Having been around since the pre-SB days, I can say this is very much intended. Shortly after joining the team, Bill made one presentation that outlined the potential markets for CollaFix and the strategies they planned to pursue. It was quite exciting.
However, they soon realized CollaFix would take serious capital to bring to market in the areas they wanted to pursue, and would not immediately generate revenues. That large capital requirement is what set Pete on the search for an acquisition target.
SB was purchased in order to give MiMedx something that was generating cash from day 1, with the opportunity to grow the product and revenues to then fund CollaFix. This is exactly what has unfolded, with the exception that I don't believe either Bill or Pete foresaw the magnitude of success they would have with EpiFix, nor the magnitude of additional applications and markets for their amniotic tissue platform. They rightly focused a lot more attention on growing the amniotic tissue products in the short term and are now bringing CollaFix back into the fold.
It will be very interesting to see if their current plans for CollaFix are similar to their plans from a few years ago, or if they have come up with a dramatically different strategy.
I remember when Pete first came on board.
Back then, there was no EpiFix or AmnioFix. Pete recognized the CollaFix technology was going to take a long time bringing it to market, and would require clinical trial investment with no source of revenue to fund it. Thus, he set out to look for a company to purchase that they could build up to generate meaningful revenues that could then be used to fund longer-term clinical trials.
That acquisition search led to finding Surgical Biologics, resulting in the successes that are now EpiFix and AmnioFix.
I'd say Pete's long-term plan is unfolding on schedule. We have ample revenues coming in and can afford to invest in R&D and create new verticals.
Finally, how is anyone concerned about short-term revenue growth and product expansion? You're all aware of the ED application that will be unveiled this year, right?