Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — Canaccord Genuity 42nd Annual Growth Conference 2022
23 slides from Mimedx's conference presentation, Aug 10, 2022
Slide 1: A Transformational Placental Biologics Company
1 A TRANSFORMATIONAL PLACENTAL BIOLOGICS COMPANY Canaccord Genuity 42nd Annual Growth Conference August 2022
Slide 2: Disclaimer & Cautionary Statements
2 DISCLAIMER & CAUTIONARY STATEMENTS This presentation includes forward-looking statements. Statements regarding: (i) future sales or sales growth; (ii) our 2022 financial outlook and expectations for future financial results, including net sales and levels of selling, general and administrative exp
Slide 3: Disclaimer & Cautionary Statements
3 DISCLAIMER & CAUTIONARY STATEMENTS Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to customers, patient
Slide 4: Leading Product Portfolio Positioned for Growth
4 LEADING PRODUCT PORTFOLIO POSITIONED FOR GROWTH 83.4% TTM Gross Margin $256.3M TTM Net Sales $582M Market Cap4 (1) TTM refers to the trailing twelve months ended June 30, 2022, and is calculated for any measure by adding the results for the full year ended December 31, 2021 to the results for the
Slide 5: Compelling Investment Thesis
5 COMPELLING INVESTMENT THESIS Foundation Positioned for Growth 11-14% Mid-Term Growth Expectations On Track to Commence Registrational KOA Clinical Trial Program in 2022 View to Free Cash Flow
Slide 6: MiMedx Is on Strategy with Strong Commercial Momentum
6 MIMEDX IS ON STRATEGY WITH STRONG COMMERCIAL MOMENTUM • Achieved strong year-over-year increase in key focus area of Surgical Recovery • Two new product launches on track for September • Preparing for Japan launch of PURION® engineered EPIFIX® later this year, as early as September; Reimbursement
Slide 7: MiMedx Is on Strategy with Strong Commercial Momentum
7 MIMEDX IS ON STRATEGY WITH STRONG COMMERCIAL MOMENTUM Net Sales Advanced Wound Care / Section 361 Net Sales Maintaining expectations of 11% to 14% growth in continuing portfolio in 2022 -1.9% $68.2M $66.9M Adjusted Net Sales1 (1) Adjusted Net Sales is a Non-GAAP measure defined as GAAP Net Sales l
Slide 8: 2Q 2022 Financial Highlights
8 2Q 2022 FINANCIAL HIGHLIGHTS Net Sales $66.9M Gross Margin 82.3% Cash at 6/30/2022 $72.5M Net Loss $(10.9)M Includes: • $2.1M expense for 2022 annual meeting • $2.2M bad debt expense Estimated 2022 Revenue Growth 11-14%11.6% growth in continuing portfolio Adjusted EBITDA $(1.0)M Free Cash Flow $(1
Slide 9: Mid-Term Growth Expectations Driven by Treatment Transformation and Portfolio Innovation
9 Inorganic opportunities and future year new product launches would present additional upside opportunity Future year new product A Future year new product B Accretive Inorganic Opportunities 7.0% 11.0% 8.0% 2.0% 2.0% 14.0% 3.0% 3.0% Existing Products New Products/ Expansion International Overall G
Slide 10: Expansion into Surgical Recovery Market Propels Growth
10 EXPANSION INTO SURGICAL RECOVERY MARKET PROPELS GROWTH 2021 2026 Total Addressable Market +10% Annual Tissue augmentation Barrier properties Surgical closure Growth Drivers: Aging population Increasing obesity Awareness & penetration $0.9B $1.3B BioMed GPS SmartTrak; 3rd party proprietary assessm
Slide 11: Body of Evidence Across Specialties and Procedures
11 BODY OF EVIDENCE ACROSS SPECIALTIES AND PROCEDURES Tissue augmentation Barrier properties Surgical closure DFU: 5 RCTs14-23 90%+ closure rates VLU: RCT13 70%+ closure rates Anastomotic Leak10 74%+ reduction in leak rate Prostatectomy12 Faster Recovery: 1.5X return to continence 2.5X return to pot
Slide 12: 2022 Launches Expand Placental Portfolio
12 Particulate offers versatile form factor for use as paste or powder Retains key extracellular matrix components Launch September 2022 Wide range of sizes up to 9 cm x 20 cm Improved handling for surgical procedures Launch September 2022 Anticipate two new, organic products launched per year; futu
Slide 13: Large Potential as First to Market in Japan with Amniotic Tissue
13 LARGE POTENTIAL AS FIRST TO MARKET IN JAPAN WITH AMNIOTIC TISSUE FOR WOUND TREATMENT 126 Million Japan Population (2021) 626,000 Chronic Leg Ulcers 100,000 Addressable market 2021 2026 Total Addressable Market $0.7B $0.5B GlobalData Tissue Engineered-Skin Sub Data Model Wound Management Year 2020
Slide 14: Pioneer in Placental Biologics
14 PIONEER IN PLACENTAL BIOLOGICS Distinct drivers of significant shareholder value with current and future growth potential Wound Care & Surgical Recovery Regenerative Medicine & Biologics Innovation
Slide 15: 2022 Objectives Support Current and Future Growth Potential
15 2022 OBJECTIVES SUPPORT CURRENT AND FUTURE GROWTH POTENTIAL R&D Initiate KOA Clinical Trial Program Increase Product Vitality Index Advance body of scientific evidence Operations Implement CGMP throughout supply chain Leverage cost base through production efficiencies Optimize quality
Slide 16: Our Placental Biologics Are Transforming Medicine and Patients' Lives
16 OUR PLACENTAL BIOLOGICS ARE TRANSFORMING MEDICINE AND PATIENTS’ LIVES
Slide 17: Appendix
17 APPENDIX
Slide 18: Summary Balance Sheets
18 SUMMARY BALANCE SHEETS Note: Some figures may not add to subtotals due to immaterial rounding differences. ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Assets Cash and Cash Equivalents 48.2 109.6 95.8 84.7 85.0 90.6 87.1 75.7 72.5 Accounts Receivable, net 30.1 33.0 35.4 35.4 37.2 36.
Slide 19: Summary Income Statements
19 SUMMARY INCOME STATEMENTS ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Net Sales 53.6 64.3 68.6 60.0 68.2 63.1 67.4 58.9 66.9 Cost of Sales 8.2 10.3 10.8 9.7 12.8 10.1 10.8 9.9 11.8 Gross Profit 45.4 54.0 57.8 50.3 55.4 53.0 56.6 49.0 55.1 Research & Development 2.3 3.4 3.4 4.3 4.1 4
Slide 20: Summary Cash Flow Statements
20 SUMMARY CASH FLOW STATEMENTS ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Net (Loss) Income (8.5) (19.4) (16.6) (8.4) (1.8) (2.3) 2.2 (10.5) (10.9) Share-Based Compensation 4.4 3.7 3.9 3.2 4.1 3.8 3.6 4.0 4.4 Depreciation 1.4 1.5 1.3 1.2 1.3 0.9 1.0 0.9 0.9 Other Non-Cash Effects 1.3
Slide 21: Revenue Detail
21 REVENUE DETAIL (1) Section 361 includes Tissue + Cord sales. Section 351 includes Micronized + Particulate sales. Advanced Wound Care/Section 361 and Section 351 Sales are Non-GAAP metrics. These two metrics allow investors to better understand the trend in sales between the two different product
Slide 22: Non-GAAP Metrics Reconciliation
22 NON-GAAP METRICS RECONCILIATION (1) Impact of revenue transition includes cash collected related to the remaining contracts. For a discussion of the revenue transition and the defined terms, refer to Item 8, Notes to the Consolidated Financial Statements in the MiMedx Group, Inc. Form 10-K for th
Slide 23: Adjusted EBITDA Reconciliation
23 ADJUSTED EBITDA RECONCILIATION (1) Adjusted EBITDA consists of GAAP net loss excluding: (i) depreciation, (ii) amortization of intangibles, (iii) interest expense, (iv) loss on extinguishment of debt, (v) income tax provision, (vi) costs incurred in connection with Audit Committee Investigation,
MiMedx Group — Canaccord Genuity 42nd Annual Growth Conference 2022 on 6ix