CollPlant(CLGN) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - GAAP revenues for Q4 2023 were $299,000, an increase of $241,000 compared to $58,000 in Q4 2022 [49] - GAAP revenues for the full year ended December 31, 2023, were $11 million, an increase of $10.7 million compared to $299,000 in the same period last year, primarily due to a $10 million milestone payment from AbbVie [50] - GAAP net loss for Q4 2023 was $4.7 million or $0.41 basic loss per share, compared to a net loss of $4.4 million or $0.39 basic loss per share for Q4 2022 [30] - GAAP net loss for the year ended December 31, 2023, was $7 million or $0.62 basic loss per share, compared to a net loss of $16.7 million or $1.53 basic loss per share for the year ended December 31, 2022 [30] - Cash and cash equivalents as of December 31, 2023, were $26.7 million, providing a runway until at least the end of 2025 [31] Business Line Data and Key Metrics Changes - The dermal filler product candidate is now in the clinical phase of development, with significant progress made in collaboration with AbbVie [18] - The regenerative breast implants are intended to promote tissue regeneration and are being developed with proprietary non-animal derived rhCollagen [12] - The company has received a U.S. patent for its photocurable dermal filler product candidate, strengthening its position in the aesthetics market [11] Market Data and Key Metrics Changes - The global breast implant market size reached $2.6 billion in 2023 and is expected to reach $4.1 billion by 2032, with a compound annual growth rate of 3.7% from 2024 to 2032 [44] - The aesthetics market is expected to see meaningful growth, with a ramp-up anticipated after multiple quarters of decline in the U.S. filler market [18] Company Strategy and Development Direction - The company's vision is to lead in regenerative medicine through innovative collagen technology, aiming to create better alternatives for regenerative aesthetic medicine applications [4] - The focus for 2024 includes advancing the regenerative dermal and soft tissue filler program with AbbVie and extending large animal studies for breast implants [41] - The company is committed to ESG initiatives, with plans to unveil its inaugural formalized ESG report for 2023 in the second quarter of 2024 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the company's main development programs despite ongoing geopolitical challenges [43] - The company aims to maintain its operational plans while navigating uncertainties in the global capital market [55] Other Important Information - The company has decided to put its gut-on-a-chip program on hold to focus resources on the medical aesthetics arena and collaboration with AbbVie [47] - The company is eligible to receive up to an additional $226 million in milestone payments from AbbVie for the dermal filler product [27] Q&A Session Summary Question: Timing of data publication for breast implants study - Management indicated that data publication is expected in late 2024 or early 2025, with two time points for information release [34][35] Question: Collaboration with AbbVie - Management confirmed that the collaboration is crucial, with the dermal filler product in clinical studies, but specific milestone timelines cannot be disclosed [38] Question: Potential for addressing Ozempic face - Management acknowledged the potential for new market expansions, including addressing conditions like Ozempic face [60] Question: Market opportunity for bio-fabrication of human tissues and organs - Management highlighted the significant market opportunity in bio-fabrication, with various segments identified, including drug discovery and life-saving organs [61][66]