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CollPlant Biotechnologies Ltd (CLGN) Q4 2023 Earnings Call Transcript Highlights: A Year of ...

GuruFocus Research
·5-min read

  • Q4 2023 Revenue: $299,000, an increase from $58,000 in Q4 2022.

  • Full Year 2023 Revenue: $11 million, a significant increase from $299,000 in the previous year.

  • Q4 2023 Net Loss: $4.7 million or $0.41 basic loss per share.

  • Full Year 2023 Net Loss: $7 million or $0.62 basic loss per share, improved from $16.7 million or $1.53 basic loss per share in the previous year.

  • Q4 2023 GAAP Cost of Revenues: $773,000, up from $62,000 in Q4 2022.

  • Full Year 2023 GAAP Cost of Revenues: $2 million, increased from $400,000 in the previous year.

  • Q4 2023 Operating Expenses: $4.6 million, slightly decreased from $4.7 million in Q4 2022.

  • Full Year 2023 Operating Expenses: $16.5 million, down from $17 million in the previous year.

  • Q4 2023 Financial Income: $379,000, higher than $275,000 in Q4 2022.

  • Full Year 2023 Financial Income: $493,000, increased from $172,000 in the previous year.

  • End of Year Cash and Cash Equivalents: $26.7 million, projected to last until the end of 2025.

  • Q4 2023 Cash Used in Operating Activities: $2.3 million, less than $3.3 million in Q4 2022.

  • Full Year 2023 Cash Used in Operating Activities: $2.8 million, significantly lower than $13.7 million in the previous year.

  • Full Year 2023 Cash Provided by Financing Activities: $1.1 million, compared to $1.9 million in the previous year.

Release Date: April 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CollPlant's main development programs and production plans continue to be minimally affected by the ongoing war, demonstrating resilience.

  • Significant progress with AbbVie to advance dermal filler candidates towards commercialization, including a $10 million payment triggered by an important milestone.

  • Potential for additional milestones and option product payments from AbbVie, as well as meaningful royalties on product sales.

  • Received a US patent for photocurable dermal filler product candidate, strengthening CollPlant's position in the aesthetics market.

  • Initiated additional large animal studies for regenerative breast implants, with previous studies showing promising results and no adverse events.

Negative Points

  • The global capital markets continue to show weakness, creating uncertainties for the company's financial stability.

  • Decision to put the gut-on-a-chip program on hold due to resource allocation, delaying progress in this area.

  • GAAP revenues for Q4 2023 were relatively low at $299,000, although this was an increase from the previous year.

  • GAAP cost of revenues and operating expenses for Q4 2023 increased compared to Q4 2022, indicating higher costs associated with the company's operations.

  • GAAP net loss for Q4 2023 was $4.7 million, indicating the company is still operating at a loss.

Q & A Highlights

Q: What are the main highlights of CollPlant Biotechnologies' full year and fourth quarter 2023 financial results and corporate development? A: CEO Yehiel Tal highlighted the company's progress on its core programs and partnerships, particularly with AbbVie, and the continued development of its regenerative medicine products. CFO Eran Rotem provided a financial summary, noting a significant increase in GAAP revenues mainly due to a milestone payment from AbbVie and increased sales of rhCollagen products. The company maintains a strong cash position, with enough runway to last until the end of 2025.

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Q: What progress has been made with the partnership with AbbVie? A: CollPlant achieved an important milestone in its collaboration with AbbVie, triggering a $10 million payment. The dermal filler product candidate is now in the clinical phase of development, with potential for additional milestone payments, royalties, and manufacturing fees once commercialized.

Q: What is the status of CollPlant's regenerative breast implant program? A: The company has begun additional large animal studies to optimize the implant design and composition. Results from these studies are expected in Q4 2023 and Q1 2025, which will support future regulatory submissions and clinical studies.

Q: What decision has been made regarding the gut-on-a-chip program? A: CollPlant has put the gut-on-a-chip program on hold to focus resources on its medical aesthetics arena and collaboration with AbbVie. The program remains important to the company and will be reinitiated when appropriate resources are secured.

Q: What are CollPlant's commitments to environmental, social, and governance (ESG) initiatives? A: CollPlant has appointed a dedicated expert to lead ESG efforts, joined the United Nations Global Compact, and is set to release a formalized ESG report for 2023, highlighting commitments to climate action, workforce health and safety, and governance integration.

Q: What were the financial results for Q4 2023? A: GAAP revenues for Q4 2023 were $299,000, an increase from Q4 2022. GAAP net loss for Q4 2023 was $4.7 million, with a basic loss per share of $0.41. Non-GAAP net loss for Q4 2023 was $3.9 million, with a loss per share of $0.35.

Q: What is the potential for CollPlant's technologies to address conditions like Ozempic face? A: CEO Yehiel Tal sees potential in both injectable and 3D bio printed facial implants to address conditions like Ozempic face, leveraging CollPlant's technologies for skin lifting, regeneration, and contouring.

Q: How does CollPlant view the market opportunity for bio fabrication of human tissues and organs? A: Yehiel Tal outlined the significant market opportunity across various segments, including drug discovery, scaffolds, tissues, endocrine glands, and life-saving organs. The company's strategy focuses on developing products in-house for the first three segments and seeking partners for the latter two.

Q: What are CollPlant's upcoming goals for 2024? A: The company plans to advance its regenerative dermal and soft tissue filler program with AbbVie, expand large animal studies for breast implants, and continue forming collaborations to utilize its rhCollagen and bioink technologies.

This article first appeared on GuruFocus.