Mimedx Group, Inc · NASDAQ:MDXG
Mimedx — H.C. Wainwright Global Investment Conference May 2022
28 slides from Mimedx's conference presentation, May 24, 2022
Slide 1: A Transformational Placental Biologics Company
A TRANSFORMATIONAL PLACENTAL BIOLOGICS COMPANY H.C. Wainwright Global Investment Conference May 2022 Exhibit 99.1
Slide 2: Disclaimer & Cautionary Statements
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 forth
Slide 3: Disclaimer & Cautionary Statements
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 are
Slide 4: Leading Product Portfolio Positioned for Growth
LEADING PRODUCT PORTFOLIO POSITIONED FOR GROWTH 83.1% TTM Gross Margin $257.5M TTM Net Sales $504M 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 q
Slide 5: Compelling Investment Thesis
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: The Transformational Potential
THE TRANSFORMATIONAL POTENTIAL Existing 2022-2023 2026+ Advanced Wound Care Advanced Wound Care Surgical Recovery Japan + + Advanced Wound Care Surgical Recovery Japan + + + Other OUS + $1.1B $2.7B Knee Osteoarthritis $4B+ DMOAD Transforming medicine in large and high growth markets with significant
Slide 7: Significant Unmet Clinical Need in Knee Osteoarthritis
SIGNIFICANT UNMET CLINICAL NEED IN KNEE OSTEOARTHRITIS Market Sizing Algorithm 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 Al
Slide 8: mdHACM Holds Potential to Reduce Pain and Increase Function in KOA
mdHACM HOLDS POTENTIAL TO REDUCE PAIN AND INCREASE FUNCTION IN KOA Knee Osteoarthritis 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2022 2023 2024 2025 2026 2027 Phase 2B study did not meet primary endpoints across 446 patient population, but demonstrated statistically significant and clinically meaningful i
Slide 9: mdHACM Holds Potential to Reduce Pain and Increase Function in KOA
mdHACM HOLDS POTENTIAL TO REDUCE PAIN AND INCREASE FUNCTION IN KOA 190-patient Cohort mdHACM Placebo p-value Pain Score % Improvement Pain Score % Improvement WOMAC Pain at Baseline 10.0 n/a 9.6 n/a n/a WOMAC Pain at 3-months 4.9 51% 5.7 40% p=0.032 WOMAC Pain at 6-months 3.8 62% 5.2 45% p=0.009 Pha
Slide 10: Mid-Term Growth Expectations Driven by Treatment Transformation and Portfolio Innovation
Inorganic opportunities and future year new product launches would present additional upside opportunity Future year new product A Future year new product B Accretive Inorganic Opportunities + + = MID-TERM GROWTH EXPECTATIONS DRIVEN BY TREATMENT TRANSFORMATION AND ONGOING PORTFOLIO INNOVATION Manage
Slide 11: Expansion into Surgical Recovery Market Propels Growth
EXPANSION INTO SURGICAL RECOVERY MARKET PROPELS GROWTH 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 assessment; Manageme
Slide 12: Multiple Opportunities to Expand Existing Procedure Base
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 Plastics
Slide 13: Surgical Recovery Growth Driven by Market Development
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 14: Opportunities to Extend Leadership in Differentiated Clinical Evidence
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 mor
Slide 15: 2022 Launches Expand Placental Portfolio
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 la
Slide 16: Advanced Wound Care Continues to Exhibit Strong Double-Digit Growth
Why This is the Right Team: Positive Financial Metrics Showing Growth, Steps Company has Taken to Address Underperformance--- ADVANCED WOUND CARE CONTINUES TO EXHIBIT STRONG DOUBLE-DIGIT GROWTH (1) Adjusted net sales excludes revenue recognized from cash collections on remaining contracts. Adjusted
Slide 17: Consistent Outperformance Compared to Consensus
Why This is the Right Team: Positive Financial Metrics Showing Growth, Steps Company has Taken to Address Underperformance--- 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
Slide 18: Existing Cash Levels Are Sufficient to Support Near-Term R&D Efforts
EXISTING CASH LEVELS ARE SUFFICIENT TO SUPPORT NEAR-TERM R&D EFFORTS Free cash flow neutral Free cash flow positive Increase Decrease Total Business Results represents expected Adjusted EBITDA. Other Uses include debt service, and investigation, restatement and related expenses. Dec ‘21 Business Res
Slide 19: Pioneer in Placental Biologics
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 20: 2022 Objectives Support Current and Future Growth Potential
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 quality, processes a
Slide 21: Our Placental Biologics Are Transforming Medicine and Patients' Lives
OUR PLACENTAL BIOLOGICS ARE TRANSFORMING MEDICINE AND PATIENTS’ LIVES
Slide 22: Appendix
APPENDIX
Slide 23: Summary Balance Sheets
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 17.9
Slide 24: Summary Income Statements
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, Gen
Slide 25: Summary Cash Flow Statements
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 0.
Slide 26: Revenue Detail
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 0.3
Slide 27: Non-GAAP Metrics Reconciliation
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 45.
Slide 28: Adjusted EBITDA Reconciliation
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 8.2 0
MiMedx Group — H.C. Wainwright Global Investment Conference May 2022 on 6ix