TELA Bio, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Telebio First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to Hannah Jeffery from Gilmartin Group.

Hannah Jeffery Thank you, Kathy, and good afternoon, everyone. Earlier today, Telebio released financial results for the first quarter of 2021. A copy of the press release is available on the company's website. Joining me today on today's call are Tony Koblish, President and CEO, and Nora Brennan, CFO. Tony will begin the call by providing an overview of our operational highlights, and then Nora will provide a detailed analysis of our first quarter financial performance. Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company forms 10 and 10 , which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, statements regarding product development, product potential, the regulatory environment, sales and marketing strategies, capital resources, or operating performance. With that, I'll now turn the call over to Tony.

Thank you, Hannah, and good afternoon, everyone. Thanks for joining us today. So we are off to a strong start in 2021 with $5.9 million in revenue for the first quarter. This represents year-over-year growth of 58% and sequential growth of 3.7% compared to the fourth quarter of 2020. As we mentioned in our Q4 2020 earnings call at the end of March, we experienced COVID-19 headwinds in the beginning of Q1. As the COVID infection rates declined, we began to see an improvement in procedural volumes in February and March, and we realized our best month ever in March, and it has continued into Q2. In the first quarter, demand for our Ovitex product line increased throughout the quarter as the number of hernia procedures continued to rebound. As we have seen throughout 2020, our Ovitex LPR product experienced the most growth out of our Ovitex product line. For the first time in our history, minimally invasive procedures using Ovitex eclipsed open hernia procedures on a quarterly basis. The continued migration from open to robotic hernia procedures that we have been experiencing is in line with what has been reported by the major surgical robotic provider. This continues to develop and solidify our position and provide a natural repair hernia solution as an alternative to plastic mesh. This movement from open to MIS procedures is a bit of a double-edged sword for us in the short term. While we are pleased Ovitex has become a preference for many surgeons performing robotic hernia repairs, Ovitex LPR does have a lower average selling price. The difference in selling prices is strictly a function of size, as currently most robotic procedures use a smaller piece of Ovitex than a traditional open hernia repair. However, we are noticing that the robot is being utilized for more complex hernia procedures, which should lead to the use of larger size Ovitex products and ultimately higher ASPs. Long term, we believe this trend demonstrates our ability to become a major, broad product portfolio player. Turning our attention to Ovitec's PRS product for the quarter, sales were up approximately 150% year over year, but down sequentially over the fourth quarter of 2020. Based on our analysis of new and existing PRS accounts, we believe a pattern is emerging. Many of the surgeons in our new accounts have been trialing PRS before committing to using it in additional procedures. This is evident with our plastic surgery customers who perform reconstructive procedures. as many prefer to evaluate how well Ovitex PRS performs during a three to six month post-op period. Based on our current understanding of how our new plastic surgeon customers are trialing PRS and the cadence of new accounts, we are expecting our PRS revenue to continue to grow year over year as more plastic surgeons adopt the product. We are beginning to see the broad adoption with PRS with strength in April and May. As a reminder, the fourth quarter of 2020 was robust in terms of signing up new accounts, which we believe we will harvest and make productive in Q2 and beyond. On the commercial side, access to surgeons is steadily improving. New cities and regions are still difficult to manage, but overall, our access to surgeons in hospitals and during their office hours has increased. We continue to target 48 territories by mid-year. but we could increase this target if demand continues on this current trend. As we mentioned during our fourth quarter conference call, we are adding sales territories that align with health trust accounts. On that front, we are making solid progress on adding health trust associated hospitals. During the first quarter, the hit rate for our new health trust re-engagement program has improved. That being said, I want to reiterate there is still work to be done. Although we believe we are beginning to make good traction with many health trust accounts, It takes time from contract signing to implementation. We believe most health trust accounts are becoming more open to new product evaluations as COVID-19 hospitalization rates recede. Before turning the call over to Nora to review our financial performance of the first quarter, I would like to thank our participating surgeons and investors for making our key opinion leader webinar a great success. For those who could not attend this virtual event, We hosted two surgeons speakers who discussed when and how they use Ovitex for hernia procedures and why they avoid polypropylene mesh in certain situations. The webinar was very informative and I invite all of you who did not attend to go to the events page on the investor relations section of our corporate website to view a recording of the webinar. With that, I will turn the call over to Nora.