TELA Bio, Inc. ("TELA") (Nasdaq: TELA), a commercial-stage medical
technology company focused on designing, developing, and marketing
innovative tissue reinforcement materials to address unmet needs in
soft tissue reconstruction, today reported second quarter 2021
financial results.
Second Quarter 2021 Financial Results and
Business Highlights
- Reported revenue of $7.6 million for the second quarter of
2021, increasing 116% year-over-year and 29% sequentially;
- Increased demand for all OviTex® Reinforced Tissue Matrix
hernia products in the second quarter with robotic-assisted and
minimally invasive hernia procedures representing approximately 50%
of all OviTex hernia procedures in the quarter;
- Achieved strong quarter-over-quarter and sequential growth in
both OviTex LPR and OviTex PRS revenue; and
- Initiated BRAVO II prospective clinical study evaluating OviTex
Reinforced Tissue Matrix for the robotic repair of ventral
hernias.
"Throughout the quarter, broad demand for all of
our reinforced tissue matrix products continued to grow, and we
delivered record second quarter revenue," said Antony Koblish,
co-founder, President and Chief Executive Officer of TELA Bio. "The
time and effort our team invested during the pandemic, in reaching
out to current and prospective customers through our TELA LIVE
virtual program, is bearing fruit. While the uncertainties of
another wave of COVID-19 could affect our future revenue growth, I
believe we are ideally positioned to continue to experience strong
growth in market share and revenue throughout the remainder of 2021
and beyond."
Second Quarter 2021 Financial
Results
Revenue was $7.6 million for the
second quarter of 2021, an increase of 116% compared to the prior
year period and up 29% compared to the first quarter of 2021. The
increase in revenue was primarily driven by an increase in unit
sales of our products due to the expansion of our commercial
organization, an increase in customer accounts, and increased
penetration with existing customer accounts.
Gross profit was $5.1 million for
the second quarter of 2021, or 67% of revenue, compared to $2.1
million, or 59% of revenue, in the same period in 2020. The
increase was primarily due to the decrease in the charge recognized
for excess and obsolete inventory adjustments as a percentage of
revenue.
Operating expenses were $12.4
million in the second quarter of 2021 and included a one-time
non-cash stock-based compensation expense of $0.7 million related
to amendments to certain equity award agreements following the
death of our co-founder and former Chief Medical Officer. Operating
expenses were $7.3 million in the same period in 2020. The increase
was due to the expansion of our commercialization activities,
higher personnel costs, including non-cash stock-based compensation
expenses, and increased research and development expenses. The
prior year period also included cost containment measures in
response to the COVID-19 pandemic, which were not implemented in
2021.
Loss from operations was $7.3
million in the second quarter of 2021, compared to a loss from
operations of $5.2 million in the same period in 2020.
Net loss was $8.3 million in the
second quarter of 2021, compared to a net loss of $6.1 million in
the same period in 2020.
Cash and Cash Equivalents at June
30, 2021 were $60.3 million.
Financial Outlook
For the full year 2021, TELA Bio is increasing its
total revenue guidance to be in the range of $28.0 million to $30.0
million, representing growth of 54% to 65% over the prior year
period. As with previous guidance, continued uncertainty relating
to the dynamic environment with the COVID-19 pandemic could
materially impact this projection.
Conference Call and Webcast
Details
The Company will host a live conference call and
webcast to discuss these results and provide a corporate update on
Wednesday, August 11, 2021, at 4:30 PM ET.
To participate in the call, please dial (855)
859-2056 (domestic) or (404) 537-3406 (international) and provide
conference ID 9285257. The live webcast will be available on the
Events & Presentations page of the Investors section of TELA's
website.
About TELA Bio, Inc.
TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage
medical technology company focused on designing, developing, and
marketing innovative tissue reinforcement materials to address
unmet needs in soft tissue reconstruction. The Company is committed
to providing patients with advanced, economically effective
biologic material repair solutions to minimize long-term exposure
to permanent synthetic materials and improve clinical outcomes.
TELA Bio's OviTex® and OviTex PRS Reinforced Tissue Matrix products
are purposefully designed to address the shortcomings of existing
reinforcement materials in hernia repair, abdominal wall
reconstruction, and plastic and reconstructive surgery. For more
information, visit www.telabio.com.
Caution Regarding Forward-Looking
Statements
This press release may contain forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations are forward-looking statements and reflect the current
beliefs of TELA's management. Such forward-looking statements
include statements relating to our expected revenue and revenue
growth for the full year 2021 and our expected increase in market
share throughout the remainder of 2021. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors that could cause actual results and
events to differ materially and adversely from those indicated by
such forward-looking statements including, among others: the impact
to our business of the ongoing COVID-19 pandemic and the
development of new variants of COVID-19, such as the delta variant,
including but not limited to any impact on our ability to market
our products, demand for our products due to deferral of procedures
using our products or disruption in our supply chain, our ability
to achieve or sustain profitability, our ability to gain market
acceptance for our products and to accurately forecast and meet
customer demand, our ability to compete successfully, our ability
to enhance our product offerings, development and manufacturing
problems, capacity constraints or delays in production of our
products, maintenance of coverage and adequate reimbursement for
procedures using our products, product defects or failures. These
and other risks and uncertainties are described more fully in the
"Risk Factors" section and elsewhere in our filings with the
Securities and Exchange Commission and available at www.sec.gov,
including in our Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. Any forward-looking statements that we make in this
announcement speak only as of the date of this press release, and
TELA assumes no obligation to updates forward-looking statements
whether as a result of new information, future events or otherwise
after the date of this press release, except as required under
applicable law.
Investor ContactGreg
Chodaczek347-620-7010 ir@telabio.com
TELA Bio,
Inc.Consolidated Balance
Sheets(In thousands, except share and per share
amounts)(Unaudited)
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
60,292 |
|
|
$ |
74,394 |
|
Accounts receivable, net |
|
3,545 |
|
|
|
2,683 |
|
Inventory |
|
4,503 |
|
|
|
3,907 |
|
Prepaid expenses and other assets |
|
2,395 |
|
|
|
2,241 |
|
Total current assets |
|
70,735 |
|
|
|
83,225 |
|
Property and equipment,
net |
|
609 |
|
|
|
626 |
|
Intangible assets, net |
|
2,455 |
|
|
|
2,607 |
|
Total assets |
$ |
73,799 |
|
|
$ |
86,458 |
|
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,277 |
|
|
$ |
652 |
|
Accrued expenses and other current liabilities |
|
6,017 |
|
|
|
5,953 |
|
Total current liabilities |
|
7,294 |
|
|
|
6,605 |
|
Long‑term debt with related
party |
|
31,145 |
|
|
|
30,827 |
|
Other long‑term
liabilities |
|
395 |
|
|
|
— |
|
Total liabilities |
|
38,834 |
|
|
|
37,432 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Preferred stock; $0.001 par value: 10,000,000 shares authorized; no
shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock; $0.001 par value: 200,000,000 shares authorized;
14,471,874 and 14,437,289 shares issued and 14,471,774 and
14,437,107 shares outstanding at June 30, 2021 and December 31,
2020, respectively |
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
248,076 |
|
|
|
245,736 |
|
Accumulated other comprehensive loss |
|
(81 |
) |
|
|
(71 |
) |
Accumulated deficit |
|
(213,044 |
) |
|
|
(196,653 |
) |
Total stockholders' equity |
|
34,965 |
|
|
|
49,026 |
|
Total liabilities and stockholders' equity |
$ |
73,799 |
|
|
$ |
86,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELA
Bio, Inc.Consolidated Statements of
Operations and Comprehensive Loss(In thousands,
except share and per share
amounts)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
$ |
7,558 |
|
|
$ |
3,507 |
|
|
$ |
13,435 |
|
|
$ |
7,233 |
|
Cost of revenue (excluding
amortization of intangible assets) |
|
2,395 |
|
|
|
1,346 |
|
|
|
4,731 |
|
|
|
2,796 |
|
Amortization of intangible
assets |
|
76 |
|
|
|
76 |
|
|
|
152 |
|
|
|
152 |
|
Gross profit |
|
5,087 |
|
|
|
2,085 |
|
|
|
8,552 |
|
|
|
4,285 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
7,502 |
|
|
|
4,123 |
|
|
|
13,801 |
|
|
|
9,392 |
|
General and administrative |
|
2,966 |
|
|
|
2,149 |
|
|
|
5,722 |
|
|
|
4,667 |
|
Research and development |
|
1,930 |
|
|
|
979 |
|
|
|
3,609 |
|
|
|
1,891 |
|
Total operating expenses |
|
12,398 |
|
|
|
7,251 |
|
|
|
23,132 |
|
|
|
15,950 |
|
Loss from operations |
|
(7,311 |
) |
|
|
(5,166 |
) |
|
|
(14,580 |
) |
|
|
(11,665 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(864 |
) |
|
|
(884 |
) |
|
|
(1,753 |
) |
|
|
(1,763 |
) |
Other (expense) income |
|
(80 |
) |
|
|
(31 |
) |
|
|
(58 |
) |
|
|
127 |
|
Total other expense |
|
(944 |
) |
|
|
(915 |
) |
|
|
(1,811 |
) |
|
|
(1,636 |
) |
Net loss |
$ |
(8,255 |
) |
|
$ |
(6,081 |
) |
|
$ |
(16,391 |
) |
|
$ |
(13,301 |
) |
Net loss per common share,
basic and diluted |
$ |
(0.57 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.16 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
14,458,911 |
|
|
|
11,443,122 |
|
|
|
14,448,715 |
|
|
|
11,424,952 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(8,255 |
) |
|
$ |
(6,081 |
) |
|
$ |
(16,391 |
) |
|
$ |
(13,301 |
) |
Foreign currency translation adjustment |
|
1 |
|
|
|
4 |
|
|
|
(10 |
) |
|
|
31 |
|
Comprehensive loss |
$ |
(8,254 |
) |
|
$ |
(6,077 |
) |
|
$ |
(16,401 |
) |
|
$ |
(13,270 |
) |
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