Full Press Release Details
TELA Bio Announces Fourth
Quarter and Full Year 2019 Financial Results
MALVERN, Pa., March 27, 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 fourth quarter and full year ended December 31, 2019.
"2019 was a year of many accomplishments, including significant
revenue growth driven by the adoption of our OviTex and OviTex PRS product lines, expansion of our commercial organization,
the signing of a major group purchasing agreement, publication of compelling clinical data, and the completion of a successful
IPO," said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. "As we look towards 2020,
we share in a collective concern for the impact of the COVID-19 pandemic across the globe. While it is too early and uncertain
to determine the actual effects of this pandemic on our business, we are beginning to feel the impact and intend to use many of
our business levers to best position our Company for the long-term, leveraging our strong clinical data, sales, marketing and
million for the fourth quarter of 2019, an increase of 100% compared to the prior year period. This increase was due primarily
to the expansion of the commercial organization, increased penetration within existing customer accounts, as well as the introduction
of larger sizes of OviTex during 2019.
$3.0 million for the fourth quarter of 2019, or 61% of revenue, compared to $1.0 million, or 42% of revenue, in the same period
in 2018. The increase in gross margin was due primarily to the decrease in the charge recognized for excess and obsolete inventory.
were $8.8 million in the fourth quarter of 2019, compared to $6.5 million in the same period in 2018. The increase was due
to the expansion of the salesforce and related activities, higher personnel costs and increased professional fees associated with
operating as a public company.
Loss from operations
was $5.8 million in the fourth quarter of 2019, compared to a loss from operations of $5.5 million in the same period in 2018.
million in the fourth quarter of 2019, compared to a net loss of $7.4 million in the same period in 2018.
Full Year 2019 Financial
million for the full year 2019, an increase of 87% compared to the full year of 2018. This increase was due primarily to the expansion
of the commercial organization and increased penetration within existing customer accounts.
$9.3 million for the full year 2019, or 60% of revenue, compared to $2.9 million, or 36% of revenue, for the full year 2018. The
increase in gross margin was due to the decrease in the charge recognized for excess and obsolete inventory.
were $28.4 million for the full year 2019, compared to $20.7 million in the prior year. The increase was due to the expansion
of the salesforce, higher personnel costs and increased professional fees associated with operating as a public company, and a
$2.2 million gain on litigation settlement that occurred in 2018.
Loss from operations
was $19.2 million for the full year 2019, compared to a loss from operations of $17.8 million for the full year 2018. Excluding
the $2.2 million gain on litigation settlement in 2018, loss from operations for the full year 2018 was $19.9 million.
million for the full year 2019, compared to a net loss of $21.1 million for the full year 2018. Excluding the $2.2 million gain
on litigation settlement in 2018, net loss for the full year 2018 was $23.3 million.
Cash, cash equivalents
and short-term investments on December 31, 2019 were $54.6 million, including net proceeds of $50.6 million from the Company's
November 2019 initial public offering.
For the first quarter
of 2020, TELA Bio expects total revenue to be in the range of $3.5 million to $4.0 million, representing growth of 6% to 21% over
the prior year period. Due to uncertainties in procedural volume stemming from COVID-19 and its potential negative impact on its
financials, TELA Bio is not providing guidance for the full year 2020. The Company intends to provide an update during its first
quarter 2020 earnings call.
The Company will host
a live conference call and webcast to discuss these results on Friday, March 27, 2020 at 8:00 a.m. ET.
the call, please dial (855) 548-1219 (domestic) or (409) 217-8881 (international) and provide conference ID 8484307. The live
webcast will be available on the Events & Presentations page of the investors section of TELA's website.
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. 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 prospectus dated November 7, 2019. 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
President, Corporate Development and Investor Relations
Consolidated Balance Sheets
(Unaudited, in thousands, except share
and per share amounts)
| December 31, | ||||||||
| 2019 | 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 45,302 | $ | 17,278 | ||||
| Short-term investments | 9,285 | - | ||||||
| Accounts receivable, net | 2,836 | 1,298 | ||||||
| Inventory | 4,603 | 4,348 | ||||||
| Prepaid expenses and other assets | 2,308 | 330 | ||||||
| Total current assets | 64,334 | 23,254 | ||||||
| Property and equipment, net | 677 | 758 | ||||||
| Intangible assets, net | 2,911 | 3,215 | ||||||
| Total assets | $ | 67,922 | $ | 27,227 | ||||
| Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,171 | $ | 3,421 | ||||
| Accrued expenses | 3,533 | 5,153 | ||||||
| Other current liabilities | 9 | 985 | ||||||
| Total current liabilities | 6,713 | 9,559 | ||||||
| Long-term debt with related party | 30,243 | 29,733 | ||||||
| Preferred stock warrant liability | - | 1,640 | ||||||
| Other long-term liabilities | 4 | 5 | ||||||
| Total liabilities | 36,960 | 40,937 | ||||||
| Redeemable convertible preferred stock; $0.001 par value: | ||||||||
| Series A Preferred stock: 22,501,174 shares previously authorized, no shares issued or outstanding at December 31, 2019 and 22,501,174 issued and outstanding at December 31, 2018 | - | 33,112 | ||||||
| Series B Preferred stock: 82,891,619 shares previously authorized, no shares issued or outstanding at December 31, 2019 and 63,032,500 issued and outstanding at December 31, 2018 | - | 91,038 | ||||||
| Total redeemable convertible preferred stock | - | 124,150 | ||||||
| Stockholders' equity (deficit): | ||||||||
| 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; 11,406,976 and 296,629 shares issued and 11,406,221 and 295,717 shares outstanding at December 31, 2019 and 2018, respectively | 11 | - | ||||||
| Additional paid-in capital | 198,829 | - | ||||||
| Accumulated other comprehensive loss | (19 | ) | - | |||||
| Accumulated deficit | (167,859 | ) | (137,860 | ) | ||||
| Total stockholders' equity (deficit) | 30,962 | (137,860 | ) | |||||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 67,922 | $ | 27,227 |
Consolidated Statements of Operations
(Unaudited, in thousands, except share
and per share amounts)
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue | $ | 4,864 | $ | 2,427 | $ | 15,446 | $ | 8,274 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 1,825 | 1,323 | 5,870 | 4,547 | ||||||||||||
| Amortization of intangible assets | 76 | 76 | 304 | 785 | ||||||||||||
| Gross profit | 2,963 | 1,028 | 9,272 | 2,942 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 5,382 | 4,016 | 18,060 | 13,646 | ||||||||||||
| General and administrative | 2,486 | 1,533 | 6,223 | 4,899 | ||||||||||||
| Research and development | 921 | 977 | 4,151 | 4,339 | ||||||||||||
| Gain on litigation settlement | - | - | - | (2,160 | ) | |||||||||||
| Total operating expenses | 8,789 | 6,526 | 28,434 | 20,724 | ||||||||||||
| Loss from operations | (5,826 | ) | (5,498 | ) | (19,162 | ) | (17,782 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (884 | ) | (765 | ) | (3,609 | ) | (1,802 | ) | ||||||||
| Loss on extinguishment of debt | - | (1,207 | ) | - | (1,822 | ) | ||||||||||
| Change in fair value of preferred stock warrant liability | (1 | ) | 53 | (5 | ) | 244 | ||||||||||
| Other income | 179 | 26 | 351 | 70 | ||||||||||||
| Total other (expense) income | (706 | ) | (1,893 | ) | (3,263 | ) | (3,310 | ) | ||||||||
| Net loss | (6,532 | ) | (7,391 | ) | (22,425 | ) | (21,092 | ) | ||||||||
| Accretion of redeemable convertible preferred stock to redemption value | (940 | ) | (1,975 | ) | (7,783 | ) | (8,823 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (7,472 | ) | $ | (9,366 | ) | $ | (30,208 | ) | $ | (29,915 | ) | ||||
| Net loss per common share, basic and diluted | $ | (1.22 | ) | $ | (31.70 | ) | $ | (17.10 | ) | $ | (101.41 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 6,127,486 | 295,476 | 1,766,412 | 294,988 |