Tela Bio, Inc. · NASDAQ:TELA
Tela Bio — Q2 2020 Earnings Presentation
25 slides from Tela Bio's earnings presentation, Aug 12, 2020
Slide 1: TELA Bio: Advancing Soft Tissue Reconstruction
TELA Bio: Advancing Soft Tissue Reconstruction August 2020 Nasdaq: TELA 1
Slide 2: Forward Looking Statements
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 possible
Slide 3: TELA Bio Snapshot
TELA Bio Snapshot A commercial stage medical technology company marketing a new category of tissue reinforcement materials to address unmet needs in soft tissue reconstruction ▫ Differentiated portfolio of advanced reinforced tissue matrices addressing hernia repair, abdominal wall reconstruction an
Slide 4: OviTex: ~$1.5 Billion Annual U.S. Total Addressable Hernia Market Opportunity
OviTex: ~$1.5 Billion Annual U.S. Total Addressable Hernia Market Opportunity ~$350 million US market(1) ~58,000 total procedures per year ~$500 million US market(1) ~326,000 total procedures per year OviTex ~$1.5 Billion TAM Opportunity ~$650 million US market(1) ~711,000 total procedures per year
Slide 5: Hernias Occur Throughout the Abdomen
Hernias Occur Throughout the Abdomen What is a hernia? ▫Occurs when an internal part of the body pushes through a weakness or hole in the muscle or surrounding tissue ▫ ▫ Natural occurring weakness Weakness from previous surgical incision ▫Likelihood of developing a hernia increases with age & obesi
Slide 6: Ventral Hernia: Complex Patient Population
Ventral Hernia: Complex Patient Population Ventral Hernia Complexity SIMPLE MODERATE COMPLEX • • 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 herni
Slide 7: Current Ventral Hernia Treatment Options: No Perfect Product
Current Ventral Hernia Treatment Options: No Perfect Product Natural Repair Products Gentrix® Ventralight™ ProGrip™ PHASIX™ Mesh Strattice™ PROCEED® SurgiMend® Parietex™ XenMatrix™ GORE® BIO-A® Simple Ventral Hernia Complex, Moderate Ventral Repair / Abdominal Wall Reconstruction Inguinal Hernia Hia
Slide 8: Limitations of Reconstruction Materials Used in Hernia Repair
Limitations of Reconstruction Materials Used in Hernia Repair ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ Persistent inflammatory response Inflammatory response until absorbed Lack of strength or durability Encapsulation of implant Prone to laxity and stretching ▫ Encapsulation of implant or until absorbed Chronic
Slide 9: Our Solution: New Category of Tissue Reinforcement Materials
Our Solution: New Category of Tissue Reinforcement Materials Hernia & Ab Wall Biologic Tissue Reconstruction 9 Purposefully Designed Biologic & Polymer Solutions for Specific Clinical Needs Innovative Textile Engineering derived from sheepPolymer fibersReconstruction interwoven through layers of bio
Slide 10: High Quality Biologic Material Drives Technology Platform
High Quality Biologic Material Drives Technology Platform TELA maintains a definitive license agreement with Aroa BioSurgery for the use of ovine rumen ▫ ▫ ▫ Aroa has two issued patents protecting the use of ovine rumen for use as a source of extracellular matrix Exclusive license in North America a
Slide 11: Our Solution: A New Category of Soft Tissue Reinforcement Materials
Our Solution: A New Category of Soft Tissue Reinforcement Materials ▫ ▫ ▫ ▫ ▫ ▫ ▫ Designed in close collaboration with more than 100 surgeons Products designed with over 95% biologic material (<5% polymer/synthetic content) Benefits of both biologic materials and polymer materials Supports range of
Slide 12: OviTex: a New Approach to Soft Tissue Reconstruction
OviTex: a New Approach to Soft Tissue Reconstruction for Hernia Repair and Abdominal Wall Reconstruction 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 perme
Slide 13: Comprehensive Portfolio for a Range of Hernia Types & Surgical Techniques
Comprehensive Portfolio for a Range of Hernia Types & Surgical Techniques Each configuration is available with either permanent (polypropylene) polymer or resorbable (polyglycolic reinforcing the same biologic material. acid) polymer OviTex 4-layer device, not intended for intraperitoneal placement
Slide 14: OviTex LPR for Laparoscopic & Robotic-Assisted Repair
OviTex LPR for Laparoscopic & Robotic-Assisted Repair ▫ OviTex LPR is specifically tailored for robotic-assisted hernia surgical repairs ▫ ▫ Significant increase in robotic hernia repairs in last few years Robotic-assisted hernia repair provides the benefits of laparoscopic repair ▫ Designed for imp
Slide 15: Disruptive Technology Supported by a Compelling Body of Clinical Evidence
Disruptive Technology Supported by a Compelling Body Evidence of Clinical 92 Adult Patient, Prospective, Single Arm, Multicenter BRAVO Study ▫ ▫ 0 (0%) hernia recurrence in first 20 patients at 24-months 1 (2%) hernia recurrence in first 57 patients at 12-months 14 clinical publications ▫ ▫ Strong c
Slide 16: Multiple Future Analyses of BRAVO Data Planned for 2020
Multiple Future Analyses of BRAVO Data Planned for 2020 • 20-patients at 24-months • ~75 patients at 12-months • 57-patients at 12-months • ~50-patients at 24-months • 84-patients at 3-months ▫ Primary focus is hernia recurrence rate at each time point ▫ Additional information on surgical site occur
Slide 17: OviTex BRAVO Study Shows Low Recurrence Rate
OviTex BRAVO Study Shows Low Recurrence Rate at 12 and 24-months OviTex BRAVO Study Number of Patients who Completed Follow-up Follow-up Period in Months Number of Hernia Recurrence Product Name Tissue Reinforcement Material Hernia Recurrence Rate Results from Post-Market Clinical Studies of Competi
Slide 18: Plastic and Reconstructive Surgery Represents a Significant Market Opportunity
We believe Plastic and Reconstructive Significant Market Opportunity Surgery Represents a ▫ Use of biologic matrices validated by growing clinical literature Biologics provide the following clinical benefits: ~$500 Million Annual U.S. Market Opportunity ▫ ▫ ▫ ▫ ▫ Ability to define shape and position
Slide 19: OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery
OviTex PRS: Surgery Purposely Designed for Plastic and Reconstructive An innovative reinforced tissue matrix designed to improve outcomes by facilitating controlling degree and direction of stretch fluid management and material enable functional 19 Expanded commercial launch in June 2020 following l
Slide 20: Commercial Organization
Commercial Organization ▫ 41 sales territories at June 30, 2020 ▫ OR-based Account Managers call on General, Plastic Recon, Colorectal & Trauma surgeons ▫ Carry full OviTex & OviTex PRS portfolio ▫ 6 sales regions ▫ Plan to scale existing regions until each region has ~8 territories ▫ Territories su
Slide 21: Focused on Driving Utilization within Accessed Accounts
Focused on Driving Utilization within Accessed Accounts Contracts in place (GPOs) with multiple national and regional Group Purchasing Organizations Current GPO contracts provide access to ~1,900 hospitals across the U.S., estimated to perform over ~135,000 addressable soft tissue reconstruction pro
Slide 22: Growth Strategy
Growth Strategy 22 Long-Term systems under GPO contracts •U.S. sales force expansion •Surgeon education •Target high-decile hernia and plastic and recon. surgeons Current •Drive adoption within health •Publish BRAVO clinical and health economics data •Pursue additional contracts with large GPOs and
Slide 23: Revenue Growth ($ millions)
Revenue Growth ($ millions) $4.8 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q1 2020 quarterly revenue impacted by COVID-19 pandemic beginning mid-March 2020 and continued throughout Q2 2020 23 Y/Y Growth80%100%13%6% $4.0 $3.7$3.5 Quarterly Results
Slide 24: Statement of Operations
Statement of Operations Three months Ended June 30 $3.5 1.3 0.1 $3.3 1.3 0.1 Revenue Cost of revenue Amortization of Intangible Assets Gross profit Gross margin Operating expenses: Selling and Marketing General and Administrative Research and Development Total operating expenses Loss from operations
Slide 25: Investment Highlights
Investment Highlights Advanced reinforced tissue matrix portfolio supported by compelling clinical evidence Focused on ~$2.0 billion annual U.S. total addressable markets Well-defined high-decile surgeon customers targeted by growing direct sales force Long-term supply agreement that provides pricin