Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — 40th Annual J.P. Morgan Healthcare Conference 2022
28 slides from Mimedx's conference presentation, Jan 10, 2022
Slide 1: A Transformational Placental Biologics Company
1 A TRANSFORMATIONAL PLACENTAL BIOLOGICS COMPANY 40th Annual J.P. Morgan Healthcare Conference January 2022 EXHIBIT 99.1
Slide 2: Disclaimer & Cautionary Statements
2 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 for
Slide 3: Disclaimer & Cautionary Statements
3 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 ar
Slide 4: Our Placental Biologics Are Transforming Medicine and Patients' Lives
4 OUR PLACENTAL BIOLOGICS ARE TRANSFORMING MEDICINE AND PATIENTS’ LIVES
Slide 5: A Transformational Vision
5 Existing 2022-2023 2026+ A TRANSFORMATIONAL VISION $1.1B $4B+ Transforming medicine in large and high-growth markets with significant unmet needs Advanced Wound Care Advanced Wound Care Surgical Recovery Japan Advanced Wound Care Surgical Recovery Japan + + + + + Other OUS$2.7B BioMed GPS SmartTra
Slide 6: A Transformational Vision
6 Existing 2022-2023 2026+ A TRANSFORMATIONAL VISION $1.1B Transforming medicine in large and high-growth markets with significant unmet needs Advanced Wound Care Advanced Wound Care Surgical Recovery Japan Knee Osteoarthritis + + $2.7B Advanced Wound Care Surgical Recovery Japan + + + Other OUS + B
Slide 7: The Transformational Potential
7 Existing 2022-2023 2026+ THE TRANSFORMATIONAL POTENTIAL Advanced Wound Care Advanced Wound Care Surgical Recovery Japan + + Advanced Wound Care Surgical Recovery Japan + + + Other OUS + $1.1B $2.7B Knee Osteoarthritis DMOAD BioMed GPS SmartTrak; GlobalData Tissue Engineered-Skin Sub Data Model Wou
Slide 8: Significant Unmet Clinical Need in Knee Osteoarthritis (KOA)
8 SIGNIFICANT UNMET CLINICAL NEED IN KNEE OSTEOARTHRITIS (KOA) 19 Million Patients with KOA 12 Million Target for HA Injections Value Multipliers DMOAD substantially amplifies market opportunity • Product Label • Dosing Regimen • Bilateral Application • Prophylactic Use • Place in Treatment Algorith
Slide 9: Establishing the Transformative Power of Purion Processed mdHACM
9 Knee Osteoarthritis 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2022 2023 2024 2025 2026 2027 ESTABLISHING THE TRANSFORMATIVE POWER OF PURION PROCESSED mdHACM We believe that mdHACM has the potential to reduce pain and increase function in mild-to-moderate KOA We have determined why our positive results w
Slide 10: Above-Market Growth Driven by Treatment Transformation and Portfolio Innovation
10 ABOVE-MARKET GROWTH DRIVEN BY TREATMENT TRANSFORMATION AND ONGOING PORTFOLIO INNOVATION 7.0% 11.0% 8.0% 2.0% 2.0% 14.0% 3.0% 3.0% Existing Products New Products/ Expansion International Overall Growth + + = Management estimates of annual revenue growth rate for 2022.
Slide 11: Commercial Strategy Reflects Treatment Transformation and Portfolio Innovation
11 COMMERCIAL STRATEGY REFLECTS TREATMENT TRANSFORMATION AND PORTFOLIO INNOVATION Multiple Large Underpenetrated Opportunities MIMEDX Value Proposition Executable Strategy for Growth Advanced Wound Care Customer Focus Current Commercial +7-8% Surgical Recovery Clinical Evidence Innovation & Market D
Slide 12: 2022 Launches Expand Placental Portfolio
12 2022 LAUNCHES EXPAND PLACENTAL PORTFOLIO AMNIOEFFECT™ Placental Collagen Matrix Particulate format fulfills key portfolio gap Retains key extracellular matrix components Wide range of sizes up to 9 cm x 20 cm Improved handling for minimally invasive procedures Anticipate two new, organic products
Slide 13: Japan Commercial Strategy Leads Global Expansion and Transformation
13 JAPAN COMMERCIAL STRATEGY LEADS GLOBAL EXPANSION AND TRANSFORMATION Ongoing 2022-2023 2024+ Stage 1 Establish concept of placental transformation Stage 3 Transform current medical practice Stage 2 Develop local evidence Secure reimbursement Initiate comprehensive medical education Initiate
Slide 14: Transforming Advanced Wound Care Fuels Growth
14 TRANSFORMING ADVANCED WOUND CARE FUELS GROWTH $180 $191 2020 2021 $172 $190 2020 2021 $149 $173 2020 2021 +6.4% +10.3% Confirming 2021 Expectations: Represents 13% to 15% growth in continuing portfolio from 2020 (in millions) 2020 2021 Estimate Advanced Wound Care / Section 3612 $208.8 $236 – $24
Slide 15: Existing Cash Levels Fully Support Near-Term R&D Efforts
15 EXISTING CASH LEVELS FULLY SUPPORT NEAR- TERM R&D EFFORTS Free cash flow neutral Free cash flow positive Cash and cash equivalents at September 30, 2021 = $91 million Expect two clinical trials for Knee OA indication to cost less than $30 million; incurred over three years Over the next 12 – 15 m
Slide 16: Well-Positioned to Support Near- and Long-Term Transformational Initiatives
16 WELL-POSITIONED TO SUPPORT NEAR- AND LONG-TERM TRANSFORMATIONAL INITIATIVES Annual revenue growth of 11% to 14% in continuing portfolio of products • Base is 2021 AWC/Section 361 Adjusted Net Sales (estimate of $236 - $240 million) • Contribution from individual drivers varies across quarters and
Slide 17: 2021 Objectives Support Current and Future Growth Potential
17 2021 OBJECTIVES SUPPORT CURRENT AND FUTURE GROWTH POTENTIAL R&D Interim data readouts Peer-reviewed clinical, scientific and economic publications Accelerate late-stage pipeline File additional INDs Operations CGMP compliance Commercial Top-line growth >10% (excludes impact of enforce
Slide 18: 2022 Objectives Support Current and Future Growth Potential
18 2022 OBJECTIVES SUPPORT CURRENT AND FUTURE GROWTH POTENTIAL R&D Initiate Phase 3 KOA Clinical Studies Increase Product Vitality Index Advance body of scientific evidence Operations Implement CGMP throughout supply chain Leverage cost base through production efficiencies Optimize quali
Slide 19: Differentiated Value Proposition of Transformation Drives Growth
DIFFERENTIATED VALUE PROPOSITION OF TRANSFORMATION DRIVES GROWTH 19 Sustainable above-market growth from commercial business in multiple therapeutic areas with significant unmet need Native & multimodal therapeutic properties of placental tissue provide unlimited range of organic product innovation
Slide 20: Transforming the Lives of Patients Is Why We Are Here
20 TRANSFORMING THE LIVES OF PATIENTS IS WHY WE ARE HERE
Slide 21: Appendix
21 APPENDIX
Slide 22: Revenue Outlook Reconciliation
22 REVENUE OUTLOOK RECONCILIATION (in millions) 2020 2021 Estimate Advanced Wound Care / Section 3611 $208.8 $236 – $240 Section 3511 $31.7 $17 – $18 Adjusted Net Sales2 $240.5 $253 – $258 Revenue Transition amounts $7.7 $1 Net Sales $ 248.2 $254 – $259 (1) Section 361 includes Tissue + Cord sales.
Slide 23: Summary Balance Sheets
23 SUMMARY BALANCE SHEETS ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Assets Cash and Cash Equivalents 69.1 53.5 48.2 109.6 95.8 84.7 85.0 90.6 Accounts Receivable, net 32.3 31.9 30.1 33.0 35.4 35.4 37.2 36.5 Inventory, net 9.1 9.2 10.6 11.0 10.4 11.6 10.1 11.2 Other Current Assets 12.7 21.
Slide 24: Summary Income Statements
24 SUMMARY INCOME STATEMENTS ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Sales 76.4 61.7 53.6 64.3 68.6 60.0 68.2 63.1 Cost of Sales 12.7 10.0 8.2 10.3 10.8 9.7 12.8 10.1 Gross Profit 63.7 51.7 45.4 54.0 57.8 50.3 55.4 53.0 Research & Development 2.7 2.7 2.3 3.4 3.4 4.3 4.1 4.3 Selling,
Slide 25: Summary Cash Flow Statements
25 SUMMARY CASH FLOW STATEMENTS ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Loss (7.5) (4.8) (8.5) (19.4) (16.6) (8.4) (1.8) (2.3) Share-Based Compensation 2.9 3.3 4.4 3.7 3.9 3.2 4.1 3.8 Depreciation 1.6 1.5 1.4 1.5 1.3 1.2 1.3 0.9 Other Non-Cash Effects 1.2 1.2 1.3 9.5 1.7 1.1 0.9 0.6
Slide 26: Revenue Detail
26 REVENUE DETAIL Quarter Trailing 12 Months ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q20 1Q21 2Q21 3Q21 Advanced Wound Care / Section 3611 56.2 48.5 45.8 55.1 59.4 51.5 59.3 62.3 208.8 211.8 225.3 232.5 Section 3511 12.0 8.7 6.1 8.2 8.7 8.2 8.6 0.5 31.7 31.2 33.7 26.0 Adjusted Net Sale
Slide 27: Non-GAAP Metrics Reconciliation
27 NON-GAAP METRICS RECONCILIATION ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Sales – Reported 76.4 61.7 53.6 64.3 68.6 60.0 68.2 63.1 Less: Revenue Transition Impact1 (8.2) (4.5) (1.7) (1.0) (0.5) (0.3) (0.3) (0.3) Adjusted Net Sales 68.2 57.2 51.9 63.3 68.1 59.7 67.9 62.8 Gross Profi
Slide 28: Adjusted EBITDA Reconciliation
28 ADJUSTED EBITDA RECONCILIATION ($ millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Loss (7.5) (4.8) (8.5) (19.4) (16.6) (8.4) (1.8) (2.3) Depreciation & Amortization 1.8 1.8 1.7 1.8 1.6 1.5 1.5 1.1 Interest Expense 2.4 2.4 2.6 1.5 1.5 1.5 1.4 1.0 Loss on Extinguishment of Debt 0.0 0.0 0.0 8.
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