Tela Bio, Inc. · NASDAQ:TELA
Tela Bio — Investor Presentation (November 2020)
21 slides from Tela Bio's investor presentation, Nov 17, 2020
Slide 1: Advancing Soft Tissue Reconstruction
Advancing Soft Tissue Reconstruction Investor Presentation November 2020
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward - looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 . All statements other than statements of historical facts contained in this document, including but not limited to statements regarding pos
Slide 3: Redefining soft tissue reconstruction with a differentiated category of tissue reinforcement materials
Redefining soft tissue reconstruction with a differentiated category of tissue reinforcement materials ~$2B U.S Market Opportunity 1 in hernia repair , abdominal wall reconstruction and plastic and reconstructive surgery 3 Innovative Products Compelling Clinical Evidence Products Offer Attractive Va
Slide 4: Creating Advanced Biologic Materials
4 Creating Advanced Biologic Materials Novel Biologic Tissue (derived from sheep) Polymer Fibers (permanent or resorbable) Innovative Textile Engineering Purposefully designed to address shortcomings & unmet clinical needs Issued patents protect underlying biologic tissue and product design Hernia &
Slide 5: OviTex: ~$1.5 Billion Annual U.S. Hernia Market Opportunity
5 OviTex: ~$1.5 Billion Annual U.S. Hernia Market Opportunity Simple Ventral Hernia Repair Complex, Moderate Ventral / Abdominal Wall Reconstruction Simple Ventral Hernia Repair Inguinal Hernia Repair Hiatal Hernia Repair ~58,000 ~326,000 ~711,000 ~40,000 $350M $500M $650M $40M Source: Millennium Re
Slide 6: Hernias Occur Throughout the Abdomen
6 Hernias Occur Throughout the Abdomen 1 Funk LM, Perry KA, Narula VK, Mikami DJ, Melvin WS. Current national practice patterns for inpatient management of ventral abdominal wall hernia in the United Sta te s. Surg Endosc . 2013;27(11):4104 - 4112. What is a hernia? ◦ Occurs when an internal part of
Slide 7: Ventral Hernia Patients Range in Complexity
7 Ventral Hernia Patients Range in Complexity • CDC Wound Class I (clean) • Healthier patients - no co - morbidities • Primary hernia repair • CDC Wound Class II (clean - contaminated) • Patient co - morbidities (i.e., obesity, diabetes, COPD) • May have prior hernia repair failure • CDC Wound Class
Slide 8: Current Ventral Hernia Treatment Options: No Perfect Product
8 Current Ventral Hernia Treatment Options: No Perfect Product Persistent inflammatory response Encapsulation of implant Chronic post operative pain Scar tissue / lack of remodeling Mesh infections Significant costs of re - operation Organ erosion or perforation 6,000 related U.S. lawsuits PERMANENT
Slide 9: Growing Need for Alternative to Permanent Synthetic Mesh
9 Lawsuits against permanent synthetic meshes estimated to be assembled across the U.S. 2 of surgeons agree that use of permanent synthetic mesh puts patients at long - term risk of complications 1 Growing Need for Alternative to Permanent Synthetic Mesh 1 Hernia and Abdominal Surgeries Survey (Oct
Slide 10: OviTex Reinforced Tissue Matrix: a More Natural Hernia Repair
10 OviTex Reinforced Tissue Matrix: a More Natural Hernia Repair™ An innovative reinforced tissue matrix designed to reduce stretch compared to biologic matrices and long - term complications experienced with resorbable and permanent synthetic meshes Unique permeable design facilitates rapid fluid t
Slide 11: Comprehensive Portfolio for a Broad Range of Hernia Types and Surgical Techniques
11 Comprehensive Portfolio for a Broad Range of Hernia Types and Surgical Techniques Images represent permanent polymer OviTex products. Resorbable polymer products have clear polymer. * Biomechanical data on file. PRODUCT DESIGN OviTex 4 - layer device, not intended for intraperitoneal placement St
Slide 12: OviTex LPR for Laparoscopic & Robotic Hernia Repair
12 OviTex LPR for Laparoscopic & Robotic Hernia Repair Tailored OviTex product designed for improved handling in MIS techniques and trocar accessibility Our Solution: OviTex LPR Increase in Robotic - Assisted Hernia Repair ▫ Surgeons have adopted robotic - assisted techniques, primarily for inguinal
Slide 13: Compelling Clinical Evidence
13 Compelling Clinical Evidence Ventral Hernia Inguinal Hernia Hiatal Hernia Presentations / Publications 18 Presentations / Publications 5 Presentations / Publications 4 Low incidence of chronic post - operative pain Low hernia recurrence Low SSO / SSI Ease of use Low rate of surgical site occurren
Slide 14: BRAVO Study Shows Low Recurrence Rate
14 BRAVO Study Shows Low Recurrence Rate at 12 and 24 - months Product Name Tissue Reinforcement Material Hernia Recurrence Rate Number of Hernia Recurrence Number of Patients who Completed Follow - up Follow - up Period in Months OviTex Reinforced Tissue Matrix 1 57 12 OviTex Reinforced Tissue Matr
Slide 15: OviTex PRS: ~$500 Million Annual U.S. Plastic & Reconstructive Surgery Market Opportunity
15 OviTex PRS: ~$500 Million Annual U.S. Plastic & Reconstructive Surgery Market Opportunity $500M 1 Market dominated by human acellular dermal matrices (HADMs) ▫ Prone to high degree of stretch ▫ Expensive, putting pressure on hospital systems ▫ Often experience supply shortages, particularly when
Slide 16: OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery
16 OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery Layers of biologic material enable functional tissue remodeling Corner - lock diamond embroidery pattern allows the product to stretch while maintaining its shape Fenestrations and slits facilitate fluid management, allow for r
Slide 17: Commercial Organization
17 Commercial Organization 44 sales territories as of September 30, 2020 ▫ OR - based Account Managers call on General, Plastic Recon, Colorectal & Trauma surgeons ▫ Carry full OviTex & OviTex PRS portfolios 6 sales regions ▫ Plan to scale existing regions until each region has ~8 territories ▫ Supp
Slide 18: Growth Strategy
18 Growth Strategy ▫ Promote broader awareness of OviTex & OviTex PRS products ▫ Employ virtual sales & marketing programs, including TELA LIVE ▫ Drive market awareness of risks of permanent synthetic mesh use ▫ Publish BRAVO clinical data INCREASE ADOPTION ▫ Scale direct sales force ▫ Drive account
Slide 19: Delivering Revenue Growth
19 Delivering Revenue Growth Quarterly Results ($ millions) $3.3 $3.3 $4.0 $4.8 $3.7 $3.5 $5.3 Q1 Q2 Q3 Q4 2019 2020 6% growth 13% growth 34% growth COVID - 19 pandemic began to affect the business in mid - March 2020 and has continued since
Slide 20: Statement of Operations
20 Statement of Operations Three months Ended September 30, $ Millions 2019 2020 Revenue $4.0 $5.3 Cost of revenue 1.3 2.0 Amortization of Intangible Assets 0.1 0.1 Gross Profit $2.6 $3.3 Gross Margin % 66% 62% Operating expenses: Sales and marketing 4.7 6.3 General and administrative 1.2 2.6 Resear
Slide 21: Investment Highlights
21 Investment Highlights Advanced reinforced tissue matrix portfolio supported by compelling clinical evidence Focused on ~$2.0 billion annual U.S. total addressable markets Driving commercial adoption with targeted direct - sales approach Recent product launches in growing markets: robotic hernia s