Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — Shareholder Meeting (August 2020)
29 slides from Mimedx's shareholder meeting presentation, Aug 31, 2020
Slide 1: Welcome to 2019 Annual Shareholders Meeting
WELCOME TO 2019 ANNUAL SHAREHOLDERS MEETING AUGUST 31, 2020 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER This presentation contains summarized information concerning the Company and the Company’s business operations. All statements relating to events or results that may occur in the future are forward-looking statements, including, without limitation, statements regarding the following: our
Slide 3: Meeting Agenda
MEETING AGENDA Introductions Annual Meeting Matters Company Highlights Key Financial Metrics Strategic Priorities Question & Answer Session 1 2 3 4 5 6
Slide 4: Annual Meeting Matters
ANNUAL MEETING MATTERS
Slide 5: Annual Meeting Agenda
ANNUAL MEETING AGENDA QUORUM DESCRIPTION OF BUSINESS ITEMS: Election of one Class III director Advisory approval of executive compensation Advisory approval of the frequency of the shareholder vote on executive compensation Ratification of independent registered public accounting firm OPENING OF POL
Slide 6: Company Highlights
COMPANY HIGHLIGHTS
Slide 7: Patients Are Why We Are Here
PATIENTS ARE WHY WE ARE HERE We have an opportunity and responsibility to make a difference for these patients. And in doing so, grow a successful and meaningful healthcare company.” “ TIMOTHY R. WRIGHT CHIEF EXECUTIVE OFFICER
Slide 8: Experienced Leadership Team Now in Place
PETE CARLSON Chief Financial Officer BUTCH HULSE General Counsel & Secretary ROHIT KASHYAP, PhD Chief Commercial Officer ROBERT STEIN, MD, PhD EVP, Research & Development MARK GRAVES Chief Compliance Officer STAN MICEK SVP, Business Development MARK ROGERS VP, Global Quality Assurance & Regulatory S
Slide 9: Building Value for All Stakeholders
BUILDING VALUE FOR ALL STAKEHOLDERS SEC resolution Key hires Financial restatement VA/DOJ resolution COVID-19 Financing SEC filings Key hires New product launch Profitable growth Pipeline maturation International expansion Operational excellence 2018-2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 2021-2022 SU
Slide 10: MiMedx Revolutionized the Industry
Vertically integrated, scalable recovery network Robust & proprietary manufacturing process Commercial platform with best-in-class market access Terminally sterilized for safety with 5-year shelf life 40+ scientific and clinical publications 1.9M+ placental tissue-based allografts to date MIMEDX REV
Slide 11: Advanced Wound Care Sector Is Large and Growing
6% per year ADVANCED WOUND CARE SECTOR IS LARGE AND GROWING, WITH CONSIDERABLE UNMET NEED Source: BioMed GPS SmartTrak; Global Data 2019 Market Size and Growth Report: United States, Wound Care Management Market 2019. U.S. Wound Care $3B are advanced wounds $12B 4% per year $1B skin substitutes Grow
Slide 12: Supportive Evidence Reflected in Recent AHRQ Report
SUPPORTIVE EVIDENCE REFLECTED IN RECENT AHRQ1 REPORT (1) Agency for Healthcare Research and Quality (AHRQ); (2) Skin Substitutes for Treating Chronic Wounds Technical Brief; Technology Assessment Program; Agency for Healthcare Research and Quality, Feb 2, 2020; (3) SEADs: Supplemental Evidence and D
Slide 13: Four Key Drivers to Achieve Core Growth
Existing Core Business Drive disease state awareness across care continuum Publish additional data Expand into additional wound applications FOUR KEY DRIVERS TO ACHIEVE CORE GROWTH Portfolio Expansion Advance market assessments and analytics Leverage clinical and regulatory expertise Invest in prior
Slide 14: Late-Stage Pipeline Leverages Leadership in Placental Science
LATE-STAGE PIPELINE LEVERAGES LEADERSHIP IN PLACENTAL SCIENCE ADVANCED WOUND CARE Diabetic Foot Ulcers/ Surgical Wounds* Surgical Wounds* APPLICATION IN PROCESS APPLICATION IN PROCESS Potential to address unmet patient needs as a platform technology across multiple markets MUSCULOSKELETAL PHASE 2B P
Slide 15: Gaps in Today's Treatment Options: Plantar Fasciitis
GAPS IN TODAY’S TREATMENT OPTIONS PROVIDE OPPORTUNITY TO ADDRESS DEGENERATIVE MUSCULOSKELETAL CONDITIONS (1) Tong KB, Furia J. Economic burden of plantar fasciitis treatment in the United States. Am J Orthop (Belle Mead NJ). 2010;39(5):227-231. Plantar Fasciitis: 2M+ Patients treated for PF annually
Slide 16: Gaps in Today's Treatment Options: Knee Osteoarthritis
GAPS IN TODAY’S TREATMENT OPTIONS PROVIDE OPPORTUNITY TO ADDRESS DEGENERATIVE MUSCULOSKELETAL CONDITIONS Knee Osteoarthritis (KOA): Micronized Dehydrated Human Amnion / Chorion Membrane (mdHACM) Injection in the Treatment of KOA1 Evaluated 82 KOA patients and 100 knees injected with 100mg mdHACM by
Slide 17: Key Financial Metrics
KEY FINANCIAL METRICS
Slide 18: Recent Revenue Trends Demonstrate Recovery
Net sales in June and July were in line with prior year months on an as-shipped basis, after net sales in April and May were down significantly due to COVID-19 related impacts RECENT REVENUE TRENDS DEMONSTRATE RECOVERY Net Sales Adjusted Net Sales1 (1) Adjusted Net Sales excludes impact of Revenue T
Slide 19: Operating Expenses Will Reflect Investment in R&D and Commercial Drivers
OPERATING EXPENSES WILL REFLECT INVESTMENT IN R&D AND COMMERCIAL VALUE DRIVERS 2018 Quarterly Average R&D spending will increase to support IND’s heading towards BLA’s Operating cost basis can be leveraged as sales increase M R&D SPENDING SG&A as % of ADJUSTED NET SALES1 (1) Adjusted Net Sales exclu
Slide 20: Profitability Measures Consistent
TTM ADJUSTED GROSS MARGIN1 TTM ADJUSTED EBITDA MARGIN PROFITABILITY MEASURES CONSISTENT: PRIORITY IS TO IMPROVE PERFORMANCE ($ millions) 3Q19 4Q19 1Q20 2Q20 TTM2 Adjusted Net Sales1 $ 67.3 $ 68.2 $ 57.2 $51.9 $244.7 Adjusted Gross Profit1 57.1 56.6 47.8 44.0 205.5 Adjusted Net Loss1 (6.2) (13.3) (8.
Slide 21: Recent Transactions Provide Financial Flexibility
Financing transactions1 provide ability to: RECENT TRANSACTIONS PROVIDE FINANCIAL FLEXIBILITY Stabilize business Prioritize investment in growth drivers Pursue attractive growth opportunities Initial holders are affiliates of EW Healthcare Partners (90%) and Hayfin Capital Management (10%) Two board
Slide 22: Strategic Priorities
STRATEGIC PRIORITIES
Slide 23: Building Value for All Stakeholders
Operational excellence Profitable growth International expansion Pipeline maturation BUILDING VALUE FOR ALL STAKEHOLDERS Seasoned management team ready to execute Poised to catalyze growth in core business Attractive pipeline aimed at large markets
Slide 24: Question & Answer Session
QUESTION & ANSWER SESSION
Slide 25: Appendix
APPENDIX
Slide 26: June 30, 2020 Balance Sheet Does Not Reflect Improved Liquidity
JUNE 30, 2020 BALANCE SHEET DOES NOT REFLECT IMPROVED LIQUIDITY FROM TRANSACTIONS (in millions) AS REPORTED IMPACT OF TRANSACTIONS1 AS REPORTED PLUS IMPACT OF TRANSACTIONS WHEN CONVERTED2 Cash $ 48.2 $ 65.4 $ 113.6 Other 102.7 0.9 103.6 Total Assets $ 150.9 $ 66.3 $ 217.2 Long-term debt, including c
Slide 27: Impact of Revenue Transition Adjustments
IMPACT OF REVENUE TRANSITION ADJUSTMENTS (in millions) AS REPORTED IMPACT OF REVENUE TRANSITION1 ADJUSTED Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net Sales $88.9 $76.4 $61.7 $53.6 $21.5 $8.2 $4.5 $1.7 $67.3 $68.2 $57.2 $51.9 Gross Profit 75.7 6
Slide 28: Trailing Twelve Month Calculation: Gross Margin & Adjusted EBITDA
TRAILING TWELVE MONTH (TTM) CALCULATION: GROSS MARGIN & ADJUSTED EBITDA AS REPORTED (in millions) QUARTERLY TREND TTM TREND Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net Sales $92.6 $66.6 $67.4 $88.9 $76.4 $61.7 $53.6 $315.4 $299.3 $294.4 $280.6 Gross Pr
Slide 29: TTM Calculation: Adjusted Gross Margin & Adjusted EBITDA
TRAILING TWELVE MONTH (TTM) CALCULATION: ADJUSTED GROSS MARGIN & ADJUSTED EBITDA (in millions) QUARTERLY TREND TTM TREND Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Adjusted Net Sales $92.6 $66.6 $67.4 $67.3 $68.2 $57.2 $51.9 $293.9 $269.5 $260.2 $244.7 Ad