Sanara MedTech dropped its Tissue Health Plus (THP) platform as part of an overall corporate realignment that focuses resources on its core surgical business.
THP’s value-based healthcare model was designed to improve chronic wound care by using an app that provides clinicians advanced imaging for wound assessment and evidence-based decision support along with tools for managing reimbursement and supplies.
The platform began rolling out as a pilot program back in July, but the decision was made to drop the line in late September, just weeks after the company promoted Seth Yon to president and CEO.
“After reviewing strategic alternatives for THP, Sanara’s management and Board of Directors decided to cease development efforts on the THP platform in late September and discontinue THP’s operations to allocate resources to Sanara’s surgical business,” Yon said in a Nov. 11 press release. “Sanara’s surgical business has demonstrated an impressive track record of consistent net revenue growth over the past several years.”
News of the decision came prior to the company releasing its third-quarter financial results that saw sales of $26.3 million versus $21.7 million for the same period a year ago. The gains were attributed to a 24% increase in sales of soft tissue repair products to $4.6 million for the quarter with a 4% gain in bone fusion product sales to $0.1 million.
The unwinding of THP is expected to be completed by the end of the year with a total cash investment ranging from $5.5 million to $6.5 million in the second half of 2025. No material cash expenses related to THP are expected after year-end, the company said.