Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — Bank of America Securities Healthcare Conference 2022
29 slides from Mimedx's conference presentation, May 10, 2022
Slide 1: A Transformational Placental Biologics Company
1 A TRANSFORMATIONAL PLACENTAL BIOLOGICS COMPANY Bank of America Securities Healthcare Conference May 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: Leading Product Portfolio Positioned for Growth
4 LEADING PRODUCT PORTFOLIO POSITIONED FOR GROWTH 83.1% TTM Gross Margin $257.5M TTM Net Sales $481M Market Cap4 (1) TTM refers to the trailing twelve months ended March 31, 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 Plan to Commence Pivotal KOA Clinical Trial Program in 2022 View to Free Cash Flow
Slide 6: A Transformational Vision
6 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 7: A Transformational Vision
7 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 8: The Transformational Potential
8 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 9: Significant Unmet Clinical Need in Knee Osteoarthritis
9 SIGNIFICANT UNMET CLINICAL NEED IN KNEE OSTEOARTHRITIS 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 Algorithm • Cl
Slide 10: mdHACM Holds Potential to Reduce Pain and Increase Function in KOA
10 Knee Osteoarthritis 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2022 2023 2024 2025 2026 2027 mdHACM HOLDS POTENTIAL TO REDUCE PAIN AND INCREASE FUNCTION IN KOA Phase 2B study did not meet primary endpoints, but demonstrated statistically significant and clinically meaningful improvement within Pre-Inter
Slide 11: Mid-Term Growth Expectations Driven by Treatment Transformation and Portfolio Innovation
11 MID-TERM GROWTH EXPECTATIONS 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.
Slide 12: Expansion into Surgical Recovery Market Propels Growth
12 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 13: Multiple Opportunities to Expand Existing Procedure Base
13 MULTIPLE OPPORTUNITIES TO EXPAND EXISTING PROCEDURE BASE SURGICAL SPECIALTY PROCEDURAL EXAMPLE Vascular Incision Management Amputation Orthopaedics Joint Replacement Rotator Cuff Repair Spine Lumbar Decompression General Surgery Bowel Anastomosis Gynecology C-Section Incisions Hysterectomy Plasti
Slide 14: Surgical Recovery Growth Driven by Market Development
14 SURGICAL RECOVERY GROWTH DRIVEN BY MARKET DEVELOPMENT • Expand Reach in O.R. • Procedural Training • KOL Development by Specialty • New Product Launches • Clinical & Economic Evidence Targeting Unmet Needs Leveraging Portfolio Tissue Handling Antimicrobial Platform Functional Healing
Slide 15: Opportunities to Extend Leadership in Differentiated Clinical Evidence
15 OPPORTUNITIES TO EXTEND LEADERSHIP IN DIFFERENTIATED CLINICAL EVIDENCE 29% 2% Experienced Complications: Autologous Flap/ FTSG EPIFIX Mohs Defect Repair with Dehydrated Human Amnion/Chorion Membrane1 Outcomes comparing autologous flaps/grafts and dHACM Patients receiving flaps or grafts were 19x
Slide 16: 2022 Launches Expand Placental Portfolio
16 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 17: Advanced Wound Care Continues to Exhibit Strong Double-Digit Growth
17 $212 $247 ADVANCED WOUND CARE CONTINUES TO EXHIBIT STRONG DOUBLE-DIGIT GROWTH (1) Adjusted net sales excludes revenue recognized from cash collections on remaining contracts. Adjusted net sales is a non-GAAP measurement. (2) Section 361 includes Tissue + Cord sales. Section 351 includes Micronize
Slide 18: Consistent Outperformance Compared to Consensus
18 $59.3 $51.5 $59.3 $62.3 $66.9 $58.4 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 CONSISTENT OUTPERFORMANCE COMPARED TO CONSENSUS WITH STRONG, SUSTAINED GROWTH FROM THE COMPANY’S CORE BUSINESS Multiple Quarters With Strong Growth in the Company’s Advanced Wound Care / Section 361 Business Quarterly Revenue
Slide 19: Existing Cash Levels Sufficient to Support Near-Term R&D Efforts
19 EXISTING CASH LEVELS ARE SUFFICIENT TO SUPPORT NEAR-TERM R&D EFFORTS Free cash flow neutral Free cash flow positive Cash and cash equivalents at December 31, 2021 = $87.1 million Expect two clinical trials for Knee OA indication to cost less than $30 million; incurred over three years Over the 12
Slide 20: Pioneer in Placental Biologics
20 PIONEER IN PLACENTAL BIOLOGICS Distinct drivers of significant shareholder value with current and future growth potential Wound Care & Surgical Recovery Regenerative Medicine & Biologics Innovation
Slide 21: 2022 Objectives Support Current and Future Growth Potential
21 2022 OBJECTIVES SUPPORT CURRENT AND FUTURE GROWTH POTENTIAL R&D Initiate Phase 3 KOA Clinical Studies Increase Product Vitality Index Advance body of scientific evidence Operations Implement CGMP throughout supply chain Leverage cost base through production efficiencies Optimize quali
Slide 22: Our Placental Biologics Are Transforming Medicine and Patients' Lives
22 OUR PLACENTAL BIOLOGICS ARE TRANSFORMING MEDICINE AND PATIENTS’ LIVES
Slide 23: Appendix
23 APPENDIX
Slide 24: Summary Balance Sheets
24 SUMMARY BALANCE SHEETS ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Assets Cash and Cash Equivalents 48.2 109.6 95.8 84.7 85.0 90.6 87.1 75.7 Accounts Receivable, net 30.1 33.0 35.4 35.4 37.2 36.5 40.4 37.7 Inventory, net 10.6 11.0 10.4 11.6 10.1 11.2 11.4 13.2 Other Current Assets 18.7 1
Slide 25: Summary Income Statements
25 SUMMARY INCOME STATEMENTS ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net Sales 53.6 64.3 68.6 60.0 68.2 63.1 67.4 58.9 Cost of Sales 8.2 10.3 10.8 9.7 12.8 10.1 10.7 9.9 Gross Profit 45.4 54.0 57.8 50.3 55.4 53.0 56.7 49.0 Research & Development 2.3 3.4 3.4 4.3 4.1 4.3 4.6 6.0 Selling,
Slide 26: Summary Cash Flow Statements
26 SUMMARY CASH FLOW STATEMENTS ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net (Loss) Income (8.5) (19.4) (16.6) (8.4) (1.8) (2.3) 2.2 (10.5) Share-Based Compensation 4.4 3.7 3.9 3.2 4.1 3.8 3.6 4.0 Depreciation 1.4 1.5 1.3 1.2 1.3 0.9 1.0 0.9 Other Non-Cash Effects 1.3 9.5 1.7 1.1 0.9 0.6
Slide 27: Revenue Detail
27 REVENUE DETAIL Quarter Trailing 12 Months ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q21 3Q21 4Q21 1Q22 Advanced Wound Care / Section 3611 45.8 55.1 59.4 51.5 59.3 62.3 66.9 58.5 225.3 232.5 240.0 247.0 Section 3511 6.1 8.2 8.7 8.2 8.6 0.5 0.3 0.4 33.7 26.0 17.6 9.8 Other2 1.7 1.0 0.5
Slide 28: Non-GAAP Metrics Reconciliation
28 NON-GAAP METRICS RECONCILIATION ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net Sales – Reported 53.6 64.3 68.6 60.0 68.2 63.1 67.3 58.9 Less: Revenue Transition Impact1 (1.7) (1.0) (0.5) (0.3) (0.3) (0.3) (0.1) 0.0 Adjusted Net Sales 51.9 63.3 68.1 59.7 67.9 62.8 67.2 58.9 Gross Profit
Slide 29: Adjusted EBITDA Reconciliation
29 ADJUSTED EBITDA RECONCILIATION ($ millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net (Loss) Income (8.5) (19.4) (16.6) (8.4) (1.8) (2.3) 2.2 (10.5) Depreciation & Amortization 1.7 1.8 1.6 1.4 1.5 1.1 1.1 1.0 Interest Expense 2.6 1.5 1.5 1.5 1.4 1.0 1.2 1.1 Loss on Extinguishment of Debt 0.0 8.
MiMedx Group — Bank of America Securities Healthcare Conference 2022 on 6ix