TELA Bio, Inc. (Nasdaq: TELA), today announced quarterly earnings for the three months period ended 30 September 2020.
For the biotech giants third quarter of 2020, revenue was $5.3 million, an improvement of 34 percent year over year. Despite the strong quarterly sales, profit growth in the third quarter was influenced by procedural volumes weaker than anticipated due to postponed elective surgeries by hospitals and patients and other factors related to the COVID-19 pandemic.
For the three-month period, profit was $3.3 million, or 62 percent of sales, opposed to $2.6 million, or 66 percent of revenue, in the same period last year. As a percentage of sales, the drop in gross profit was attributed to the rise in the charge for surplus and obsolete inventory changes.
The medical science firm, which is focusing mostly on the design, development and marketing of a new category of tissue strengthening approaches to meet unmet soft tissue regeneration. Its operating expenditures were $10.2 million, compared to $6.5 million in the same timeframe in 2019. The rise was attributed to the growth of the company’s marketing activities, greater total production costs, and increased prices associated with working as a public entity, which was partly offset by decreased travel and advisory risks incurred from cost-cutting measures directly in response to the COVID-19 pandemic.
Company’s operative losses were posted $6.9 million, in contrast to operating losses of $3.9 million years over year.
The net loss in the third quarter of 2020 totaled $7.7 million, in comparison to the net loss of $4.7 million in the same period of 2019. Overall cash and cash equivalents were $81.5 million on September 30th, 2020.