Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — Investor Presentation (January 2023)
25 slides from Mimedx's investor presentation, January 2023
Slide 1: A Pioneer & Leader in Placental Biologics
A PIONEER & LEADER IN PLACENTAL BIOLOGICS Investor Presentation January 2023
Slide 2: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements Some of the information and statements contained in this presentation and certain oral statements made from time to time by representatives of MIMEDX constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995
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
Slide 4: Leading Developer & Distributor of Placental-Based Allografts (PBAs)
Leading Developer & Distributor of Placental-Based Allografts (PBAs) #1 Amniotic Skin Substitute* 200+ Issued Patents Globally (70+ Pending) Over 300,000,000 Payer 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 1 2 3 4 5 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: Expanding from Single to Dual Vertical Company
Expanding from Best-in-Class Wound Expanding Surgical Product Portfolio Product Portfolio Single to Dual Vertical Company Underlying Demographic Trends: Aging population Increasing diabetes Increasing obesity Helps Physicians Address Multiple Conditions, Including: Diabetic Foot Ulcers (DFUs) Tissue
Slide 7: 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 DFUs High-risk incisions Plastic Reconstructive VLUs Trauma Dermatology Decubitus ulcers Tendon repair Vascular Post-debridement Pi
Slide 8: U.S. Business Diversified Across Multiple Sites of Service
U.S. Business Diversified Across Multiple Sites of Service Site of Service Proportion of Sales Recent Performance & Segment Commentary Hospital Setting Stable reimbursement settings and growing with expanded (Inpatient & Outpatient) ~61% use of products in surgical applications & Wound Care Clinics
Slide 9: Changes to CMS Physician Office Reimbursement are Needed
Changes to CMS Physician MIMEDX is Uniquely Positioned to Benefit from Office Reimbursement are Potential Changes in Physician Office Setting Needed Skin Substitute Products – Medicare Allowed Charges • Skin Substitute Products Previously $1,000,000,000 NOT on ASP List have Led to Explosion of Medic
Slide 10: Japan Launch Underway
Japan Launch EPIFIX is the first and currently only Underway amniotic tissue product approved in Japan • Approved for hard-to-heal chronic wounds, including DFUs and VLUs • Reimbursement of JPY35,100/cm2 secured • Ongoing Key Opinion Leader engagement and physician training • First patients treated
Slide 11: Opportunity in Large & Growing Wound & Surgical End Markets
Opportunity in Large & Growing Wound & Surgical End Markets Total Addressable Markets CAGRs* $3.5B +9% $0.7B +9% Growing End $2.5B Markets & $0.5B Significant Room $1.3B +10% for Further Penetration $0.9B $1.5B +8% $1.1B $266 to $269MM MIMEDX 2022 Net Sales Outlook 2022 2026E U.S. Wound U.S. Surgica
Slide 12: Continuing to Innovate to Expand Wound & Surgical Portfolio
Continuing to Innovate to Expand Wound & Surgical Portfolio R&D Expertise Opportunities New Products Birth Tissue Biology Placental Tissue Iterations Tissue Handling and Various Tissue Matrices Processing Core Product Forms and Launched in Q3:22 Healing and Inflammatory Enablers Cascade Science Anti
Slide 13: Accelerating Wound & Surgical Pipeline via In-Licensing & Distribution
Accelerating Wound & Surgical Pipeline via Exclusive rights to Turn’s PermaFusion® proprietary In-Licensing & Distribution antimicrobial intellectual property • Allows MIMEDX to leapfrog into the next generation of biologics for the Company’s Wound & Surgical business • Accelerates development & lau
Slide 14: Regenerative Medicine
Regenerative Readying First Registrational Knee Osteoarthritis Medicine (KOA) Trial for Enrollment in Early 2023 Proposed Registrational Post-Phase 2b KOA Study Design Highlights Expected enrollment: Co-primary endpoints: ~470 patients WOMAC* Pain & Function scores Statistically significant improvem
Slide 15: Four Key Priorities / Goals
Four Key Priorities / Goals 1 Grow Revenue Above Market 2 Expand Operating Margins Organization focused on capitalizing on these 3 Execute on R&D Pipeline opportunities 4 Exercise Financial Discipline 15
Slide 16: Reaffirms Q4:22 & Full-Year 2022 Net Sales Outlook
Reaffirms Q4:22 & Full-Year 2022 Net Sales Outlook* Net Sales Prior Outlook • Q4:22 and Full-Year 2022 Net Sales expectations unchanged from prior outlook, provided during Q3:22 conference call Q4:22 $73 Million to $76 Million • Continued contributions from new products in Surgical Recovery market h
Slide 17: Conclusion
Conclusion Pioneer in Large and Promising Committed to field of PBAs expanding pipeline with delivering above- market significant market growth opportunities potential and profitability opportunity in KOA a pioneer & leader in placental biologics 17
Slide 18: Appendix
Appendix 18
Slide 19: Summary Balance Sheets
Summary Balance Sheets ($ 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 $73.2 Accounts Receivable, net 33.0 35.4 35.4 37.2 36.5 40.4 37.7 37.7 40.8 Inventory 11.0 10.4 11.6 10.1 11.2 11.4 13.2 13.4 14
Slide 20: Summary Income Statements
Summary Income Statements ($ millions) Q3:20 Q4:20 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 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 $55.5 Research & Developm
Slide 21: Summary Cash Flow Statements
Summary Cash Flow Statements ($ 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) ($8.4) Share-Based Compensation 3.7 3.9 3.2 4.1 3.8 3.6 4.0 4.4 2.4 Depreciation 1.5 1.3 1.2 1.3 0.9 1.0 0.9 0.9 0.7 Other Non-C
Slide 22: Quarterly & Trailing Twelve Month Revenue Detail
Quarterly & Trailing Twelve Month Revenue Detail Quarter Trailing Twelve Months ($ 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 Q3:223 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 $258.3 Section 361
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ 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) ($8.4) Depreciation & Amortization 1.8 1.6 1.4 1.5 1.1 1.1 1.0 1.0 0.8 Interest Expense 1.5 1.5 1.5 1.4 1.0 1.2 1.1 1.2 1.3 Lo
Slide 24: Non-GAAP Metrics Reconciliation
Non-GAAP Metrics Reconciliation ($ 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 Less: Revenue Transition Impact1 (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 $5
Slide 25: Segment Data
Segment Data Wound & Surgical ($ millions) Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 Q3:22 Net Sales $51.4 $58.9 $62.1 $66.5 $58.3 $66.1 $66.9 Cost of Sales (7.2) (9.5) (8.9) (9.6) (9.1) (10.8) (11.2) Selling, General and Administrative Expense (25.8) (29.5) (32.1) (36.2) (34.0) (38.7) (35.5) Research and