Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — Investor Presentation (November 2022)
26 slides from Mimedx's investor presentation, Nov 17, 2022
Slide 1: A Pioneer & Leader in Placental Biologics
Exhibit 99.1 A PIONEER & LEADER IN PLACENTAL BIOLOGICS Investor Presentation November 2022
Slide 2: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements This presentation includes forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth
Slide 3: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements Additional forward-looking statements may be identified by words such as believe, expect, may, plan, potential, will, preliminary, and similar expressions, and are based on management's current beliefs and expectations. Forward-looking statements are subject to ris
Slide 4: Leading Developer & Distributor of Placental-Based Allografts
Leading Developer & Distributor of Placental-Based #1 Amniotic 200+ Issued Patents Globally Over 300,000,000 Payer Allografts (PBAs) Skin Substitute* (70+ Pending) Covered Lives Over 2,000,000 Allografts 50+ Scientific and Clinical Distributed for Patients** Publications * BiomedGPs – SmartTrak YTD
Slide 5: Large Placental Donation Network & Proprietary Tissue Processing Technology
Large Placental Donation Network & Proprietary Tissue Processing Technology Placental Donation Network Proprietary Processing 5 1 2 3 4 6 7 Expectant Mom Mom Consents to Delivery of Healthy Donated Placental Microbiological & Proprietary Shelf-stable Introduced to Donate and Completes Baby via Tissu
Slide 6: Versatile Product Offering Used to Help Wide Ranging Patient Needs
Versatile Product Offering Used to Help Wide Ranging Patient Needs Specialties Using MIMEDX Conditions & Procedures Products Include: That Use MIMEDX Products: Podiatry Diabetic foot ulcer (DFUs) High-risk incisions Plastic Reconstructive Venous leg ulcers (VLUs) Trauma Dermatology Decubitus ulcers
Slide 7: Customer-Focused Ecosystem Provides Competitive Advantage
Customer-Focused Ecosystem Provides Competitive Advantage Leading Proven Attractive Portfolio Outcomes End Markets Broad Access Best-in-Class and Coverage Sales & Support 7
Slide 8: Four Key Priorities / Goals
Four Key Priorities / Goals 1 Grow Revenue Above Market Organization 2 Expand Operating Margins focused on capitalizing on these Execute on R&D Pipeline 3 opportunities Exercise Financial Discipline 4 8
Slide 9: Opportunity in Large & Growing Wound & Surgical End Markets
Opportunity in Large & Growing Wound & Surgical End Markets Total Addressable Markets CAGRs** +9% $3.5B +9% $0.7B $2.5B Growing End $0.5B Markets & $1.3B +10% Significant Room $0.9B for Further Penetration $1.5B +8% $1.1B $261MM MIMEDX LTM Sales at 2022 2026E 9/30/2022* U.S. Wound U.S. Surgical Japa
Slide 10: Best-in-Class Wound Product Portfolio and Expanding Surgical Portfolio
Best-in-Class Wound Expanding Surgical Expanding from Product Portfolio Product Portfolio Single to Dual Vertical Company Underlying Demographic Trends: Aging population Increasing diabetes Increasing obesity Helps Physicians Address Multiple Conditions, Including: DFUs/ Complex Surgical Tissue VLUs
Slide 11: Recent Reimbursement Developments
Recent Reimbursement Developments Update from Nov 1, 2022 CMS publication Physician Outpatient / Offices Wound Care Clinics CMS proposals for CMS final 2023 rules not 2024 deferred expected to significantly impact MIMEDX 2023 results Town hall planned for early (~1% decrease in hospital outpatient d
Slide 12: Continuing to Innovate to Expand Wound & Surgical Portfolio
Continuing to Innovate to Expand Wound & Surgical Portfolio R&D Expertise Market Attributes Opportunities Birth Tissue Biology Placental Tissue Iterations Complex Patients Tissue Handling and Processing Deep & Large Various Tissue Matrices Surface Area Soft Healing and Inflammatory Cascade Science T
Slide 13: New Product & Market Progress
New Product & Market Progress Japan Launch Activities Underway Launched in Q3:22 Launched in Q3:22 Secured reimbursement Offers superior handling Versatile placental-derived approval for EPIFIX in Japan characteristics, allowing surgeons to particulate product available for secure tissue in place wi
Slide 14: Regenerative Medicine: Registrational Trial for Knee Osteoarthritis
Regenerative Current Focus: Registrational Trial for Knee Osteoarthritis (KOA) Medicine Recent FDA interactions: Study status: • Type B RMAT meeting• Resolving FDA protocol comments • Submission of clinical protocol• Readying for enrollment • Filing of CMC amendments Despite not meeting endpoints, P
Slide 15: Q3:22 Net Sales
Q3:22 Net Sales $67.7M $66.9M $63.1M $62.1M Q3:21 Q3:22 Q3:21 Q3:22 Wound & Surgical Total 15
Slide 16: Q3:22 Segment Reporting
Q3:22 Segment Reporting* Wound & Surgical Regenerative Medicine Corporate & Other ($ millions) Q3:22 Q3:21 % yoy Q3:22 Q3:21 % yoy Q3:22 Q3:21 % yoy Net Sales $66.9 $62.1 7.6% $- $0.1 nm $0.8 $0.8 -5.1% Cost of Sales 11.2 8.9 25.0% - 0.0 nm 1.0 1.2 -13.5% Operating Expense 37.2 33.5 11.0% 4.3 4.2 1.
Slide 17: Capitalized to Finance Business & Focused on Cash Generation
Capitalized to Finance Business & Focused on Cash Generation $87.1M Cash & Cash Equivalents $75.7M $73.2M $72.5M Q4:21 Q1:22 Q2:22 Q3:22 17
Slide 18: Conclusion
Conclusion Pioneer in Large and Promising Committed to field of PBAs expanding pipeline with delivering above- market significant market growth opportunities potential and profitability opportunity in KOA a pioneer & leader in placental biologics 18
Slide 19: Appendix
Appendix 19
Slide 20: Summary Balance Sheets
Summary Balance Sheets ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Assets Cash and Cash Equivalents $109.6 $95.8 $84.7 $85.0 $90.6 $87.1 $75.7 $72.5 $73.2 Accounts Receivable, net 33.0 35.4 35.4 37.2 36.5 40.4 37.7 37.7 40.8 Inventory 11.0 10.4 11.6 10.1 11.2 11.4 13.2 13.4 14
Slide 21: Summary Income Statements
Summary Income Statements Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 ($ millions) Net Sales $64.3 $68.6 $60.0 $68.2 $63.1 $67.4 $58.9 $66.9 $67.7 Cost of Sales 10.3 10.8 9.7 12.8 10.1 10.8 9.9 11.8 12.2 Gross Profit $54.0 $57.8 $50.3 $55.4 $53.0 $56.6 $49.0 $55.1 $55.5 Research & Developm
Slide 22: Summary Cash Flow Statements
Summary Cash Flow Statements ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Net (Loss) Income ($19.4) ($16.6) ($8.4) ($1.8) ($2.3) $2.2 ($10.5) ($10.9) ($8.4) Share-Based Compensation 3.7 3.9 3.2 4.1 3.8 3.6 4.0 4.4 2.4 Depreciation 1.5 1.3 1.2 1.3 0.9 1.0 0.9 0.9 0.7 3.0 1.1 Oth
Slide 23: Revenue Detail
Revenue Detail Quarter Trailing 12 Months ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Advanced Wound Care / $55.1 $59.4 $51.5 $59.3 $62.3 $66.9 $58.4 $66.2 $66.8 $232.5 $240.0 $246.9 $253.8 $258.3 1 Section 361 1 Section 351 8.2 8.7 8.2 8.6 0.5 0.
Slide 24: Non-GAAP Metrics Reconciliation
Non-GAAP Metrics Reconciliation ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Net Sales – Reported $64.3 $68.6 $60.0 $68.2 $63.1 $67.4 $58.9 $66.9 $67.7 1 Less: Revenue Transition Impact (1.0) (0.5) (0.3) (0.3) (0.3) (0.1) Adjusted Net Sales $63.3 $68.1 $59.7 $67.9 $62.8 $67.3 $
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Net (Loss) Income ($19.4) ($16.6) ($8.4) ($1.8) ($2.3) $2.2 ($10.5) ($10.9) ($8.4) Depreciation & Amortization 1.8 1.6 1.4 1.5 1.1 1.1 1.0 1.0 0.8 1.5 1.5 1.5 1.4 1.0 1.2 1.1 1.2 1.3 Interest Expense Lo
Slide 26: Segment Data
Segment Data Wound & Surgical Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 ($ millions) Net Sales $51.4 $58.9 $62.1 $66.5 $58.3 $66.1 $66.9 (7.2) (9.5) (8.9) (9.6) (9.1) (10.8) (11.2) Cost of Sales Selling, General and Administrative Expense (25.8) (29.5) (32.1) (36.2) (34.0) (38.7) (35.5) Research and