TELA Bio (TELA) Piper Sandler 37th Annual Healthcare Conference summary

Market position and product innovation

• Positioned as a leading provider in hernia repair and plastic reconstruction, with a product portfolio considered superior or on par with major competitors.

• Plans to double the hernia portfolio in early 2026, including a new long-term resorbable polymer product.

• Two new plastic and reconstructive products launching in the second half of 2026, targeting de novo markets and cosmetic applications.

• Clinical data supports product efficacy, with over 1,000 patients in various studies and strong outcomes for both permanent and resorbable products.

• Inguinal portfolio demonstrates ability to compete on price and performance, with over $3 million in sales at a $500 ASP.

Sales force development and execution

• Upgraded commercial leadership team with talent from Abiomed, focusing on professionalization and accountability.

• Sales force expansion underway, targeting 90 reps by end of Q1 next year; 52 reps with six months tenure are at 100% of quota, averaging $1 million in annual sales.

• Compensation plan rewards growth and exceeding quotas, aiming to retain high-performing, growth-oriented reps.

• New leadership identified and addressed underperforming regions, with ongoing upgrades expected to drive further growth.

• VIP program targets younger surgeons, supporting generational adoption and market penetration.

Financial outlook and capital management

• Projecting at least 15% revenue growth next year, with upside potential from earlier hiring and new product launches.

• Sales and marketing spend reduced from 93% to 70-73% of sales, showing improved efficiency.

• Operating income break-even expected at high $20 million range; R&D spend focused mainly on clinical studies rather than new discovery.

• Ended Q3 with $30 million in cash, raised an additional $26 million through debt and equity, with access to a further $10 million tranche.

• Confident current capital position is sufficient to avoid further fundraising.