00:00:54.116 -- 00:00:59.174 decides to use a product that's several thousand dollars, They still have 00:00:59.174 -- 00:01:03.820 exposure and risk around audit. And we know that audits are increasing 00:01:03.820 -- 00:01:08.746 at quite a high rate, right? So the higher the bill of charges, the higher the potential 00:01:08.746 -- 00:01:12.130 callback in the event of an unsuccessful audit outcome. 00:01:12.130 -- 00:01:15.154 So I think for us, it's a little bit more niche-y. 00:01:15.154 -- 00:01:19.980 That's why in my prepared remarks, I cautioned against looking at this as some sort of 00:01:19.980 -- 00:01:25.400 a windfall. I w...