Organogenesis Holdings Inc. · NASDAQ:ORGO
Organogenesis — Investor Presentation (September 2020)
45 slides from Organogenesis's investor presentation, Sep 15, 2020
Slide 1: Corporate Presentation September 2020
0 Exhibit 99.1 Corporate Presentation September 20200 Exhibit 99.1 Corporate Presentation September 2020
Slide 2: Forward-Looking Statements and Other Important Cautions
1 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 corp
Slide 3: Use of Non-GAAP Financial Measures
2 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 perfo
Slide 4: Key Company Highlights
3 Key Company Highlights $8.9Bn+ $6Bn+ Attractive End Markets Advanced Wound Care Surgical & Sports Medicine 1 Market (AWC) Market (S&SM) Differentiated and Comprehensive Suite of 2 Products Proven R&D Engine with Pipeline products recently launched or 7 expected to in next 2 years 3 Deep Pipeline R
Slide 5: Experienced Leadership with Track Record of Execution
4 Experienced Leadership with Track Record of Execution Henry Hagopian Gary Gillheeney, Sr Patrick Bilbo Brian Grow Antonio Montecalvo Lori Freedman Interim Chief Financial President & Chief Chief Operating Chief Commercial VP, Health Policy VP and Officer, VP Finance, Executive Officer Officer Offi
Slide 6: Track Record Since Business Combination
5 Track Record Since Business Combination (1) Business Combination @ 12/10/2018 Current Position ◼ 11 Commercialized Products ◼ 9 Commercialized Products ◼ 5 Pipeline products Product ◼ 5 Pipeline products Portfolio◼ 2 Market-expanding BLA programs ◼ 2 Market-expanding BLA programs ◼ 200+ publicatio
Slide 7: Q2 Revenue Results
6 Q2 Revenue Results 2Q 2020 Revenue Summary ◼ 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,
Slide 8: Large and Growing Target Markets
7 Large and Growing Target Markets 77 Large and Growing Target Markets 7
Slide 9: Skin Substitutes is a Fast-Growing, Under-Penetrated Segment of the AWC Market
8 Skin Substitutes is a Fast-Growing, Under-Penetrated Segment of the Advanced Wound Care Market (1) (2) AWC Market Skin Substitute Sub-Market ~$8.9+ Billion ~$965mm Advanced Biologics Wound ~$725mm 17% 54% Dressing Skin Substitutes 9% 20% Other 2016A 2018A Negative Pressure Wound Therapy Less than
Slide 10: Surgical & Sports Medicine Market Is An Underserved, High-Growth Market
9 Surgical & Sports Medicine Market Is An Underserved, High-Growth Market ~$6Bn+ Market Growing ~8% Annually Chronic Inflammatory And Bone Fusion Tendon and Ligament Injuries Degenerative Conditions (1) (2) (1) ~$2.7Bn ~$1.0Bn ~$2.4Bn Market size Market size Market size ◼ Includes spine fusion surge
Slide 11: Broad and Comprehensive Product Portfolio
10 Broad and Comprehensive Product Portfolio 1010 Broad and Comprehensive Product Portfolio 10
Slide 12: Comprehensive and Differentiated Commercial Product Portfolio
11 Comprehensive and Differentiated Commercial Product Portfolio Advanced Wound Care Only AWC / S&SM Surgical & Sports Medicine Only (3) ◼ Clinical Application: ◼ Clinical Applications: ◼ Clinical Application: (1) ‒ Venous leg ulcers‒ Chronic and acute wounds ‒ Orthopedic surgical procedures ‒ Diabe
Slide 13: Our Products Cover a Wide Range of Addressable Wounds
12 Our Products Cover a Wide Range of Addressable Wounds Ability to Treat a Wide Range of Wounds Benefits of Broad AWC Portfolio ◼ Complete product portfolio serves as a key competitive Serves wide range of health care customers advantage ◼ PuraPly AM is the only first line antimicrobial skin (1) (2
Slide 14: Our Products Treat Wounds Across All Stages
13 Our Products Treat Wounds Across All Stages Only First Line Antimicrobial Differentiated Amniotic PMA-Approved Why Wounds Stall in the Skin Substitute with PHMB for Portfolio Supported by Products for Complex Inflammatory Phase: (1) All Wounds Clinical Data DFUs and VLUs Bacterial bioburden & con
Slide 15: Broad and Unique Portfolio in the Skin Substitute Market
14 We Have a Broad and Unique Portfolio in the Skin Substitute Market Skin Sub, Skin Sub Skin Sub, Skin Sub- Honey ,TCC Skin Sub- Skin Sub- Enzymatic Products Skin Sub Ultrasonic Sheet/Flowable (cast), Sheet/Flowable Sheet/Flowable Debrider, PDGF, Debrider Dressings NPWT, Dressings Human Cellular Bi
Slide 16: Broad Portfolio in the Surgical & Sports Medicine Market
15 We Have a Broad Portfolio in the Surgical & Sports Medicine Market Multiple Multiple Dermal Orthobiologics, Template, Amniotic Tendon Amniotic Amniotic Amniotic Membrane, Reinforcement, Membrane, Membrane, Membrane, Collagen Sheets Platelet Rich, Hyaluronic Acid Products Amniotic Orthobiologics O
Slide 17: Growth Strategy
16 Growth Strategy 1616 Growth Strategy 16
Slide 18: Strategic Initiatives & Catalysts for Growth
17 Strategic Initiatives & Catalysts for Growth Key Pillars of Growth Strategy ◼ Launch new products and invest in R&D◼ Continue to build compendium of clinical data ◼ Manufacturing and infrastructure enhancements to ◼ Penetrate additional sites of care improve gross margins ◼ Continue sales force e
Slide 19: Robust Product Pipeline
18 Robust Product Pipeline Potential Timeline for Commercial Launch Medium-Term Long-Term 2019 2020 Product (2021 – 2022) (2023+) Product Description / Enhancement ◼ Enhanced thickness and PHMB content (1) Recently ◼ Allows for sustained presence of the antimicrobial barrier in the wound Diversify r
Slide 20: PuraPly – The Leader in Skin Substitute / Antimicrobial Space
19 PuraPly – The Leader in Skin Substitute / AWC / S&SM Antimicrobial Space Product Description ◼ Patented, purified native porcine collagen matrix embedded with a broad spectrum antimicrobial ◼ “Pass-through” reimbursement status until 9/30/2020 (1) ◼ Only first line antimicrobial skin substitute w
Slide 21: PuraPly XT – Launched February 2020
20 PuraPly XT – Launched February 2020 AWC / S&SM Product Description ◼ Five-layer, native, cross-linked ECM+broad spectrum PHMB antimicrobial barrier for larger more complex wounds 1 ◼ Cross-linked ECM resists degradation in wounds, supporting persistence between debridements 2,3,4 ◼ A five-layer E
Slide 22: Measures Taken to Position PuraPly Post Pass-Through
21 Measures Taken to Position PuraPly Post Pass-Through Pass-Through Situation Overview ◼ PuraPly benefits from “pass-through” reimbursement specific to outpatient wound care centers and ASC − CMS provides additional reimbursement above the procedure’s bundled payment for certain products ◼ Pass-thr
Slide 23: Affinity – Relaunch/Commercial Ramp in 2020
22 Affinity – Relaunch/Commercial Ramp in 2020 AWC / S&SM Product Description ◼ 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
Slide 24: NovaChor – Expected Commercial Launch 2021
23 NovaChor – Expected Commercial Launch 2021 AWC / S&SM Product Description ◼ Next in line for our advanced fresh tissue technology ◼ Fresh hypothermically stored chorion membrane containing viable cells, growth factors/cytokines, and ECM proteins ‒ Manages chronic and acute wounds; as well as surg
Slide 25: Cord Membrane
24 Cord Membrane AWC / S&SM Product Description ◼ 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
Slide 26: NuShield – Versatile Tissue Graft Covering
25 NuShield – Versatile Tissue Graft Covering AWC / S&SM Full Spectrum of Acute & Chronic Wounds Product Description ◼ Dehydrated placental tissue graft that is topically or surgically applied to target tissue ◼ Recent robust growth driven by leveraging Organogenesis commercial infrastructure ◼ Prod
Slide 27: Pursuing BLA Approval for ReNu to Open Up Large and Growing Market Opportunity
26 Pursuing BLA Approval for ReNu to Open Up Large and Growing Market Opportunity S&SM Product Description Market Opportunity ◼ Cryopreserved suspension of amniotic fluid cells and morselized amnion tissue from the same donor − Formulated for office use (injection) ~$2.4bn − Primary application is t
Slide 28: Clinical Data suggests improved patient outcomes
27 Clinical Data suggests improved patient outcomes S&SM ◼ Clinical significance in Knee Osteoarthritis outcome compared to commercially available Hyaluronic acid (“HA”) and placebo (Saline) over 6 months − Less pain and demonstrated improvements in patient-reported outcomes ◼ Patient-blinded, rando
Slide 29: NuCel – Amniotic-Derived Allograft for Surgical Procedures
28 NuCel – Amniotic-Derived Allograft for Surgical S&SM Procedures Product Description ◼ Surgically implanted allograft derived from human amniotic tissue and amniotic fluid ◼ Supports tissue healing in spinal and orthopedic surgical applications (i.e., bone growth and fusion) ◼ Launched in 2009 ◼ S
Slide 30: TransCyte, in our Burn Portfolio, is an Approved Product in an Attractive Market
29 TransCyte, in our Burn Portfolio, is an Approved Product in an Attractive Market with Limited Competition Advanced Wound Care Product Description Market Opportunity nd rd ◼ Targeted at 2 and 3 degree burns ~500,000 burns annually that require medical attention − Bioengineered tissue scaffold that
Slide 31: Financial Profile
30 Financial Profile 3030 Financial Profile 30
Slide 32: Attractive Revenue and Margin Profile
31 Attractive Revenue and Margin Profile Financial Profile Advanced Wound Care ($ in millions) % growth CAGR: 23% Surgical & Sports Medicine $261 $40 $199 $193 $20 $29 $139 % growth: 6% $221 $69 $179 $65 $164 $9 $10 $60 $55 (1) 2016 2017 2018 2019 2Q19 2Q20 PuraPly $62 $109 $70 $127 $30 $29 Revenue
Slide 33: Income Statement
32 Income Statement (1) ($ in millions) 2018 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 $176 $214 $53 $51 Expenses Loss from ($52) ($29) ($7) ($2) Operations Net Loss ($65) ($40) ($10) ($5) Adjusted EBITDA (
Slide 34: 2020 Guidance
33 2020 Guidance Fiscal Year 2020 Revenue Guidance: For the twelve months ending December 31, 2020, the Company expects: • Net revenue of between $273 million and $277 million, representing growth of approximately 5% to 6% year-over-year, as compared to net revenue of $261 million for the twelve mon
Slide 35: 2020 Q2 Form 10-Q Income Statement
34 2020 Q2 Form 10-Q Income Statement Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net revenue $ 68,960 $ 64,948 $ 130,692 $ 122,071 Cost of goods sold 20,042 19,446 38,835 36,426 Gross profit 48,918 45,502 91,857 85,645 Operating expenses: Selling, general and administr
Slide 36: 2020 Q2 Form 10-Q Balance Sheet
35 2020 Q2 Form 10-Q Balance Sheet June 30, December 31, 2020 2019 Assets Current assets: Cash $ 40,455 $ 60,174 Restricted cash 299 196 Accounts receivable, net 44,024 39,359 Inventory 28,562 22,918 Prepaid expenses and other current assets 4,366 2,953 Total current assets 117,706 125,600 Property
Slide 37: 2020 Q2 Form 10-Q Cash Flow Statement
36 Six Months Ended 2020 Q2 Form 10-Q Cash Flow Statement June 30, 2020 2019 Cash flows from operating activities: Net loss $ (21,479 ) $ (25,315 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,793 1,761 Amortization of intangible assets 1,633 2,997 Non-c
Slide 38: Opportunities to Enhance Margins Through Facility Optimization
37 Opportunities to Enhance Margins Through Facility Optimization Canton, MA Norwood, MA Birmingham, AL La Jolla, CA ◼ Headquarters◼ Facility in Norwood, MA ◼ Devoted to operations, R&D ◼ Facility supports QC, (nearby Canton HQ), warehouse and distribution of and manufacturing ◼ Devoted to manufactu
Slide 39: Interim and Longer-Term Financial Targets
38 Interim and Longer-Term Financial Targets Interim Target Longer-Term Goal 2018-2021 2022+ Revenue Growth Low teens CAGR % >10% High 60’s % to Gross Margin High 70’s to 80% Low 70’s % R&D 6 – 8% 7% (% of Net Revenue) SG&A Mid 60’s % to Mid 50’s % (% of Net Revenue) Low 70’s % Adjusted EBITDA Singl
Slide 40: Appendix
39 Appendix 3939 Appendix 39
Slide 41: Apligraf & Dermagraft – PMA-Approved Products for VLUs and DFUs
40 Apligraf & Dermagraft – PMA-Approved Products for VLUs and DFUs Advanced Wound Care ◼ Products have ~15 years of clinical history Venous Leg Ulcer Clinical Data Diabetic Foot Ulcer Clinical Data 57% Complete Wound Closure 30% 25% 64% 40% 20% 32% 29% Relative increase in 15% % of patients 24% achi
Slide 42: Robust Clinical Data Supporting Products: Advanced Wound Care
41 Robust Clinical Data Supporting Products: Advanced Wound Care Estimated Data Product Wound Type Design Completion Date (4) Presentation Date Acute + Chronic Prospective Single Center Controlled Evaluation (N=40) Q4 2018 Publication Q1 2019 (2) Acute + Chronic Prospective Single Center Controlled
Slide 43: Robust Clinical Data Supporting Products: Surgical & Sports Medicine
42 Robust Clinical Data Supporting Products: Surgical & Sports Medicine Estimated Data (1) Product Indication Design Completion Date (2) Presentation Date Lumbar Spine 57 patient Prospective, Efficacy Study of NuCel Q2 2020 Q3 2021 Vertebral Fusion in patients Undergoing Fusion for One, Two or Three
Slide 44: Non-GAAP Reconciliations – Adjusted EBITDA
43 Non-GAAP Reconciliations – Adjusted EBITDA 4343 Non-GAAP Reconciliations – Adjusted EBITDA 43
Slide 45: Non-GAAP Reconciliations – Adjusted EBITDA
44 Non-GAAP Reconciliations – Adjusted EBITDA Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) (in thousands) Net loss $ (5,166 ) $ (9,649 ) $ (21,479 ) $ (25,315 ) Interest expense, net 2,912 2,187 5,422 3,965 Income tax expense 27 23 62 60 Depreciation 891 8
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