Tela Bio, Inc. · NASDAQ:TELA
Tela Bio — Investor Presentation (March 2021)
20 slides from Tela Bio's investor presentation, Mar 29, 2021
Slide 1: Advancing Soft Tissue Reconstruction
Advancing Soft Tissue Reconstruction Investor Presentation January 2021
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 possib
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 Opportunity1 in hernia repair, abdominal wall reconstruction and plastic and reconstructive surgery 3 Innovative Products Compelling Clinical Evidence Products Offer Attractive Valu
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 Reconstr
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 States. Surg Endosc. 2013;27(11):4104-4112. What is a hernia? ◦ Occurs when an internal part of the
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 III
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 Persistent
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 complications1 Growing Need for Alternative to Permanent Synthetic Mesh 1 Hernia and Abdominal Surgeries Survey (Oct 2020
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 tr
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 Stre
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 Our Solution: OviTex LPR Increase in Robotic-Assisted Hernia Repair ▫ Surgeons have adopted robotic-assisted techniques, p
Slide 13: Compelling Clinical Evidence
13 Compelling Clinical Evidence Ventral Hernia Ventral Hernia Inguinal Hernia Inguinal Hernia Hiatal 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 Ea
Slide 14: BRAVO Study Shows Low Recurrence Rate at 12 and 24 months
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 2 76 12 OviTex Reinforced Tissue Matrix 0 5
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 $500M1 Market dominated by human acellular dermal matrices (HADMs) ▫ Prone to high degree of stretch ▫ Expensive, putting pressure on hospital systems ▫ Often experience supply shortages, particularly when l
Slide 16: OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery
16 OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery Layers of biologic material enable functional tissue remodeling Corner-lock diamond embroidery pattern allows the product to stretch while maintaining its shape Fenestrations and slits facilitate fluid management, allow for rap
Slide 17: Commercial Organization
17 Commercial Organization 45 sales territories as of December 31, 2020 ▫ OR-based Account Managers call on General, Plastic Recon, Colorectal & Trauma surgeons ▫ Carry full OviTex & OviTex PRS portfolios 6 sales regions ▫ Plan to scale existing regions until each region has ~8 territories ▫ Support
Slide 18: Growth Strategy
18 Growth Strategy ▫ Promote broader awareness of OviTex & OviTex PRS products ▫ Employ virtual sales & marketing programs, including TELA LIVE ▫ Drive market awareness of risks of permanent synthetic mesh use ▫ Publish BRAVO clinical data INCREASE ADOPTION ▫ Scale direct sales force ▫ Drive account
Slide 19: Delivering Revenue Growth
19 Delivering Revenue Growth Quarterly Results ($ 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 $5.7 17% growth Cash and cash equivalents at December 31, 2020 were $74.4 million * The preliminary financial information presented herein is based on
Slide 20: Investment Highlights
20 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 sur