The New SeaSpine Accelerating the Pace of Innovation & Design - March 2021
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The New SeaSpine
Accelerating the Pace
of Innovation & Design
March 2021
1 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Forward-looking Statements & Disclaimer
This presentation includes statements that may be forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast” and similar expressions, or the
negative thereof, among others, generally identify forward-looking statements. Forward-looking statements used in this presentation
include statements regarding revenue guidance; future revenue and revenue growth; liquidity to fund growth; new product launches
and market opportunity, market share and market share growth; future gross margin. SeaSpine ® cautions that these forward-looking
statements are based on management's current expectations, estimates, forecasts and projections about SeaSpine, and
assumptions management believes are reasonable, and are subject to risks and uncertainties that may cause actual results to differ
materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the
ongoing impact of the COVID-19 pandemic on the elective surgery market and the global healthcare system generally, risks that the
COVID-19 pandemic may disrupt our business and/or the global healthcare system more severely than we have anticipated,
surgeons’ willingness to use the Company’s existing and newly launched products; the Company’s ability to continue to invest in
medical education and training, product development, and/or sales and marketing initiatives at levels sufficient to drive future
revenue growth; the Company’s ability to attract new, high-quality distributors and potential disruption to the Company’s existing
distribution network; continued pricing pressure, as well as exclusion from major healthcare systems; the risk of supply shortages
and the associated, potentially long-term disruption to product sales; unexpected expense and delay; changes to laws and
regulations applicable to the Company and the industry in which it competes; and general economic and business conditions in the
markets in which the Company does business, both in the U.S. and abroad. Additional information about the factors that may affect
the operations of SeaSpine and results is set forth in SeaSpine’s annual and quarterly reports filed with the U.S. Securities and
Exchange Commission. Forward-looking statements contained in this presentation are made only as of the first day of the month and
year set forth on the cover hereof and SeaSpine undertakes no obligation to release publicly any revisions or updates to forward-
looking statements as a result of subsequent events or developments, except as required by law.
2 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
®
SeaSpine Journey
Accell®
Bone
Matrix
NanoMetalene® Modular
Surface Fixation
Topography Systems
Our Beginning– The Journey/ Growth/Innovation
Keeping Foundation Transformation 2021 & Beyond
Spin-off of a spinal implants SeaSpine has established a Over the next several years
and orthobiologics division profound identity as a the accelerated launch
into a pure-play spine customer focused, pure-play cadence will continue. With
company with a renewed spine company, creating its a focus on research and
focus on investing for growth unique pathway as a market- product development that is
and innovation. share taker. Under proven driven by science, data and
leadership the organization ultimately culminates in
drives to create innovative better patient outcomes.
solutions and deepen SeaSpine aims to be a
partnership with committed, market leader in Spine.
growth-oriented distributors.
3 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
SEASPINE
TODAY
We collaborate with surgeons to develop
best-in-class, cost-effective solutions that
combine efficient spinal implant systems with
industry leading orthobiogics that will deliver
clinical value to the surgeon, hospital and patient.
Spine surgery is not “elective” surgery to those patients
who need it. It’s “temporarily deferrable”, at best.
4 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Senior Leadership Team
An assembly of experienced leadership to drive vision forward with 230+ years in spine/orthopedics
John Bostjancic Dennis Cirino Tyler Lipschultz Laetitia Cousin Patrick Keran
Senior Vice President, Senior Vice President, Senior Vice President, Vice President, Senior Vice President
Chief Financial Officer Global Spinal Systems Orthobiologics & Business Development Regulatory & Quality Assurance General Counsel & Corporate Secretary
Keith C. Valentine Bill Rhoda Frank Vizesi, Ph.D. John Winge Troy Woolley
General Manager of Process Vice President, Orthobiologics Vice President, Sales Vice President, Marketing
President & Chief Executive Officer Innovation & Development Research & Development,
& Clinical Affairs
5 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Mariner® MIS
Foundational Systems
Expected to Drive Mariner®
OsteoBallast®
Double-Digit Growth OsteoStrand®
Shoreline RT™
Combining differentiated,
biologic-friendly spinal implants
with advanced orthobiologics
RAPID® Waveform TA
6 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Partnerships Vital to Executing Our Vision
% of Q4 2020
US Core Distributors SeaSpine US Sales
($ in millions)
57.4%
54.0% 60.0%
$75.0
49.5%
$79.8 50.0%
43.3%
$76.6 44.3%
40.0%
$50.0 $63.3
31.0%
28.2%
30.0%
$51.2
$25.0 20.0%
$36.2
10.0%
$17.3
$- 0.0%
H2 2015 2016 2017 2018 2019 2020
CORE DISTRIBUTOR SEASPINE REVENUE % of SEASPINE U.S. REVENUE 55.7%
Core Distributors are those partners increasingly committed and exclusive to
SeaSpine and typically carry both our Spinal Implants and Orthobiologics portfolios.
7 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Medical Education Programs
Furthering our commitment to our partners
3 complimentary education
programs synergize to
Deliver value to
Distributors & Surgeons
8 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Medical Education Programs 2020
Furthering our commitment to our partners
95+
COASTs visits, trainings, labs
350+
Cases supported by MDMs:
Alpha cases, new users and
complex case support
Medical education programs have been significantly limited in 2020 due to travel restrictions related to COVID-19 pandemic.
9 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
U.S. Spine and Orthobiologics Market
®
90% of SeaSpine SEASPINE
revenue is from the ADDRESSABLE
U.S. MARKET
U.S. market
$ 7.1B
$5.4B $1.7B
CERVICAL AND BONE GRAFT
THORACOLUMBAR SUBSTITUTES,
INTERBODY AND GROWTH FACTORS,
FIXATION DEVICES CELLULAR GRAFTS
SPINAL IMPLANTS ORTHOBIOLOGICS
Large established market with opportunity Opportunity to leverage #2 U.S. market
to take share through differentiated share position in demineralized bone
technology and value-added training/ matrix (DBM) and strong distribution
education to deliver clinical value and GPO/IDN relationships
Source: 2019 – Spine market report
10 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.FIXATION INTERBODY
Addressing Over
$2 Billion of New
Market Segments
Launch cadence, speed to market, complexity
11 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Midline
Revision
Deformity
Fixation $2.8B
Market Segment Addressing
less than 50%
of the market
Mariner® Degen Minimally
2017
Invasive
Surgery (MIS)
12 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Mariner Midline
2019
Mariner Revision
2019
Mariner
Deformity
Fixation $2.8B
2021
Market Segment Addressing
over $1.5 billion
of new market
segments
Mariner® Degen
2017
Mariner MIS
2019
NOTE: Estimated market size does not take into account any potential lasting impact from the COVID-19 pandemic
13 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Expandable
PEEK
Interbody $1.6B
Market Segment
3D
Printed
Composite
14 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.PEEK
2015
Expandable
Interbody $1.6B
Market Segment
Composite
2015
3D
Printed
15 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Peek
Expandable
2020
Interbody $2.8B
Market Segment Addressing over
NanoMetalene®
$800 million with Reef™
of new market Topography
segments
3D
Printed
2021
NOTE: Estimated market size does not take into account any potential lasting impact from the COVID-19 pandemic
16 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.17 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
Engineered™
Scientific Surface Economically Viable
Fusion Topography Solutions
Modular Systems
Modularity Cutting Edge
Innovation
18 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.BEST IN CLASS Advanced DBM Product Portfolio
Proprietary macro features
BEST IN
CLASS
ADVANCED
DBMS
19 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Do Cells Improve Bone
Healing in Spine?
Preclinical Study
20 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Study Goal
Determine the effectiveness of cells in spinal fusion by testing Cellular Bone Matrices
(CBMs) both with and without cells in the scientifically valid athymic rat spinal fusion model
Sample Sample
# Size Size Fusion
Group Description Lots (# rats) (fusion masses) Rate
Leading DBM Particles w/ cells (DEAD) 3 N=9 N=18 0/18 (0%)
CBM 1
DBM Particles w/ cells (LIVE) 3 N=9 N=18 0/18 (0%)
Leading DBM Fibers w/ cells (DEAD) 3 N=9 N=18 11/18 (61%)
CBM 2
DBM Fibers w/ cells (LIVE) 3 N=9 N=18 11/18 (61%)
OsteoStrand Plus DBM Fibers 3 N=9 N=18 17/18 (94%)
21 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Not Fused Partially Fused Fused
Conclusion
• SeaSpine’s OsteoStrand Plus
DBM product outperformed the
cellular graft products tested
• The cellular component of
CBMs does not improve bone
formation in spine
0/36 fused (0%) 22/36 fused (61%) 17/18 fused (94%)
Leading CBM 1 Leading CBM 2 OsteoStrand Plus /
SeaSpine
22 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.What Drives Spinal Fusion:
Cells or Growth Factors?
(it’s the growth factors)
23 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Q4 20 Financial & Operational Highlights
% of U.S. Spinal Implants
Revenue from Recently Product
Revenue Growth Launched Products Launches
+6% 69% 5
Q4 2020 Revenue Growth was (+7% U.S.)
negatively impacted by deferral
of spine surgeries caused by
the COVID-19 pandemic. % of U.S. Revenue from Total Potential
Core Distributors Gross Margin Liquidity
56% 63% $113M
24 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Financial Highlights
Total Revenue: YOY Progression
Total Revenue ($ in millions)
$160.0 12%
9% 11% 10%
$120.0 8%
6%
$80.0 4%
2%
2%
$40.0 0%
-2%
-3%
$- -4%
2016 2017 2018 2019 2020
Total Revenue Revenue Growth
NOTE: 2020 Revenue (-3%) has been negatively impacted by deferral of spine surgeries caused by the COVID-19 pandemic.
25 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Financial Highlights
Strong Liquidity Position Enables Continued Investment in Growth
TOTAL POTENTIAL LIQUIDITY ($ in millions)
$150.0
➢ Cash and Access to Cash to Fund our
$125.0 $113.3
Growth Strategy
$100.0 $90.5 $36.5
➢ Investments to Support Growth
$75.0 $36.5 o New Product Launches
$59.9 $56.7
$47.0
o Deploy Additional Spinal Implant Sets
$50.0
$26.5
$41.1
$37.3 o Training & Education
$36.5 $76.8 o Clinical Evidence/Studies
$25.0 $26.5 $54.0
$47.0 $26.5
$33.4
$14.6 $20.2
$10.8
$-
Jul-15 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Cash and Investments Credit Facility Capacity Total Potential Liquidity
Total Potential Liquidity reflects maximum potential borrowing capacity of credit facility, assuming exercise
of $10M accordion feature, and based on eligible accounts receivable and inventory and assuming minimum
fixed charge coverage ratio is not achieved
26 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Financial Highlights
% of U.S. Revenue From Recently Launched Products (2015 –2020)
New Product Revenue ($ in millions)
$60.0 66.1% 70.0%
57.8%
60.0%
$50.0 Return on Investment in
46.6%
50.0%
Innovation—Evident
$40.0 through Growth from
$67.1 40.0% New Product Revenue
$30.0 30.1% 31.5%
$55.6
30.0% Q4 20 New Product Revenue
$20.0
21.9% $44.6 o 69% of Spinal Implants
$39.5
$33.9 20.0% o 35% of Orthobiologics
$28.2
9.7% 8.4% $22.5
$10.0 $18.3
0.6% $16.8 $16.1 10.0%
2.3%
$0.6 $0.6 $0.3 $5.6 $5.9 $1.4 $5.7
$0.0 0.0%
Q3/Q4 15 FY 16 FY 17 FY 18 FY 19 FY 20
US Orthobiologics US Spinal Implants Total US Revenue
27 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Investment Innovative
Procedural
Improved Clinical
Outcomes and
Highlights Solutions Economic Value
Focused, pure-play
spine market-share taker
Strengthened Distributor Well Capitalized to
Partnerships Execute Strategy
28 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.Final image –stretching on the beach or 29 ©2021 SeaSpine Orthopedics Corporation. All rights reserved. Confidential – For internal use only. Do not distribute.
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