TELA Bio, Inc.

Good day and thank you for standing by. Welcome to the TELA second quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Greg Chodacek. Please go ahead.

Thank you, Anne, and good afternoon, everyone. Earlier today, Telebio released financial results for the second quarter of 2021. A copy of the press release is available on the company's website. Joining me on today's call is Tony Koblish, President and CEO, and Megan Smeichel, Vice President and Corporate Controller. 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's 2020 Form 10-K and subsequent 10-Qs, which identify with 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, capital resources, and operating performance. With that, I'll turn the call over to Tony.

Thanks, Greg, and good afternoon, everyone. Thanks for joining us today. During our earnings call last quarter, I spoke of the exit velocity of Ovatex as we experienced sales in the back half of the first quarter. I'm happy to report that the sales, that the strong sales momentum continued as revenue in the second quarter was 7.6 million, representing growth of 116% compared to the second quarter of 2020, and more importantly, 29% sequential growth over the first quarter of 2021. In the second quarter, demand for our Ovitex product line increased broadly, driven by the rebound in hernia procedures and a solid sequential increase in the number of customers. Throughout 2020, we spoke at length about our TeleLive program and the unique solutions we developed to cultivate our strong surgeon pipeline. These programs, which we are continuing to use, are comprised of virtual sales solutions designed to educate surgeons about our product portfolio and clinical data. Since its inception, over 200 surgeons have attended our virtual VIP tours or our KOL webinars. and we have seen over a 150% increase in average monthly revenue among surgeons who have participated in a tele-live program. Over the past several months, we are seeing the benefits of the time and effort our team has dedicated to these programs. As a reminder, during the previous several quarters, we were successful in signing up new accounts and having continued to grow these accounts. In the second quarter, we recognized revenue from 38 new customers, and the total number of customers ordering products in a quarter hit an all-time high. These record-setting numbers occur when every territory is producing. In the second quarter, approximately 25% of our revenue came from account managers hired within the past 12 months, and we are on track to have approximately half of our U.S.-based sales force to be on a $1 million run rate or better by the end of this year, 2021. Hernia-related revenue grew sequentially by over $1 million in the second quarter as every type of hernia procedure demonstrated growth. As with the ongoing trend we have been experiencing for the last 18 months, laparoscopic and robotic hernia procedures continue to represent slightly more than half of all hernia procedures in the quarter. Interestingly, we are noticing surgeons are slowly migrating towards the robot for more complex hernia repair cases leading to utilization of larger size Ovitex. We believe this trend will continue and is one of the primary reasons we designed our BRAVO II study to evaluate Ovitex for the robotic repair of ventral hernias. Moving to our PRS product, sales were up over 200% quarter over quarter and up approximately 50% sequentially over the first quarter of 2021. This strong sequential growth follows the previous quarter where PRS was slightly down compared to the fourth quarter of 2020. The cycle of trialing and evaluating during a three to six month post-op for plastic surgeons new to PRS is becoming more evident. That being said, as more plastic surgeons become comfortable using PRS, we believe this trialing cycle will become less prominent over time. On the commercial side, surgeon access has improved in 2021. While some areas in the United States had limited access, our sales team found creative ways to meet with surgeons. We are currently targeting 48 sales territories which align with Health Trust accounts. With regards to our GPO accounts, the sequential growth in Health Trust accounts in the quarter was higher than our overall growth in overall accounts and now comprises over a third of all of our accounts. Based on the number of re-engagement meetings we are attending, we believe this trend will continue. Moving to Bravo 2. In May, we announced the initiation of our second post-market study, Bravo 2. This study is designed to evaluate the clinical performance of Ovitex reinforced tissue matrices in the robotic repair of ventral hernias. With the continued success of our original Bravo study and the ongoing evolution in robotic procedures for more complex ventral hernia repair, we are very excited to demonstrate the efficacy and durability of our Ovitex portfolio in robotic hernia repair. As with the original BRAVO study, we expect to enroll up to 100 subjects with patient follow-ups at 90 days, 12 months, and 24 months. Patients will be monitored for early postoperative surgical site occurrences, wound-related events, and other complications within three months of surgery. In addition, researchers will also monitor the incidence of true hernia recurrence, surgical site occurrences, and other complications occurring after three months post-surgery. Regarding our search for a new chief financial officer, the process is well underway, and we hope to announce the hiring of a new CFO in the near future. I will now turn the call over to Megan to discuss the financials.