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MALVERN, Pa. - TELA Bio, Inc. (NASDAQ:TELA), a medical technology firm currently trading at $1.24 per share, has launched new larger sizes of its OviTex PRS Reinforced Tissue Matrix, designed for plastic and reconstructive surgery. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 5.01, though its stock has experienced significant pressure, down 78% over the past year. The expanded product range now includes a 25 x 30 cm oval and a 25 cm diameter circle, which may improve surgical efficiency by reducing the need to join multiple smaller pieces for larger procedures.
The OviTex PRS portfolio, which combines tissue-based devices with polymer suture embroidery, is engineered to support soft-tissue repair where weakness exists. The new sizes address demands for alternatives to cadaveric tissue, offering consistency in thickness, stretch, permeability, and handling, and are intended to facilitate the body’s natural healing process.
Antony Koblish, Co-founder, President & CEO of TELA Bio, stated that the introduction of these larger configurations is a response to evolving trends in the field. Dr. Howard Langstein, Vice President of Medical Affairs & Surgeon Strategy, added that the larger sizes aim to enhance surgical efficiency and potentially reduce costs by minimizing the need for suturing multiple pieces.
Since the initial launch of OviTex PRS in 2019, TELA Bio has sold nearly 15,000 units, with a 31% increase in year-over-year unit sales in 2024. This growth aligns with the company’s overall revenue increase of 18.56% in the last twelve months, supported by a robust gross profit margin of 67.63%. The company emphasizes its commitment to providing advanced, economically effective solutions for soft-tissue reconstruction that minimize long-term exposure to permanent synthetic materials. InvestingPro subscribers can access 13 additional key insights about TELA Bio’s financial health and market position.
The OviTex PRS devices are supplied sterile for one-time use and are part of TELA Bio’s broader efforts to optimize clinical outcomes in soft-tissue reconstruction. As with all medical devices, OviTex PRS comes with important safety information that should be referred to in the Instructions for Use (IFU).
This news is based on a press release statement and includes forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. While analysts have set price targets ranging from $2 to $7, with two analysts recently revising earnings estimates upward, TELA Bio does not undertake any obligation to update forward-looking statements after the date of the press release. For comprehensive analysis and detailed financial metrics, investors can access TELA Bio’s complete Pro Research Report, available exclusively on InvestingPro.
In other recent news, TELA Bio, Inc. reported fourth-quarter revenue of $17.6 million, which fell short of the consensus estimate of $23.17 million, despite a 4% increase year-over-year. The adjusted earnings per share were -$0.23, slightly below the analyst projection of -$0.22. For the full year 2024, the company achieved revenue of $69.3 million, marking a 19% increase over the previous year. However, TELA Bio’s guidance for the first quarter of 2025 indicates revenue between $17.0 million and $18.0 million, reflecting modest growth of 2% to 8% year-over-year.
In response to these financial results, Piper Sandler downgraded TELA Bio’s stock from Overweight to Neutral and slashed the price target to $2.00 from $5.00. The downgrade was influenced by concerns over the company’s sales outlook and operational expenditures. Similarly, Canaccord Genuity and Citizens JMP both reduced their price targets for TELA Bio to $7.00, citing sales challenges and competitive pressures. Despite these challenges, both firms maintained their respective Buy and Market Outperform ratings, reflecting a cautiously optimistic view of the company’s prospects.
TELA Bio faced significant turnover within its sales force, impacting performance, with aggressive recruitment efforts by competitors noted as a contributing factor. The company is, however, optimistic about the potential of its recent product launches in the United States, which have shown promising sales figures. Additionally, TELA Bio has received approval for a PRS breast reconstruction Investigational Device Exemption trial, signaling potential future growth opportunities.
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