Sientra CEO on resilient growth, advancing the field of plastic surgery
By Alan Hatfield
Sientra, Inc. (Nasdaq: SIEN) is a medical aesthetics company focused on improving lives by advancing the art of plastic surgery.
IPO Edge spoke with Sientra CEO Ron Menezes to learn more about the company and its management.
IPO Edge: Tell us about Sientra
Sientra is a global medical aesthetics company solely focused on improving lives by advancing the art of plastic surgery. The company’s mission is to deliver exclusive innovations and unparalleled partnerships that radically advance the way plastic surgeons think, work and care for their patients. Sientra has developed a broad portfolio of products with technologically differentiated features, backed by independent laboratory testing and strong clinical results.
The company’s core breast products segment includes its state-of-the-art Sientra breast implants and its revolutionary dual-port breast tissue expander, AlloX2®. In addition, the Sientra portfolio also includes BIOCORNEUM® the most effective healing gel, preferred and recommended by plastic surgeons*
* Data on file
IPO Edge: Where is the organization going?
As we look to the rest of 2022 and beyond, we are focusing on three key areas:
Accelerate market share growth within our reconstruction and augmentation businesses
Become the leader in the reconstruction market
Transform Sientra into a comprehensive aesthetics company by providing an enhanced portfolio for plastic surgeons and improving the lives of patients.
IPO Edge: You were able to achieve 7 quarters of growth, what drove this growth?
We are off to a strong start in 2022 as our team continues to execute our core business strategies flawlessly and we are poised for long-term sustainable growth, both in rebuilding and augmentation.
Sientra has proven to be a rapidly growing company within our industry, having doubled our increase market share in 2019, while doubling our brand awareness. In the reconstruction market, our market share nearly doubled, including 50% revenue growth in the first quarter of 2022, reflecting the investment we made in 2021. The business also achieved margins by 60% due to increased sales and improved operational efficiency. Additionally, we are still on a solid path to break even by mid-2023.
IPO Edge: There are concerns about the US economy entering recession, how has your business fared in previous economic cycles? Is your business weathering the recession? Are you taking steps to prepare for a potential downturn?
While many industries experienced a decline in growth during COVID, we continued to grow. Today, even with concerns about the impact of a recession, we are still in a strong position, as demonstrated by our two-fold growth in market share and brand awareness and our 17% growth across the entire portfolio in the first quarter of 2022. There is still a lot of potential. to this share growth. Fortunately, we are also seeing hospitals returning to pre-pandemic volumes, which provides tailwinds to add more reconstruction accounts and grow market share in this important segment.
Given these advances and our continued operational efficiency, we believe we are well positioned for the months to come.
IPO Edge: Which new products will drive future growth?
Given our growth initiatives, our long-term strategic vision for Sientra is to continue to advance our current product offerings, while also expanding into new product categories such as non-breast and next-generation innovations, which will ultimately lead us to become a fully-fledged aesthetic company. company. We have always been a “company of firsts” and plan to continue with this mentality. Our approach is simple, we do not seek to imitate the competition, but to solve an unmet need in the market and to overcome the status quo.
We have several launches planned for 2022 and 2023 that will strengthen our track record of differentiation. These include the recently launched Dermaspan with 6 tabs, and other upcoming products including Low Profile Plus implants, Allox2 Pro and our new Portfinder device.
Our newest addition to the Sientra family is in the area of fat grafting, which will help us grow our portfolio as we grow into a fully-fledged aesthetics business. The addition of our newly acquired fat grafting technology will increase our US TAM by more than $130 million and allow us to provide a highly differentiated solution in this growing space. We are in the process of making enhancements to the system, leading to a full launch in Q1 2023. Our survey data validated our decision to invest in this system as customers seek better solutions.
IPO Edge: How do you ensure the safety of patients using your products?
Sientra offers next-generation implants with some of the lowest complication rates, which is demonstrated in our safety data and clinical results. Looking at our clinical data, our capsular contractures and ruptures, or implant leakage, the rates are significantly lower than our competitors, making our safety and clinical data unmatched in our industry. At Sientra, we have always prided ourselves on being transparent about our safety data and helping patients make an informed decision about their brand of breast implants. Not only do we provide safe and effective products, but we also back them with our 20 Platinum Guarantee, which covers some of the most common complications a patient might experience for 20 years. The Sientra Platinum 20 warranty provides an additional 10 years of coverage over all other breast implant brands in the industry, and lifetime coverage in the event of rupture.
IPO Edge: surgeons are key partners; how do you support them to help them develop their practices and demand for your products?
There are many important considerations for reconstruction and augmentation surgeons when selecting an implant brand. Of course, security is part of it. Sientra’s portfolio of product offerings is available exclusively to board-certified plastic surgeons, giving them access to cutting-edge products and technologies that have unparalleled safety and clinical data to back them up.
We also saw great results from our recent redesign of our branding, website and DTC efforts, which resulted in 80,000 referrals to Sientra customers nationwide through our Find feature. to Doctor. Almost all consumers do their own research and according to our research, 90% of patients want to be involved in choosing a brand. Sientra is the only brand truly focused on educating these consumers across all digital platforms and directing interested individuals to a board-certified surgeon for a consultation.
Alan Hatfield, Research Director