TELA Bio Inc (NASDAQ: TELA) is a surgical reconstruction company that develops and sells biologic and resorbable synthetic mesh products for hernia repair and soft tissue reconstruction. Revenue is transactional, generated through direct sales of OviTex and OviTex PRS products to hospitals and healthcare systems. The company sources its primary raw material, ovine rumen, exclusively from Aroa Biosurgery under a long-term supply agreement, paying Aroa a transfer cost equal to 27% of net sales for most OviTex and OviTex PRS configurations (per the 10-K filed 2026-03-25). OviTex products are priced approximately 20% to 40% below other biologic matrices and resorbable synthetic mesh at national average competitive pricing, giving the company a cost-based pricing advantage in hospital procurement. TELA Bio sells into hospitals and healthcare systems, with purchasing influenced by group purchasing organizations (GPOs) and integrated delivery networks (IDNs). The company carries debt under a credit agreement with Perceptive Credit Holdings V, LP, entered November 13, 2025, and does not pay dividends.

Revenue model

Transactional product sales of OviTex and OviTex PRS surgical mesh to hospitals and healthcare systems. Raw material cost is fixed at 27% of net sales for most product configurations under the Aroa supply agreement, providing a defined gross margin structure.

Products and services

OviTex (ovine rumen-based biologic matrix for hernia repair, including OviTex IHR, OviTex LPR, OviTex Core Permanent, OviTex Core Resorbable, OviTex 1S Permanent, OviTex 1S Resorbable); OviTex PRS (soft tissue reconstruction portfolio for plastic and reconstructive surgery). Post-market clinical studies include BRAVO, BRAVO II, ECH2O2, and OPERA.

Customers and end markets

Hospitals and healthcare systems purchasing through GPOs and IDNs. End markets are general surgery (hernia repair, including ventral, inguinal, and hiatal hernias) and plastic and reconstructive surgery. Procedures are reimbursed through third-party payors including Medicare and Medicaid.

Value-chain role

Downstream medical device commercial company. Sources ovine rumen exclusively from Aroa Biosurgery, which also manufactures finished products under the Aroa License. TELA Bio handles commercialization, sales force deployment, clinical evidence generation, and regulatory maintenance in the U.S.

Geographic exposure

The filing excerpts support U.S.-focused commercial operations. No specific international revenue breakdown is provided in the excerpts.

Source: SEC 10-K, filed 2026-03-25

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