Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — 2020 Canaccord Genuity Virtual Medical Technologies & Diagnostics Forum
27 slides from Mimedx's conference presentation, Nov 19, 2020
Slide 1: Innovating Treatments Through Advanced Placental Science
INNOVATING TREATMENTS THROUGH ADVANCED PLACENTAL SCIENCE November 19, 2020 2020 Canaccord Genuity Virtual Medical Technologies & Diagnostics Forum Exhibit 99.1
Slide 2: Important Cautionary Statement
IMPORTANT CAUTIONARY STATEMENT This presentation contains forward-looking statements. Investors are cautioned against placing undue reliance on these statements. All statements relating to events or results that may occur in the future are forward-looking statements, including, without limitation, s
Slide 3: Market Leader with Differentiated Platform Ready to Achieve Long-Term Growth
MARKET LEADER WITH DIFFERENTIATED PLATFORM READY TO ACHIEVE LONG-TERM GROWTH 1 2 3 4 5 7 6 Leader in tissue-based products for advanced wound care Strong & differentiated infrastructure to deliver growth Versatile product offerings supported by robust clinical evidence Underserved, growing market op
Slide 4: 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 ALVIN PHYLLIS NICK RUTH
Slide 5: MiMedx Is a Pioneer in Placental Biologics
MIMEDX IS A PIONEER IN PLACENTAL BIOLOGICS Leading Brands in Existing Core Business Position Company to Capitalize on Late-stage Pipeline Revenue growth Profitability Cash generation Existing Core Business Late-Stage Pipeline Market opportunity Clinical evidence Commercialization
Slide 6: Leading Product Portfolio Positioned for Growth
LEADING PRODUCT PORTFOLIO POSITIONED FOR GROWTH 2,000,000+ Allografts Distributed4 84% Gross Margin2 $256M TTM Net Sales1 $737M Market Cap3 1,000+ patients studied under IND clinical programs9 5-year shelf life Room temp storage 300+ regulatory proteins (1) Trailing twelve months period eded Septemb
Slide 7: Amniotic Tissue: Largest & Fastest Growing Segment of Skin/Dermal Substitute Market
6% CAGR $1B skin substitutes AMNIOTIC TISSUE: LARGEST & FASTEST GROWING SEGMENT OF SKIN/DERMAL SUBSTITUTE MARKET Amniotic Tissue Allografts Xenograft Skin Substitutes ~$233M Others +8-10% CAGR U.S. Amniotic Tissue Market Source: BioMed GPS SmartTrak; CAGR 2019-2024E Competitor A Others Competitor B
Slide 8: Unlocking Our Powerful Platform for Future Growth
UNLOCKING OUR POWERFUL PLATFORM FOR FUTURE GROWTH 40+ clinical & scientific publications in peer-reviewed, indexed journals Best-in-class evidence recognized by AHRQ1 Robust publication strategy with accompanying medical education support Universal tissue with broad applicability Rigorous quality ma
Slide 9: Well Balanced Across Care Settings
WELL BALANCED ACROSS CARE SETTINGS Largest U.S. commercial payor will provide coverage for EpiFix® in the treatment of diabetic foot ulcers effective December 1, 2020 Significant amount of revenue earned through staggered, multi-year contracts with GPOs, provide broad access to drive utilization Div
Slide 10: 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 11: Maximizing Opportunities in Our Core Business
Existing Core Business MAXIMIZING OPPORTUNITIES IN OUR CORE BUSINESS 2 1 3 Increase the Market Opportunity Capture Disproportionate Share Invest to Enhance Commercial Excellence Model
Slide 12: Late-Stage Pipeline Aimed at Sizable Markets
LATE-STAGE PIPELINE AIMED AT SIZABLE MARKETS MUSCULOSKELETAL/SPORTS MEDICINE Plantar Fasciitis PHASE 3 1H 2022 Est. BLA filing Achilles Tendonitis PHASE 3 2H 2021 Est. BLA filing* Knee Osteoarthritis PHASE 2 1H 2024 Est. BLA filing ADVANCED WOUND CARE Chronic Wounds PRE-CLINICAL 1H 2021 Est. IND/IDE
Slide 13: Financial Strength Fortifies Sustainable and Profitable Growth
FINANCIAL STRENGTH FORTIFIES SUSTAINABLE AND PROFITABLE GROWTH Adj. Free Cash Flow3 $31M (1) Trailing twelve months period ended September 30, 2020. Adjusted Net Sales and Adjusted Gross Margin are non-GAAP measurements and exclude impact of Revenue Transition amounts; Refer to slide 3 for the respe
Slide 14: Continued Progress to Resolve Remaining Legal Contingencies
CONTINUED PROGRESS TO RESOLVE REMAINING LEGAL CONTINGENCIES Current spend relates to legal matters involving the company (fees and resolution) and indemnification costs for former officers and directors Company has utilized some of the applicable Directors & Officers insurance, and has some remainin
Slide 15: Recent Financings and Nasdaq Relisting Provide Financial Flexibility
Financing transactions1 provide ability to: RECENT FINANCINGS AND NASDAQ RELISTING PROVIDE FINANCIAL FLEXIBILITY Prioritize investment in growth drivers Pursue attractive growth opportunities Stabilize business Initial holders are affiliates of EW Healthcare Partners (90%) and Hayfin Capital Managem
Slide 16: Market Leader with Differentiated Platform Ready to Achieve Long-Term Growth
MARKET LEADER WITH DIFFERENTIATED PLATFORM READY TO ACHIEVE LONG-TERM GROWTH 1 2 3 4 5 7 6 Leader in tissue-based products for advanced wound care Strong & differentiated infrastructure to deliver growth Versatile product offerings supported by robust clinical evidence Underserved, growing market op
Slide 17: Question & Answer Session
QUESTION & ANSWER SESSION
Slide 18: Appendix
APPENDIX
Slide 19: Clinical Evidence Demonstrates Differentiation & Supports Reimbursement
CLINICAL EVIDENCE DEMONSTRATES DIFFERENTIATION & SUPPORTS REIMBURSEMENT Statistically significant results* Randomized controlled trials across multiple applications Head-to-head study results demonstrate superior clinical outcomes & substantially lower cost-to-closure compared to Apligraf® Studies d
Slide 20: Experienced Leadership Team
= Joined since 2018 EXPERIENCED LEADERSHIP TEAM ROBERT STEIN, MD, PhD EVP, Research & Development SCOTT TURNER SVP, Operations & Procurement MARK ROGERS VP, Global Quality Assurance & Regulatory PETE CARLSON Chief Financial Officer MARK GRAVES Chief Compliance Officer STAN MICEK SVP, Business Develo
Slide 21: Material Litigation Closure Update
MATERIAL LITIGATION CLOSURE UPDATE Matter Type of Matter Timing of Resolution Shareholder Derivative Litigation Derivative Claims for Breach of Fiduciary Duty Q2 2020 Annual Meeting Litigation Two Cases to Compel Shareholder Meetings Q2/Q3 2019 S.E.C. Civil Enforcement Civil Enforcement Q4 2019 V.A.
Slide 22: Adjusted Net Sales Trends Reflect Stabilization Post COVID-19 Downturn
ADJUSTED NET SALES TRENDS REFLECT STABILIZATION POST COVID-19 DOWNTURN Net Sales Adjusted Net Sales1 (1) Adjusted Net Sales excludes impact of Revenue Transition amounts. See slide 24 for reconciliation to Net Sales. ($ millions) Revenue presentation includes impact of 2019 transition in revenue rec
Slide 23: Summary Balance Sheets
SUMMARY BALANCE SHEETS ($ millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Assets Cash and Cash Equivalents 28.4 96.9 94.1 69.1 53.5 48.2 109.6 Accounts Receivable, net 0.0 0.0 21.4 32.3 31.9 30.1 33.0 Inventory, net 16.4 15.0 12.0 9.1 9.2 10.6 11.0 Other Current Assets 12.4 10.6 6.5 12.7 21.2 18.7 17.9
Slide 24: Summary Income Statements
SUMMARY INCOME STATEMENTS ($ millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net Sales 66.6 67.4 88.9 76.4 61.7 53.6 64.3 Cost of Sales 7.4 9.7 13.2 12.7 10.0 8.2 10.3 Gross Profit 59.1 57.7 75.7 63.7 51.7 45.4 54.0 Research & Development 2.9 2.8 2.7 2.7 2.7 2.3 3.4 Selling, General, and Administrative
Slide 25: Summary Cash Flow Statements
SUMMARY CASH FLOW STATEMENTS ($ millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net (Loss) Income (13.3) (17.2) 12.4 (7.5) (4.8) (8.5) (19.4) Effect of Change in Revenue Recognition 0.0 0.0 (17.4) 0.0 0.0 0.0 0.0 Share-Based Compensation 3.0 3.5 2.7 2.9 3.3 4.4 3.7 Depreciation 1.7 1.6 1.6 1.6 1.5 1.4
Slide 26: Non-GAAP Metrics Reconciliation
NON-GAAP METRICS RECONCILIATION ($ millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net Sales – Reported $ 66.6 $ 67.4 $ 88.9 $ 76.4 $ 61.7 $ 53.6 $ 64.3 Less: Revenue Transition Impact1 ─ ─ 21.5 8.2 4.5 1.7 1.0 Adjusted Net Sales $ 66.6 $ 67.4 $ 67.3 $ 68.2 $ 57.2 $ 51.9 $ 63.3 Gross Profit $ 59.1 $ 57
Slide 27: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION ($ millions) 4Q19 1Q20 2Q20 3Q20 Net Loss (7.5) (4.8) (8.5) (19.4) Depreciation & Amortization 1.8 1.8 1.7 1.8 Interest Expense 2.4 2.4 2.6 1.5 Loss on Extinguishment of Debt 0.0 0.0 0.0 8.2 Income Tax 0.2 (11.3) 0.0 0.0 EBITDA (3.0) (12.0) (4.2) (7.9) Investigation, R
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