ELUT - Earnings call transcript Q3 2024

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Operator

Greetings. Welcome to the Elutia Third Quarter 2024 Financial Results Call. [Operator Instructions] At this time, I'd like to turn the conference over to Matt Steinberg with Finn Partners. Please go ahead.

Matt Steinberg

Thank you, operator, and thank you all for participating in today's call. financial the released XX, ended Elutia XXXX. today, results quarter for September Earlier the available release website. copy press A of is on company's the

Before actual are pursuant future this like will from would of statements. the reliance statements we materially you laws or meaning results or begin, trends management statements. All results which securities are risks material that without estimates are place within should to the events, make the including financial that assumptions. limitation, call involve remind events during those federal future these include to forward-looking or forward-looking cause statements differ implied relating I performance based Accordingly, operating or but harbor forward-looking relate of by statements contained Any provision you our of these Act statements. XXXX. matters predictions undue various or of not safe forward-looking expectations to current this to the do our call statements and and of uncertainties Reform historical on to statements, relate upon performance Private facts Securities could anticipated Litigation those to not These and that in

available gross today, Elutia intention as except of the required on the margin, law, financial of the this business, or the measure, a comparable measure. to is during for September only year forward-looking on and information which filings amortization, conference presentation, CEO, including website because ended the live to is by December and Risk financial time-sensitive in statements, reconciliation release for the to obligation, or SEC's www.sec.gov. broadcast and most otherwise. Also intangible the the call associated and XXXX, with update may SEC, at of uncertainties posted SEC's Such accessible the including XX, Elutia's other accessible our website over the with non-GAAP company's any For list from section non-GAAP of this factors of a future that, SEC. The we on third or report measure information, November filings page please XX-K ended call or directly disclaims with website which at Form Elutia's events updated description to the asset time to as XXXX, refer whether public results be of XXXX. time the refer Mills. accurate applicable financial risks any Factors our Elutia's revise is financial to that's I projections new GAAP annual on XX, is the XX, turn quarter with Investor www.elutia.com. And will Randy Elutia the on financial A contains

C. Mills

over making you, do and a everything this go our over we're sincere be Elutia. we'll Thank pleasure you to go with current is To that as afternoon mission-centric off, mission. start at progress Matt. to It my the like we company,

standard on the of revolutions in the midst are of line. we're of improve product that out I our think we receive. those going putting to of them of really can We are materials combining great a and active that with humanized formulation patients that so them biological thrive together can the That humanizing compromise. is of patients EluPro going today, the point all taking care benefits one that introduction pharmaceuticals And without in usable with medicine

product quarter. talked But XX% line SimpliDerm about reconstruction. also proprietary with platforms. today product today. we breast comments of fantastic a which towards we have can't we've product in our stage my be going to commercial X forget, So we EluPro this grew launch, high-growth Most are our -- company we are aimed also SimpliDerm

complex in of XXXX surgical full biologic, with going of substance. June but find cleared I first EluPro. company pleased that normal amount we're one to rate. of tremendous current building pioneering drug-eluting we are keep to But try January point, launch through those to to the addressed that more and the a So comments today, talk brief XXXX to you in and problems I are our my going solve not and of momentum. Matt in commercial a with we're really got September, product of implant return had that the technology. the We are first that towards to by to see and hope We will is the I'm and really

going offsets commercial lot so this how what a to talk we're full with doing in And and preparing to start I'm commercial going launch we're for EluPro about it January. is

talked as in necessary the we had -- that in manufacturing obviously, we got first to to a step. But we've which product. And we the that our third then actually on although we accomplishment, move And about actually June, approval conference was so quarter call. talked about, was last

time, that through all both GPOs. will lastly, amount that's So all going of pretty to a Xth. go earnest underneath our force detail. and more of the proven EluPro say is you that. then all of that this, development tremendous of VAC the peer-reviewed supporting win sales repeating data growing details much it, activity of a a this, our great there the this out implanting progress. then, publishing we've I'll envelope through I'm by in And effort though, spare know September with on. business the demonstrating Please with of presence in Since product. I But first going been made and activity since we've of representation

We are discussions in strategic engaged partners. with multiple

behind materials, going confidential more I would be that, about you but and that not sensibility detail though, into investors, hope can it to could that appreciate so the you As imagine, highly sensitive mostly probably will I decision. is

can and So let's the and move on EluPro it. on starting off is going with with what which I details to planting talk about, is

by first we able commercial were that really use get X. are energized September We on the to underway fact the

right indications October -- but significant our risk was is one of event know expected. than "You first that really earlier CIED cool major our and and XX% And bio go all a say have neurostimulator a of and -- more happened. of little this now XX, We about on big is We another ongoing physician across in that sales strong which We're actually patient had that. said, first the EluPro that seeing high use was in we happened looking a we'll really used do really for being those make what, where actually really saw now that. much envelope is neurostimulation the to accounts and that We didn't was this push perfect on a also to neurostimulator product and had bit had product actually have on can adoption." So brands, also it have initial is that now. neurostim, device protected a sure we label are

So it it's full unleashed yet to starting market. haven't to really all make its known and at the presence we

with pleased current very very, we're So our adoption. market

is think this of though, one I fun a slide kind to do.

Catanzaro support Dr. we're side East on his Let's this emerging first Catanzaro, was have our University excited September X, encouragement. in picture. the left EluPro meet and Carolina our to Dr. and electrophysiologist really of nation. to implant

the have Harvard wanted users picture, lending probably Dr. a Spartanburg. an the on Scientific credence side, If protecting down pictures the you implanting of might of here Tyrex picture, the He middle to one some Medtronic of around who actually Duke at at right a over Kapur Dr. action actually EluPro former And top. my outdone. the to get who's the favorite Abbott device, then to Medical Al-Khatib the become protecting not is go actually, at pacemaker. In good right we is want my notion EluPro these Hutchinson, XX% switch Dr. of to users. at the and side bottom this a is friend, that neurostimulator This be to School, Boston professor of

with and welcome. so is management on the all And for are is neurostimulators. and electrophysiologist you pain band there there room out you, beginning I plenty the assure all, of for this the lagging you the can physicians just

presence along our to in what doing the let's sales field. strengthen we're into and our So move commercial out

balanced this added of strategically. key and We So we our through additions significant footprint. a to We're independent the We reps. commercial California Southern through blend are expanding and this Northeast. did direct doing

that a this that matters. thinking helps how we want them these we us well. completed a leaves hybrid in We've direct model a right now, not size, behind consults. product of and actually as we of field effectively, actually sales about where quality device product, explaining pharmaceutical the and but targeted independent by using into variable a locations. But just and We're direct That blend are to the just program throughout our coverage and of XX standpoint making very pharmaceutical not reps, company it this for thinking keeping one. it story the us a in and get also We combines cost actually how cost X from sure conscious reps, because do understand do for the one also independent about we're in-depth science but it they professionals device reps lot biologics our sales product that training balanced XX of actually the all

there. And Kimberly we're team So have the they and done work about her boy, that all work. done some excited really have

ordering. far. actually the submissions I XX accounts to most have over thought number, they completed surprising this was actively so now So VACs XXX And are

process. And about on we typically, to X weeks, in XX VAC We're we average So take X would through. it anticipate not months that to have through there. get leaving a

to We continue to that. submit

It's and We're pricing March, but pricing that is getting VAC. the have hundreds We're that we're a working letters, on resonating through terms. and our We process. to go getting on with with them. have strategy the clearly we're getting we them

well, systems, Speaking the strategy XXXX, leaving progress [ GPO we'll with them to those of decisions number back. through making and the of at early major and announcements GPOs it significant our they advancing which, we expect as not favorable ]. with We're we have health partners also just be as we're in by care obviously have want coverage a would and made

standpoint, scientifically not doing going this this from there a is what commercial standpoint, And out and we're we're a me-too And from product either. supported as a product data but we're now. next-generation implanted that's we're So well. what that doing product, that's clinical a an making is and

using clinical that in kicked have we our we actually that implantations. real-world EluPro of CIED have to data provide outcomes people study are an so initial designed study off And registry

in to and it States, obtain be going of our actually efforts are the CE publication the in mark. to using forms continued basis data, to also obviously, the support this ongoing We clinical EU United obtain the but for

to we're of peer-reviewed our really Speaking excited publication. announce also which,

wasn't significantly I have might it ago. So taken when approval XXXX, We EluPro out years took very process intend on tell it very, you that this the like takes regard. X process in place any scientifically. raised frankly, we muscle order process bar XX And what that firsthand, should approval full the that through product scientific point here can FDA or a get our flex this in through has been to in we to

we've we We're showcasing you of frequently setting on out so drug see completely some we delivery. to X in bacterial that next can the And slide. on able the -- showcasing gotten most in frontiers hospital contaminants of devices. published in these data We're types eliminate go how were to important the

and staph So knows really aureus, most too. aureus, eliminate significant the hospital-acquired about Acinetobacter, influenza significant [indiscernible] pathogen. staph the just most pathogen. as methicillin aureus, completely well single gram-negative a probably staph abundant a everybody staph hospital potential infection prominent not epidermidis, pathogen resistant

data XX% cocci, up. a There's about. or really And that gram-negative, than can log bacilli, we product very, greater feel very created getting gram-positive, good physicians just have out backing scientifically that tremendous clinically complete a and So there X message kill of this the amount reduction.

partners. available, this out switch I'll time. true. EluPro. that or we're to not are or be Scientific XX% so on whether $XXX that a whether and seem out Boston pacemaker enthusiastic of the with this rifampin Abbott weeks was up And TYRX that there they commercially -- that physicians, protection into their doesn't slide or X want But that organizations close a putting and by I being or there now put that about and comments to And minocycline. And to this million envelope That last using industry not pacemaker my pacemaker an complete some think their the are putting you matter -- biologic purchasing in here we in solution antibiotic seeing or we idea you're the from on product protected envelope seems pacemaker, Medtronic out it offers some we market, business would of are from hospital of response electrophysiologists said only from you're a all

actually to could about going of and the be wait this how prelaunch talk you And our so is in not process once can't we we launch. commercial pleased with to more swing again our full are

through I aside that, for financials. step course, will and questions. Matt So with some open of will it we'll run pertinent Then up us

Matthew Ferguson

all, that Okay. across completely about I'll your Well, Randy as first questions. just Randy. as we've it's of made thank I then about commercial, really was of And second our strategic what say you, Randy and like points said, that and fronts, multiple the progress a And to, the financial take company, completely we'll sit I enthusiasm well agree here. on financial. like few saying the in would

the the down there same a in bit for at X quarter, So detail. year-over-year view, view, in bodes and then, sales. From We down from accounts, further. margin and we're growth a to to a that available are slightly pleased the expect future. well contribution being EluPro, continuing quarter use margin, But the adjusted seeing Randy we when with as some sales pleased we more the really look compared the continues along point available, XX% saw up we're in growth anticipation number gross we million where point for but ago to of year quite to than were million lot $X.X Bioenvelope key at breaking relevant have XX% what GAAP and see a And think million SimpliDerm of compared and seeing. ago start EloPro the chug in areas, of that seeing gross that sales. the $X.X really CanGaroo course, don't to of we year our talked quarter. in slightly a a we is grow And are really yet EluPro also of we that actually we're a nicely. from tick saw $X.X in the about XX% to which We're current people little with then future they

SimpliDerm XX%. And nice margin margin The result and CanGaroo. or comprised while there so gross was XX% for bioenvelope was device the a really business gross of pretty and at protection EluPro for our consistent

across the advance and organization So operational our expense there. On company really we're an investments a while the in we doing basis, operating controlling feel from nice results making like perspective an job appropriate was expenses to an a the commercial company actually good million increase most variety stock-based of that -- most compared by compensation to noncash fronts. we million, of -- to $XX saw on There driven but expense. increase $XX is of actually that of continuing

that of because business actual you want we gain had we that [indiscernible] into to people than to from a when million quarter. Probably too that. get cash it. lot and had for million. of $X.X And to a it, say but in so celebrate we when exercised noncash appreciate We that But the that $X.X those you're of I an to like was that revaluation for in the from had actually it's operations, million got the note. seeing And the net get is million that given income, don't is were had last you year. Net $X.X just $XX.X the income get excited more things quite do quarter quarter. the can more together actually difference I'll kind where kind versus EBITDA warrants I profitable, relevant I'd loss of interesting to development won't positive any of can adding we're when just The for adjusted get minimal of growth with loss the the quarter the all company.

up $XX.X was So then in feeling when million the bit of are we ended a little came manageable a about of $XX.X that. result quarter QX. from ago the range, the of we it's the early we addition that but reflects least, a it was year an that $X.X and That very not That good additional million. And that. in in exercise last, in with warrants had as cash certainly million quarter

we're questions. point it a snapshot that, from view. financial where are with the that a will great we So about as of is open company. And we to Again, feeling up

Operator

from Our Capital line Markets. first the Lake Frank comes Takkinen Street Instructions] question of [Operator with

Frank Takkinen

curious Boston Abbott, was being the sure could I the mix some bit I'm early have of on sure of commented all you implants. but where progress. kind of tell know with being between on start was it's one was implants I cans, Congrats numbers, you Medtronic I in with the implants. little EluPro and all and I'm hoping strokes, a I but with broad what on Medtronic small if mix to used, tough they're it's exactly used

C. Mills

the well, And Yes. one quickly getting But right it's now, which seeing it into Frank, bias process. was using so pretty seeing first it's in very this all what not the of pacemakers pacemaker, very had is fastest we're place. through you're into fairly is that's what fairly not early. really now underlying early, of really are early journey. -- major particular a We customer any the -- I centers It's them just think the the covered. electrophysiologist and that towards

one bias So really the or seeing we're not way other. a

Frank Takkinen

helpful. you just commentary opportunity. total us talk the account then there. you about have base point? on That's And CanGaroo appreciate level And account then broader Can Okay. accounts the at how set the maybe maybe this many

C. Mills

Yes.

Those all and this and last around are, about in XXX. we CanGaroo shapes there of XXX about sizes. ballpark talked obviously in accounts. different have call So the We come

not more little they're not makes they're after of than that that. universe all it's majority not might up lot more the So than going the that, That a alike. a all but be we're

already. XX% at think of we're not get And we It's activated And quickly. were anticipating about so to those that, to or done like XX I that be able accounts. something have that that the --

Frank Takkinen

maybe a will helpful. hires of still a like hired the you you That's the be then little Or there made do staffed? fully little in quarter. Obviously, lot And existing about hiring. now hiring? think that guys this you've bit is feel team talk bit Is a more

C. Mills

This actually right where feel we're that. don't feel strategy. mean good team have right the with every now. we actually let team is hybrid team with great me have the spot have pretty in that -- we We rephrase we want. We Frank, now. I using this the single We

an of important. business we and a And a in pretty has we in independent sort for in. That pick device we much existing we this premade where that so a that can it's because to is territory X in distributor, X area want with up go directly key an relationship like want, be

are of opportunity still and we out we to between split still we particularly of there variable. we have pick direct costs hybrid lot But that so the keep this a keep in grow up them that areas, a our in. at idea And can West the is least have the couple that these and can in and

tell the I'll what you standards we do of type won't of represent and EluPro. the is people, compromise represent type the of we Now on Elutia won't professionals that

to So the our benefits, products, detail understand the its and product we hasn't what crew through call that training And fully doesn't limitations. Elutia. that allow frankly, we gone at its the fully values don't anyone cover product the

bringing company. the standard but of we we And for X reps, only different somebody have models have X into compensating so

Frank Takkinen

Okay. That's maybe last for then And helpful. one me. one just

I we for how of we EluPro, the think into about to kind bit until assume little there's numbers CanGaroo in of full should short-term the of from thereof QX or pause. get transition a lack launch. kind noise the On

kind while our But we I ordering more at about wait for it we think they than as look think you of that's called in of CanGaroo should models? that EluPro, guys timing anything. kind out

C. Mills

ignore don't completely give I guidance, don't question. the appreciate We I it forward-looking either. but want to

way be, be I Frank, it, will to of think margins. right right will would the it whatever about noise, sort around be I it the the think think

were to really expected. is little most our larger in surprise adopters at seeing our enthusiastic What least of don't of absolutely to seeing initial think Obviously, a way other. least ordering we that's enthusiastic I we're is different I fourth at patterns. the EluPro be or That going users the bit CanGaroo. one most we quarter, are think are

we're And than seeing so for about on average were larger they're the for EluPro are when orders seeing CanGaroo. orders XX% placed we

people encouraged it at And that that because there in that so out. expect, that cannibalization was this for a like, numbers. upside EluPro is, would even initially, if you seems early threat because infection. postoperative least high as very we it's playing greater much we -- developed it for But of at cannibalization like had a risk are product is it is again, initially, seems very, particularly And utility

Operator

Ross Our comes line the from Cantor next of question Osborn Fitzgerald. with

Ross Osborn

on Congrats progress.

on neurostim So interesting. about used mind. it was hasn't top this starting of been while really we've comment off, And the your thought EluPro opportunity, that with

So said, something currently start it with being is something as to? Or is for incremental are we nice adoption? use to a marketing this have that guys just you case or

C. Mills

So Ross. this is X pull-through. One areas, was

this was this out demand space. there's We into had. there. that actual requested space. the neat because think be weren't neurostim were was We into we of of business And neurostim the more kind showing to us marketing So there's

all. -- do competitor We that our at our very also much of just know doesn't something it's

the we cardiac opportunity us going a as in significantly we when look for setting. hospital devices so at that already grow on neurostim device. particularly actually be hospital to would pretty centers And for where see rapid the We formulary

of the in are is about pain. in opportunities been as can of And along, apnea down. in and our sort set -- X it of that So working think neurostim sense all makes would relationship one new a about space where the you some we've sleep BD space, relationship interested that's kind people that's one. or us. Piece is piece And known for the business that we've strategic

When a love the neurostim -- we're different standpoint. But brain opportunities in seeing in short a general. devices, term, about macro need yes, postoperative that, about fecal for get sleep at space in to we apnea the and a those it. and XX% we neurostimulator it infectious urinary are should have from stimulation, to XX% perfect look there's development in going something in we it. primarily the sometimes and really -- used range, think as a deep because EluPro for and there they we high-risk level a could product You significant at do number can more the you business think of incontinence, the be complications

So we're it. do going to

Ross Osborn

Yes, top walk maybe I'm to you to initiatives SimpliDerm. the that then glad hear And through it. XXXX switching around for Can just offering?

C. Mills

I'm your sorry, Ross, we missed -- the of it broke last up. We part something. SimpliDerm, missed question.

Ross Osborn

about hear Can you me now? Sorry that.

C. Mills

Yes.

Ross Osborn

top your for Just SimpliDerm. next initiative with year

C. Mills

SimpliDerm we with are our and commercial is been initiative the in of own that her feel keep Michelle breast reconstructive version distribution a where in to innovate what our formed, one we We list of biosurgery way actual RM, and through until with for her which the a case reconstructive about there impact on give of surgery usually and in after a surgery there. The We reconstruction. publicly woman reconstruction, that think forward number But reconstruction. And reconstruction case When is we that efforts talk ourselves our be that product. case is going our mastectomy can exciting get to can things with our So biosurgery in there the out that and of that implant expanding want there a to a from fairly this is the concept implant. significant really we the as procedure and Williams starting procedure. Keep on own. in implant we surgeon, the see field call entire the of obviously looking optimal the is a top of is actual SimpliDerm at is is bifurcate you on a having X want for mind, drug-eluting view about has step an major area, what reconstructive field X-step, X that ones SimpliDerm. proprietary reconstructive reconstructive really commercial and of very really really breast own doesn't to and we a broader world we team agnostic order the we're months is

do order also to that, have commercial need And we so in there. to go infrastructure to along the

And Medical. on we by space partnership think think about a our so commercial infrastructure as that was which about backs growing the period. of year, with reasonably And But own a who significant primarily relationship, making during Tiger growing the this Sientra, well. we we're additions to. this have next there, acquired performed we also

I That was wanted, probably that hope So answer than longer Ross. you helped. a

Operator

are this to everyone, you, participation, wonderful time. Thank would the at have conclude like call. further Goodbye. There your and no questions I a for day.

Elutia (ELUT) 14 Nov 242024 Q3 Earnings call transcript