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Sanara MedTech Inc. (SMTI) is a medical technology company focused on developing and commercializing transformative technologies aimed at improving clinical outcomes and reducing healthcare expenditures in the surgical, chronic wound, and skincare markets. The company provides innovative and comprehensive solutions across the continuum of care in the United States. SMTI sells a range of products including surgical solutions, wound care products, and diagnostic devices.
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Sanara Surgical - Markets and sells soft tissue repair and bone fusion products, including CellerateRX Surgical, BIASURGE Advanced Surgical Solution, BiFORM, and ALLOCYTE Plus. This segment currently generates all of SMTI's net revenue.
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Tissue Health Plus (THP) - Focuses on value-based wound care services, with a commercial launch expected in mid-2025. This segment has not yet contributed to the company's revenue.
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CellerateRX Surgical Activated Collagen - Includes powder and gel forms used for human wound care, designed to promote surgical wound healing and reduce surgical site infections.
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HYCOL Hydrolyzed Collagen - Used for wound care applications, acquired in August 2023.
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BIASURGE Advanced Surgical Solution - A no-rinse surgical solution used for wound irrigation, containing an antimicrobial preservative effective against a broad spectrum of microorganisms.
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ALLOCYTE Plus Advanced Cellular Bone Matrix - A human cell and tissue-based product used in regenerative and orthobiologic applications.
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Precision Healing Diagnostic Imager - Assesses wound and skin conditions by quantifying biochemical markers to improve diagnosis and treatment protocols.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ronald T. Nixon ExecutiveBoard | Chief Executive Officer and Executive Chairman | Founder and Managing Partner of The Catalyst Group, Inc.; Board member at LHC Group, Inc.; Board member at Superior Plant Rentals LLC, Rochal Industries, LLC, Next Level Medical LLC, and Aviditi Advisors LLC; Member of the Engineering Advisory Board for the Cockrell School of Engineering at the University of Texas at Austin. | Ronald T. Nixon has been a director since March 2019 and Executive Chairman since May 2019. He became CEO on May 12, 2024, following the resignation of Zachary B. Fleming. He has extensive experience in strategic planning, partnerships, and acquisitions. | View Report → |
Elizabeth Taylor Executive | Chief Financial Officer | None reported | Elizabeth Taylor became CFO on January 15, 2025. She has over 25 years of financial experience, including roles at Imbed Biosciences, PioneerPath Capital, and Thomas H. Lee Partners. | |
Jacob A. Waldrop Executive | Chief Operating Officer | None reported | Jacob A. Waldrop became COO on April 15, 2024. He has a strong background in finance and leadership, having served as CFO of Trilliant Surgical and VP of Finance and Integrations at Enovis. | |
Michael D. McNeil Executive | Chief Financial Officer | None reported | Michael D. McNeil has been CFO since April 2018. He has extensive experience in financial management, having previously worked at Smith and Nephew, Healthpoint Biotherapeutics, and other organizations. | |
Tyler Palmer Executive | Chief Corporate Development and Strategy Officer | None reported | Tyler Palmer joined SMTI as Chief Corporate Development and Strategy Officer on April 1, 2024. He previously served as SVP of Corporate Development, Strategy, and Product at AQuity Solutions, leading acquisitions and technology investments. | |
Ann Beal Salamone Board | Director | Chairman of Rochal Industries, LLC; Co-founder, President, and Board Member of Rochal Partners LLP | Ann Beal Salamone has been a director since August 2019. She is a co-founder of Rochal Industries and has contributed to the development of numerous medical and healthcare products. | |
Eric D. Major Board | Director | Executive Chairman of Highridge Medical; Member of the Medical Device Manufacturers Association and AdvaMed CEO Advisory Council | Eric D. Major joined SMTI's board in 2023. He has over 30 years of experience in the medical technology industry, including founding K2M and serving as President of Stryker Spine. | |
Eric D. Tanzberger Board | Director | Senior Vice President and CFO of Service Corporation International (SCI); Executive Committee Member of the Board of Trustees for United Way of Greater Houston | Eric D. Tanzberger joined SMTI's board in May 2024. He has extensive financial expertise, serving as CFO of SCI since 2006 and holding leadership roles in nonprofit organizations. | |
Keith Myers Board | Director | Chairman and Co-founder of Partnership for Quality Home Healthcare; Board Member of Louisville Healthcare Council | Keith Myers joined SMTI's board on October 4, 2024. He is the co-founder and chairman emeritus of LHC Group and has extensive experience in home healthcare leadership and policy. | |
Roszell Mack III Board | Director | CEO and Managing Member of Mack & Co., LLC; CEO and Managing Partner of Mack & Co. Partners, LP; Co-founder of Ascend Venture Group, LLC | Roszell Mack III joined SMTI's board in 2022. He has extensive experience in venture capital, investment banking, and financial management, with prior roles at Goldman Sachs and Salomon Smith Barney. | |
Sara N. Ortwein Board | Director | None reported | Sara Ortwein joined SMTI's board in 2023. She retired from ExxonMobil in 2019 after a 38-year career, including serving as president of XTO Energy and ExxonMobil Upstream Research Company. |
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Despite 12 consecutive quarters of record revenue and positive adjusted EBITDA , the net loss increased from $1.1 million in Q3 2023 to $2.9 million in Q3 2024. Can you explain the key drivers behind the increasing net losses, and what steps are you taking to reach profitability?
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SG&A expenses rose significantly from $13.9 million in Q3 2023 to $19 million in Q3 2024 , largely due to investments in THP. Given that THP is not expected to launch until mid-2025 , how are you managing cost controls to prevent further erosion of net income?
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Interest expense increased from $200,000 in Q3 2023 to $900,000 in Q3 2024, primarily related to your term loan with CRG. With continued investments and higher debt levels, do you anticipate the need for additional financing, and what might be the implications for shareholder dilution?
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Given that your share price has fluctuated between lows of $28–$30 and highs of $45–$50 over the past two years, with current levels around $30 , what specific strategies is management employing to enhance shareholder value and address investor concerns about stock performance?
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Regarding the $5 million investment in ChemoMouthpiece for a 6.6% ownership stake and plans to commercialize the product in 2025 , can you provide more details on the expected revenue contributions and how this aligns with your overall strategy in wound and skin care?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Applied Nutritionals, LLC | 2023 | Sanara MedTech acquired key intellectual property and manufacturing rights for CellerateRX Surgical Activated Collagen and HYCOL Hydrolyzed Collagen for a total purchase price of $15.25 million, including cash, stock, installment payments, and an earnout provision, eliminating prior royalty obligations to enhance cost efficiencies and strategic control. |
Scendia Biologics, LLC | 2022 | Sanara MedTech acquired 100% of Scendia Biologics for a base price of $7.4 million (including cash, stock, indemnity holdback shares, and potential earnouts), expanding its portfolio with advanced biologic products and broadening its geographic footprint from the southeastern US to nationwide. |
Precision Healing Inc. | 2022 | Through a merger, Sanara MedTech acquired Precision Healing Inc. for approximately $5.1 million in stock and cash, integrating innovative diagnostic imaging and biomarker assay technology for wound care with the goal of enhancing real-time assessment and treatment, supported by clinical studies and key employee retention. |
Recent press releases and 8-K filings for SMTI.
- Michael D. McNeil will retire from his roles as Chief Accounting and Chief Administrative Officer effective August 19, 2025.
- CFO Elizabeth B. Taylor will assume his duties as the principal accounting officer and lead transition advisory discussions.
- Sanara Surgical segment achieved net revenue of $23.4M with 26% year-over-year growth, driven by strong soft tissue repair and bone fusion product sales.
- Adjusted EBITDA in the Sanara Surgical segment increased by $1.5M year-over-year to $2.7M, despite a slight rise in net loss.
- The Tissue Health Plus segment launched its THP technology platform, including THP CoPilot, with a pilot set for Q2 2025 and ongoing discussions with financial partners.
- The company enhanced its distribution network to over 400 partners and expanded its facility base, reinforcing its growth strategy.
- Sanara MedTech Inc. entered into a Material Definitive Agreement to acquire CarePICS, making it an indirect wholly owned subsidiary, with a total cash consideration of $2.0 million plus $1.65 million to settle existing indebtedness and provisions for potential earnouts.
- The company also executed a third borrowing of $12.25 million under its term loan facility at a 13.25% per annum rate, maturing on May 30, 2029, to fund acquisition opportunities and general corporate purposes.
- Revenue Growth: Q4 net revenue reached $26.3 million, marking a 49% increase YoY driven by strong performance in soft tissue repair products and growth in bone fusion products.
- Profitability Metrics: Gross profit increased by $8.2 million to $24.1 million with a gross margin of 91.4%, highlighting improved product mix and operational efficiency.
- Segment Performance: While the overall operating loss was $0.4 million leading to a net loss of $1.7 million, the Sanara Surgical segment recorded a turnaround with net income of $0.9 million compared to losses in the Tissue Health Plus segment.
- Strategic Initiatives: The company advanced its strategic outlook by securing an exclusive licensing and distribution agreement with Biomimetic Innovations for the OsStic product and outlined significant investments of $7.5M to $10M in the Tissue Health Plus segment as it prepares for its Q2 2025 pilot launch.
- Q4 unaudited results: Net revenue increased 49% YoY to $26.3 million with adjusted EBITDA of $0.9 million, despite a net loss of $1.7 million compared to $0.3 million last quarter.
- Full Year 2024 performance: Net revenue grew 33% to $86.7 million, while the net loss widened from $4.4 million to $9.9 million, alongside an adjusted EBITDA improvement to $2.7 million.
- Operational updates: The company announced key developments including a new board appointment, an exclusive U.S. license and distribution agreement, and executive leadership changes aimed at supporting its growth strategy.