CollPlant Biotechnologies Ltd. Q3 FY2024 earnings call

• Regenerative breast implant program: Advanced preclinical study with 200cc commercial-sized implants, showing good results 3 months post-implementation with significant vascularization and rapid tissue ingrowth. Focus on controlled degradation, durability, and minimally invasive administration.
• Collaboration with AbbVie: Focused on dermal and soft tissue filler for medical aesthetics market, with filler market valued at ~$5.5B and growing 10% annually.
• Bioinks and partnerships: Interest from wide range of companies in rhCollagen, engaged in discussions; streamlining operations to reduce annual burn rate.
• ISBF participation: Showcased technology platform for mass production of human collagen and biofabrication of breast implants, gaining interest and new collaboration opportunities.

GAAP revenues for the third quarter ended September 30, 2024, were $4,000 compared to $43,000 for the third quarter ended September 30, 2023. The decrease is mainly related to sales of rhCollagen to the largest customer with no deliveries in Q3 2024 but planned in December 2024. GAAP revenues for the nine months ended September 30, 2024, were $351,000 compared to $10.7 million for the same period in 2023, with the 2023 milestone payment from AbbVie being the main reason for the decrease. GAAP cost of revenues for Q3 2024 was $272,000 vs $278,000 in 2023; for nine months 2024, it was $1.4 million vs $1.2 million in 2023. GAAP gross loss for Q3 2024 was $268,000 vs $235,000 in 2023; for nine months 2024, it was $1 million vs $9.4 million in 2023. GAAP operating expenses for Q3 2024 were $4.3 million vs $4.4 million in 2023; for nine months 2024, $12.3 million vs $11.9 million in 2023. Non-GAAP measures exclude certain non-cash expenses. GAAP net loss for Q3 2024 was $4.3 million vs $4.4 million in 2023; for nine months 2024, $12.7 million vs $2.3 million in 2023. Cash and cash equivalents as of September 30, 2024, were $15.4 million with cash runway expected to last until end of 2025.

• Prioritizing securing non-dilutive cash through forming additional collaboration partnerships.
• Aim to sign another agreement during 2025.
• Focus on advancing dermal filler program with AbbVie, generating safety/efficacy data for regenerative breast implants, and forming collaborations with industry leaders for rhCollagen and bioink technologies.

• Statements made include forward-looking statements, actual events/results could differ materially due to various risks, uncertainties, and factors set forth in SEC filings. CollPlant disclaims obligation to update forward-looking statements.

Q: Can you please elaborate on the meaning of the results you have reported from your pre-clinical studies?

A: The pre-clinical study with optimized breast implants showed significant vascularization and rapid ingrowth of new native tissue at 1 cm per month, testing degradation, structural stability, administration through small incisions, and natural fill. Monitoring continues with MRI and histopathology.

Q: Today, you mentioned that you are in dialogue with companies in the medical and aesthetics fields regarding the collagen. Can you elaborate and estimate when will we see another agreement announced?

A: Collagen technology is of interest to many companies; in dialogue with several, difficult to estimate timing but aim to sign another agreement during 2025