Okay, thank you for your patience. We will kick off now. Welcome to Aroa Biosurgery's Investor Webinar and Q&A, following the company's half-yearly results announced this morning. Please note that participants are in a listen-only mode. There will be a presentation lasting for approximately 30 minutes, followed by Q&A. We will be finishing up by 11 A.M. If you have a question you'd like to submit, please type it in using the Q&A function on the Zoom app. We will also be opening the floor to live questions. If you would like to do that, when the Q&A session commences, please use the Raise Hand function on the Zoom app. Please note that today's session is being recorded. On behalf of Aroa today, we have Brian Ward, Founder and CEO, and James Agnew, CFO. I'll now hand over to Brian and James. Please go ahead.
Thank you, Neetha, and thank you, everybody, for joining the call this morning. So we're gonna provide an update on the half-year results, and talk a little bit about how our strategy is evolving with the business as well. So I'm just gonna jump straight into the presentation. Just briefly, for those that aren't familiar with Aroa, we're a well-established high-growth soft-tissue company. We have four product families that we sell in the U.S., predominantly to hospitals. All of our products are based on our Aroa ECM platform, and the total addressable market for our existing products in the U.S. is in excess of $3 billion. We sell through two commercial channels, so through our own direct U.S. sales team and through our commercial partner, TELA Bio. The technology and products are well-established.
We have over 6 million products applied to treating patients, predominantly in the U.S. Large body of scientific and clinical evidence sits behind the product, so more than 71 peer-reviewed publications, regulatory approvals in 50 countries. You know, we're also—although all of our products are based on our Aroa ECM platform, we've developed a new platform. That's our Enivo tissue apposition platform. This is progressing through approval, and I'll talk a little bit about that in the presentation. In terms of scale of the ... going on, sort of, 280, sort of, employees now. You know, we're continuing to grow, continuing to add people, predominantly now in the U.S., as we build out our commercial organization.
So just briefly, in terms of the products, all of our products are based on the Aroa ECM platform. We essentially isolate a very specific layer of tissue from the forestomach of sheep. We purify that in a way that removes all of the components that the human body would react against, but conserves the framework within that tissue, and important signaling molecules that attract cells into that material and encourage it, encourage those cells to build new tissue. We have four families of products. So Endoform is the product we started with. That's for use in diabetic and venous ulcers. Myriad, our soft tissue reconstruction product, and this is where most of our commercial focus is, in the U.S., so this is for soft tissue reconstruction.
More recently, we've launched our Symphony product. This is predominantly for diabetic and venous ulcers. And then the two partnered products that we have to TELA Bio are OviTex PRS for soft tissue reconstruction, predominantly in breast recon for hernia repair. And those, the OviTex products are a combination of both the Aroa ECM material and synthetic fibers to reinforce. So if you look across all these products, what we typically see is three things that are very consistent with products built on this platform. So we get rapid formation of well-vascularized functional tissue, and that's noticeably different from what you see with other materials that you know are used for these types of applications.
The material is very well-tolerated by patients and able to be used in contaminated fields, and it's resistant, seems to be relatively resistant to infection. So again, quite different from a number of these biomaterials, which can be, prone to infection or also, break down quite quickly, when they are infected. And the third thing is we don't see negative inflammatory responses, when our products are used in patients. So there are three, differentiating characteristics when you look at these products, compared to, alternatives or competing products. The total addressable market for our products is in excess of $3 billion in the U.S., and we've broken it out here, both on the TELA Bio side and on the Aroa side.
So, Aroa is predominantly focused on complex wounds, soft tissue reconstruction, in areas like trauma, tumor removal, general surgery, and some of the inflammatory skin conditions. TELA Bio will be more focused on hernia repair, abdominal wall, repair, and, breast surgery. I think what's really important to note here is it's a very large TAM, and, we're very... Our penetration into this market is, very low at this stage, so we're very early, in the adoption of these products. There's a very large opportunity in front of the company in terms of our ability to both share from existing, products, but also, you know, we believe there's a strong opportunity to, increase, the size of this market as well.
So, the main product that we're focused on with our direct sales team is our Myriad product, this acute soft tissue repair. There's two versions of this product. There's the Myriad Matrix version, which is a sheet format, and this is produced in different thicknesses based on different layers. And those different thicknesses are used depending on the type of reconstruction and the rate of tissue regeneration that's required in those different applications. Our Myriad Morcells is a morselized version of Myriad, so a coarse powder or a fine powder, and typically used in uneven wounds where you couldn't apply a sheet-type product. So you know, this is really driving our sales. It's almost now 70% of the sales that we sell directly through Aroa.
So I want to talk briefly about our strategy with Myriad. So Myriad's been on the year now, sorry, on the market now for three years. You know, what we've seen as we've used this product over the last three years is this rapid volume compared to many other products on the market, is that it tends to be more persistent. So we don't see the product needing to be applied as frequently as other products, and it tends to hold up a lot better in some of these wounds where a lot of these products break down very rapidly and aren't able to persist enough to be useful. So it's a very persistent product. And also, it's really we've gone to market with a disruptive strategy around pricing as well.
Typically, I'm 20%-30% less expensive than the incumbents. When we started, we were pretty much focused on lower limb procedures. There's a large number of these procedures. They're probably the second-largest category if you look at the ten within soft tissue reconstruction. As we've gained more experience with Myriad, we've focused on other areas, so areas like general surgery, colorectal surgery, trauma. And what we've learned is that Myriad is particularly well-suited to use in trauma cases. The fact that it's we get this rapid volumetric fill, the fact that it's persistent, doesn't need to be applied a number of times, and that it's affordable make a big difference and make it really attractive for the trauma market. So we're aligning a lot of our activity now around focusing on that trauma market.
We believe there's a very large opportunity there. Interestingly, the case value in that market is very large as well. So whereas if you look at lower limb procedures, the case value may be less than $1,000. If you look at trauma, that can be, you know, tens of thousands of dollars in the larger cases. So it's a very different opportunity to, what we see in others, in some of these other procedures. The other thing we've learned with Myriad is that, in use in trauma, we tend to see it being used in combination with negative pressure wound therapy. And so negative pressure wound therapy is really the standard of care, for treating, many of these, difficult wounds. And that's, you know, that's across both acute and chronic wounds.
What we see when we use Myriad in combination with negative pressure wound therapy is we seem to be able to improve the rate of healing quite significantly. We also create a better experience for the patient. So, what's typically seen with negative pressure wound therapy is that it can be painful for those dressings to be changed, and you can get tissue ingrowth into that foam. And so by using Myriad in combination with negative pressure wound therapy, we're able to reduce the number of reapplications. So go from applying the product every three days to applying it every seven days, but also help prevent that tissue ingrowth and therefore create a better experience for the patient. And then finally, by changing the rate of dressing changes, that's hugely helpful to hospitals.
It saves them manpower, it saves them nursing expertise, and it also leads to cost savings for them in terms of the treatment cost of these patients. So we think there's a really nice combination here, where Myriad in combination with negative pressure wound therapy can really add to what people are able to do and the rates of healing they're able to achieve, but also the economics of healing for hospitals. And so on the back of that, we are now setting ourselves up to develop some very solid clinical evidence about the combination of Myriad and negative pressure wound therapy. We're designing a study to look at healing rates, health economics, and the patient experience for these products in combination.
That will be an RCT, and we expect to kick that off at the end of this year, end of this financial year, potentially early next financial year. What's also great about going down this pathway is that if we can really make a difference in trauma with this combination, we think that's going to spill over into other areas of wound care, so other acute areas of wound care, but also in chronic wounds. We think that opens up an enormous opportunity for Myriad, where we can really grow this market. We're really excited about this, and we really have a lot more confidence and a lot more alignment around our strategy commercializing Myriad.
So Symphony, this is a CTP product, for use predominantly in diabetic ulcers and venous ulcers, either in the outpatient department or in the physician's office. It's a combination of our ECM material, and hyaluronic acid. Used typically, applied typically, weekly to two-weekly, over a treatment period of 12 weeks. And so this is, this is an area, a market that's, you know, quite substantive. Sorry, just advancing the slide there. So the market here is in excess of $1 billion. You know, we think Symphony brings value to this market through fewer applications, that rapid volumetric fill, and also making these products more affordable to patients. You know, if you look at this market, there's essentially these two settings with two different reimbursement environments.
So physician's office, where physicians are paid on the basis of the ASP of the product. A very kind of tricky market at the moment in terms of some of the sort of financial incentives around that market. And then the other market is the hospital outpatient department, and this is payment that's much, much more aligned to what you'd typically see in hospitals, where there's a lump sum payment for these procedures. So our strategy has been to focus on the hospital outpatient department to start with, commercialize there, and then, you know, there are changes that are being mooted at the moment to make to the physician's office, but none of those changes have come through yet.
So, we're pausing from commercializing in that physician office environment, until we're more certain of what those changes look like. The interesting thing with this market is, while it's a billion-dollar market, only 7% of patients with these hard-to-heal wounds actually receive CTP products. So it's a relatively limited number of patients. You know, we think there's an opportunity to grow that market, you know, if these products are more affordable, and if the incentives are aligned properly to encourage the best products to be used with the best efficacy and the best health economics. And so we think Symphony can provide that, and you know, we're focused on you know, delivering that over the next few years.
So in terms of our progress with Symphony, you know, we're early in the commercialization of this product. Most of our focus remains on Myriad. But, you know, we are beginning to accumulate great clinical evidence and, you know, we are ramping up sales of Symphony. So OviTex, this is a product sold through TELA Bio. So two versions, the hernia version and the breast reconstruction version. In terms of market, this is data from TELA. I won't talk through this in detail. Their estimate is that it's in excess of $1.5 billion, and the plastic recon market for breast is about $400 million.
So large opportunity on the TELA side, but predominantly started in ventral hernia and now beginning to make some really good traction in both robotic surgery and also some of the inguinal hernias as well. Just want to talk briefly about clinical research. So the Myriad registry has been hugely helpful to us in terms of understanding where we can be successful with Myriad. So we've done a wide range of cases. It's helped to drive us down this line of pursuing trauma. We've looked at a whole range of other things within that registry as well, and you know, there's going to be some publications coming through over the next, you know, 12-18 months from the registry.
We now have, I think it's four or five, trauma centers set up within the registry as well, so they're really gonna help us drive more data related to Myriad's use in trauma. As I mentioned previously, we are setting ourselves up for a pivotal study, and the pivotal study with Myriad will be Myriad in combination with negative pressure wound therapy over exposed structures. So what I'm talking about here is the use of Myriad over tendon, bone, or exposed hardware. And this is typically injuries that are very difficult to heal due to poor blood supply. And so we think Myriad can perform exceptionally well in these indications.
The other thing about the Myriad registry is we now have 225 patients recruited into that registry. You know, nine of the 10 sites up and going, so we've made very good progress recruiting into that. Symphony made good progress here as well. So, we're now 45 patients of 120 that we're recruiting into this. We have eight of the sites operational, and we need two more sites to get up and operational. We'll have some interim reporting from that RCT next financial year, and then that will be completed the following financial year. And we're also looking at setting up a registry for Symphony as well, in the same way that we did with Myriad. A little update on Enivo.
So we've now treated five patients with Enivo. These are patients that have had mastectomy, and so the Enivo device has been implanted at the site of mastectomy, and we've had very good results. And so we have had no seroma formation in those patients after the treatment period. So really thrilled with how that's going. We're doing 10 patients in total, and that will then set us up for a larger study in the future. So really, really delighted with how that's progressing. So just to, you know, just to sort of update on how sales are tracking. So this is, you know, total Aroa ECM sales. So this is TELA Bio plus Aroa's direct sales. So we're expecting 38% growth year-on-year this year.
So strong, you know, strong growth, coming from both, TELA Bio, but also, from Aroa as well. I want to talk a little bit about TELA Bio sales, and, how that's, how that affects, Aroa. So, what we have here is a, chart looking at, sales over the last five years, and the dark gray line is, the trajectory of, TELA Bio sales. So you can see, you know, TELA's, growth is, tracking very well. What we have seen, from an inventory perspective, particularly in the last year, is a real focus by TELA Bio, in terms of managing the level of inventory, relative to, relative to the level of sales.
So we can see, if you look at the, gray dotted line, we can see that, you know, TELA Bio's inventory as a percentage of revenue, is tracking down. So, you know, this is the normal, improvement that you'd expect to see in a business as it matures. So we are seeing that, TELA Bio's managing the inventory levels down, and as a consequence of that, that has meant that this year's sales for TELA Bio, you know, have been, sort of softer when you compare them to last year. You know, we see this as a temporary adjustment, a transition. You know, really the, the key, the key indicator of success here is, how TELA Bio sales are going.
So, you know, we're still really pleased with how TELA Bio sales are going, but, you know, that has meant for this year, for Aroa, you know, we're not seeing the impact of that continued growth, over certainly over the first six months of this year, and we'll see a little bit of that in the second six months as well. You know, in terms of our focus with the Aroa sales organization, we're really changing gears here a little bit in terms of what we're doing. So I think in the first two years, when we commercialized Myriad, it was very much about gaining access into hospitals, being opportunistic, getting that broad GPO coverage, and getting stock into hospitals. You know, we now have lots of access, and so we're on 95%.
Well, we're on five or six GPOs in the U.S., and we have coverage for about 95% of the hospitals in the U.S. So our access is really good. Our number of accounts is really strong as well. And so we're really changing our focus in terms of focusing very much on how we can demonstrate the value of our product, and building out that value proposition, and how we can grow and how we can improve our sales productivity within those accounts. And so that's about focusing on growth within accounts, focusing on more surgeons using our product within accounts, and doing more procedures within our accounts. We're also looking closely at our sales team in terms of optimizing our compos...
The composition of the sales team, building the supporting infrastructure that they need to succeed, and then opportunities for portfolio expansion. Simple line extensions that will make them more productive in their jobs. So we're in a sort of different phase now. I think we have much more certainty about the success of the product, the value, so the success of the products, the values of the product, and we're really tuning up that sales organization so that as we scale it, we can be more successful. In terms of Enivo, we have two components cleared from the FDA, so that's the pump and the catheter. We've had a fantastic pre-clinical study published, you know, showing the difference between standard of care and using the Enivo product.
So, you know, significant difference in terms of the volume of seroma, compared to using a standard of care device. And we're really encouraged by the five patients in the pilot study. So you know, I think there's an enormous opportunity for this product. We're now seeking clearance from the FDA for the implant, and that's the ECM implant. We've had feedback from the FDA on our 510(k) submission for that, and we're working through questions with them. We expect to kind of respond to them in the next week or so. And, you know, depending on how that review goes, you know, we may get some feedback from them by the end of December.
If not December, then certainly, you know, we'd hope to get something back by the end of January. So there is an update coming on Enivo. You know, we had, you know, a whole bunch of questions that we've had to ask and I think answer, and I think, you know, we'll be much clearer about that, you know, certainly by the end of January. So, you know, I presented this slide a number of times before, and I think the key point, you know, what we're looking at here is, normalized EBITDA, and then Enivo expenses in the pink bar, and then normalized, EBITDA, excluding the expenses for Enivo in the orange bar.
The key point here is that if you look at the Aroa business, in the absence of the investment in Enivo, we're highly profitable already. Now, we're, you know, we are at a total company level, making that transition to being profitable, and we'll talk about that shortly. But I think, you know, the key point is that we've chosen to invest in Enivo, delay profitability, because we think, in the future, and also, you know, can potentially, help us increase our sales productivity, with our team in the future. Just want to talk about guidance. So, you know, our guidance remains the same. So, $72 million-$75 million revenue, 85% margin, $1 million-$2 million in normalized EBITDA.
You know, we have made a change in that first half of the year, we were basing it on a 0.65 exchange rate. We're now basing this on a 0.62 exchange rate. You know, total revenue for the full year is expected to be NZD 73 million-NZD 76 million. Just want to talk about the half year result and the split between the two halves. So we signaled this at the beginning of the year.
You know, we, based on our demand from TELA, and we knew that the first half of the year was going to be significantly softer than the second half, and you'll see that in the, left side there, where our H1 actuals, you know, product revenue of $31 million, gross margin of 84%, and then, normalized EBITDA of, -$3 million. I think if you look forward to the second half of the year, we're forecasting, revenue of $41 million-$44 million, an improvement in gross margin of 86%-86%, and a normalized EBITDA of $4 million-$5 million.
So quite a change between those two halves, and, you know, we knew that was going to be the case, and we're certainly seeing that in our forecast for the second half of the year. So then if you sort of look at how does that fit with guidance? So, you know, that's 72-75, 85% gross margin, and then $1 million-$2 million in normalized EBITDA. We see Myriad continuing to build momentum. You know, we're certainly seeing good improvement at a sales rep level. You know, sales reps progressing through those different levels of productivity based on the time and the job and the different cohorts. You know, we're seeing this change with TELA Bio in terms of managing their stock levels down.
We see that as being a realignment that will sort of come more into alignment, towards the end of this year. And then, I think the really notable thing here for that, particularly for the second half, is a real step up in that normalized EBITDA. So, you know, just in terms of the financial outlook, beyond this year, you know, we still remain confident, in our ability to build, you know, a high-growth, profitable business. So, you know, looking out, you know, two, three years from now, you know, we think that there's a strong basis on which we can build a business where we have a compound annual growth rate of at least 25%, product gross margins of around the high 80s, 88%, and then, you know, normalized EBITDA margins of 20+%.
So just in terms of catalysts, I mean, remain the same. So it's that improving Aroa sales momentum, you know, continued sales momentum from TELA Bio, you know, potentially an Enivo clearance. And then, you know, any changes that may come through in terms of physician office, CTP reimbursement, you know, would also be a significant catalyst. So Neetha, I'm going to hand it back to you for our Q&A.
Thanks, Brian. We will now move on to the Q&A session. As I mentioned at the start, please use the Raise Hand function on the Zoom app if you'd like to ask a question live. You can otherwise type your question in using the Q&A function. Now, we will start with some live questions. So if you are asking a question live, I will introduce you and send you an unmute prompt, which you will need to accept. We will give you the opportunity to ask a follow-up question if required, and to facilitate this, you will remain unmuted whilst your question is being answered. So the first question I have is from Sebastian Clemens at Jarden. Please go ahead, Seb.
Thanks, Brian. Thanks, James. Just for that second half revenue guidance of NZD 41-NZD 44, just given we're two months into Q3, I'm just wondering how you're seeing that currently tracking, and if you can give us any indication of what that split might be, in Q3 versus Q4. Thank you.
Well, yeah, you broken up there, Seb. We sort of-
Can you hear me?
Yeah. We missed the last part of the question.
Okay, I was just gonna say that just given the second half SKU of $41 million-$44 million in the second half, and, you know, we're two months into Q3, just wondering how you're seeing that currently track, at the moment. Just and what that, what that breakup might be between Q3 and Q4, the revenue guidance.
Yeah, look, I mean, we have pretty good, pretty good read on the sort of TELA Bio from a demand plan perspective over the next four more remaining four months. So, you know, the variability in the TELA number is really their own sales performance and obviously the revenue share top-up component. So I mean, we're definitely seeing the TELA Bio number... You know, I guess there's not big step ups from quarter to quarter in terms of the TELA Bio. I mean, that's where the step ups are. So, I mean, look, we, you know, the first two months have been, you know, in line with our expectation. Each month there's, you know, a gradual step up with obviously the final quarter being, you know, another step up from the previous quarter.
Right. Just one quick follow-up. So just with the TELA Bio component, you said that the Aroa sales to TELA Bio has dropped off in the first half, and I can see that in that chart you've provided. So you're confident that that's not gonna continue to lower moving forward? Is that the sort of going rate for FY 2025 onwards, it's that you expect?
Yeah. Well, yeah. I mean, I think, I think it's going to... It is going to decline to some level. I think we're probably at the level now. You know, I think, you know, the, I think the key number really is their top line growth. And, you know, what we're seeing is that's going... You know, there has been this sort of 12-month disconnect between TELA sales and Aroa sales. You know, we see things coming more into phase now, you know, with this reducing inventory, with the realignment, and that now moving to more like six months. So that's shortening, them being at a slightly, you know, a lower inventory level. But, you know, those obviously their sales levels, you know, obviously coming through to us. So, you know, we think that normalizes by the end of this year.
Great. Thank you.
Thanks, Seb. We have a question next from Elyse Shapiro from Canaccord. Elyse, please go ahead.
Hi, guys. Thanks for taking my question. Just in terms of market access, you know, following the additions of Premier and some of the other GPOs, are we starting to see the benefit from that ramp yet? Or if not, you know, when do we expect to see a bit of an uptick there?
Yeah, I mean, I think the additions to, you know, Premier, and, you know, some of the other GPOs, we are seeing that impact coming through now. And I think that's contributing to the growth that we're getting. So, I think it's, you know, now the, we don't have the friction in the system or the barrier of GPO access to be able to get into accounts and expand, and I think that's helping us with our sales momentum with Myriad.
Got it. And then just thinking about, you know, your OpEx base going forward, you know, what are we thinking about, you know, in terms of sales force additions, for the next 12 months or so?
Yeah, look, we've just added five extra sales reps, and so that's sort of setting us up. I mean, they probably won't really become productive until next year. We need. We, you know, we haven't gone through a full budgeting exercise for next year, but we would expect to add, you know, potentially another 10 or so next year. But we need to, we need to firm that up, you know, over the next quarter.
Great. Thanks, guys.
Okay, turning to a question from Madeleine Williams. Maddy, please go ahead.
Hi, Brian. Hi, James. I just wanted to just discuss the performance of Myriad in the half, and, you know, at the start of the year, you sort of expected the product to sort of double in revenue to, you know, NZD 26 million-NZD 27 million. I mean, is that still the case? Is still... You know, are you expecting a sort of material uplift in the second half?
... Yeah, I think we're about 88% or something like that at the moment. So, you know, our goal is to double that this year. So, you know, that's where we think things will land.
Thank you. And just as a follow-up, just what you mentioned with the additional sales reps, I mean, is that premised on potentially Enivo, the Myriad Flow, Enivo sort of product getting approved and then obviously you needing additional sales reps for that? Or is that planned anyway, just for the Myriad product alone?
Yeah, it's for Myriad alone. So irrespective, you know, we probably advanced it a little bit ahead of what we thought we'd do. But we... You know, what we've seen is, we just need more sales reps to cover areas where we already have access, and we aren't able to survive on that opportunity.
Yep, sorry, you just cut out a little bit there, but I think I got-
Yeah.
the majority of that.
Yeah. Okay.
Thanks.
Okay, so turning to a question from Shane Storey at Wilsons. About Myriad, you've recently spoken about honing in on a handful of indications where case values are high and product performance is favorable. Can you speak to some of those surgeries in detail, and maybe update us on the market opportunities they represent and the competition you face?
Yeah. So I think, what, you know, what we've, what we've really learned about Myriad is those sort of differentiating factors. So the fact, rate of tissue regrowth, the persistence of, and the real attraction of using it in trauma. And so, you know, trauma seems to be an area that's very well suited to Myriad, because of the performance of the product, but also because of the economics of the product. And so, you know, we see trauma as a real interesting area in the short- to- medium term. What we're also seeing in trauma is the use of Myriad in combination with negative pressure wound therapy. And if you sort of think about wound healing generally, really the standard of care for healing difficult wounds has been the use of negative pressure wound therapy.
What we're seeing with Myriad, in combination with negative pressure wound therapy, is the ability to heal these wounds a lot more rapidly. At the moment, that's anecdotal feedback from surgeons. So what we're really focused on now is building a strong evidence base for that. I talked a little bit earlier about we're gonna set ourselves up to do an RCT. So look at the use of Myriad in combination with negative pressure wound therapy, versus negative pressure wound therapy alone, and be able to demonstrate that we're able to improve the rate, but also we're gonna be able to improve the health economics by decreasing the amount of dressing changes.
Decreasing, what that means is it's better for hospitals because they don't need such the same degree of nursing expertise and the same amount of nursing time. So it can have quite a profound impact on the cost of care of some of these patients. So we're kind of aligning our activities now around trauma, around the use of Myriad in combination with negative pressure wound therapy. The other thing we think is that if we prove it out in trauma, then that will spill over into other areas of wound care, where negative pressure wound therapy is being used extensively. And so we do see ourselves, in the future, undertaking other studies in other areas that support that. So I think, you know, we've had the registry up and running.
We've looked at a whole lot of different areas. We've looked at where we can really stand out compared to other products, and we think that's a really notable area. You know, we think Myriad performs well with negative pressure, you know, significantly better than a lot of these other materials.
Thanks, Brian. Another question relates to Symphony and CMS's final rule for 2024, which was published recently. The question asks: It seems that little is being done to change some of the questionable reimbursement practices around skin substitutes. Does this change the way you're thinking about Symphony in terms of which sites of service are important and how you approach pricing?
Yeah. I think we're still working through it. I think, you know, the challenge for us is maintaining sales productivity with Myriad and also servicing our Symphony accounts. And so, the easiest thing for us to do is the hospital outpatient department, where we already have access for Myriad, and physicians' offices, where we're already working with those surgeons in other settings. And so I think that's gonna remain our focus over the next 12 months or so. And then, you know, as we work through how these reimbursement changes work, then, you know, potentially physician office comes into the frame a little bit later, but I think that's probably something more for the future at the moment.
Thanks, Brian. Cutting to another written question. Noting the company's share price performance, the question asks, you know, what are your criteria for informing, you know, an approach to a takeover, takeover attempt?
Sorry, it just broke up there a little bit at the end there, Neetha.
So the question was asking, you know, what is your approach to assessing a takeover attempt?
Look, I think if someone with... You know, like all companies, if someone comes to you with an offer, we need to, we need to look at that offer... versus, you know, what we think the company, how the company is valued. I mean, I think, you know, if we look at the share price at the moment, you know, we don't think that reflects the true value of the company. But, you know, we'd have to, you know, if an offer came, then we'd have to consider it in the light of, you know, what we think the, the true value is.
Thank you. And then so the question goes on to ask about sort of, you know, persistent forming shareholders of these things. I suppose, you know, we'd have to be, we'd have to disclose these things in accordance with continuous disclosure requirements.
Sure.
Okay, um-
My understanding is that... Sorry.
Should I continue?
Yeah. No, it's fine, Neetha. Yeah.
Okay, it looks like we don't have any remaining questions at this stage. I'll just take a few minutes to pause. If you have any more questions, please feel free to send them through. Okay, it looks like we don't have any further questions at this stage, Brian, so I'll hand it back to you for any closing remarks.
Thank you, Neetha. Look, we're, we're really excited with the progress we're making. I mean, we think, there's huge potential for Myriad. We're really excited about, you know, our sort of realignment on the strategy there. We think we're really, we're just getting started. You know, looking forward to a much stronger second half and, you know, delivering a good, good result, for the end of this year. And then that really setting us up for a strong year next year, where we'll have strong revenue growth and, be highly profitable. So I feel like we're on track in terms of what we've set out to do. And, we know we'll track well for the second half of the year.
Excellent. Thank you, Brian and James, and thank you to everyone for taking the time to join today. We'll leave it at that and look forward to seeing you next time.