TELA Bio, Inc. (NASDAQ:TELA) Q1 2024 Earnings Call Transcript

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Antony Koblish: Well, I call it the quasi parity, right? So if you look at our history, right, we had no capital until the end of 2019, as you know. So commercialization really started in earnest in 2020. And we did well for two or three years, but we were hampered in building out our infrastructure due to the COVID start, but we grew crazy good even through that. But to be successful in this market, parity in terms of sales force size, roughly, parity and GPO access roughly, parity in terms of product portfolio capability across all types of procedures roughly, right? I mean we haven’t had all of that in place until now, right? What we had was excellent proof of concepts, great data, a very good mission that I think is well understood and appreciated by patients and some surgeons.

And I think more and more surgeons are getting interested in our mission. So I think it’s — I think what you’re seeing is surgeons tend to be slower, conservative adopters, which I think you want them to be. They want to prove things out first before they jump in. But we are a company that started with zero on the ground, right? Nothing. And so it’s taken us time to methodically build this quasi parity with the big players. And I think we can go toe-to-toe now, starting now at the start of this year. So I think this is the next phase of our evolution and growth, Matt.

Matthew O’Brien: Got it, thanks so much.

Operator: Thank you. And one moment for our next question. [Operator Instructions]. Our next question comes from the line of David Turkaly with Citizens JMP. Your line is open. Please go ahead.

David Turkaly: Good evening guys. Sorry, I might have missed it. Did you say — and I know sales force expansion is not a big part of this year, but you’re still at 86 reps and six assistant reps?

Roberto Cuca: We are at 87 reps and seven associate reps.

Antony Koblish: Yes. No, we’re very consistent from last time, Dave.

David Turkaly: Got it. And then you mentioned the Intuitive meeting and your commentary about some further penetration in existing accounts and adding some new. I’m just curious if there’s anything tangible you could leave us with maybe even in terms of new accounts because that sort of seems like it would be a great opportunity for you guys to scope out some new surgeons. And I don’t know if there’s any quantifiable number you could give us, but I’d love to hear your thoughts on that meeting.

Antony Koblish: Yes. I mean the meeting was great for us. I mean for a short meeting, we had over — well over 70 really solid validated leads. A lot — there’s a very nice percentage of those have already turned into cases or case commitments. It felt like we were part of the ecosystem, right? I always say, Intuitive Surgical is the Apple of Medtech in our time. And they only pick the best partners to go into their application store. And I felt like being in that app store was a big deal for us. We never take it for granted. We appreciate it immensely. And I think it’s going to do good things for us, right? It’s going to open up the world to seeing us, who we are. A lot of the surgeons were seeing us for the first time. So that kind of thing takes time, but the Connect meeting was an excellent, excellent start.

And we want to do more, though, as I think the case observation sites is something that’s also very, very good. We’ve got many, many robotic surgeons that are now opening up their ORs for surgeons to come in and take a look. And that’s great for the robot, and it’s great for OviTex, too. So I think — I always think that Intuitive may be the giga GPO that sits on top of all the other GPOs, right? We want to make sure that everything we do is in good standing with them and that we focus on our compatibility with the surgeons who use the products, so the robot. So I think we’re slowly attaining that, Dave. It’s nothing but good.

David Turkaly: Great, thank you.

Antony Koblish: Thanks, Dave.

Operator: Thank you. And I’m showing no further questions at this time. And I’d like to hand the conference back over to Tony Koblish for any further remarks.

Antony Koblish: Thank you, Michelle, and thank you, everyone for joining us. We appreciate your continued interest in TELA Bio. Have a great rest of your evening. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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