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 fourth quarter and full year ended December 31, 2020.
- Recognized revenue of $5.7 million for the fourth quarter and $18.2 million for the full year 2020, representing increases of 17% and 18%, respectively, over the corresponding periods of 2019
- Conducted virtual VIP tours and educational webinars to approximately 200 surgeons as part of the TELA LIVE virtual programs
- Continued to expand the commercial team to drive growth initiatives
- 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
“Despite the many challenges of COVID-19, we continue to see momentum in our business and were able to generate fourth quarter and 2020 revenue growth,” said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. “I am very proud and humbled by the way our team came together over the past year during these uncertain times. Over the course of 2020, we focused on engaging our customers virtually, optimizing our product portfolio, and completing the 12-month analysis of our patients in our BRAVO study. As a result of these accomplishments and our strong financial position, we believe we are well positioned to gain market share and accelerate revenue growth over the long term.”
The BRAVO study is a multi-center prospective study designed to evaluate the clinical performance of OviTex Reinforced Tissue Matrix for the treatment of ventral hernias. Seventy-six (76) patients have completed their 12-month follow-up with only two having experienced a hernia recurrence, both adjacent to the original repair with the OviTex repairs remaining intact. Fifty-one (51) patients reached the 24-month follow-up with none experiencing a recurrence.
“While we intend to build on this momentum in 2021, I am deeply saddened to report the recent loss of our Chief Medical Officer and co-founder, Maarten Persenaire, who died unexpectantly on March 7th. Maarten was instrumental in the founding of the company and the development of OviTex. His lasting contribution will live on in TELA Bio as well as with the surgeons and patients we serve. All of us will be forever grateful to Maarten, and we will continue to honor and build upon his legacy.”
Fourth Quarter 2020 Financial Results
Revenue was $5.7 million for the fourth quarter of 2020, an increase of 17% compared to the prior year period despite experiencing increased volatility in demand for their products in December due to the COVID resurgence. The increase was due primarily to the expansion of the commercial organization and increased penetration within existing customer accounts.
Gross profit was $3.7 million for the fourth quarter of 2020, or 65% of revenue, compared to $3.0 million, or 61% of revenue, in the same period in 2019. The increase in gross margin was due primarily to longer shelf life and inventory management for their OviTex products.
Operating expenses were $10.4 million in the fourth quarter of 2020, compared to $8.8 million in the same period in 2019. The increase was due to the expansion of their commercialization activities, higher personnel costs, and increased insurance premiums.
Loss from operations was $6.7 million in the fourth quarter of 2020, compared to a loss from operations of $5.8 million in the same period in 2019.
Net loss was $7.8 million in the fourth quarter of 2020, compared to a net loss of $6.5 million in the same period in 2019.
Full Year 2020 Financial Results
Revenue was $18.2 million for the full year 2020, an increase of 18% compared to the full year 2019. This increase was due primarily to the commercial organization’s expansion and increased penetration within existing customer accounts.
Gross profit was $11.2 million for the full year 2020, or 62% of revenue, compared to $9.3 million, or 60% of revenue, for the full year 2019. The gross margin increase was due primarily to longer shelf life and inventory management for their OviTex products.
Operating expenses were $36.5 million for the full year 2020, compared to $28.4 million in the prior year. The increase was due to the expansion of their commercialization activities, higher personnel costs and increased costs associated with operating as a public company which was partially offset by lower travel and consulting expenses resulting from the cost containment actions taken in response to the COVID-19 pandemic.
Loss from operations was $25.3 million for the full year 2020, compared to a loss from operations of $19.2 million for the full year 2019.
Net loss was $28.8 million for the full year 2020, compared to a net loss of $22.4 million for the full year 2019.
Cash and cash equivalents on December 31, 2020 were $74.4 million.
For the full year 2021, TELA Bio states it expects total revenue 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 the Company’s estimate.
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