TELA - TELA Bio Plugging Away

• TELA Bio sells OviTex for hernia repair ($1.5B TAM) and plastic surgery ($500M TAM), a reinforced mesh made of embroidered sheep stomach that is 95% biologic + 5% synthetic.
• Clinical evidence continues to show positive results, while mesh incumbents Becton, Dickinson (BDX) and J&J (JNJ) face class action lawsuits.
• TELA is underperforming with a slowdown in elective surgeries because the pandemic stressed hospital resources, trading below November 2019 IPO price of $13 and June 2020 secondary of $16.
• Management recently hired a new experienced CFO, Robert Cuca from Orasure (OSUR); Robert took a pay cut joining TELA and his options strike at $13.31.
• #2 holder Essex Woodlands accumulated 12.7% of shares outstanding over the past year at an average of $15.75; formerly an investor in biologic mesh leader, LifeCell (LIFC), now part of AbbVie (ABBV).

For further details see: