Earnings call transcript Q1 2023

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Operator

Welcome to the CollPlant Biotechnologies Investor Conference Call to discuss Financial Results for the First Quarter of 2023 and Corporate Updates.

I'd now like to turn the call over to your host, Dory Kurowski of LifeSci Advisors. Please go ahead.

Dory Kurowski

Good morning. I would like to welcome everyone to CollPlant Biotechnologies' financial results conference call for the first quarter ending March 31, 2023 and corporate business update. and call who CollPlant of who will programs March forthcoming the Chief Yehiel the XXXX. will on CEO XX, the and Officer, Deputy first of Executive provide updates; results provide us a today Financial CollPlant's are from Tal, company's and summary With Chief Rotem, financial Officer, for Eran an ending overview quarter

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

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

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

Yehiel Tal

Good morning, everyone.

and XXXX results today investor conference CollPlant's financial on developments. call pleased us our very join are discuss first you We quarter have to to corporate

to and CollPlant is technology medicine life. prolong developing collagen regenerative improve and products

our providing industry. the stakeholders more including science the employees, regenerative shareholders, a and benefits in medicine all leaders ecosystem We to our as life sustainable innovation well as becoming are committed to supporting patients, that

and recombinant technology. and is body's as building the serves connective the our is business tissues tissues the human all novel our the At and scaffolding primary in human mammalian of molecule collagen proprietary block for organs. Collagen heart

collagen recombinant filler. is of our to or products. by hallmark properties, tissue our technology, goal regenerative leader in medicine and its regenerative it as aesthetics drive global is well non-animal course, novel It medical both a human applying The average our as xeno is to become of collagen

are filler dermal according ability with candidates product tissue program long partner dermal market, global collaboration out are in filler the term our to properties plan. top and technology focus continues The provide filler to forward to would pharmaceutical This have addition applying We candidates. to there. since shift our to move There is our filler. regenerative it the they

from related has as to this AbbVie CollPlant potential the milestones program. program, the filler dermal to well obtains as this save royalties product option payments on once and additional a candidate cells

continues advance as filler to stated expects milestone that and achieved be previously, the in the program first AbbVie XXXX. CollPlant could

tissue Additionally, we continue the to state-of-the-art and development photocurable thermal of filler. soft advance

capacity, an create product to is goal lifting capabilities, Our of with innovative new contouring three regeneration tissue and filler capabilities.

aesthetic As We competitive these we product has highly as uniquely as long term both to that regenerative and benefits. refine exist a that improvements generation believe potential looking the the well this to be providing this results, filler refer we filler. by third are natural to filler making today, as

license Furthermore, augmented obtain this CollPlant applications. product to of right first body a be technology granted AbbVie, has negotiation could to candidate. include worldwide also facial the contouring to exclusive this

study in implants we program. the announced preclinical the positive evaluating let's regenerative our a At results And implant from beginning this now toward animal model. large of regenerative breast the turn year,

reported. highlighted three no are adverse months formation which as We the progressive by tissue connective by no and demonstrated with networks of results regeneration these within very tissue of after maturing events encouraged the vascular stages implants

half second subsequent of trial in that implants we larger initiate the for large This basis animal second plan to evaluating our study in the forms the this model year.

support to this infrastructure currently are trial. the We preparing

No currently also kind and having in exists regenerative unofficial market regenerative implants properties. implant be first would breast their of this the the

development with a in XD recently and announced commercialization printing technology and just ago. pioneering manufacturing agreement we leader this Stratasys, decades technology a in April, after a Importantly, in joint an world additive leader

are to the collaboration on rhCollagen-based DLP development bio client organs. technology printing With Stratasys a Stratasys, XD that of collaborating biofabricate with we tissues human state-of-the-art, photo solution polarization utilized capabilities. with XD and PX BioInk printer together a is the combines programmable core and This unique

trials an for clinical effective scale of important first for implants projects be CollPlant's focus breast commercialization. The implant support the collaborative of solution solution regenerative on program. will to our will up industrial And and development scale this of

technologies with see rhCollagen implant in CollPlant's based also a an you each solved. utilizing printing have inks. We utilize we in as have printer XD to can indications companies multiple different other's example bio Stratasys breast have products. do its printed said of collaborations both past, for strategic to printing agreement, combination cross and Other parties bio our with printed being Here strategy serve to with DLP technology is that different the promote was agreed PX

of to as for example, long-on-a-chip tissue or would features have a gut-on-a-chip that product the multiple very printing such or For small of materials use need construct models. with

The a and bio breast areas. aesthetic business potential post to mastectomy eliciting the response including revolutionary procedures for have without cancer has become reconstructive and alternative printing to both in aspect CollPlant's regenerate are applicability tissue implants designed therefore patients. our of multiple immune to

Administration, symptoms and Reports breast adverse XXXX anaplastic involving to According XXXX. large between Drug cell the and reported breast implant autoimmune or events approximately from implants U.S. Americans associated lymphoma range to XXX,XXX have Food BIA-ALCL.

forward would the of from regenerative in support optimization are and and important that data the look implant safety the from submissions for we next future regulatory clinical to studies. be We additional generate The and study year. will these results this for used reporting efficacy study

an that to Shifting opportunity in options traditionally to our the program, area where existed have life is we this disrupt gut-on-a-chip have the sciences.

for this development. approach we be could improvement of existing that diagnostic developing over are expect animal in a medicine use we personalized the Here, tool for groundbreaking drug models and use

that signed University medical year, should gut-on-a-chip we with agreement our Tel-Aviv to and the last us fortunate are that the I university miles November, Sheba collaboration the are XX away. Center and we Medical for only In close add centers program.

So get face face to strong collaborate we our enabling to frequently quite relationship. partners with

lead professionals has Should product. drug tissue order approval, agreement Our for patient printed the human institutions intestine to bio is therapeutic exclusive and allow personalized emulate a co-develop discovery with commercialize outcomes. targets identify XD in can the improved the that of model printed gut-on-a-chip medical model to The CollPlant bio and drug responses receive designed to personalized both colitis. to to treatment human intestine ulcerative rights is to

turn of This launch BioInks. established was portfolio in our XXXX with Now to platform commercial the let me of Collink.XD-XX.

powder launched properties increased flexibility. form which we Collink.XD-XX, BioInk this, to mechanical first provide Collink.XD-XXL, our operational enhanced Following available offers in and

bio-functionality, The alternative biopharma an our improved that utilizing platform delivers by animal customers and entire academia to and streamline allows development free product reproducibility. process their new safety of

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

developed produce aseptic also have We a mass proprietary process sterile to rhCollagen.

immune stem all our well cells pipeline accelerate that serve utilized primary an collagen as can we human in are of kinds our product sterile will The stem proliferation. producing and response substrate will cell and Furthermore, as cells, our partners. it will cells for by ideal now as not be pluripotent elicit since induced collagens

a constituent will be collagen collagen address also this production processes where major should sterilized. as Finally,

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

Eran Rotem

everyone. Thank morning, you, Yehiel. Good

March period results our I the will review ending months for financial XX, three now XXXX.

This quarter, we in a last significant versus revenues saw increase year.

GAAP XXXX, in increased ended For by the quarter XX, to the first $XXX,XXX quarter compared $XXX,XXX of to revenues March XXXX. first $XX,XXX

increase than in and resulted of CollPlant's from XXX% quarter from from income more an sales of Revenues the and other of CollPlant, our included business rhCollagen partner. this increase BioInk and mainly to sales rhCollagen

with receive milestone XXXX. milestones in AbbVie, to As reached payments has product and these based that we of expects CollPlant previously, said be the potential the according first milestone could to additional achieved the development on CollPlant agreement

of the cost Innovation includes QX, rhCollagen the of $XXX,XXX and to GAAP revenue cost for company's sales. the in mainly for of revenues based $XX,XXX quarter Israel of the to was XXXX. the XXXX third royalties Cost Authority compared products company's

$XXX,XXX operating gross of approximately company in QX, increase profit same $XX,XXX QX, The for profit was expenses kept level to this and GAAP quarter. of year as gross GAAP $XX,XXX the compared XXXX. during XXXX last

were quarter the first first XXXX. $X.X On million first of in million quarter the compared a to reduction million million for the the XXXX compared quarter expenses were for $X.X for to X% XXXX quarter first of basis, operating expenses Operating $X.X XXXX. of $X.X a of the non-GAAP

to expenses net the certain net in first compared in rate measures GAAP of cash $XXX,XXX XXXX. the from quarter and financial increase Non-GAAP of cash decrease XXXX interest income totaled of first to attributed non-cash to and the exclude XXXX. from equivalents expenses compared The in in increase mainly short-term financial first exchange company's an quarter received quarter for a cash $XX,XXX is deposits expenses expenses.

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

and have CollPlant's operating carefully a during maintained position We have expenses QX. strong contained cash

of as deposits XX, to were in quarter Cash $X.X operation March XXXX the compared the during million $XX.X short-term used XXXX. was first first and XXXX, equivalents cash million of activities quarter Cash, million. during of $X.X

compared of attributed million of shares financial provided decrease the activities during period. is exercise same This $XXX,XXX activities The Cash more last now warrants from the by proceeds concludes to first financing first summary. provided $X.X the quarter XXXX mainly by into to the XXXX. typical of was financing the during quarter year during

for that can call questions. open Operator, the I believe we now

Operator

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

Ben Haynor

gentlemen. day, taking questions. Thanks for Good the

just the large or me on I'm wanted studies second this second Can off entirely be the not clarification Stratasys whether on or ones are in second how going some to to of on from provide implants you the year. animal half First printed Stratasys sure used the touch agreement. half that?

Yehiel Tal

Ben, Thank for question. Yes. you, the

So Stratasys' the further. collaboration me let on elaborate

be will we to and on bioprinter solution the utilizing Stratasys' Stratasys, human development organs. unique in are will of collaborating a technology. the with XD programmable is collaboration based biofabricate So And PX photo-polarization, that this be tissues

with company's And together buy rate. the

program. development an important industrial of solution scale CollPlant and our on project collaborative focus very implant commercialization. first of implant for of be trials support The to for this regenerative the clinical will the will the solution breast An effective scale up

are stage We the in we will print this we able sizes the implant a half but printer year this of are different printer. of already to study the optimizing leverage printer including to clinical large size are studies of implants - basically is the second in now and plan bring implants the where the in and with we the still with do process, in that implants the this Stratasys'

Ben Haynor

Okay, great.

So study for the second used then study, the the optimization that remind occurs. complete And be will submit could large me animal could be the that FDA? before registration to to

Yehiel Tal

question. is following. a sequence That's Actually, the good the

We the will of optimization are is for be year. going all, thing. used Both this - to two one have formulation, studies this first of

the second The the for and of of thing implant the one, kinetics. the structure is the second biodegradation optimization

this which and at it term will to to these these in ahead that two of we go year, of be will conduct package use authorities. be a we launch to these the for which the plan, study, So a ones year, long the with the that next the serve not results, pivotal plan beginning will the submission we according regulatory will And will purposes. studies study, studies

Ben Haynor

could from bring mean, to a you on then the be me the you of Okay, to customers just how offering Stratasys', sort playing that tell it how cross seems me portion with turnkey that would and their great. And I see fairly promotion important to if curious of meaningful agreement just having Stratasys' out?

Yehiel Tal

Yes, okay.

This which will promotion to One were develop if collaboration on is us. for the with prefer enter is third that first So way the do be we choice and require for would basically definitely later this example, will us is we working to work ways. the with different product, commercialization printer. we the party, a the in development Stratasys cross the

will And either they biological the go their to or users companies, vice-versa, academia sell in then to inks. its processes printers commercial our market, promote will

also product So of another this party a basic might where for will jointly And is be we collaboration. third collaborator. nature the the there codevelop situation

Ben Haynor

data recollection Okay, was that. soft That's just to we then great. submitted have should My curious more And third hear expect that helpful. about had when the to some on filler. you generation tissue the photocurable -

Yehiel Tal

Yes.

earlier, progressing The And the is a we that filler in program this the together according the as this So to first another plan. under is payment milestone of all working expect dermal I is the first that development. are a third achievement milestone said currently which it year without because there the for - regarding basically call product we product We photocurable in sequence XXXX. market. of product generation we filler

standard The acid current uric is product. gold

course can That's regenerative we this is which product filler implant, said generation is generation they is combining second is third And called these collagen it's as that. trigger is The an a which decide why to And the and then a dermal options should of the third which do HA. earlier, implant, photocurable. is one have generation. and the I and option

Ben Haynor

for don't Could lastly applications -- body the applications photocurable little a mentioning see talk that you me, think you you those contouring obvious And and about maybe then guess Got Okay. recall I I there? bit more product. I the well, for it.

Yehiel Tal

Sure.

product illumination basically are this can the that and on So There for process. that then contouring. of The can uses contouring, the product about facial control different platform to be it. different be by in all, nice thing later areas -- of the contouring a first technology implant expanded body stiffness can you the it's

the We developed through linking cross the a that light is the and and soft implant through process. tissue, the linking source tissue able to also penetrate basically with reach cross unique basically final

the of or contouring. So a we use stiffness to of facial are to controlled which this indications, and us enables contouring the the implant expand achieve either can variety body

Ben Haynor

Okay.

the is So, don't I do would that get to the -- mean, are I or filled guess facial, be application? outside what applications? would in if - non-facial my what like what it I an crease I example more armpit,

Yehiel Tal

all, it's shaping. facial First of

the the For nose, So displays example, example, regenerate in basically can for recess. fill we somebody additional has these towards and a in recess you recess

So this example. is just one

one on second the kicks. The

So the tissue the and to same it can shape is sculpt the nice and the give desired with basically photocured then the shape will shape and physician so fingers lock change is on thing the afterwards. the you which that

Ben Haynor

Well, definitely it. for Okay, questions thanks is the got taking This helpful. gentlemen.

Yehiel Tal

Thank you.

Eran Rotem

you, Ben. Thank

Operator

question question. next Swayampakula Our from your H.C. with Wainwright. Please proceed is Ramakanth with

Swayampakula Ramakanth

Thank you. have I a couple questions. of

research the program, one program. The the first gut-on-the-chip is on

see the with in that least what are so So get can you this to if outside planning at can product. you with a your make you partnerships relationship there, universities show 'XX to commercialize

Yehiel Tal

Sure. the Thank you for question, RK.

We have developed a roadmap for this product.

integrators in all system collaboration, like the the of First of terms we are the process. in

universities We organoids chip are the bringing part. support. from - nano contributing development and have more the are And bringing patients related to hospital the television the providing electronics they that their clinical is with itself the basically of Sheba the the by

team. an is that filler which in of part gastroenterologist have We expert this the is

proof-of-concept we on of here model process this model. the where what So have of the that we which these opportunity. this It might of different be main much is big market goal medicine, our main has bigger take a companies, drug might partners. to eventually, and of idea 'XX, are tissue is doing developing is then healthy are but we the be partners by a are And The first will discovery, the end or pharma induce for we we all, we target doing basically are start, to it colitis been personalized model.

and the colon drug after screening take to cells, we future ideal the the that this they there get are basically come will plan do will the And time scaffolds colitis, with most use then the the that patient, incubation after us a of be printed a or up of metabolism structure on we in patient cells, eventually to the the and and check the optimize which drug extract chip some from in basically dose tissue drugs and solution that see the expand mimicking certain or - case, we And is providers biopsy to believe later cells patient. the chip from different the the will for service the to the cancer. also with

plan. the is this So

question, of this to So your model RK. of we a working gut-on-a-chip the tissue end model. to of bring back want demonstration have By XXXX, tissue, original

Swayampakula Ramakanth

those Fantastic. want different inks, that commercial talking - portfolio. about you're on in to the that the on And then on BioInks the the come you

this the XX is in one and only how revenues, not So XXL, the looking terms that see at, in now, in the also XD product which with that the the market but XD you're terms using you learning of you XD growing the what of XX. later products and do people are it

Yehiel Tal

Yes.

strategy. me say let about something all, of the first So

technology now blocks a building in to BioInks. are gold our do in a order industry. creating is We standard are In positioning BioInks the we the stage of of that, for

formulation. So for use need indication to biological ink each proprietary customized you

And blocks use for or academia, today certain assemble the their in can components the like basically most we the that stage a they we building of this the researchers give give reason, a own menu proper BioInk. the of are development and check in them companies and the of indication, of in select course,

So, so using users our the are variety far They're very different. basically, XD feedback in technologies. it we academia. get good a the customers in of And from

are doing ramp some tissue, And of of them are applications, Some hard soft a drug tissue product. in them - of sales also them some the discovery. we of on see this

Swayampakula Ramakanth

you good. Okay That's folks. have you. all Thank for very I

Yehiel Tal

Thank you.

Okay.

Operator

that participants. I question from last is audience live believe our our

any that I'll back turn in questions came online. to now Rotem it Mr. for So

Eran Rotem

you. Thank

I have So currently two questions.

elaborate will why, be? expect is and and first last you Mr. the do revenues up who for in what trend Levy are customer that see was we year. the you them. And one I'll coming address the revenues increase So versus Can the

Okay.

sales and of first that Note payment. - of revenues CollPlant. up majority is partner quarter did So in milestone one are in receive the from the a from significant strategic last it's company's the not the from have the rhCollagen CollPlant did the year and including, not ramp the any - sales of income business of XXXX,

this first do it's responsible of customer, that the of to name expect milestone the the majority is And cannot receive of milestone strategic partner the a we the sales. I - but And the disclose XXXX. for first - in

product for - second first right? granted Braun]. time, the from the question is a question been The Is company. filler the question application is the what is negotiation - for will right AbbVie [Mr. there The has expiration trigger by coming of second which this

So Mr. this question described that Yehiel earlier generation filler, includes said And to what referring a dermal is one that as that unfortunately, of more the - the what - contouring. that cannot it the doing is by the is we the a first There photocurable the the than about in is third Braun, is a disclose exactly. agreement right has one mechanism negotiation. timelines,

a, we will the the we kind the as have will some the see updating are along last reach doing right the during last the of we not. news to are news public In What market along - announced about can the we we progress we preclinical eventually, year, the the have that studies. in And XX and development. you from point will last exercising months, or regarding where

point, a - So are we in the progress in development as at mentioned. this

Tal, CEO call closing And back remarks. for to turn Yehiel? concludes Yehiel will our the now the any CollPlant's That the from I questions audience.

Yehiel Tal

Thank you, Eran.

regenerative become As I medicine. in leaders CollPlant at tired to have is stated, we

think live through science better and people and regenerative creating technology. improvements longer I in our

spare individual medical is animal testing. of to supply drug parts tailored better and life-saving of as for including body, Our organs, patients alternatives the the the for each such characteristics developed an without need human unlimited for future the of treatment goal options and create

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

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

to I want for closing, goals In our reiterate upcoming XXXX.

implants Initiate shifting of in first with with and in study paradigm commercialization. fillers large regenerate to additional regenerative animals in XXXX. tissue data and to AbbVie, achievement We of advance dermal safety development support milestone soft continue sized commercial expecting

Advanced gut-on-a-chip development discovery of and treatment the drug ulcerative colitis. model for tissue personalized of

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

like conference on thank today's would call. I for And us to everyone you joining

Operator

This today's concludes conference.

this may thank we at time, your you your disconnect lines and for participation. You

CollPlant Biotechnologies (CLGN) 24 May 232023 Q1 Earnings call transcript