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Bacterin Announces First Quarter 2012 Revenue of $7.8 Million, Up 29% Year-over-Year, on Gross Margins of 76%, and 34% Reduction in Operating Loss
Date:5/3/2012

th care supply chain expertise and contracting company, to provide OsteoSponge®, OsteoSelect® DBM Putty, OsteoWrap®, OsteoLock®, BacFast®, hMatrix®, Sports Medicine Allografts, and traditional allografts to the GPO's nationwide network of hospitals and medical practices.
  • Hospital accounts in the 1Q of 2012 increased to 756 facilities, an increase of 45% over 519 facilities in Q1 2011.
  • Management Commentary"First quarter revenue was lower than anticipated, with 6 of our top 10 SKUs on backorder much of the first quarter.  We have substantially increased the receipt of donor inventory as well as production but don't believe it will have a positive impact on revenues until the third quarter of 2012," said Guy Cook, Chairman and CEO of Bacterin. "We are confident we have overcome the short term production issues, however, when our sales force is faced with limited access to products, it slows surgeon uptake when the product finally does become available. Typically, surgeons who currently use the product continue to reorder, but to convert new surgeons, each new surgeon needs to be approached, use the product in 1 or 2 cases, wait 60-90 days to see if they like the results, before using it in greater volume. When product is constrained and goes into back order, it delays the uptake, and the growth we've come to expect is pushed out by a few quarters. We are confident in our long term growth potential based upon our increased production and continuing demand for our products.
    We were able to sign up 140 new accounts by the end of the quarter, continuing to build our pipeline, but converting into meaningful recurring sales will take a little longer than we expected.

    "With respect to our hMatrix product, uptake in the wound care market was slower than expected due to reimbursement issues surrounding its use for the treatment of diabetic foot ulcers, which we believe will be corrected with the expected issuanc
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    SOURCE Bacterin International Holdings, Inc.
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