CollPlant Biotechnologies (CLGN) 27 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the CollPlant Biotechnologies Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Dory Kurowski with LifeSci Advisors. Thank you.

You may begin.

management welcome discuss CollPlant third the September XXXX, to Conference Financial quarter like a XX, to provide Call results where would everyone update. Biotechnologies to Results ended corporate I business also will for the

call an Chief quarter With of financial provide Officer, Eran are Yehiel who September of Rotem, updates; who and the answer company's Deputy a from provide Tal, Both for be us XX, ending today CollPlant and Financial Executive Chief on Officer, associated second CEO the will overview summary of XXXX. will programs results questions the CollPlant at the will able to the and call. end

risks, call Factors CollPlant's filings would to Actual statements started, statements. forth found factors result www.collplant.com. everyone uncertainties forward-looking Commission. These differ www.sec.gov get events or including can of CollPlant's I we results a as other Securities Before any from implied Exchange at like by set include or the on or may those of could statements expressed with section forward-looking at this remind conference those materially and and various Risk that website be made on the in filings

views obligation this disclaims these of of any and specifically today, company's or views November as any statements. addition, should upon management call XX, subsequent update CollPlant's any not statements In as made only revise forward-looking the forward-looking on representing XXXX, CollPlant's date. represent as of to be any relied

accordance financial not in call. GAAP to with on certain refer will this management measures CollPlant Finally, reported

that is on ir.collplant.com. in financial to measures today CollPlant's website financial and the which non-GAAP GAAP available these of reconciliations earlier find earnings release press published can measures at CollPlant You the

sir. the Now Chief to Please call ahead, go Executive Officer let Tal, of CollPlant Biotechnologies. me Yehiel turn over

a to you we our corporate to our joining mission medicine. financial everyone, us of field conference quarter morning, thank in and third pursue and the development leader CollPlant's regenerative on discuss as be investor Good today XXXX for call results

on start with update will I an breast program. implant the regenerative

recent preclinical includes our shareholder QX launched of value. our formulation. and printer. product creating has optimized proprietary significant advancing and suitable our implants This XD and advance the is to technology implants continued and a assess study critical study is clinical we study Stratasys' surgical designed cc commercial-sized marketed breast towards This refined printed size and to animal and implementing product new XXX in most design to a preclinical quarter, that bioinks safety using been with rhCollagen model, and performance more based This composed implant protocol

has optimized of has implant providing ingrowth, to All Specifically, with natural to its degradation controlled the the contribute throughout been over the been for enhanced in implant procedure's as a synchronization time efficiency. has incisions structural tissue that designed to smaller durability process. the implant degrades fill. minimally kinetics, allowing the these significantly implant stability and administration full invasive enable now through design tissue enable regeneration means which Furthermore, well the as new improvements

months post X update the implementation. results study to shows that happy I'm good today

Both we tissue host implant with factors support far, native of significant enable regenerative So and which and seen long-lasting effective implant the of tissue. are have processes. ingrowth the rapid integration vascularization an critical

It to note this phase, the step important and with completion data human will to closer implant as that to This partners. is for tissue MRI histopathology in studies. an also one is discussions to the time. as study over and up enhance our follow-up, primary the ingrowth as of of terms now integrity tools follow mark In intended the are as development we position advancing to well as potential degradation serve well

same Our programs, of including implant the human regenerative the has molecular our recombinant backbone breast collagen. the is human collagen identity technology, which as

response. medicine collagen characterized market. ideal our regenerative regeneration physical considered collagen scaffolding in for eliciting here, molecule for most properties as the immune be characterized fully serves tissue is has shown without an biological its and As It molecular, therefore and to been the

breast could tissue. undergoing undergoing of regenerative for has implant be revolutionary overcome as cancer the potential since as saline enhancements well reconstruction, women both or silicon, breast product made implants Our to the autologous candidate patients breast existing it challenges aesthetic fat of

has market or regenerated projected tissue today. procedures, estimated breast by worldwide approximately growth lucrative second grow and from own augmentation for We procedures global with and the need is breast market patient's XXXX. characteristics future approximately that surgery corrections. Additionally, also billion at attractive may $X and performed billion to procedure This implant to the reconstruction representing eliminate is the the plastic know most breasts common extremely $X.X

historical about that surgical and breast on significant. believe future natural, human safety concerns corrections, Based demand organic for newly worries implants be the we tissue could grown

cell have the a lymphoma, implant noted of events cause availability and minimize to The currently of current with aesthetic As adverse breast to could procedures associated previously, been implant reactions a implants. form we available rare be materials for and can related immunogenic regenerative reconstructive large transformational cancer. anaplastic has

candidate shift AbbVie Our by and therefore properties market and as filler of XX% its to well the The it the a create both own is and grow approximately focused currently a aesthetics expected valued on to year. is dermal for wrinkle filler medical paradigm and filling is market. ability This market. the tissue to $X.X skin development aesthetics continues, in collaboration has the offers product as product regenerate potential tissue soft with billion

There secure our being Therefore, lines, wide discussions. we access that forming and have fully continuous towards applications prioritizing our our additional able collaboration capitalized are human Along demand engaged for to additional from path We is company support we of for gain clinical recombinant a rhCollagen companies partnerships. other through testing to the nondilutive for in and collagen. these cash our bioinks of a want implants. to had interest range are

about our prudent reducing being and annual burn operations existing streamlining also are rate. We

Annual Society for International for the November at ISBF Meeting Biofabrication, CollPlant during is of development And ISBF. research biofabrication promoting professional lastly, society XX to showcased a medical the XX and applications.

collagen for regenerative platform breast presented mass and we conference, human innovative of the production technology implants. of the our biofabrication During

interest Our gained a with presentation wide audience collaboration from new opportunities the institutes. academic and has opened

That concludes remarks. my initial

I'll Now Eran and Chief call Financial CEO over a Deputy our to turn Eran? of Officer, to results. provide Rotem, the financial recap the

largest the quarter related September Thank September XX, is I morning, compared for revenues X planned quarter will results months during rhCollagen The the to everyone. XXXX. this X development XXXX. customer GAAP you, XX, plan, deliveries third are customer. for $X,XXX the September The decrease periods customer review The made. this in to accordance Yehiel. with Good of quarter, December customer. prepared the to supply accordance XX, with and ended our to our in this no financial sales CollPlant XXXX, for now the is In mainly were were or ended the And to third quarter rhCollagen ending deliveries see CollPlant's plan of the third XXXX. we $XX,XXX to

reason the in achieved which to decrease ended revenues we $XXX,XXX triggered the to were for for a million X We payment September XXXX. the with the between X XXXX milestone In September periods. months XX, XXXX, main respect revenues AbbVie for months XXXX. see ended a agreement, GAAP is compared XX, the $XX in This million $XX.X these

related the QX $X.X GAAP XXXX. XXXX million months to $XXX,XXX XX, for cost revenues September ended for inventory ended of $XXX,XXX in $XXX,XXX XXXX, X the IIA, payment to XX, compared for $XXX,XXX The in in cost compared was X XXXX. mainly of increase revenues $X.X in mainly QX royalty comprised from in the million the of GAAP ounce September was months approximately in of milestone cost impairments, expenses the to amount of by received $XXX,XXX AbbVie revenues offset XXXX. to

to was $X.X was XXXX. for a months the in GAAP XXXX QX $XXX,XXX loss $XXX,XXX gross September XX, gross XXXX. to the million QX September X gross loss profit of $X XX, X XXXX, months compared million ended GAAP for ended in compared

a million decrease and related compensation is to compared million by were QX XXXX. of of GAAP operating compared approximately QX offset QX share-based decrease noncash $XXX,XXX certain $X.X $XXX,XXX XXXX in related activities, expenses, in breast million $X.X to of Non-GAAP for development in basis, QX exclude XXXX. million were expenses XXXX expenses. implant expenses On in for non-GAAP The products. salaries measures $XXX,XXX employees' increase $X.X to a to mainly to an $X.X mainly the operating

million the breast months ended September implants expenses to non-GAAP XXXX, activities compared million months project. mainly expenses for for were million months XX, operating XXXX, the X development September is XX, ended a to for in XXXX. GAAP X $XX September September basis, related for the to X the operating compared XXXX. of ended $XXX,XXX $XX.X XX, approximately X $XX.X were the $XX.X ended XX, On The increase months million

for GAAP short-term financial cash XXXX to ended net, months to in XX, the financial is XXXX. XXXX. in $XXX,XXX QX income, ended compared net, X for $XXX,XXX $XXX,XXX the X from and the compared totaled increase rate interest XX, company's income due to September differences. September QX GAAP deposits in months received $XXX,XXX financial exchange The XXXX, totaled income,

QX for was $X.X loss basic for net of or a $X.XX per share share or $X.XX million loss $X.X to XXXX loss was loss for net loss share or $X.XX basic or net for XXXX. QX per GAAP million per XXXX. compared Non-GAAP QX basic to QX of loss loss million net per $X.XX $X.X loss million compared share XXXX a $X

loss XX, million the a led net share, the XXXX for to share between XXXX, of a The basic from to the as know, upon the development was to $X.XX ended in million, CollPlant XXXX. for in already achievement dermal compared XXXX. $XX.X loss X milestone you plan. main basic milestone, of GAAP net a million or arises September AbbVie $X.XX from the XX, periods differences Achieving September loss payment ended per the fill reaching in financial loss months months per X or $X.X $XX CollPlant's of performance

$XX.X Non-GAAP XX, or $X.X for basic XXXX. for months ended share was share, the net September of X loss net ended XX, million, loss compared XXXX, $X or loss months X a per million per $X.XX the to loss September

million, compared million. as operations on which the XXXX. XX, cash ended least XXXX used equivalents plans. expected XXXX, requirements, activities XXXX, were is the to in the ended $XX.X cash operations company's $XXX,XXX was X XX, at contemplated the and $XX.X Cash of X-month XX, cash during until The balance September end the for and to period operating months runway, September currently company of based Cash represents September satisfy

the was X used Cash XXXX of property during $XXX,XXX months XX, September to equipment. for and purchase and X September ended investing to XX, XXXX, related activities finally months in ended compared the $XXX,XXX

the from X months million for The financing to of XX, $X.X loss $X,XXX to the September investors last by provided year included X years. ended activities proceeds months XXXX. the the compared September in granted Cash exercise during was company XXXX, XX, ended the that previous warrants period

This questions. I the the can open for financial that Operator, summary. believe now concludes we now call

I now to turn floor Q&A back Rotem over Eran to to like go the over session. would the

Thank you.

is of please you we Can implants. So reported couple the a have elaborate on results your of the questions audience. regarding the have preclinical you the breast And from meaning studies? first from one the

Okay.

would a are a in respect developing dynamic Among many process, breast be patient, healing with say that the There the And to it's challenges So during enable like natural I implant should or should filling. implant. condition. these the challenges,

the of implant plus newly the is stiffness the generated tissue changing. So

it. of is to -- challenges the control things the one one of So

as And a should challenges the well Secondly, the as through small also surgeon be administration needed are handling implant to simple. we of from very the procedure address. the point very that view, incisions implant

tissue, challenge degradation Third is the control of to fat formation also we and kinetics the the of implant. need

tissue be for free. immune be new of of degradation well the with safety as So as the these there the implants should should growth response not And course, challenge the that synchronized the implant. of is induce fatigue

the of was animals. the how are formulation study see printing performing and large purpose of basically terms design to the optimized to process implants, the So basically and in which in are

intact had testing during structural this regeneration The the should checked regeneration stability implant throughout process, should time. the fail. We implant be not degradation process. We are over the tissue

about to a We and incision. through administer that. X incision implant also inch of size ability than small which the is is The used more the the usually in not processes checking are very augmentation

And easy So implant the of this during be implant folded be basically and to course, enable of process. fill regeneration administration. should the the natural able

in month. saw of So far we per and ingrowth tissue. study, the this tested the we the design. vascularization formulation rate implant optimized centimeter rapid of optimized in ingrowth and what new is so study native X is And significant in This

space, the the fully So will spaces the populated after open X basically, of grown with months. be implant newly implant a in the tissue

later the way we saw way, assess my in the earlier, ingrowth ingrowth histopathology the and the By is this just implant. talk I as tissue So data. in this confirm using on tissue mentioned we that MRI to

also the implant. the the and between we integration We to tissue the host should So reaction see any not implant checked issue. foreign

this what we far. So so And in is study of we monitor continue the the saw to animals. course,

-- and we be hopefully, to many We call, able should subjects have a it's from study next our results report with large additional the study. in

you, Yehiel. Thank

technology And indeed today is next college. in number of And are product medical Another question as with as agreement estimate an products, various be agreement you the and dialogue, we are regarding collagen many the difficult aesthetics examining dialogue technologies with will fields consideration you finish interest when developing the that you in a a collagen is the in to see that estimate takes the who with will have regarding and we field time we indeed in is collagen. reach Today, their our indeed agreement. companies signed. companies, It the interested follows. is mentioned. mentioned to elaborate in of are of Can companies when announced? So and another -- a in it

However, it agreement is year. sign on during our next top to objectives another XXXX

now Officer, concludes Yehiel the for I Chief turn the And will Yehiel? closing Executive questions remarks. call to that back So any Tal, audience. from the CollPlant's

Eran. you, Thank

products in discover, prolong So to deliver to our regenerative and lives. is CollPlant's collagen mission and improve develop medicine technology

programs core tissues organs. continue goal to with our advance creating and the the on enable supportive that our to partners products focus mission and this carefully regeneration We of of

our Our helping in collagen through vision is regenerative people and leaders to be technology. the medicine, innovative better live longer

safety studies the candidate, related form to want utilizing to discussions focus XXXX future AbbVie, I in for clinical to existing closing, of and collaborations on efficacy goals program commercialization industry product collaborations with conclude implants of generate technologies dermal bioink the our this and as leaders and data development continued advancing rhCollagen of support we filler In with continue potential our programs to our our on related products. and and additional reiterate and regenerative plan XXXX, we to enter breast

for successful Thank have important joining you, today's our everyone, for time productive your thank valued members quarter. call. who and contributed for this to very team us to want and morning another and I conference CollPlant

We does your This you. Thank appreciate teleconference. conclude today's participation.

this time. the You may your disconnect rest your of lines at Enjoy day.