Full Press Release Details
TELA Bio Announces First Quarter 2020
MALVERN, Pa., May 12, 2020 (GLOBE NEWSWIRE) -- TELA Bio, Inc.
("TELA") (Nasdaq: TELA), a commercial stage medical technology company focused on designing, developing and marketing
a new category of tissue reinforcement materials to address unmet needs in soft tissue reconstruction, today reported financial
results for the first quarter ended March 31, 2020.
"We want to express our gratitude to our partners in
the medical community who continue to support and treat patients in need amidst this pandemic. I also want to thank our TELA
Bio employees who have shown resilience and have come together to serve and support our patients and customers," said
Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. "Despite a positive start to the year,
the deferral of elective surgical procedures in which our products would be used has negatively impacted our revenues in the
first quarter of 2020. As we navigate through this pandemic and look toward recovery, I am confident in our strong foundation
of innovative products and dedicated team. We believe we have structured our response to mitigate business disruption and
remain in a strategic position of strength to drive growth over the long-term."
million for the first quarter of 2020, an increase of 13% compared to the prior year period. The increase in revenue was
primarily driven by an increase in unit sales of our products due to the expansion of our commercial organization and increased
penetration within existing customer accounts. Though TELA's revenue increased over
the prior year period, it was impacted by lower than expected procedure volumes in the second half of March 2020 due to hospitals
and patients deferring elective procedures and other factors related to the COVID-19 pandemic.
$2.2 million for the first quarter of 2020, or 59% of revenue, compared to $1.8 million, or 54% of revenue, in the same period
in 2019. The increase in gross margin was due primarily to the decrease in the charge recognized for excess and obsolete inventory
as a percentage of revenue.
were $8.7 million in the first quarter of 2020, compared to $7.0 million in the same period in 2019. The increase was due to the
expansion of the Company's commercial organization and increased costs associated with operating as a public company.
Loss from operations
was $6.5 million in the first quarter of 2020, compared to a loss from operations of $5.2 million in the same period in 2019.
million in the first quarter of 2020, compared to a net loss of $6.0 million in the same period in 2019.
TELA's business has been impacted by the pandemic as physicians
and their patients are required, or are choosing, to defer elective surgery procedures in which TELA's products otherwise
would be used. However, TELA is currently employing virtual selling programs and it expects to continue to creatively adapt its
sales and marketing plans as it better understands the effects of the COVID-19 pandemic on TELA's business. TELA implemented
salary cuts for its employees and initiated actions in April to generate savings in areas such as travel, events, and consulting.
TELA continues to work closely with hospital and physician customers and suppliers to navigate through this unforeseen event while
maintaining flexible operations.
Based on the ongoing impact from restrictions on surgical procedures
and shelter-in-place policies, the Company expects revenue to decline in the second quarter of 2020 as compared to the most recent
completed quarter and same quarter in 2019. At this time, the full extent of the impact of the COVID-19 pandemic on TELA's
business, financial condition and results of operations is uncertain and cannot be predicted with reasonable accuracy. As a result,
TELA will continue its suspension of full year 2020 revenue guidance.
The Company will host
a live conference call and webcast to discuss these results and provide a corporate update on Tuesday, May 12, 2020, at 4:30 PM
To participate in the
call, please dial (855) 548-1219 (domestic) or (409) 217-8881 (international) and provide conference ID 8079329. The live webcast
will be available on the Events & Presentations page of the investors section of TELA's website.
commercial stage medical technology company focused on designing, developing and marketing a new category of tissue reinforcement
materials to address unmet needs in soft tissue reconstruction. TELA's products are designed to improve on shortcomings of existing
biologics and minimize long-term exposure to permanent synthetic material. TELA's portfolio is supported by quality, data-driven
science and extensive pre-clinical research that has consistently demonstrated advantages over other commercially available products.
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. 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, including 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.
President, Corporate Development and Investor Relations
Consolidated Balance Sheets
(In thousands, except share and per share
| March 31, | December 31, | |||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 41,411 | $ | 45,302 | ||||
| Short-term investments | 5,289 | 9,285 | ||||||
| Accounts receivable, net | 2,047 | 2,836 | ||||||
| Inventory | 4,803 | 4,603 | ||||||
| Prepaid expenses and other assets | 1,763 | 2,308 | ||||||
| Total current assets | 55,313 | 64,334 | ||||||
| Property and equipment, net | 693 | 677 | ||||||
| Intangible assets, net | 2,835 | 2,911 | ||||||
| Total assets | $ | 58,841 | $ | 67,922 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,389 | $ | 3,171 | ||||
| Accrued expenses | 2,834 | 3,533 | ||||||
| Other current liabilities | 9 | 9 | ||||||
| Total current liabilities | 4,232 | 6,713 | ||||||
| Long-term debt with related party | 30,381 | 30,243 | ||||||
| Other long-term liabilities | 1 | 4 | ||||||
| Total liabilities | 34,614 | 36,960 | ||||||
| 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; 11,407,998 and 11,406,976 shares issued and 11,407,600 and 11,406,221 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 11 | 11 | ||||||
| Additional paid-in capital | 199,287 | 198,829 | ||||||
| Accumulated other comprehensive income (loss) | 8 | (19 | ) | |||||
| Accumulated deficit | (175,079 | ) | (167,859 | ) | ||||
| Total stockholders' equity | 24,227 | 30,962 | ||||||
| Total liabilities and stockholders' equity | $ | 58,841 | $ | 67,922 |
Consolidated Statements of
Operations and Comprehensive Loss
(In thousands, except share and per share
| Three months ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Revenue | $ | 3,726 | $ | 3,306 | ||||
| Cost of revenue (excluding amortization of intangible assets) | 1,450 | 1,432 | ||||||
| Amortization of intangible assets | 76 | 76 | ||||||
| Gross profit | 2,200 | 1,798 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 5,269 | 3,995 | ||||||
| General and administrative | 2,518 | 1,324 | ||||||
| Research and development | 912 | 1,659 | ||||||
| Total operating expenses | 8,699 | 6,978 | ||||||
| Loss from operations | (6,499 | ) | (5,180 | ) | ||||
| Other (expense) income: | ||||||||
| Interest expense | (879 | ) | (912 | ) | ||||
| Change in fair value of preferred stock warrant liability | - | 36 | ||||||
| Other income | 158 | 90 | ||||||
| Total other (expense) income | (721 | ) | (786 | ) | ||||
| Net loss | (7,220 | ) | (5,966 | ) | ||||
| Accretion of redeemable convertible preferred stock to redemption value | - | (2,025 | ) | |||||
| Net loss attributable to common stockholders | $ | (7,220 | ) | $ | (7,991 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.63 | ) | $ | (27.00 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 11,406,783 | 295,992 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (7,220 | ) | $ | (5,966 | ) | ||
| Foreign currency translation adjustment | 27 | (4 | ) | |||||
| Comprehensive loss | $ | (7,193 | ) | $ | (5,970 | ) |