MALVERN, PA — TELA Bio, Inc. (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, has reported financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Results and Business Highlights
- Reported revenue of $5.9 million for the first quarter of 2021, increasing 58% over the first quarter of 2020;
- OviTex LPR product line continues to experience high utilization in robotic and MIS procedures and the first quarter of 2021 represented the highest volume quarter for LPR products;
- Hosted successful Key Opinion Leader Webinar featuring surgeons speaking on their use of OviTex® Reinforced Tissue Matrix for simple and complex hernia procedures; and
- Published additional positive data, including initial two-year data, from the BRAVO study evaluating OviTex® Reinforced Tissue Matrix for the treatment of ventral hernias showing favorable recurrence rates.
“We are very pleased with our revenue growth in the first quarter despite the ongoing headwinds from COVID-19, and we are encouraged by the increasing demand for our products, particularly our LPR product line, as we head into the second quarter,” said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. “Along with the expected improvement of procedure volumes throughout 2021, we anticipate the current litigation surrounding synthetic mesh may increase patient demand for non-synthetic options. OviTex was purposefully designed to provide patients a more natural repair, and we believe TELA Bio is well-positioned to experience top-line growth in 2021 as the portfolio is expected to gain increased utilization by general and plastic reconstructive surgeons.”
First Quarter 2021 Financial Results
Revenue was $5.9 million for the first quarter of 2021, an increase of 58% compared to the prior year period despite experiencing increased volatility in demand for their products in January due to the COVID-19 resurgence. The increase in revenue was primarily driven by an increase in unit sales of their products due to the expansion of their commercial organization and increased penetration within existing customer accounts.
Gross profit was $3.5 million for the first quarter of 2021, or 59% of revenue, compared to $2.2 million, or 59% of revenue, in the same period in 2020.
Operating expenses were $10.7 million in the first quarter of 2021, compared to $8.7 million in the same period in 2020. The increase was due to the expansion of their commercialization activities, higher personnel costs, and increased research and development expenses.
Loss from operations was $7.3 million in the first quarter of 2021, compared to a loss from operations of $6.5 million in the same period in 2020.
Net loss was $8.1 million in the first quarter of 2021, compared to a net loss of $7.2 million in the same period in 2020.
Cash and Cash Equivalents at March 31, 2021 were $65.8 million.
For the full year 2021, TELA Bio is maintaining the total revenue guidance to be in the range of $27.0 million to $30.0 million, representing growth of 48% to 65% over the prior year period. Continued uncertainty relating to the dynamic environment with the COVID-19 pandemic could materially impact their estimate.
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