CollPlant Biotechnologies Ltd. Q4 FY2023 earnings call

• Collaboration with AbbVie: Made significant progress in 2023 with AbbVie to advance dermal filler candidate towards commercialization, with a $10 million milestone payment received in June 2022. - Breast implants: Began additional large animal study with clinically relevant commercial size implants; previous large animal study in January 2023 showed progressive tissue regeneration with no adverse events. - Gut-on-a-chip program: Resources directed to this program put on hold to focus on medical aesthetics and AbbVie collaboration. - ESG: Appointed expert to lead ESG efforts, participated in UN Global Compact, and set to unveil 2023 ESG report in Q2 2023. - Partnership with Stratasys: Collaborating on development of printing solution for biofabricating human tissues and organs using Stratasys' P3 technology and CollPlant's rhCollagen-based bioinks.

GAAP revenues for Q4 2023 were $299,000, mainly from sales of average collagen products, an increase from $58,000 in Q4 2022. For the full year ended December 31, 2023, GAAP revenues were $11 million, primarily from a $10 million milestone payment from AbbVie under their collaboration and increased sales of average collagen products. GAAP cost of revenues for Q4 2023 was $773,000 vs. $62,000 in Q4 2022, and for the full year was $2 million vs. $400,000 in 2022. GAAP operating expenses for Q4 2023 were $4.6 million vs. $4.7 million in Q4 2022, and for the full year 2023 were $16.5 million vs. $17 million in 2022.

• Focus on advancing regenerative dermal and soft tissue filler program with AbbVie in 2024. - Extend large animal studies with commercial-sized breast implants to generate safety and efficacy data for future clinical studies and commercialization. - Continue forming collaborations with industry leaders for utilizing rhCollagen and bioink technologies.

• Continued weakness in the global capital market. - War situation in Israel. - Uncertainties in general that could impact operations.

Q: Regarding the breast implants study in large animals, timing of data publication?

A: Fourth quarter of 2024 and first quarter of 2025, with a GLP pivotal animal study in Q2 2025 to inform regulatory pathway.

Q: Milestones with AbbVie for the dermal filler?

A: Achieved one milestone in June 2022 triggering $10 million payment, but next milestones related to development, clinical trials, regulatory approvals, and commercialization are not specified in detail as allowed by partners.

Q: Potential for new expansions to markets like Ozempic face?

A: Yes, the photocurable filler can address indications like Ozempic face, and 3D bioprinted facial implants are also a potential opportunity leveraging breast implant technologies.

Q: Bio-fabrication market opportunity?

A: 3D bioprinting of tissues and organs has a huge market opportunity with segments including drug discovery, scaffolds, tissues, endocrine glands, and life-saving organs, with examples like breast implants and spinal fusion scaffolds having multi-billion dollar potential.