MALVERN, PA — TELA Bio, Inc. (NASDAQ: TELA), a leading player in the biotechnology industry, recently reported its financial results for the third quarter of 2023, marking an impressive 11th consecutive quarter of 35% or greater year-over-year (YoY) growth. The company’s revenue for the quarter was $15.1 million, a significant increase of 35% compared to the same period in 2022.
The company attributed this growth to increased demand for its OviTex® and OviTex PRS Reinforced Tissue Matrix products. The two products saw YoY revenue growth of approximately 30% and 46%, respectively. Additionally, TELA Bio has also launched the OviTex® PRS Long-Term Resorbable in the US market for plastic and reconstructive surgery.
TELA Bio’s OviTex is now the leading biologic hernia repair mesh in the U.S. on a unit basis, according to Antony Koblish, co-founder, President, and Chief Executive Officer of TELA Bio.
“Our commercial team has identified opportunities for further improved surgeon access and rep productivity across the organization which we expect will drive increased growth in the fourth quarter and a strong start to 2024,” said Koblish.
The company’s gross profit for Q3 2023 was $10.4 million, or 69% of revenue, compared to $7.3 million, or 66% of revenue, in the same period in 2022. This increase in gross margin was primarily due to better inventory management practices resulting in a decrease in the reserve for excess and obsolete inventory as a percentage of revenue as compared to the prior year period.
However, operating expenses rose to $20.6 million in Q3 2023, compared to $16.8 million in the same period in 2022. The increase was due to higher compensation and employee-related expenses primarily from additional headcount as the company continues to expand, along with increased travel expenses, consulting fees, and higher study costs.
TELA Bio reported a net loss of $11.0 million for the third quarter of 2023, compared to a net loss of $10.7 million in the same period in 2022. As of September 30, 2023, the company had cash and cash equivalents totaling $58.2 million.
Looking ahead, TELA Bio expects full-year 2023 revenue to range from $57.0 million to $60.0 million, reflecting growth of 38% to 45% over the full year 2022. This guidance reflects the company’s confidence in its ability to continue its growth trajectory through strategic initiatives and product line expansion.
For more information, visit www.telabio.com.
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