Sanara Medtech at Cantor Conference: Strategic Growth Focus

On Wednesday, 03 September 2025, Sanara Medtech (NASDAQ:SMTI) presented its strategic vision at the Cantor Global Healthcare Conference 2025. The company highlighted strong growth and new leadership, while acknowledging areas for future focus. Sanara Medtech’s recent 25.8% growth underscores its potential, yet strategic alternatives for THP remain under exploration.

Key Takeaways

• Sanara Medtech reported a 25.8% growth in the second quarter, driven by soft tissue and bone repair products.
• The company is exploring strategic alternatives for its THP unit, with a decision expected soon.
• Ostic, a bio-adhesive product, is anticipated to launch in 2027, having received FDA breakthrough designation.
• Sanara Medtech’s surgical business is cash flow positive, with a trailing twelve months EBITDA of 14 million dollars.
• The company is leveraging its extensive distributor network, which includes over 400 contracted distributors.

Financial Results

• Second Quarter Growth: Sanara Medtech achieved a 25.8% increase in the second quarter, with balanced contributions from soft tissue and bone repair products.
• Key Drivers: Success attributed to the performance of the distributor network, securing approvals and contracts, and effective surgeon outreach.
• Product Performance: BioSurge and Celerate products showed strong performance, while Ascendia recorded a 25% rise since its 2023 acquisition.
• Cash Flow: The surgical business generated positive cash flow, with a trailing twelve months EBITDA of 14 million dollars.
• Margins: Surgical business margins are expected to remain stable.

Operational Updates

• Sales Force: No significant expansion planned for 2025; growth is focused on the distributor network.
• Senior Management: The team is prepared for the next growth stage, with a focus on strategic execution.
• Physician Base: Core focus remains on spine and ortho, with expansion into foot and ankle, plastics, and vascular surgery.
• Distributor Network: Over 400 contracted distributors serve as an extension of the sales force.
• Clinical Evidence: Emphasis on building clinical and economic stories for products.

Future Outlook

• THP Unit: Strategic alternatives, including potential sale or partnership, are under exploration with a decision expected soon.
• Ostic Launch: Anticipated for 2027, Ostic has received FDA breakthrough designation, promising innovation in trauma care.
• Growth Strategy: Focus on leveraging existing products and distributor network, with emphasis on focus and discipline.

Q&A Highlights

• Distributor Contracts: Act as an extension of the sales force, with RSMs working to educate surgeons.
• Clinical Evidence: Focus on demonstrating the mode of action and validating technologies through case studies and research.
• Celerate Growth: Aims for incremental growth across all distributor partnerships.
• Facility Approvals: Contracts and approvals in around 4,000 facilities, with sales in over 1,000.

For a detailed understanding, readers are encouraged to review the full transcript provided below.

Full transcript - Cantor Global Healthcare Conference 2025:

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Let’s go ahead and get started. My name is Ross Osborne. I’m the med tech and diagnostics analyst at Cantor Fitzgerald.

And today, have Sonara MedTech. We have the newly appointed CEO, Seth Young, and the CFO, Elizabeth Taylor. So with that being said Seth you want to start off with your background?

Seth Young, CEO, Sonara MedTech: Sure. Ross thanks for having us. I’ve been at Sonera now for the last eight years. Kind of was one of the original that came in when this company was very small. I was tasked with at that time being the director of wound care and at the same time could I go out and start to establish some of the surgical business.

And so I did that for the first year and a half or two while I was there. Moved into the national sales director role just after that. A year later, moved into the VP of sales role. A year later, I moved into the president of commercial, chief of commercial in the 2025, and yesterday was appointed the CEO role going forward that’ll start September 15. So it’s been a great journey.

A lot of work has been done. A lot of work has to be done, you know, going forward as well, but we’re really excited with the position that we sit in.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. Elizabeth?

Elizabeth Taylor, CFO, Sonara MedTech: Hi. I joined Sonera in January, so this is one of the newest members of the team. Before that, I was at a private company in the wound care space called Embed Biosciences. It was there for about seven years and have always been in finance, started in private equity and hedge funds and Perfect.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Thanks for the introductions. And so maybe just level set the room for those less familiar with the scenario story Sure. And go back eight years ago when you started or more recent timeline, but how the company developed over time.

Seth Young, CEO, Sonara MedTech: No. It’s you know, when we first started, we were a single product company. We were tasked with, you know, getting Celerate to market. It was a unique technology that quite honestly really hadn’t met the OR just as of yet. We were just starting to do that.

That was under a past regime. We stepped in. There was a handful of us that came in and started to really shape the business, give the product a voice, establish things like the distributor network, approvals at the facility level, and start to get conversations alive with surgeons as well. It took some time to do that, and at the same time, we were building a sales force that was complementary to distribution. And that took time over a two, three, four year window to get that right and really establish so that those two groups were complementary to each other.

And that’s how we started to build and to scale this business. And obviously, things have changed now with not just being a single product company. We’ve got a complete offering and that’s everything from soft tissue products all the way into bone fusion and bone fusion repair and we continue to expand nationally in both those two categories.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And maybe before we dive in, Elizabeth what attracted you to Sonara?

Elizabeth Taylor, CFO, Sonara MedTech: I couple things. I was I first met Ron, who is our chairman through my old company and really liked him, really liked sort of the space they were in, loved that they’re in the surgical suite and met a few people who worked there and was so impressed with the team and how nice they are and the culture that they’ve built, and I really felt like there were some exciting growth prospects for the next five years, so I was excited to join.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Perfect. Well, speaking of growth, you guys had a really strong 2Q. Could you walk through some of key drivers there?

Seth Young, CEO, Sonara MedTech: Sure. We had a big quarter at 25.8%. We had a very balanced quarter both in soft tissue and then the bone repair products as well. We talk about this a lot on the earnings call, but the key drivers for us are three metrics. How do we perform with our distributor network?

What have we done with approvals and gaining contracts? And then lastly, how are we reaching surgeons? And when you can hit on all three of those things inside the same quarter, you generally are going to do pretty well and that’s been our experience. But really strong performance out of BioSurge and Celerate, are our two anchor products and had a really strong bone fusion quarter as well. It was the biggest rise that we’ve seen since we acquired we acquired Syndia back in 2023 and that, you know, had an increase of about 25%.

So overall, it was just a really balanced quarter and saw nice growth.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And maybe diving a little bit deeper with Ascendia, where is that strength coming from?

Seth Young, CEO, Sonara MedTech: Yeah. So we’ve been fortunate over time to deploy really talented RSMs, and they’ve had backgrounds in that space as well. When we first started to hire, when it was just Celery, we hired a lot of soft tissue repair folks and they’ve done an exceptional job to get that product to market that and buy a surgeon such. But since then, we’ve also brought on some talent that has experience in that soft tissue space, but also into that bony space as well. And they’ve really helped us to start to establish things across the country in the bone fusion product line.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And then excuse me. In addition to nice top line growth, you guys also generated, cash from ops this quarter. Mhmm. You know, what’s driving that?

Where are you seeing leverage in the business? And how should we think about your cash profile going forward?

Seth Young, CEO, Sonara MedTech: I mean, I I can start a little bit with what we’ve built on the sales side. Yeah. You know, we didn’t really expand our our our sellers as far as internal sellers in 2025. We’ve certainly done that with the w or the October space with our distributor partners, but we felt like we could build that in those early days and then start to leverage that. You know, that fixed cost was there in that market, and we didn’t need to expand it to, you know, fifty, sixty, 70 RSMs.

We like where we sit now, and we’ve leveraged that over the last twelve to eighteen months.

Elizabeth Taylor, CFO, Sonara MedTech: Perfect. I think in addition to that, over the past two years, the company’s really worked to build out its senior management team. And so that’s pretty much built out and it’s sort of ready for the next stage of growth. So you’re gonna see some operating leverage with not not needing additional senior level hires. And the surgical business is a cash flow positive business.

I mean, trailing twelve months of 14,000,000 EBITDA, and, you know, we’ve defined our spend on THP, for the second half of the year. So, you know, I I and we think our margins for the surgical business should be steady. There’s no nothing that should be of surprise there. Great.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: And then maybe taking a step back, could you talk about your physician base? Expanded outside of your traditional spine and ortho where you’re addressing some new areas.

Seth Young, CEO, Sonara MedTech: Sure. I mean it’s still our core. We started first in spine then it moved into ortho. That is truly the backbone to our business or those two specialties. But we have started to reach into other areas as well.

We’ve got a nice, you know, foot and ankle space. We’ve got, you know, starting to see penetration into the plastics vascular space general, but it’s a little bit different, right, than what we have with distribution. So we have to do that in partnership with our distributor to get that coverage, and we’ve been very fortunate to do that. But I will say that as you look at how we go forward, our core will still be Ortho and Spine. Right?

There’s a lot of upside still there for potential growth and we’ll be very opportunistic with those other specialties to continue to widen inside the facility. So that’s always going to be an approach, but again the core of that business sits with Ortho and Spine Again the other specialties are starting to see the benefits that come from these products as well and taking interest in it and sometimes it’s a scenario where vascular surgeons is doing access for a spine procedure or a plastic surgeon is doing closure for a spine procedure and that starts to lead into other opportunities for us beyond that one case.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Got it. And so I guess outside of word-of-mouth, how can you guys drive further penetration? Do you

Seth Young, CEO, Sonara MedTech: need a larger sales force, incremental clinical data? We’ll always do two things from the clinical side is drive that clinical story and then drive that economic story as well. And that doesn’t matter the product, that will always be a focus for us. As far as our sales force, you know, I don’t envision that getting a lot larger from an internal basis, but we will continue to grow our distributor network. You know, if you follow that trend over the last few years, we’re at now over 400 distributors.

That’s signed contract, that’s not total sellers, That’s actually contracted agreements. And we’ve been very fortunate to do that over time, and we’ll continue to look at areas where we need more help to fill in with that distributor support. Got it. Can ask you a quick question? Sure.

I’m not familiar with the company, company, but when you say clinical evidence, what are you showing? Yeah. I mean, again, mode of action, looking to prove out our technologies, right? So you obviously get clearance to bring the technology into the OR, but we want to always drive more evidence of how that product is working. And that can be true with Celerate, again is an anchor product to us, or BioSurge, which is an antimicrobial wash that we launched two years ago.

We want to always build evidence along the way to showcase just how well that product is working. Generally, it’s coming from surgeons, right, where they’re going to actually do a handful of cases, a number of cases and do maybe potentially white papers, things like that to continuously showcase that. It starts really at the case study form and then builds all the way up to full blown research.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Okay. And maybe going off of that, how do you feel about your current product portfolio? You guys announced you’re exploring strategic alternatives for THP. Just walk through, you know, why you guys are looking to sell that business.

Seth Young, CEO, Sonara MedTech: Yeah. I would say at this point, you know, we brought in a strategic adviser to look at what are the best options for us as a whole with THP. And that could be any number of things. Right? It could be, you know, does that technology and and business get bought?

Is it there a partnership that could exist there? Is it some funding? All of those things are being looked at and, you know, we’re gonna let that process kinda take its course. It’s not been a long time since that started. We’ll evaluate that in the next couple of months and see where we sit and then make some decisions on how we go forward.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Perfect. And then any exciting products in your pipeline?

Seth Young, CEO, Sonara MedTech: Yes. So I think most have heard about Ostic, which will launch hopefully in 2027. It’s a product that we’re extremely excited about. The FDA gave us or not us, but gave the product breakthrough designation, which always is a good sign. That means that they see something in that technology that’s unique enough that doesn’t sit in the market today, and that usually puts you towards the top of the list as you’re starting to go through that regulatory process.

We don’t own the regulatory process that sits with BMI versus us. We work very closely with BMI on all things, whether it’s sales, marketing, and the things that we’ll need. We still sit in a great spot to see that product launch in 2027, and it’s a great great fit for us as a sales team. It’s a great fit for the distributor network that we’ve built and there’s an absolute need for it in that trauma space for periarticular fractures.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And then maybe for those not familiar with the product, could you just give a high level overview of what the product is?

Seth Young, CEO, Sonara MedTech: Yes, it’s a bio adhesive product that you’re going to use in periarticular fractures for trauma cases in that. So again for better terms think of it as like a bone glue which it’s not, I can’t make that claim and it’s not, but just in its simplest form, know, think of it in that form. But when you’re trying to put in a traumatic case, you’re trying to put that bone back together, we think it’s a technology that’s going to do very well.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And then realize you’re only twenty four hours into the CEO role, but you’ve been with the company for eight years. So what areas are going to be the easy ones to improve or that you want to start hitting in the first hundred days, we’ll say?

Seth Young, CEO, Sonara MedTech: Sure. I mean, we’re going to continue to try to get sharp. That’s always going to be our approach and we talk a lot about this internally when you’re a eight year old company in essence, you know, you’re still kind of walking across the bridge that you’re building and and so we’ll continuously fine tune things. But Elizabeth said it before too, you know, Ron has done a great job of building a leadership team to really scale this business into the future. When I think back just a couple years ago, there was three people sitting in the room from a leadership perspective, and now there’s, you know, almost a dozen high talent people that come to our business with great experience, great relationships and we’re very fortunate to see that team assembled.

But our goal is going to be about focus and discipline. How do we stay true to who we are as a surgical business, drive that into the future and that’s everything from Celerate to TRG to BioSurg, how do we just continuously get sharper with that and being very disciplined.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Perfect. Thinking about growth over the next couple of years, you know, what can you do to drive incremental growth for Accelerate? Mhmm.

Seth Young, CEO, Sonara MedTech: You know, again, I think it comes down to those three very simple things, which is, you know, how are we performing with our distributors? And that isn’t just about the 400. Right? The 400 has a multiplier inside of it of the number of reps that they have inside those agreements, and it’s for us to not only get to that distributor first and start to realize some growth with them, but it’s how do we get wider across their all of their ten ninety nines as well. So there’s a lot of opportunity there.

We’ve got contracted and approved facilities in around 4,000 facilities across the country. On the trailing, we’re selling into a little over a thousand of those. So there’s a lot of upside still with just what we have on contract. And then the number of surgeons that we continue to access is pretty significant and we’ll continue to pursue that in ortho spine and then those other specialties. So again, if we can stay really true to those three things, I think you’ll see nice growth coming out of us in the next years.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. And then you’ve mentioned distributor contracts a handful of times today. What do those contracts look like? Meaning, are they incentivized to sell your products Yeah. They I mean,

Seth Young, CEO, Sonara MedTech: they’re an extension of our sales force, right, and it’s very common in that bone space to see distribution, know, whether it’s spine or orthopedics. But again, they’re acting on our behalf. They’re, in essence, lot of ways a customer to us. You know if you think about our RSM, they’re working with those individuals, they’re being an educator of sorts with our products, they’re coming alongside cases as well and really working together to make sure that the surgeons are properly educated on our technologies and the product is used appropriately. Perfect.

Any other questions from the audience? All right. If not, I’ll leave the floor to you for any closing remarks or we can go get some more coffee. No, I’m happy to leave with a closing remark. So again, you know, really proud for the opportunity to move into the CEO role.

Ron, like I said, has done a great job of shaping that leadership team where we sit as an organization. We’re really staged nicely for the upcoming years as well. And at Scenario, we’re really proud of the work that we’ve done so far, but we know we’ve got a lot in front of us.

Ross Osborne, Med Tech and Diagnostics Analyst, Cantor Fitzgerald: Great. Well, thank you for being here.

Seth Young, CEO, Sonara MedTech: Thank you.

Elizabeth Taylor, CFO, Sonara MedTech: Thank you.

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