Organogenesis Holdings Inc. · NASDAQ:ORGO
Organogenesis — Investor Presentation (August 2020)
45 slides from Organogenesis's investor presentation, Aug 10, 2020
Slide 1: Corporate Presentation August 2020
Corporate Presentation August 2020 Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Important Cautions
Forward-Looking Statements and Other Important Cautions / Industry and Market Data Unless the context indicates otherwise, the terms “Organogenesis,” “Company,” “we,” “us” and “our” refer to Organogenesis Holdings Inc. (formerly known as Avista Healthcare Public Acquisition Corp.), a Delaware corpor
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States (“GAAP”): EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are not measurements of our financial perform
Slide 4: Key Company Highlights
Key Company Highlights Notes: Includes studies yet to publish data and retrospective projects. Number of facilities that have ordered products in 2019. 12 months ended 6/30/20 gross margin. 200+ Publications reviewing Organogenesis products 15 Ongoing studies(1) 4 Robust Clinical Data Supporting Pro
Slide 5: Experienced Leadership with Track Record of Execution
Experienced Leadership with Track Record of Execution Name/Title Background Information Gary Gillheeney, Sr President & Chief Executive Officer 25+ years in senior leadership positions in both public and private organizations Served as President and CEO of Organogenesis since 2014 18 years at Organo
Slide 6: Track Record Since Business Combination
Track Record Since Business Combination Current Position Product Portfolio Financial Performance Operations/ Customers 9 Commercialized Products 5 Pipeline products 2 Market-expanding BLA programs Consolidated Clinical Operations & Initiated Studies 215 Sales Reps 130 Independent Agencies 3,000 Heal
Slide 7: 2Q 2020 Revenue Summary
Q2 Revenue Results Net revenue of $69.0 million for the three months ended June 30, 2020, up 6% compared to net revenue of $64.9 million for the three months ended June 30, 2019. Net revenue is based upon: Net revenue from Advanced Wound Care products of $59.7 million, up 8% year-over-year. Net reve
Slide 8: Large and Growing Target Markets
Large and Growing Target Markets
Slide 9: Skin Substitutes is a Fast-Growing, Under-Penetrated Segment of the AWC Market
Key Drivers of Skin Substitute Market Include: Physician and payer education about the effectiveness and benefits of these products Clinical data Overall growth of Advanced Wound Care market driven by aging demographics and increase in co-morbidities such as diabetes, obesity, etc. Notes: BIS Resear
Slide 10: Surgical & Sports Medicine Market Is An Underserved, High-Growth Market
Bone Fusion Chronic Inflammatory And Degenerative Conditions ~$6Bn+ Market Growing ~8% Annually Tendon and Ligament Injuries ~$2.4Bn(1) Market size ~$1.0Bn(2) Market size ~$2.7Bn(1) Market size Includes spine fusion surgery and other bone graft substitutes Includes rotator cuff and achilles tendon r
Slide 11: Broad and Comprehensive Product Portfolio
Broad and Comprehensive Product Portfolio
Slide 12: Comprehensive and Differentiated Commercial Product Portfolio
Notes: Except 3rd degree burns. Affinity production suspended in Q1 2019, product launch anticipated in H1 2020. Minimal sales in AWC. Comprehensive and Differentiated Commercial Product Portfolio Advanced Wound Care Only AWC / S&SM Surgical & Sports Medicine Only Clinical Application: Orthopedic su
Slide 13: Our Products Cover a Wide Range of Addressable Wounds
Our Products Cover a Wide Range of Addressable Wounds Benefits of Broad AWC Portfolio Ability to Treat a Wide Range of Wounds Complete product portfolio serves as a key competitive advantage PuraPly AM is the only first line antimicrobial skin substitute with PHMB(1) for all wounds(2) Apligraf (DFUs
Slide 14: Differentiated Amniotic Portfolio Supported by Clinical Data
Differentiated Amniotic Portfolio Supported by Clinical Data Hemostatic phase Our Products Treat Wounds Across All Stages Notes: Except 3rd degree burns. Matrix metalloproteinases. Only First Line Antimicrobial Skin Substitute with PHMB for All Wounds(1) PMA-Approved Products for Complex DFUs and VL
Slide 15: We Have a Broad and Unique Portfolio in the Skin Substitute Market
We Have a Broad and Unique Portfolio in the Skin Substitute Market Products Skin Sub Skin Sub-Sheet/Flowable Skin Sub Honey ,TCC (cast), Dressings Skin Sub, Enzymatic Debrider, PDGF, NPWT, Dressings Skin Sub, Ultrasonic Debrider Skin Sub-Sheet/Flowable Skin Sub-Sheet/Flowable Human Cellular Bioengin
Slide 16: Broad Portfolio in the Surgical & Sports Medicine Market
Products Amniotic Membrane, Amniotic Suspension, Xenograft Amniotic Membrane, Amniotic Suspension Dermal Template, Amniotic Membrane, Amniotic Suspension, Tendon Reinforcement, Collagen Sheets and Powders Amniotic Membrane, Tendon Reinforcement Orthobiologics Orthobiologics Orthobiologics, Tendon Re
Slide 17: Growth Strategy
Growth Strategy i nesi 16 Organoger esis
Slide 18: Strategic Initiatives & Catalysts for Growth
Strategic Initiatives & Catalysts for Growth Launch new products and invest in R&D Penetrate additional sites of care Continue sales force expansion and optimization Pursue strategic M&A and in-licensing to leverage commercial infrastructure Continue to build compendium of clinical data Manufacturin
Slide 19: Robust Product Pipeline
Robust Product Pipeline Product Potential Timeline for Commercial Launch Product Description / Enhancement 2019 2020 Medium-Term (2021 – 2022) Long-Term (2023+) Enhanced thickness and PHMB content Allows for sustained presence of the antimicrobial barrier in the wound Bioengineered porcine collagen
Slide 20: PuraPly – The Leader in Skin Substitute / Antimicrobial Space
PuraPly – The Leader in Skin Substitute / Antimicrobial Space Proven Clinical Outcomes Use of PuraPly AM in the management of bioburden and treatment of chronic, nonhealing wounds Study duration of 24 weeks and primary efficacy analyzed at 12 weeks; n=63 Baseline wound statistics: Wound area (median
Slide 21: PuraPly XT – Launched February 2020
Five-layer, native, cross-linked ECM+broad spectrum PHMB antimicrobial barrier for larger more complex wounds Cross-linked ECM resists degradation in wounds, supporting persistence between debridements 1 A five-layer ECM maximizes surface area for PHMB saturation 2,3,4 PHMB proactively disrupts biob
Slide 22: Measures Taken to Position PuraPly Post Pass-Through
Measures Taken to Position PuraPly Post Pass-Through Other Organogenesis Growth Drivers Expected to Offset Impact of PuraPly Proactive Measures Taken With PuraPly Increased penetration in physician offices, where PuraPly is reimbursed at cost-plus New smaller, lower-priced SKUs under bundle price In
Slide 23: Affinity – Relaunch/Commercial Ramp in 2020
Unique Fresh amniotic membrane containing many types of viable cells, growth factors/cytokines, and ECM proteins Manages chronic and acute wounds, as well as tendon, ligament and other soft tissue injuries Only fresh amniotic membrane and one of only a few amniotic tissue products containing viable
Slide 24: NovaChor – Expected Commercial Launch 2021
Next in line for our advanced fresh tissue technology Hypothermically stored chorion membrane containing many types of viable cells, growth factors/cytokines, and ECM proteins Manages chronic and acute wounds; as well as surgical deep and tunneling wounds Maintains cell viability through expiration
Slide 25: Lyophilized Cord Membrane
Lyophilized Cord Membrane Lyophilized umbilical cord membrane (UCM) retaining the native collagen and hyaluronic acid-rich extracellular matrix (ECM), and growth factors found in placental tissue. Indicated as wound cover to manage chronic and acute wounds, and as a barrier in surgical soft tissue p
Slide 26: NuShield – Versatile Tissue Graft
NuShield – Versatile Tissue Graft Covering Full Spectrum of Acute & Chronic Wounds AWC / S&SM Product Description Dehydrated placental tissue graft that is topically or surgically applied to target tissue Recent robust growth driven by leveraging Organogenesis commercial infrastructure Product highl
Slide 27: Pursuing BLA Approval for ReNu
Pursuing BLA Approval for ReNu to Open Up Large and Growing Market Opportunity Product Description Cryopreserved suspension of amniotic fluid cells and morselized amnion tissue from the same donor Formulated for office use (injection) Primary application is treatment of Knee Osteoarthritis (OA) for
Slide 28: Clinical Data suggests improved patient outcomes
Clinical Data suggests improved patient outcomes Notes: Farr et al. (2019). A Randomized Controlled Single-Blind Study Demonstrating Superiority of Amniotic Suspension Allograft Injection Over Hyaluronic Acid and Saline Control for Modification of Knee Osteoarthritis Symptoms. Journal of Knee Surger
Slide 29: NuCel – Amniotic-Derived Allograft for Surgical Procedures
NuCel – Amniotic-Derived Allograft for Surgical Procedures Surgically implanted allograft derived from human amniotic tissue and amniotic fluid Supports tissue healing in spinal and orthopedic surgical applications (i.e., bone growth and fusion) Launched in 2009 Seeking BLA approval to meet FDA requ
Slide 30: TransCyte, in our Burn Portfolio
~40,000 burns annually that require hospitalization TransCyte, in our Burn Portfolio, is an Approved Product in an Attractive Market with Limited Competition Product Description Market Opportunity Targeted at 2nd and 3rd degree burns Bioengineered tissue scaffold that promotes burn healing Provides
Slide 31: Financial Profile
Financial Profile i nesi 30 Organoger esis
Slide 32: Attractive Revenue and Margin Profile
Attractive Revenue and Margin Profile PuraPly Revenue $62 $109 $70 $127 $30 $29 Ex- PuraPly Revenue $76 $89 $124 $134 $35 $40 % Gross Margin 65% 69% 64% 71% 70% 71% % growth CAGR: 23% (1) Note: PuraPly exited pass-through on 12/31/17 and entered pass-through status again on 10/1/18 and will exit on
Slide 33: Income Statement
Income Statement ($ in millions) 2018 (1) 2019 2Q19 2Q20 Net Revenue $193 $261 $65 $69 % Growth (3)% 35% 49% 6% Gross Profit $125 $185 $46 $49 % Margin 64% 71% 70% 71% Operating Expenses $176 $214 $53 $51 Loss from Operations ($52) ($29) ($7) ($2) Net Loss ($65) ($40) ($10) ($5) Adjusted EBITDA ($36
Slide 34: 2020 Guidance
2020 Guidance Fiscal Year 2020 Revenue Guidance: For ing December 31, 2020, pany exp ° ‘between $: $ fo fo y $ i December 31, 2019. * The 2020 net revenue guidance range assumes: i i y $221 milli ded December 31, 2019. y $40 million for the twelve months ended December 31, 2019. ° PuraPly products o
Slide 35: 2020 Q2 Form 10-Q Income Statement
2020 Q2 Form 10-Q Income Statement CONFIDENTIAL
Slide 36: 2020 Q2 Form 10-Q Balance Sheet
2020 Q2 Form 10-Q Balance Sheet CONFIDENTIAL
Slide 37: 2020 Q2 Form 10-Q Cash Flow Statement
2020 Q2 Form 10-Q Cash Flow Statement CONFIDENTIAL
Slide 38: Opportunities to Enhance Margins Through Facility Optimization
Opportunities to Enhance Margins Through Facility Optimization Canton, MA Birmingham, AL La Jolla, CA Devoted to operations, R&D and manufacturing R&D labs Customer service Headquarters Devoted to manufacturing, shipping, operations and R&D Recent expansion of PuraPly production and logistics Opport
Slide 39: Interim and Longer-Term Financial Targets
Interim and Longer-Term Financial Targets Revenue Growth Gross Margin R&D (% of Net Revenue) SG&A (% of Net Revenue) Adjusted EBITDA Margin >10% High 70’s to 80% 7% Mid 50’s % 15-20% Longer-Term Goal 2022+ Low teens CAGR % High 60’s % to Low 70’s % 6 – 8% Mid 60’s % to Low 70’s % Single digit % loss
Slide 40: Appendix
_ ‘ og Organogenesis ped 8 ealing Empowering Appendix Organogenesis
Slide 41: Apligraf & Dermagraft – PMA-Approved Products for VLUs and DFUs
Complete Wound Closure Complete Wound Closure Venous Leg Ulcer Clinical Data Diabetic Foot Ulcer Clinical Data Diabetic Foot Ulcer Clinical Data Weekly up to 8 applications 64% Relative increase in % of patients achieving complete wound closure Apligraf & Dermagraft – PMA-Approved Products for VLUs
Slide 42: Robust Clinical Data Supporting Products: Advanced Wound Care
Robust Clinical Data Supporting Products: Advanced Wound Care Planned. Based on last patient last visit in the study. Management estimate or date analysis complete. Initiation of the study based on first patient enrolled. Estimated date of first external presentation of primary data ACWHTR: American
Slide 43: Robust Clinical Data Supporting Products: Surgical & Sports Medicine
Robust Clinical Data Supporting Products: Surgical & Sports Medicine Product Indication Design Completion Date(1) Estimated Data Presentation Date(2) Lumbar Spine Vertebral Fusion 57 patient Prospective, Efficacy Study of NuCel in patients Undergoing Fusion for One, Two or Three Level Degenerative D
Slide 44: Non-GAAP Reconciliations – Adjusted EBITDA
Non-GAAP Reconciliations – Adjusted EBITDA
Slide 45: Non-GAAP Reconciliations – Adjusted EBITDA
Non-GAAP Reconciliations – Adjusted EBITDA
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