Kensey Nash Corporation F4Q09 (Qtr End 06/30/09) Earnings Call Transcript

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2009-08-20 11:08:15.0

Tags: Fiscal Year, Call Transcript, Earnings, Sales Strategy, Sales Force Management, Business Structures, Operational Accounting, Sales, Finance, Seeking Alpha, Kensey Nash Corp.

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of James Sidoti – Sidoti & Company.

James Sidoti – Sidoti & Company

On the Synthes deal can you give us a little more detail on that and tell us what they will be using this for and if there is anything built into your fiscal 2010 revenue estimates for Synthes?

Joseph Kaufmann

Sure. I will start out and then I will turn it over to Doug. There should be a press release, a separate press release that we believe has just come out that was issued by Synthes talking about the deal. A joint press release and it goes into some further details. We do have some revenue built into the back half of our fiscal year relative to this program. I think Doug can highlight for you the technology and the regulatory path and where we are with these various products.

Douglas Evans

From a macro perspective I think our objective with the ECM technology was to give quarter-by-quarter for this fiscal year, in the current quarter we really established our partnership for the first products. Then looking in the second quarter we have the objective to get the products initially approved. Moving further in the year if we look out to the third quarter for our fiscal year we are going to look at getting the first clinical evaluations of this product. Some of the areas that we are looking at include abdominal wall repairs, head, neck and chest plastic reconstructive type kinds of procedures. Finally in the fourth quarter of the fiscal year we are going to be looking at trying to get these products launched. From a macro perspective that is sort of the timeline for these technologies.

James Sidoti – Sidoti & Company

Can you give us a little color what does the sales force look like and the size of the sales force they have for abdominal repair? Could this relationship be expanded so that Synthes would be selling this for rotator cuff repair and orthopedic applications as well?

Douglas Evans

We don’t want to give out too much information at this point in time. Synthes, as you know, is a very well respected company and is well known throughout the world. They dominate in trauma but we look at Synthes now as a partner that is looking into expanding into other markets. We have committed to Synthes what we are going to do is really handle the terms of any kind of information we are providing to the street and we are going to be very careful until we get these products ready to launch.

 

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