TELA Bio’s [TELA] share price has been a clear beneficiary from increased interest in the biotech investment theme. Over the past 12 months, the biotech firm’s stock is up 80.75%, having traded in the $14 to $17 range for much of the last three months of 2020 (as of 26 March 2021’s close).
However, 2021 has seen volatility in the stock, which could present a buying opportunity should TELA Bio and the overall biotech investment theme regain strength. To get a sense of the investment opportunity, we look at TELA Bio’s underlying fundamentals, recent fourth-quarter earnings and the wider market outlook.
80.75%
TELA Bio’s share price rise over the past 12 months
How is TELA’s Bio share price performing?
TELA Bio’s share price is largely unchanged after it posted fourth-quarter results on 24 March, closing 26 March at $14.55. In the five days before the results, TELA Bio’s share price slipped circa 8.6%, indicating that traders were pricing in an underwhelming performance this quarter.
Over the past month, the stock has dipped 8.6% (as of 26 March’s close), and 15.7% since hitting a year high of $17.26 on 11 March. For comparison, the wider S&P Biotechnology Select Industry (SPSIBI) is down 12.18% for the month, while the BioTech investment theme has dropped 2.37% according to our thematic ETF screener.
What happened in TELA Bio’s Q4 results?
TELA Bio reported a $0.54 loss per share in the fourth quarter. Wall Street had been expecting a $0.49 loss per share. In the past four quarters, the biotech firm has only once beaten analyst expectations. Despite the miss, this was better than the same period last year when TELA Bio posted a $1.22 loss per share. Revenue came in at $5.67m, up 17% from the $4.86m seen in the same period last year.
Full-year revenue was $18.2m, up 18% from the previous year, while TELA Bio’s net loss rose from $22.4m in 2019 to $28.8m in 2020.
“Despite the many challenges of COVID-19, we continue to see momentum in our business and were able to generate fourth quarter and 2020 revenue growth,” said Antony Koblish, co-founder, president and CEO of TELA Bio.
$18.2million
TELA Bio’s full-year revenue – a 18% YoY rise
Why should investors care?
TELA Bio is a medical technology company that designs and makes tissue reinforcement materials. Its two products are TELA Bio OviTex and the OviTex PRS Reinforced Tissue Matrix, which reinforce materials in hernia repair, plastic and reconstructive surgery.
March saw positive results from its 12-month analysis of OviTex Reinforced Tissue Matrix for the treatment of ventral hernias. The product is designed to be an alternative to permanent synthetic mesh, which, according to a TELA Bio presentation in February, has resulted in circa 15,000 lawsuits in the US. The February presentation also highlighted a $500m opportunity for OviTexPRS’s use in plastic and reconstructive surgery.
In the near-term, TELA Bio is focused on promoting adoption of OviTex and OviTex PRS products through a targeted sales approach. Overall, TELA Bio estimates its total addressable market is worth circa $2bn.
Is TELA Bio a good investment?
Simply Wall Street points out that TELA Bio had $30m of debt on its books as of September 2020. However, it also had $81.5m in cash, giving it a net cash balance of $51.1m. Overall, Simply Wall Street says TELA Bio “can boast $48.1m more liquid assets than total liabilities”.
“The excess liquidity suggests that TELA Bio is taking a careful approach to debt,” Simply Wall Street noted, adding, “simply put, the fact that TELA Bio has more cash than debt is arguably a good indication that it can manage its debt safely.”
For 2021, TELA Bio expects revenue to come in between $27m and $30m, which would see growth in the range of 48% to 65% year on year.
“The excess liquidity suggests that TELA Bio is taking a careful approach to debt, simply put, the fact that TELA Bio has more cash than debt is arguably a good indication that it can manage its debt safely” – Simply Wall Street
“Over the course of 2020, we focused on engaging our customers virtually, optimizing our product portfolio, and completing the 12-month analysis of our patients in our BRAVO study. As a result of these accomplishments and our strong financial position, we believe we are well-positioned to gain market share and accelerate revenue growth over the long term.”
TELA Bio carries an average $20 analyst price target according to data from Yahoo Finance. Of the four analysts offering price targets, the stock has two strong buy ratings and two buy ratings.
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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
