Establishment Labs (ESTA) Jefferies London Healthcare Conference 2024 summary

Innovation and technology leadership

• Focused on revolutionizing breast aesthetics and reconstruction with proprietary technologies like SmoothSilk, reducing rupture and reoperation rates to under 1%.

• Launched ergonomic and minimally invasive implants, expanding options and comfort for women.

• MIA Femtech addresses a new market segment, with over 40% of patients previously not seeking augmentation.

• Early MIA adoption shows higher willingness to pay and rapid decision cycles, supporting category creation.

• Pipeline includes tissue preservation platforms and GEM for gluteal procedures, with ongoing clinical studies.

Global market expansion and performance

• Achieved leading market share in diverse regions, now expanding into China and the U.S., tripling addressable market.

• Early U.S. launch exceeded expectations with 300+ accounts and 35 sales reps onboarded.

• China expansion supported by a $50M distributor investment, targeting market share from established competitors.

• Asia-Pacific and EMEA regions show growth despite macroeconomic pressures; Latin America stabilizing after challenges.

• New product launches planned for additional countries in 2025, supporting further international growth.

Financial outlook and operational efficiency

• Gross margins improving due to premium product mix in U.S., China, and MIA, with disciplined cost management.

• Cash position strengthened to over $114M, with additional $25M available, supporting path to profitability by 2026.

• Streamlined operations by reducing non-core headcount and consolidating manufacturing, while increasing commercial staff by 30%.

• EBITDA positive targeted by end of 2025, with first profitable quarter expected in 2025.

• Efficiency measures ongoing, focusing resources on growth areas.