MELA Sciences, Inc. (MELA)

Q2 2012 Earnings Call

August 7, 2012 4:30 PM ET


Joseph Gulfo – Chairman, President, CEO

Richard Steinhart – VP Finance, CFO, Treasurer


Josh Jennings – Cowen and Company

John Sullivan – Leerink Swann

Scott Gleason – Stephens

Dalton Chandler – Needham and Company

Greg Chodaczek – First Analysis



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Good day, ladies and gentlemen, and welcome to the MELA Science second quarter financial results conference call. Today’s conference is being recorded. This presentation includes forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995.

These statements include but are not limited to our plans, objectives, expectations, and intentions or other statements that contain words such as expects, contemplates, anticipates, plans, intends, believes, assumes, predicts, and variations of such words or similar expressions that predict or indicate future events or trends, or that did not relate to historical matters.

These statements are based on current beliefs or expectations and are inherently subject to significant known and unknown uncertainties and changes in circumstances, many of which are beyond our control. There can be no assurances that our beliefs or expectations will be achieved.

Actual results may differ materially from our beliefs or expectations due to financial, economic, business, competitive market, regulatory, or political factors, or conditions affecting the company and the medical device industry, in general, as well as more specific risks and uncertainties facing the company such as those set forth in its reports on Forms 10-Q and 10-K filed with the US Securities Exchange Commission.

Factors that might cause such differences include whether MelaFind achieves market acceptance given the uncertainties affecting companies in the medical device industry such as the company or any of these forward-looking statements may provide to be correct.

Therefore, you should not rely on any such factors or forward-looking statements. The company urges you to carefully review and consider its disclosures found in its filings with the SEC, which are available at and

At this time, I’d like to turn the conference over to Dr. Joseph Gulfo, Chairman, President, and Chief Executive Officer. Please go ahead, sir.

Joseph Gulfo

Thank you very much, Tom (ph). Good afternoon and thank you for joining us for MELA Sciences second quarter 2012 conference call. I am pleased to report that as we move through 2012, we are increasingly encouraged by the clinical acceptance of MelaFind and the benefits it offers.

As many of you know, MelaFind’s our breakthrough non-invasive and objective automated point of care system for use when a dermatologist choose to obtain additional information for a decision for biopsy clinically atypical pigmented skin lesions with one or more clinical or historical characteristics of melanoma.

We are still in the early stages of the commercial launch but are ramping up rapidly. On today’s call, I’m going to give a brief overview of our second quarter accomplishments, then turn the call over to Richard Steinhart, our Chief Financial Officer, for a review of the financials and then open up the call for questions.

We are pleased to report the significant achievements we have reached in the second quarter. Most importantly, we continued with our controlled and deliberate launch of MelaFind in the US and in several key cities throughout Germany.

After introducing MelaFind at the American Academy of Dermatology, AAD, Annual Meeting in San Diego in March, we came out of the first quarter with MelaFind in the offices of a handful of dermatologists. During the month of April, as planned, we did not place any additional MelaFind units in the field but rather took the time to work with our initial customers to achieve several objectives.

First, we wanted to make sure we understood the various ways in which MelaFind can be incorporated into different kinds of practices so comprising that handful that we placed in March, we had more skin cancer-focused doctors, academic focus, and aesthetic focus doctors. We want to see how it could better be utilized in those situations.

Secondly as we mentioned on our last quarters call, we continue to work with our early customers to optimize our training protocol so that MelaFind can be used most effectively in the office.

And thirdly, we spent considerable time working with our early customers to train them in how to most successfully incorporate MelaFind into their practice focusing on lesion selection and medical utility as well as practice dynamics of staff and patients flow.

We are pleased to report that as of now, there are more than 30 MelaFind units in dermatologists’ offices in the US and Germany. Based on the favorable customer feedback and consistent with our plans, we are now accelerating the pace at which we are placing MelaFind into the field.

We look forward to five dermatology meetings over the next six months where we will showcase MelaFind to a broad audience of dermatologists from around the world and at which additional data from recent studies will be presented and discussed.

These meetings include the Summer American Academy of Dermatology meeting next week in Boston, the American Society of Dermatologic Surgery meeting in October in Atlanta, as well as the fall and winter clinical meetings in Las Vegas and Hawaii, and the American Academy of Dermatology meeting in Miami in early March.

These meetings provide a forum for us to not only generate additional sales leads and interest in MelaFind but also to continue to teach the dermatology community how to optimize their results which will in turn drive utilization.

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