TELA Bio Inc (TELA) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the TELA Bio Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. And I would now like to turn the conference over to Louisa Smith from the Gilmartin Group.

女士們、先生們，下午好，歡迎參加 TELA Bio 2023 年第二季度收益電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。現在我想將會議轉交給吉爾馬丁集團的路易莎·史密斯。

Thank you, Chris, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the second quarter 2023. A copy of the press release is available on the company's website. Joining me on today's call are Tony Koblish, President and Chief Executive Officer; and Roberto Cuca, Chief Operating Officer and Chief Financial Officer.

謝謝克里斯，大家下午好。今天早些時候，TELA Bio 發布了 2023 年第二季度的財務業績。該新聞稿的副本可在該公司網站上獲取。與我一起參加今天電話會議的還有總裁兼首席執行官托尼·科布里什 (Tony Koblish)；首席運營官兼首席財務官羅伯托·庫卡 (Roberto Cuca)。

Before we begin, I'd like to remind you that during this conference call, the company may 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 annual report on Form 10-K and quarterly reports on Form 10-Q, 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 and pipeline opportunities. product potential, the impact of various macroeconomic conditions, including the COVID-19 pandemic, recessionary concerns, banking instability and inflationary pressures the regulatory environment, sales and marketing strategies, capital resources or operating performance. With that, I'll now turn the call over to Tony.

在我們開始之前，我想提醒您，在本次電話會議期間，公司可能會對未來事件做出預測和前瞻性陳述。我們鼓勵您查看公司過去和未來向SEC 提交的文件，包括但不限於公司10-K 表中的年度報告和10-Q 表中的季度報告，其中確定了可能導致實際結果或事件發生變化的具體因素。與這些前瞻性陳述中描述的內容存在重大差異。這些因素可能包括但不限於有關產品開發和管道機會的聲明。產品潛力、各種宏觀經濟條件的影響，包括 COVID-19 大流行、經濟衰退擔憂、銀行業不穩定和通脹壓力、監管環境、銷售和營銷策略、資本資源或經營業績。這樣，我現在就把電話轉給托尼。

Thank you, Louisa. Good afternoon, everyone, and thanks for joining us today for our second quarter 2023 earnings call. We are pleased to report another quarter of strong financial results and operational execution. As you will hear, we continue to deliver on our financial goals and advance our key initiatives. Total revenue for the second quarter was $14.5 million, representing growth of 39% year-over-year which significantly outpaced the growth of the markets in which we sell. I am happy to report we are seeing an improving sales environment as procedure volume and elective surgery demand is up. In the second quarter, we saw strong hernia sales which may reflect the first steps towards addressing the tens of thousands of procedures delayed during the COVID-19 pandemic. If so, that bodes well for a solid second half of continued high growth. On this afternoon's call, as always, I'll provide an update on the progress we are making with the key drivers of revenue and revenue growth that we refer to as the 5 factors.

謝謝你，路易莎。大家下午好，感謝您今天參加我們的 2023 年第二季度財報電話會議。我們很高興地報告又一個季度強勁的財務業績和運營執行力。正如您將聽到的，我們將繼續實現我們的財務目標並推進我們的關鍵舉措。第二季度總收入為 1,450 萬美元，同比增長 39%，明顯超過我們銷售市場的增長速度。我很高興地報告，隨著手術量和擇期手術需求的增加，我們看到銷售環境正在改善。第二季度，我們看到了強勁的疝氣銷售，這可能反映了解決在 COVID-19 大流行期間延遲的數万例手術的第一步。如果是這樣，這預示著下半年將保持持續高增長。在今天下午的電話會議上，我將一如既往地介紹我們在收入和收入增長的關鍵驅動因素（我們稱之為“5 個因素”）方面所取得的進展的最新情況。

Then I'll ask Roberto to provide further color on our financial results before we open the line for your questions. Let me begin with GPO access. TELA now has contracts with 3 national group purchasing organizations. These agreements streamline the process by which a surgeon can choose to use our OviTex products by providing access right off the supply room shelf rather than the surgeons having to go through an administratively (inaudible) utilization committee process. We recently entered into a 4-year contract extension with HealthTrust which, as you may recall, was our first GPO.

然後，在我們開始提問之前，我會請羅伯托進一步介紹我們的財務業績。讓我從 GPO 訪問開始。 TELA現與3個國家集團採購機構簽訂合同。這些協議簡化了外科醫生選擇使用我們的 OviTex 產品的流程，提供了供應室貨架上的直接訪問權限，而外科醫生不必通過行政（聽不清）使用委員會流程。我們最近與 HealthTrust 簽訂了為期 4 年的續約合同，您可能還記得，這是我們的第一個 GPO。

The original term of 3 years began in 2020, just as COVID-19 pandemic began impacting the health care system. Notwithstanding the significant headwinds, we were able to demonstrate the value of our products to the hospitals served by HealthTrust, which led to the extended contract term of this renewal. Our second GPO contract was with Premier, which became effective on October 1, 2022. As the second largest GPO in the country, it granted us access to over 4,400 hospitals. We are pleased with the progress we've made ramping up Premier in Q2, and it is already an important contributor to our revenue performance.

最初的 3 年任期從 2020 年開始，恰逢 COVID-19 大流行開始影響醫療保健系統。儘管面臨巨大的阻力，我們仍能夠向 HealthTrust 服務的醫院展示我們產品的價值，從而延長了本次續約的合同期限。我們的第二份 GPO 合同是與 Premier 簽訂的，該合同於 2022 年 10 月 1 日生效。作為全國第二大 GPO，它使我們能夠進入 4,400 多家醫院。我們對第二季度在提升 Premier 方面取得的進展感到高興，它已經成為我們收入表現的重要貢獻者。

Our most recently signed third GPO is structured as a dual source contract in the biosynthetic category. This means that we compete with only a single alternative supplier in this system, which is highly compliant with the contractual product offerings. These 3 GPO contracts together cover over 6,000 hospitals, providing significant access to our sales representatives. This leads us to 2 more of our revenue driving factors: sales force size and sales force productivity. GPO contracts give us access to hospitals across the country, but we can only convert this access into sales via representatives who can call on and educate the physicians in those hospitals.

我們最近簽署的第三份 GPO 是生物合成類別的雙源合同。這意味著我們在該系統中僅與一家替代供應商競爭，該供應商高度符合合同產品供應。這 3 份 GPO 合同總共覆蓋 6,000 多家醫院，為我們的銷售代表提供了重要的接觸機會。這為我們帶來了另外兩個收入驅動因素：銷售人員規模和銷售人員生產力。 GPO 合同使我們能夠進入全國各地的醫院，但我們只能通過能夠拜訪和教育這些醫院的醫生的代表將這種進入轉化為銷售。

In order to capitalize on the figure to hunting license that contracts represent, we've been meaningfully expanding the size of our sales force we have in the field targeting those geographies with the greatest GPO opportunity. As of today, we have 75 sales reps on board against the year-end target of 75 to 80 reps.

為了充分利用合同所代表的狩獵許可證數字，我們一直在有意義地擴大我們在該領域的銷售隊伍規模，目標是那些擁有最大 GPO 機會的地區。截至今天，我們有 75 名銷售代表，而年終目標是 75 至 80 名銷售代表。

We have continued to invest in the training of our sales force through our playbook 90 program so that they are comfortable representing all of our products in our portfolio. We continue to revise and improve our training system with the result that our most recent cohorts of hires have reached breakeven profitability in 6 months or less. Another important factor underlying revenues and their growth is our continued development of clinical data. The compelling results of our studies of OviTex have played an important role in our ability to take share from older technologies. Surgeons are impressed with the exceptionally low recurrence rate of 2.6% that OviTex exhibited in our BRAVO study compared to the double-digit figures that competitive products show.

我們通過 Playbook 90 計劃繼續投資於銷售人員的培訓，以便他們能夠輕鬆地代表我們產品組合中的所有產品。我們不斷修改和改進我們的培訓體系，結果是我們最近的一批員工在 6 個月或更短的時間內就達到了盈虧平衡的盈利能力。收入及其增長的另一個重要因素是我們對臨床數據的持續開發。我們對 OviTex 的研究令人信服的結果對於我們從舊技術中獲取份額的能力發揮了重要作用。與競爭產品的兩位數數字相比，OviTex 在我們的 BRAVO 研究中表現出 2.6% 的極低復發率，給外科醫生留下了深刻的印象。

We're continuously growing our data set and initiating studies to support physicians and patients in their consideration of OviTex. We also continue to enroll patients in our BRAVO II study, which captures data on the effectiveness of OviTex when used in robotic procedures. As the use of surgical robotic systems in general surgery continues to grow and with 45% of OviTex hernias implanted robotically in the most recent quarter for which data are available, we expect that results from BRAVO II study will be of great use of physicians and patients in making treatment decisions.

我們不斷增加數據集並啟動研究，以支持醫生和患者考慮 OviTex。我們還繼續招募患者參加 BRAVO II 研究，該研究捕獲 OviTex 在機器人手術中使用時的有效性數據。隨著手術機器人系統在普通外科手術中的使用不斷增長，並且在有數據的最近一個季度，45% 的OviTex 疝氣是通過機器人植入的，我們預計BRAVO II 研究的結果將對醫生和患者有很大幫助在做出治療決定時。

In addition to collecting clinical data, we also study consumer behavior and interest in hernia treatment matters. In the study among consumers that we recently conducted, we found that there was significant concern over using permanent synthetic mesh and a strong desire for surgeon expertise in innovative more natural solutions. A highlight of the study showed that 77% of consumers who had a permanent plastic mesh prepare would prefer a more natural repair option for subsequent hernias requiring surgery. Additionally, 95% of all respondents considered important or very important for their doctor or surgeon to be current with top innovations in medical care. The results of this study are indicative of the critical role that patients serve in their health care decisions and are at the heart of TELA's mission to optimize soft tissue restoration and preservation. The impressive set of data we've collected supports both patients' desire for a more natural repair product and encourages surgeon confidence to choose OviTex in future surgeries.

除了收集臨床數據外，我們還研究消費者行為和對疝氣治療事宜的興趣。在我們最近對消費者進行的研究中，我們發現人們對使用永久性合成網片非常擔憂，並且強烈渴望獲得外科醫生在創新的更自然解決方案方面的專業知識。該研究的一個亮點表明，77% 準備了永久性塑料網的消費者更喜歡更自然的修復方案來治療隨後需要手術的疝氣。此外，95% 的受訪者認為，他們的醫生或外科醫生了解最新的醫療保健創新非常重要或非常重要。這項研究的結果表明患者在醫療保健決策中發揮著關鍵作用，也是 TELA 優化軟組織修復和保存使命的核心。我們收集的一組令人印象深刻的數據支持了患者對更自然的修復產品的渴望，並鼓勵外科醫生在未來的手術中選擇 OviTex 的信心。

The last factor is our product portfolio. We strive to assemble a range of products that leverages our current call points to drive expansion in the soft tissue market. We do this through our internal R&D efforts and through external business development activities. We've already announced several new products in 2023, including 2 larger configurations of the OviTex LPR product for use on ventral and incisional hernias and minimally invasive surgeries and 510(k) clearance for OviTex long-term resorbable or LTR in plastic and reconstructive surgery.

最後一個因素是我們的產品組合。我們努力組裝一系列產品，利用我們當前的呼叫點來推動軟組織市場的擴張。我們通過內部研發工作和外部業務開發活動來做到這一點。我們已經在2023 年發布了幾款新產品，包括2 種較大配置的OviTex LPR 產品，用於腹壁疝、切口疝和微創手術，以及510(k) 許可的OviTex 長期可吸收或LTR 在整形和重建手術中的應用。

TELA is committed to creating a broad portfolio that delivers next-generation soft tissue preservation and restoration solutions and meets the varying needs of surgeons and patients. We look forward to announcing future portfolio offerings and developments as they become ready for commercialization. Continued execution of these 5 factors will drive meaningful sales growth and create value for the company and its owners, particularly in an improving procedure environment. We are highly optimistic about delivering a strong second half given where we are today. With that, I'll turn the call over to Roberto for more details on our third quarter financial results.

TELA 致力於創建廣泛的產品組合，提供下一代軟組織保存和修復解決方案，並滿足外科醫生和患者的不同需求。我們期待在未來的產品組合產品和開發做好商業化準備時宣布它們。持續執行這 5 個因素將推動有意義的銷售增長，並為公司及其所有者創造價值，特別是在不斷改善的流程環境中。鑑於我們今天的處境，我們對下半年的表現非常樂觀。這樣，我將把電話轉給羅伯托，了解有關我們第三季度財務業績的更多詳細信息。

Thanks, Tony. As Tony mentioned earlier, revenue for the second quarter increased 39% year-over-year and 22% sequentially over the first quarter to $14.5 million. During the second quarter, OviTex revenue grew 43% year-over-year and PRS grew 31%. Gross margin was 70% for the second quarter and was driven by the cost of goods of product actually sold within the quarter as well as amounts reserved for expected expiration of inventory purchased within the quarter, whether or not sold within the quarter. This strong showing was driven by slightly lower-than-expected inventory purchases in the second quarter as well as our ongoing inventory management and dynamic inventory redeployment efforts. Sales and marketing expense was $14.6 million in the second quarter of 2023 compared to $11.1 million in the same period in 2022. The increase was mainly due to higher compensation costs as a result of the expansion of our commercial organization, higher travel and consulting expenses and additional employee-related costs due to increased head count particularly in our customer-facing roles.

謝謝，托尼。正如 Tony 之前提到的，第二季度收入同比增長 39%，環比增長 22%，達到 1,450 萬美元。第二季度，OviTex 收入同比增長 43%，PRS 增長 31%。第二季度的毛利率為 70%，主要由本季度內實際銷售的產品成本以及本季度內購買的庫存（無論是否在本季度內出售）預計到期而保留的金額推動。這一強勁表現是由第二季度略低於預期的庫存採購以及我們持續的庫存管理和動態庫存重新部署工作推動的。 2023 年第二季度的銷售和營銷費用為 1,460 萬美元，而 2022 年同期為 1,110 萬美元。這一增長主要是由於我們的商業組織擴張導致薪酬成本增加、差旅和諮詢費用增加以及由於人員數量增加，特別是在我們面向客戶的職位上，導致與員工相關的額外成本。

General and Administrative expense was $3.5 million in the second quarter of 2023 compared to $3.6 million in the same period in 2022. R&D expense was $2.5 million in the second quarter of 2023 compared to $2.1 million in the same period last year. Loss from operations was $10.4 million in the second quarter of 2023 compared to $10.2 million in the prior year period. Net loss was $10.8 million in the second quarter of 2023 compared to $12.7 million in the same period in 2022. We ended the second quarter with $65.3 million in cash and cash equivalents after conducting a public offering in mid-April. Regarding the remainder of 2023, we continue to expect full year revenues to be in the range of $60 million to $65 million, representing growth of 45% to 57% over the full year 2022. The I'll now turn the call back to Tony for closing remarks.

2023 年第二季度的一般及行政費用為 350 萬美元，而 2022 年同期為 360 萬美元。2023 年第二季度的研發費用為 250 萬美元，而去年同期為 210 萬美元。 2023 年第二季度運營虧損為 1,040 萬美元，而上年同期為 1,020 萬美元。 2023 年第二季度的淨虧損為 1080 萬美元，而 2022 年同期為 1270 萬美元。在 4 月中旬進行公開發行後，我們第二季度末的現金和現金等價物為 6530 萬美元。關於 2023 年剩餘時間，我們繼續預計全年收入將在 6000 萬美元至 6500 萬美元之間，比 2022 年全年增長 45% 至 57%。我現在將電話轉回托尼作結束語。

Thanks, Roberto. First, I'd like to thank all on the TELA team who helped deliver another excellent quarter. We are thrilled with the strong start to 2023 and believe that our momentum will continue for the remainder of the year. The synergies of all 5 factors coming together lends itself to some exciting catalysts in the coming periods, and we believe we're in a position to drive top line growth, capture competitive market share and expand our portfolio with new soft tissue preservation and restoration technologies. As a result of the offering in April, our balance sheet is well suited to support our dynamic growth and strategic initiatives. I'll finish by simply saying we are still in the early days of a $1 billion-plus market opportunity but our strategy is working, and we are capitalizing on it. I'll now ask Chris to open the line for your questions. Chris, go ahead.

謝謝，羅伯托。首先，我要感謝 TELA 團隊的所有成員，他們幫助我們實現了又一個出色的季度。我們對 2023 年的強勁開局感到興奮，並相信我們的勢頭將在今年剩餘時間內持續下去。所有5 個因素的協同作用將在未來一段時間內產生一些令人興奮的催化劑，我們相信我們有能力推動營收增長，佔領有競爭力的市場份額，並通過新的軟組織保存和修復技術擴大我們的產品組合。由於四月份的發行，我們的資產負債表非常適合支持我們的動態增長和戰略舉措。最後我只想說，我們仍處於價值超過 10 億美元的市場機遇的早期階段，但我們的戰略正在發揮作用，並且我們正在充分利用它。現在我請克里斯開通您的提問熱線。克里斯，繼續吧。

(Operator Instructions) And our first question will come from Michael Sarcone of Jefferies.

（操作員說明）我們的第一個問題將來自 Jefferies 的 Michael Sarcone。

Just to start, you talked about strong hernia sales, and you mentioned that this could be the first step in addressing the backlog of procedures -- so I guess, can you just give us an update on where that backlog stands, maybe how you size it and the potential for that conversion to drive growth? And maybe also comment on what kind of visibility you have there?

首先，您談到了強勁的疝氣銷售，並且您提到這可能是解決程序積壓問題的第一步 - 所以我想，您能否向我們提供有關積壓情況的最新信息，也許您的規模如何它以及這種轉變推動增長的潛力？也許還可以評論一下您在那裡的知名度如何？

Sure, Michael. This is Roberto. So the way we have calculated or estimated the backlog is we have used market data on the total number of hernia procedures per period, so by quarter or month pre COVID-19, we mapped out the expected trajectory given that this is a population-based procedure. So there really shouldn't be much growth beyond the growth of population and then we looked at the actual reported procedures post the beginning of COVID-19 and essentially calculated the area between those 2 curves to estimate the backlog.

當然，邁克爾。這是羅伯托.因此，我們計算或估計積壓的方式是，我們使用了每個時期疝氣手術總數的市場數據，因此，在 COVID-19 之前的季度或月份，我們繪製了預期軌跡，因為這是基於人口的程序。因此，除了人口增長之外，確實不應該有太多增長，然後我們查看了 COVID-19 開始後實際報告的程序，並基本上計算了這兩條曲線之間的面積來估計積壓。

We then checked our thinking and approach with a couple of hospital industry executives that we know and consult with on occasion, who said that they estimated things the same way, roughly 100,000 procedures. And as we've said in the past, you don't dig into or cut down that backlog unless you're doing procedures at a rate higher than the pre-COVID-19 procedure rate. So we don't think we're there yet, but we think that the procedure rate has gone up over more recent periods. It's sort of the most recent couple of quarters, and that we're beginning to at least slow down the rate of accretion into that backlog.

然後，我們與幾位我們認識並偶爾諮詢過的醫院行業高管核實了我們的想法和方法，他們說他們以相同的方式估計了大約 100,000 例手術。正如我們過去所說，除非您的手術速度高於 COVID-19 之前的手術速度，否則您不會深入或減少積壓的工作。所以我們認為我們還沒有達到這個目標，但我們認為最近一段時間手術率有所上升。這是最近幾個季度的情況，我們至少開始減緩積壓的速度。

Yes, Michael, our penetration is so low that there's plenty of market for us to grow into, which we've demonstrated our ability to do so over the last couple of years in the COVID period. So increasing procedure volume will do nothing but help us, and it's actually a benefit if this backlog unwinds over a long period of time. It allows us to harvest that for the next couple of years, which is advantageous for us.

是的，邁克爾，我們的滲透率如此之低，以至於我們有足夠的市場可以發展，在過去幾年的新冠疫情期間，我們已經證明了我們有能力做到這一點。因此，增加程序量只會對我們有幫助，而且如果積壓的案件在很長一段時間內得到緩解，這實際上是一個好處。它使我們能夠在接下來的幾年裡收穫它，這對我們來說是有利的。

And I guess just a quick follow-up on that one. Where do procedures stand today versus pre-COVID levels?

我想這只是一個快速的後續行動。與新冠疫情之前的水平相比，現在的程序處於什麼水平？

So we estimated that about a year ago, procedures were around 85% to pre-COVID. We're guessing they're somewhere between 90% and 95% of Pre-COVID levels now.

因此，我們估計大約一年前，大約 85% 的手術是在新冠疫情之前進行的。我們猜測現在的水平處於新冠疫情之前的 90% 到 95% 之間。

Okay. And just one more for me and I'll hop back in the queue. One of your competitors is working through some disruption. Can you talk about your ability to capitalize on this? And are you seeing more competitive account wins or more conversion given the disruption?

好的。只要再給我一張，我就會重新回到隊列中。您的一位競爭對手正在應對一些干擾。您能談談您利用這一點的能力嗎？鑑於中斷，您是否看到更具競爭力的客戶贏得或更多轉化？

Sure. Yes, I'll take that one, Michael. So the product in question -- it's been around for a long time. It's what I would consider an old-school first-generation biologic material. And I think most of the user base tends to skew a bit older, that's not to say it's 100%, but a bit older. And in terms of hernia procedures, the product is pretty much niche in the most complicated (inaudible) reconstructions. And then it's certainly used in plastic and reconstructive procedures as well. So the accounts we have found are spread across the U.S. and are quite patchy. So although the revenue volume is estimated to be about $40 million between those 2 procedures, it is patchy and infrequent, right, when those procedures come in. So we benefited a little bit, I think, from the situation, but not all that much.

當然。是的，我要那個，邁克爾。所以這個有問題的產品已經存在很長時間了。我認為這是一種老式的第一代生物材料。我認為大多數用戶群傾向於年齡偏大，這並不是說 100%，而是年齡偏大。就疝氣手術而言，該產品在最複雜（聽不清）的重建中幾乎是利基市場。當然，它也用於整形和重建手術。因此，我們發現的賬戶遍布美國各地，而且非常零散。因此，儘管這兩個程序之間的收入估計約為4000 萬美元，但當這些程序出現時，它是零散且不頻繁的，對吧。所以我認為，我們從這種情況中受益了一點，但不是那麼多。

On the hernia side, I think our product has the reputation of being a universal hernia product, right? It's reinforced with a little bit of polymer suture, whether permanent or resorbable for reinforcement. 46% of our procedures are being done robotically right now. And 60% of our procedures are being done both robotically and laparoscopically. So we're being used across inguinals, hiatals, simple [ventrals] and complex (inaudible). And I think these older generation surgeons that are more tied to first-generation biologics, probably will reach for another pure biologic product that's older before they reach for our product given that our product is being known as a more broadly used technology.

在疝氣方面，我認為我們的產品有“萬能疝氣產品”的美譽，對吧？它用一點聚合物縫線加固，無論是永久性的還是可吸收的加固。目前，我們 46% 的手術都是由機器人完成的。我們 60% 的手術是通過機器人和腹腔鏡完成的。所以我們被用於腹股溝、裂孔、簡單[腹側]和復雜（聽不清）。我認為這些與第一代生物製品聯繫更緊密的老一代外科醫生可能會在使用我們的產品之前尋求另一種更古老的純生物產品，因為我們的產品被認為是一種更廣泛使用的技術。

So yes, we are picking up some here and there, but it's not going to be a big conversion. I think we are actually marketing and functioning in a much wider piece of the market. So I think that's where we want to be. And the trade-off of directing our reps to chase these other procedures versus sticking to our knitting and sticking to our plan is the trade-off that we evaluate in every territory as the situation comes up. Most of the time, our preference is to grow our business for the long haul, for durability. And then keep in mind as well, that when we get a situation where the product that's recalled is need a replacement, there has to be a match up that we have a contract, we have access and we have a rep there. And that just doesn't happen all the time given the size of our footprint right now. And again, chasing versus executing is the way we think about it, Michael.

所以，是的，我們正在各處挑選一些，但這不會是一個大的轉變。我認為我們實際上是在更廣泛的市場中進行營銷和運作。所以我認為這就是我們想要達到的目標。指示我們的代表執行這些其他程序與堅持我們的編織和計劃的權衡是我們在情況出現時在每個領域進行評估的權衡。大多數時候，我們的偏好是長期發展我們的業務，以實現持久性。然後還要記住，當我們遇到需要更換召回的產品的情況時，必須有一個匹配，即我們有合同，我們有訪問權限，並且我們在那裡有代表。考慮到我們目前的足跡規模，這種情況不會一直發生。再說一遍，追逐與執行是我們思考問題的方式，邁克爾。

Our next question will come from Frank Takkinen of Lake Street Capital Markets.

我們的下一個問題將來自 Lake Street Capital Markets 的 Frank Takkinen。

Was hoping to start with 1 on GPOs. I think in previous calls, you've talked about HealthTrust specific composition of revenue. I'm understanding it's going to be a little bit more challenging, but was hoping you could talk about what kind of growth was driven from the 3 GPOs in aggregate versus growth outside of GPOs?

希望從 GPO 的 1 開始。我想在之前的電話會議中，您已經談到了 HealthTrust 的具體收入構成。我知道這會更具挑戰性，但希望您能談談 3 個 GPO 總體帶來的增長與 GPO 之外的增長有何不同？

Yes. So I think from a percent of revenue perspective, we went from mid- to high 30% of revenue at HealthTrust to approaching 60% of our revenue is now from these GPOs. So the growth is stronger within the GPO footprint, also approaching about 60%, I would say. But the real story is that we are executing across the entire universe, right? So -- our first priority is implementation into the new GPOs. And really, they're all 3 new at this point, given the HealthTrust renewal.

是的。因此，我認為從收入百分比的角度來看，我們 HealthTrust 的收入從中高 30% 上升到現在接近 60% 的收入來自這些 GPO。因此，GPO 足跡內的增長更為強勁，我想說，也接近 60% 左右。但真正的故事是我們正在整個宇宙中執行，對吧？因此，我們的首要任務是在新的 GPO 中實施。事實上，考慮到 HealthTrust 的更新，目前它們都是新的 3 個。

But we also have a really strong system and process for getting into non-GPO IDNs and systems. So we are active and doing very well in both sectors. I think we're going to see a pickup within this GPO organization since we're really early days in all 3. And I think these implementations are going to take us through the rest of this year and maybe through the rest of next year and beyond, these are big systems. They're bureaucratic and the opportunity is quite large. So there's a lot for us to harvest here for the long haul as one of our 5 factors. But we've grown significantly from the 1 GPO just as measured from about a year ago to now.

但我們也有一個非常強大的系統和流程來進入非 GPO IDN 和系統。因此，我們在這兩個領域都很活躍並且做得很好。我認為我們將看到這個 GPO 組織內部有所回升，因為我們在這三個方面都還處於早期階段。我認為這些實施將帶領我們度過今年剩下的時間，也許明年剩下的時間，除此之外，這些都是大系統。他們官僚作風，機會很大。因此，作為我們的 5 個因素之一，從長遠來看，我們可以收穫很多。但從大約一年前到現在，我們已經從 1 個 GPO 取得了顯著增長。

Got it. That's helpful. And then maybe in the back half of the year, growth expectations in the hernia versus PRS. I know that PRS had been outpacing hernia for a little bit, but it sounds like hernia has been a little bit stronger as of recently. So just trying to understand how you guys are thinking about growth from hernia versus PRS as you close out the year?

知道了。這很有幫助。然後也許在今年下半年，疝氣與 PRS 的增長預期。我知道 PRS 的發展速度已經超過了疝氣，但聽起來疝氣最近變得更強了一些。那麼，想了解一下你們在今年結束時如何看待疝氣和 PRS 的生長？

Sure. So OviTex grew 43% year-over-year. PRS grew 31% year-over-year. A lot of that, though, that lower growth number from PRS had to do with last year's second quarter. So second quarter revenues for PRS last year were $3.4 million, which was the highest PRS quarter of the year just for ins and outs reasons. So it was a tough comp on the growth perspective. So we do expect that notwithstanding that, that it's likely that PRS will return to being a larger grower certainly for the year overall and likely for the second half.

當然。因此，OviTex 同比增長了 43%。 PRS 同比增長 31%。不過，PRS 的較低增長數字很大程度上與去年第二季度有關。因此，去年 PRS 第二季度的收入為 340 萬美元，僅出於各種原因，這是今年 PRS 最高的季度。因此，從增長角度來看，這是一次艱難的比較。因此，我們確實預計，儘管如此，PRS 很可能會在全年乃至下半年恢復成為更大的種植者。

Well, okay. And then last 1. Sorry, go ahead, Tony.

哦，那好吧。最後一個。抱歉，請繼續，托尼。

Said both are going to be strong, just to put a point on it.

說兩者都會很強，只是為了強調這一點。

Perfect. And then last 1 for me. On the gross margin, good to see that hit 70%. How should we be thinking about gross margin profile for the back half of the year?

完美的。然後是我的最後 1 個。毛利率方面，很高興看到達到 70%。我們應該如何考慮下半年的毛利率狀況？

So as we pointed out, gross margin will bump around depending on how we order. So when we build inventory, when we buy any inventory, actually, we take a charge or reserve for that purchased inventory in the quarter in which we buy it for all potential exploration or destruction of the product subsequent to that quarter. So the 2 quarters of this year have been a little bit smoother as far as the amount of inventory that we ordered as between them, but we do expect some bumping up and down. So it's going to be somewhere between the 66% that we saw in the first quarter and the 70% that we achieved in the second quarter.

因此，正如我們所指出的，毛利率會根據我們的訂購方式而波動。因此，當我們建立庫存時，當我們購買任何庫存時，實際上，我們會在購買該庫存的季度中對所購買的庫存收取費用或儲備，以用於該季度後續產品的所有潛在勘探或銷毀。因此，就我們訂購的庫存量而言，今年兩個季度的情況比較平穩，但我們確實預計會出現一些波動。因此，這一比例將介於第一季度的 66% 和第二季度的 70% 之間。

Congrats on the progress.

祝賀取得的進展。

Our next question will come from the line of Matt O'Brien of Piper Sandler.

我們的下一個問題將來自 Piper Sandler 的 Matt O'Brien。

This is Phil on for Matt. Congrats on the great quarter. For starters, I guess as it relates to guidance, can you help us understand the decision to keep the range this wide? I think it implies growth of 47% to about 70% in the back half. So just help us understand what gets you to the top and bottom of that range?

這是菲爾替馬特發言。祝賀這個偉大的季度。首先，我想因為它與指導有關，你能幫助我們理解保持這麼大範圍的決定嗎？我認為這意味著下半年增長47%到70%左右。那麼請幫助我們了解是什麼讓您到達該範圍的頂部和底部？

Sure. So it is a wider range for half the year, but there is still some uncertainty around the COVID-19 and its impact on the quarters. And frankly, the steps up that we'll be taking in the third and fourth quarter is to achieve that 60% to 65% range reasonably large, and you could see some lagging over from the third to the fourth quarter or some acceleration for the fourth to the third. So to give ourselves room, we've just kept it at the same range.

當然。因此，半年的範圍較大，但 COVID-19 及其對季度的影響仍存在一些不確定性。坦率地說，我們將在第三和第四季度採取的步驟是實現相當大的 60% 到 65% 的範圍，你可能會看到從第三季度到第四季度有些滯後，或者有些加速第四到第三。因此，為了給自己留出空間，我們將其保持在同一範圍內。

That's helpful. And I guess a multi-partner here on GPO. As I think about HealthTrust and how COVID impacted your ability to penetrate into that account during that first contract with them versus where you currently are with that account now, where do you think penetration currently stands? And where do you think it can get to? Is that going to be a meaningful tailwind still just on that first GPO? And then any color on the third GPO, which I believe started April 1.

這很有幫助。我猜 GPO 上有多個合作夥伴。當我想到 HealthTrust 時，以及在與他們簽訂第一份合同期間，新冠疫情如何影響您滲透到該賬戶的能力，以及您目前使用該賬戶的情況，您認為目前滲透率處於什麼水平？你認為它能到達哪裡？這對第一個 GPO 來說仍然是一個有意義的推動力嗎？然後是第三個 GPO 上的任何顏色，我相信它是從 4 月 1 日開始的。

Phil, I would say we're very early days in terms of penetration, even with HealthTrust, right? So during the COVID period, we probably only had, I don't know, 16, 18 months of implementation time, given the ups and downs with the pandemic. And we still got to about 30% and 35%, 36% of revenue coming out of HealthTrust. HealthTrust is made up of a whole bunch of systems known as shareholders. We have really only implemented partially into the HCA component of HealthTrust. There are many other shareholders and systems under HealthTrust that we haven't really touched yet. So I think with a 4-year run there's a heck of a lot of ceiling for us to work with there, not just in HCA component of HealthTrust, but in all the others as well, whether it's tenant, stewards, all the rest of the bigs that are a part of HealthTrust. So I feel like that's going to be a great source of growth for us.

Phil，我想說，即使有了 HealthTrust，我們的滲透率還處於早期階段，對嗎？因此，在新冠疫情期間，考慮到疫情的起起落落，我們可能只有（我不知道）16、18 個月的實施時間。我們仍然有大約 30%、35%、36% 的收入來自 HealthTrust。 HealthTrust 由一整套稱為股東的系統組成。我們實際上僅部分實施到 HealthTrust 的 HCA 組件中。 HealthTrust 旗下還有許多其他股東和系統，我們還沒有真正接觸過。因此，我認為，在 4 年的運行中，我們在那里合作有很大的上限，不僅在 HealthTrust 的 HCA 部分，而且在所有其他方面，無論是租戶、管家，還是所有其他方面。 HealthTrust 旗下的大公司。所以我覺得這將成為我們增長的重要源泉。

The third GPO has essentially gone from nothing to triple roughly in terms of raw dollars, and we really didn't start implementing there until April or so, which was by their instruction and design. So there's a heck of a lot of room for us to grow in the third GPO as well. We are just starting out there. And then on the Premier side, that's already become our second largest source of revenue. And that's coming along very nicely. And we're in the very early stages. We are very underpenetrated in Premier, but that's grown very, very well since the end of last year.

就原始美元而言，第三個 GPO 基本上從零增加到了大約三倍，我們直到四月份左右才開始實施，這是按照他們的指示和設計的。因此，我們在第三個 GPO 中也有很大的發展空間。我們才剛剛開始。然後在 Premier 方面，這已經成為我們的第二大收入來源。進展非常順利。我們正處於非常早期的階段。我們在 Premier 的滲透率非常低，但自去年年底以來，這一點增長得非常非常好。

So I think we're very early days on all fronts, and you're going to see the GPO contribution in raw dollars shoot up. It may shoot up a little slower than the growth rate perhaps given the fact that we're really good at executing at IDNs and systems that aren't part of GPOs. But it's a lot for us to work with, and we're very bullish and optimistic that that's a strong piece of what we're going to do here, and we're putting reps in the right places to take advantage as well.

因此，我認為我們在各方面都還處於早期階段，您將看到 GPO 的原始美元貢獻猛增。考慮到我們非常擅長在 IDN 和不屬於 GPO 的系統上執行，它的增長速度可能會比增長率慢一些。但這對我們來說有很多工作要做，我們非常看好和樂觀，認為這是我們在這裡要做的一個重要部分，我們也將代表放在正確的位置來利用。

Our next question will come from David Turkaly of JMP Securities.

我們的下一個問題將來自 JMP 證券的 David Turkaly。

Tony, I just wonder if you might make a comment on trends you've seen in the pricing, ASPs on either side of the business and/or mix from either larger sheets or anything like that, that might have contributed to the hernia side being as strong as it was.

托尼，我只是想知道您是否可以對您在定價中看到的趨勢發表評論，業務雙方的平均售價和/或來自較大床單或類似的東西的混合，這可能導致疝氣一側一如既往的強大。

Yes. Hernia side was volume. We have not taken a price increase since we've rolled these products out. Our strategy is to offer a tremendous value proposition with superb clinical data and performance for patients and a good value for systems. We believe this is the right pathway until we have a very complete array of GPOs. There's some more that we want to engage with and win contracts.

是的。疝側呈卷狀。自從我們推出這些產品以來，我們沒有漲價。我們的戰略是通過卓越的臨床數據和性能為患者提供巨大的價值主張，並為系統帶來良好的價值。我們相信，在我們擁有非常完整的 GPO 陣列之前，這是正確的途徑。我們還想參與更多並贏得合同。

So we're going to keep our pricing pretty much where it is and then the discounting that we're showing at the GPOs isn't crippling either. We've priced the product very fair from a list price level and cost savings that are doable by the GPO do not require huge discounting and everyone is happy. So we're going to stick with that for now. I think for us, it's top line growth. It's getting access, it's validating our technology, and it's -- and it's driving the clinical data into situations where people are anxious to listen to us.

因此，我們將保持定價不變，然後我們在 GPO 上展示的折扣也不會造成影響。我們對產品的定價從標價水平來看非常公平，GPO 可以節省成本，不需要大幅折扣，每個人都很高興。所以我們現在將堅持這一點。我認為對我們來說，這是營收增長。它正在獲得訪問權，它正在驗證我們的技術，它正在將臨床數據推向人們渴望傾聽我們的情況。

We think that's the best approach for now. It doesn't mean we might not take some price increase in the future. But for now, our ASPs have been pretty steady. And we're still hovering around $3,000, plus or minus a little bit on hernia and about $5,000, plus or minus a little bit on PRS. So nothing really has changed from an ASP perspective, which implies just raw growth across the spectrum. It's not just big pieces or it's not just a thing here or there that's making this go. It's consistency, which is good for the long haul.

我們認為這是目前最好的方法。這並不意味著我們將來可能不會提高價格。但就目前而言，我們的平均售價相當穩定。我們仍然徘徊在 3,000 美元左右，加上或減去一點疝氣費用，大約 5,000 美元，加上或減去一點 PRS 費用。因此，從 ASP 的角度來看，一切都沒有真正改變，這意味著整個範圍內只是原始增長。推動這一切的不僅僅是大件，也不僅僅是這里或那裡的某件事。它的一致性，這對長期來說是有好處的。

Great. I know you're aware that there's a competitor out there that's looking for PMA labeling for specifically on breast. So I'm just curious what are your thoughts on PRS in that landscape? Do you think if that occurs, how do you view that if that is coming in the next couple of years?

偉大的。我知道您知道有一家競爭對手正在尋找專門針對乳房的 PMA 標籤。所以我很好奇您對這種情況下的 PRS 有何看法？您認為如果這種情況發生，您如何看待未來幾年發生的情況？

We have our own program going, right? So we're in the process of completing some large animal models that are designed to get us into the IDE game. We are collecting a solid, good size amount of retrospective clinical data, which will allow us to retrofit or [curve fit] into whatever the situation that emerges with an FDA decision one way or the other. And we have a wide array of programs after that include anything from continued retrospective collection of data, surgeon-engaged studies and IDE studies. So we're in the game, Dave, and we intend to be part of that dialogue over time. Right now, we feel like it makes sense given the chaotic nature of this to figure out exactly what the best pathway is based on how it breaks with an FDA decision. And what we've chosen to do is have all those activities moving forward so that we can pick and choose from our menu whatever best fits what happens with the decision.

我們有自己的計劃，對吧？因此，我們正在完成一些大型動物模型，旨在讓我們進入 IDE 遊戲。我們正在收集大量可靠的回顧性臨床數據，這將使我們能夠以某種方式對 FDA 決定中出現的任何情況進行改造或[曲線擬合]。此後我們有一系列廣泛的計劃，包括持續回顧性數據收集、外科醫生參與的研究和 IDE 研究。所以我們參與了遊戲，戴夫，我們打算隨著時間的推移成為對話的一部分。目前，我們認為考慮到這種混亂的性質，根據它如何違反 FDA 的決定來準確找出最佳途徑是有道理的。我們選擇做的就是讓所有這些活動向前推進，以便我們可以從我們的菜單中挑選最適合決策發生的事情。

Our next question will come from the line of Kyle Rose of Canaccord Genuity.

我們的下一個問題將來自 Canaccord Genuity 的凱爾·羅斯 (Kyle Rose)。

This is George on for Kyle. I have a couple of questions. So the first one concerning reps. So you noted that you have about 75 reps currently. What -- how should we think about cadence in terms of rep adds towards the back half of 2023. And then maybe a little bit on like what territories you're looking to expand into?

這是喬治替補凱爾。我有一些問題。第一個是關於代表的。您注意到您目前大約有 75 次代表。到 2023 年下半年，我們應該如何考慮代表增加的節奏。然後也許有點像您希望擴展到哪些領域？

Sure. Thanks, George. This is Roberto here. So we -- as we said at the beginning of the year, our goal is to get to 70 -- 75 to 80 reps by the end of the year, obviously, being at 75 reps today, it should not be that difficult for us to get to 80, although I will point out that as we bring in new reps, some of them will exit. So it's not just 5 that we may be needing to recruit to get to that 80. We've also talked about the fact that if we identify more than 80 reps that we feel like would be good fits here, we would be willing to go beyond the 80. So we'll continue hiring at the same rate that we have so far and could get beyond that 80 before the end of the year, but we feel pretty confident about getting to pretty close to 80 if not a bit over.

當然。謝謝，喬治。這是羅伯托。所以我們——正如我們在年初所說的那樣，我們的目標是到年底達到 70 - 75 到 80 次，顯然，今天達到 75 次，這對我們來說應該不那麼困難達到80 名，儘管我會指出，當我們引入新代表時，其中一些人會退出。因此，我們可能需要招募的不僅僅是 5 名代表才能達到 80 名。我們還討論了這樣一個事實：如果我們確定 80 名以上我們認為非常適合這裡的代表，我們將願意去超過80 人。因此，我們將繼續以迄今為止的相同速度進行招聘，並可能在年底前超過80 人，但我們對達到接近80 人（如果不是稍微超過一點）非常有信心。

Yes. What I'll add to that too, George, is that of the 75 that we have now, I think approximately 7 or so have just been hired in the last week or so. So we were in the high 60s really for the bulk of the quarter. And I think that speaks very strongly to the productivity that's capable here. And we very much look forward to having the 75 reps be more impactful in the second half of the year. And as Roberto said, maybe even beyond, we're not going to really lay out where we're hiring the reps for competitive reasons. But it's generally where the 3 GPOs have strong footprint. It's almost all over the country at this point. So we're very optimistic that of the 5 factors both rep productivity and the headcount are heading in the right direction for the second half and beyond.

是的。喬治，我還要補充一點，在我們現有的 75 名員工中，我認為大約有 7 名左右是在上週左右剛剛被雇用的。因此，本季度的大部分時間我們都處於 60 多歲的水平。我認為這非常有力地說明了這裡的生產力。我們非常期待 75 名代表在今年下半年發揮更大的影響力。正如羅伯託所說，甚至可能更進一步，我們不會出於競爭原因真正列出我們在哪裡招聘代表。但這通常是 3 個 GPO 擁有強大影響力的地方。此時此刻，全國各地幾乎都已如此。因此，我們非常樂觀地認為，在這 5 個因素中，代表生產力和員工人數在下半年及以後都將朝著正確的方向發展。

Great. Awesome. And then just my other question would be on the long-term resorbable product. Just kind of where are you at in terms of the rollout of that product? And then because of the OviTex based product, is that included in the current GPO distribution strategy? Or is that something that will have to be negotiated later.

偉大的。驚人的。我的另一個問題是關於長期可吸收產品。就該產品的推出而言，您處於什麼階段？那麼，由於基於 OviTex 的產品，該產品是否包含在當前的 GPO 分銷策略中？或者這是以後必須協商的事情。

We've done a nice job of updating the contracts after we got the 510(k) clearance. We are in the process of rolling out the product to about 50 early users. We're about 2 weeks into that process. And we really like what we're seeing so far. I think it's going to be a great contributor in the second half and beyond. And we should be in a position from an inventory perspective and an experience perspective to turn this wide open at some point in the third quarter. So we look forward to strong contribution from PRS LTR almost immediately, I would say.

在獲得 510(k) 許可後，我們在更新合同方面做得很好。我們正在向大約 50 名早期用戶推出該產品。我們已經進入這個過程大約兩週了。我們真的很喜歡到目前為止所看到的。我認為它將在下半年及以後做出巨大貢獻。從庫存角度和體驗角度來看，我們應該能夠在第三季度的某個時候扭轉這一局面。因此，我想說，我們幾乎立即期待 PRS LTR 做出強有力的貢獻。

And we have a follow-up from Michael Sarcone of Jefferies.

我們還有 Jefferies 的 Michael Sarcone 的後續報導。

Just 1 last 1 for me. really a question about 2024. So you mentioned it's still very early days on all fronts in the GPO contract, plus you're rolling out new products through 2023, plus you're building out your rep base through 2023. So when I look to '24, you'll have the benefit of a full year of all 3 GPOs and the full year of that larger rep base and then a full year of new products. So for '23, your guided comply is $20 million to $25 million of absolute dollar increase versus the prior year. Is there any reason why 2024 should it be higher than that on an absolute dollar increase basis higher than that $20 million to $25 million you're expecting in 2023?

對我來說只有最後 1 1 個。這確實是一個關於2024 年的問題。所以你提到GPO 合同的所有方面都還處於早期階段，而且你要在2023 年之前推出新產品，而且你要在2023 年之前建立你的代表基礎。所以當我期待'24，您將受益於一整年的所有 3 個 GPO 和一整年的更大代表基礎，以及一整年的新產品。因此，對於 23 年，您的指導遵守金額與上一年相比絕對增加了 2000 萬至 2500 萬美元。是否有任何理由解釋為什麼 2024 年的增長率應該高於您預計 2023 年的 2000 萬至 2500 萬美元的絕對增長率？

So we haven't provided guidance on 2024 yet. But -- what I would add to what you described for the effect of 2024 is that we may continue to hire reps in 2024 as well. So we'll continue to feel the growth from those reps that annualize in 2024, but also potential additional growth from new reps in 2024. So we think there's a lot of opportunity. We talk about us being in the low single digits as far as unit share for these markets. So there's a lot of possibility for us.

所以我們還沒有提供 2024 年的指導。但是，對於您所描述的 2024 年影響，我要補充的是，我們也可能在 2024 年繼續僱用代表。因此，我們將繼續感受到 2024 年年度化代表的增長，而且 2024 年新代表的潛在額外增長。所以我們認為有很多機會。我們談到，就這些市場的單位份額而言，我們處於較低的個位數。所以我們有很多可能性。

Thank you. And this will end the Q&A session for today's call. I would now like to turn the conference back to Tony Koblish for closing remarks.

謝謝。今天電話會議的問答環節到此結束。現在我想請託尼·科布里什 (Tony Koblish) 致閉幕詞。

We'll see you next time.

我們下次再見。

This concludes today's conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.

今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連接，並度過愉快的一天。