Earnings call transcript Q4 2022

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Operator

Welcome to the CollPlant Biotechnologies investor conference call to discuss financial results for the full-year 2022 and corporate updates. A question-and-answer session will follow the formal presentation. [Operator Instructions]

Now, I'd like to turn the call over to Dory Kurowski of LifeSci Advisors. Please go ahead ma'am.

Dory Kurowski

morning. Good to for CollPlant XX, the like results first XXXX. everyone call conference full-year welcome would Biotechnologies' to financial I ended December Tal, Officer, company's results ending programs With CollPlant forthcoming CollPlant's updates; will call financial the Rotem, and provide an Chief Chief December a Eran Yehiel of Financial provide the us full-year who will Executive XX, for of today overview the and XXXX. Officer, who on are from summary

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

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

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

Yehiel Tal

everyone. Good morning,

delivering a patient. body, medical tailored products there And conference now, life-saving first about of the our we developments. pleased regenerative future investors, each future We individual to human organs. corporate be mission for first spare remind investor also the unlimited very very to parts treatment the to developing are CollPlant life. call an including in to is you with CollPlant's XXXX us will have wanted prolong call join that is the the improve and medicine characteristics of and company. supply where results of And imagine and for on collagen will discuss you technology imagine this Since be and the financial today

collective in that in the XXXX, on longer And as regenerative and leaders improvements we company's engineering, aspire without and developed medical better, Nasdaq imagine medicine, IP our partnerships medicine. management people through in listed, live to and a for then the derive as innovation testing. also at strong science drugs creating technology. Since have animal be and medicine, regenerative CollPlant become helping the our and drawn in in We anesthetic of will the regenerative regenerative need being value company strength human and market leader well capital to become position, devices our

human the recombinant to molecule goal the is non-animal-derived in become medicine it organs. by rhCollagen, collagen, And aesthetic regenerative novel to body's applying or primary Collagen medical and our is global tissues and scaffolding in leader products. our connective

let's Now, that novel our to move relate programs to technology. rhCollagen rely that recent developments on

that The with our first dermal medicine are category we filler technology aesthetic is product candidates. in applying our

be to to first plan. of AbbVie any are AbbVie the on milestones filler that filler in achieved and according we'll approval. two additional royalties CollPlant to expects XXXX. and advance receive should CollPlant we that the product regarding to a Per dermal sales in and regenerative Our obtain developing, products shift to receive program, continues these and long-term move potential we soft-tissue with could the collaboration payments agreement, continues the the develop has forward option paradigm milestones

filler. are addition, dermal photocurable and with In soft-tissue moving third-generation we forward a

capacity, result properties potential product generated combining create platform (ph) candidate from promising this volume and this with to of of tissue advantages photocuring capabilities. of standard. position regeneration, and the the demonstrating the the collagen retention with supporting revolutionary to filler, market. medical of the create three with a technology compared a goal to of CollPlant's Recently, gold paradigm data regenerative preclinical XX-months lifting as superior and Our study filler development a This the aesthetic additional we technology pivotal tissue, new evolving in capabilities; industry regeneration lifting a product [contouring] is shift capacity,

worldwide that filler believe benefits. its regenerative be the product well has potential to providing candidate. of negotiation by the We to global exclusive this first has both right as as AbbVie, natural-looking aesthetic this uniquely obtain granted partner, highly refined and to pharmaceutical third-generation long-term competitive results a license CollPlant

preclinical positive regenerative Our animal second our in evaluating with is program. year, from large our regenerative a study regenerative area of implants implant results announced aesthetics focus a this we breast Earlier model.

progressive regenerative study three these tissue properties. the of no regeneration the connective be their of events implants within reported. regenerative formation demonstrated No and currently kind networks and first market, neovascular of also as Results from beneficial by maturing implant exists with tissue breast months, would after this in implants stages highlighted having the the adverse

other implants and Importantly, versus is body less these by of known biomaterials is there acute rhCollagen of our as collagen, made rejection. are what chance since the rejection animal-derived or

reconstructive and this to in implants cancer data provide Later to Food breast that tissue commercialization. eliciting aesthetic and the generate additional Administration, range postmastectomy immune plan Reports from XXXX. reporting expected XXX,XXX patients. between we adverse forward thus Americans autoimmune symptoms results implants lymphoma. CollPlant's And with response, implants both and another revolutionary without year, alternative procedures, U.S. for commercial-sized are approximately to anaplastic regenerate support reported of large and in safety cell breast may XXXX the to According study look for of to we animals large to have Drug breast events implant-associated including a study. initiate involving

XXXX, our expand signed we decision Tel a Medical a agreement, to November personalized Hospital strategically made in with collaboration University medicine. Sheba also gut-on-a-chip And and Aviv into program. We for

intestine research therapeutic and XD responses human targets can tissue model the to is intestine ulcerative treatment discovery designed to drug and institutions improved order is medical to Our identify lead personalized in outcomes. agreement bioprinted to these that of to bioprinted colitis. co-develop drug with patient emulate allow two for personalized human The model professionals

commercialize CollPlant of have the that will groundbreaking right improvement this once expect models. existing We to could to the approach ready over product market. be animal use

commercial Now, turn BioInk medicine. within to first ours We including let XXL our to form properties, of our provide BioInks, mechanical of flexibility. program with portfolio enhanced commercial in products, two which another operational of of focused expanded our XX portfolio regenerative falls collagen-based that which powder offers me new increased and available Collink.XD is Collink.XD with our area BioInks

animal and delivers and improved which process by platform, reproducibility. launch the customers alternatives biofunctionality, to BioInk of our XX with established of free their was that Our safety, allows XXXX product development biopharma utilizing academia streamline in Collink.XD new

to CollPlant engaged academic therapeutics expertise in the several institutions with company's partnering in remains discussions industry applications. and XD and bioprinting technology in medical and develop leaders interested

We with collaboration areas technology its that pharmaceutical validated agreements and are our has a partnership worldwide collaborations leader multiple of confident as numerous as and our well other applicability.

developing should address sterile also process also will pluripotent be as all collagen for cells, serve made sterilized. strides to will aseptic collagen stem kinds have It ideal processes We cells, a as sterile substrate induced collagen. human in constituent primary proprietary production The an major mass where cells. produce stem of and

to to a over And our now Rotem the of provide call recap financial Financial Officer, will our turn Eran? Eran and Deputy I Chief results, CEO

Eran Rotem

was Yehiel. results sales GAAP XXXX. financial and ending and XXXX period you, for December revenue the now XX, the full-year morning, included the rhCollagen. company's Thank Good our year income everyone. for BioInk of will $XXX,XXX review I from

the from mainly compared Revenues decreased derived CollPlant the rights revenues The $XX.X the XXXX AbbVie for were AbbVie. for December million, by year million to ended upfront year from million to the in $XX.X payment XXXX. return granted XX, in $XX

be the that on development in As we previously, additional receive XXXX, CollPlant suite. Note with the said potential first agreement in receive has CollPlant of such milestones any according and did AbbVie, these XXXX. to achieved payments milestone milestone expects to that payments, CollPlant based product not could the

year revenue products Israel December million of the revenue mainly company's XX, XXXX XXXX. of Cost BioInk decrease cost $XXX,XXX, GAAP was for Authority, cost Innovation of rhCollagen-based for a XX% includes and IIA $X to sales. royalties the ended to the year the or the compared our in for

in expenses to $XXX,XXX comprised of is in in $X decrease and decrease approximately a revenue million approximately decrease mainly $X.X sales. rhCollagen royalty IIA the BioInk of approximately of and million relating of the The amount the cost to the in amount of

are approximately successful increase process. further The amounting activities XXXX. mainly these compared GAAP comprised development in in XXXX, including And with to research for expenses gross loss gross profit XX, year-ended $XXX,XXX $XX.X for million of to operating to XX, $XX.X December million compared the the aseptic $X.X in mainly process was ended XXXX and million year-ended million December $X.X associated was in $XX of GAAP expenses December XXXX. the XX, development. year million development the of costs is

in products and including director's So, development million related now XD of medical product and share-based salaries aesthetics. employee of bioprinting our in for increase in recruitment compensation employees $XXX,XXX and and to an administrative policy supply business partners, employees general can expenses in we to of salaries new lastly, collagen expenses. And insurance sterile new and $X

from each income net non-GAAP totaled GAAP expenses year compared mainly cash the ended short-term attributed Non-GAAP year for December operating XXst the the XXst net ended December years Financial XXXX for XXst is income deposits. of measures XXXX certain received $XXX,XXX. a interest XXXX. expenses. and basis, financial the ended non-cash to December million exclude million $XX.X company's On the to XXXX for $XX.X was

ended share GAAP basic year net million, $X.XX year a per the XXXX. year XXXX. for share $XXX basic December income income $X.XX loss or million was XXst the or compared per XXXX for $X.XX compared per for loss was per December share XX, income XXst for ended to loss ended $X.XX ended share income December year of XX, $XX.X XXXX Or, to December $XX.X the loss net Non-GAAP $X.X million. net basic or

$XX.X $XX.X cash by compared equivalents in of $XX.X year deposits activities XXXX the was activities by by used year Cash used million. XXXX. XXXX. the and investing provided during and December $X.X million year million XXXX, million XXXX operating provided year Cash activities during cash Cash $XX.X to was was cash short-term to million XX, the the compared operating in as in

from of mainly company's from proceeds received the is attributed provided by cash director of realized was of registered company change compared in repayment amount $XX cash XXXX, options executed of million and resulted offering The deposits. to additional into to financing in XXXX. net a Cash million. the during of million provided short-term in warrants. which In XXXX, mainly the in shares. the million million $X.X warrants In $X.X company $XX.X activities and year $X activities exercise year the the the investment And proceeds in XXXX exercise financing

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

Operator

Please Partners. Thank with the proceed line Global question from Ben you. comes [Operator with Instructions] Haynor Our first your of questions. Alliance

Ben Haynor

gentlemen. Thanks day, and the Good questions, progress. on the congrats for taking

First the terms studies that me, there? you'll what's the clinical in in off from next of photocurable filler conduct

Yehiel Tal

question. a [option] (ph) further Thank and you may by later AbbVie, concluded order was the trigger require that development of to We the package preclinical submitted AbbVie. recently for to in some being on This just reviewed product. steps

Ben Haynor

you do to And AbbVie? expect Okay. the timeline package that on hear back have from a you

Eran Rotem

No, was in product as we And news, product this progress. in for product, update. a the we once our is four are it's will are phase. last at and course, preclinical product, so CollPlant of we in negotiation that AbbVie product, right of will the it's have published has we first a before year. It moment, that developing

Ben Haynor

you was just generation? version. mentioned have the the to that I third And on talk bit curious get to Okay, product, a in about the little you then it's third-generation been press that the improvements made got Can release it.

Yehiel Tal

Yes.

if and this third-generation filler provide enables currently to the ability, you basically product two products is features. the one the it the the is contouring second the One means which filler provide the that like of photocurable compare is HA by will sold photocurable lifting also which capacity, that tissue, the regeneration of physician. So, dermal additional contouring only products, it tissue

Ben Haynor

expect for those Do you in helpful. year. that's terms should they would the a up full-sized then do track? gentlemen. expenses implant me in of lot, year? R&D this And be R&D should study me. the year? of How expenditures, it later for And we this the pick What lastly Thanks the Any thoughts breast second-half it. got on Okay, there

Eran Rotem

thanks. So,

we not generally not giving So, information. we -- are disclosing speaking, future are

program So, a stage. can this preclinical what still is that in say I is

it's expenses. the So, expenses dramatic clinical not like

an into of the So, when like market, it we the global should, kind that and situation in will environment a study of not, this course, in clinical year. in go

in saw It's as we we So, few a expecting years. are decent preclinical the amount last expenses.

Operator

you. Thank

line the questions. proceed from RK next H.C. your Our come of questions with with Wainwright. Please

Swayampakula Ramakanth

call. Thanks afternoon, this Good you. Eran. Thank Yehiel doing and for

is which there one currently properly, make in two on So, I that AbbVie, third-generation right, one collaboration filler, first and so product this development, is other understand first not AbbVie products, true? where negotiation. are with the terms dermal of product? the AbbVie with the has the question just the sure is the And to is where that second the in right first the third-generation, Is is for product

Yehiel Tal

your right that is suggested, AbbVie the to question, as first you this respect first With this negotiations is this has of for product. --

Eran Rotem

filler, to regarding second to filler and milestone with say are are important, and as dermal -- this requests. allowed And with it's their and this question, say, AbbVie and is that, now. the we And what AbbVie super disclose we we are is very so of dermal the are expecting that allowed respecting is your products. allowed year. the the know, say we What this RK, achieve to program, phase our AbbVie you the are They are not we to partners, important,

Swayampakula Ramakanth

that. for breast then thanks what's next the Okay, would And be steps doing? on implant you program, the

Yehiel Tal

So relevant launch to are implants with XXX size. large be going a my trial be indicated size in clinically next like earlier which to I talk, cc as step would the in animal

So, this this year, XXXX. will be during

Swayampakula Ramakanth

is conducting long have do an And get to that clinic? that you are you take on data you dollar. the And so, the need your you idea this how it to for of take it would to a study

Yehiel Tal

be this would one about then have whether of as course, And animal you study to of analysis the a on [postmortem] then the first for And get a this would it's preclinical to of point takes be decide endpoint. regulatory sufficient; study time. -- we this follow-ups XX-months to point of study at maybe all the the it year. Well, And another study (ph) study depends or too early with the time all, authorities results. need pivotal to towards required submission say will,

Swayampakula Ramakanth

Can And then the breast are assuming looking implant comment on regarding you anything you collaborator. a Okay. I program, am that progress? for

Yehiel Tal

we're of know continuously And our point on with cannot And collaborations. for time, to situation course, collaborator, Regarding we discussions. this the elaborate looking you of respect at collaboration.

Swayampakula Ramakanth

very much. taking you for all thank questions. Great, Thanks my

Yehiel Tal

Thank you, RK.

Operator

Thank you. is our that live participant. question believe our audience from last I

this questions advance in Eran came So, Rotem I'll in to now turn the call. to over read the any written from call Mr. back audience that or during

Eran Rotem

Thank you.

require first filler? is any follows, as to receiving the plant-based question the testing allergy patient So, a would prior collagen

Yehiel Tal

the is required carry is filler So, to was allergy required testing residues factors prior receiving test And a not plant-based response This collagen at does from past when or does not since plant-derived collagen pure immune made tissue-extracted elicit filler not used. allergies tissue. it like our in collagen of growth host all. were and

is is answer So, to filler receiving the allergy a prior the plant-derived required. test collagen not

Eran Rotem

plants? procure? Are are production tobacco in producing following. of Okay, collagen the the easy differences next these is animal-extracted What the cost process between and your tissue question to

Yehiel Tal

commercial competitive production the going very we of to efficient. cost with is CollPlant is in cost the believe that tissue-extracted And be scale, collagen. process the So,

Eran Rotem

last see here question capacity. the rhCollagen regarding so that Okay, is is production

we about what can say So, that?

Yehiel Tal

production capacity we is commercial So, the scalable. can that our demand in we our the products years. products And satisfy or coming believe our for partners' upcoming

Operator

Officer Executive questions Yehiel? CollPlant's so I'll to Okay, back audience. great our And from for now Chief it pass Yehiel remarks, closing that Tal, the concludes any

Yehiel Tal

thank Yes, you.

development XXXX, our to achievement So, advance personalized safety of commercial treatment commercialization, of I upcoming soft study drug support additional milestone sized in with want ulcerative advanced shifting regenerative, model implants data goals expecting dermal continue Gut-on-a-Chip and first for to the in paradigm development of in discovery fillers tissue AbbVie, reiterate tissue colitis. of closing, initiate to with for breast and large in XXXX: animals generate

new to portfolio continue rhCollagen-based to the applications. form We collaborations of co-develop expand last and leaders and therapeutics with our BioInks commercial medical one industry is

we to to providing are that I employees medicine would the industry. shareholders, on our us sustainable reiterate and benefits regenerative and like becoming our everyone science in supporting innovation the that more to I thank want call. our conference including stakeholders, for patients, all first life committed leaders ecosystems to joining

As rely that vision with do enable organ novel regenerative drugs to mentioned, products supply, not on trials. animal tissue our a diagnostics world unlimited and is and

to you. look We and promising markets this, attractive Thank are to year substantial and we targeting a do and ahead. forward exciting

Operator

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

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

CollPlant Biotechnologies (CLGN) 29 Mar 232022 Q4 Earnings call transcript