Vericel Corporation (NASDAQ:VCEL) Q2 2023 Earnings Conference Call August 2, 2023 8:30 AM ET Company Participants Eric Burns - VP, Finance and IR Nick Colangelo - President and CEO Joe Mara - CFO Conference Call Participants Ryan Zimmerman - BTIG Sam Brodovsky - Truist Securities Jeffrey Cohen - Ladenburg Swayampakula Ramakanth - HCW George Sellers - Stephens Incorporated Operator Ladies and gentlemen, thank you for standing by, welcome to Vericel's Second Quarter 2023 Conference Call. At this time, all par ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35280 VERICEL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificati ...

EXCHANGE ACT OF 1934 Commission File Number 001-35280 VERICEL CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificat ...

Financial Data and Key Metrics Changes - For the full year 2022, total revenue exceeded $164 million, with MACI revenue growing 18% to $132 million, and record quarterly revenue of nearly $53 million in Q4 [7][25] - The company achieved a gross margin of 73% and an adjusted EBITDA margin of nearly 30% in Q4, both of which increased compared to the prior year [7][27] - Net income for Q4 was approximately $6 million, representing over 30% growth compared to Q4 2021 [7][28] Business Line Data and Key Metrics Changes - MACI revenue in Q4 was over $46 million, reflecting 24% growth year-over-year and approximately 50% sequential growth from Q3 2022 [8][25] - Epicel revenue for Q4 was lower than anticipated at $6.3 million, with a decline in the incidence of large burns impacting overall performance [9][26] - Total burn care revenue for the year was $32.4 million, with Epicel contributing $31.7 million and NexoBrid generating $0.7 million [26] Market Data and Key Metrics Changes - The company reported a record number of approximately 2,000 surgeons taking biopsies in 2022, marking a 10% increase from 2021 [8] - The approval of NexoBrid significantly increases the addressable market for the burn care franchise to over $0.5 billion [18] Company Strategy and Development Direction - The company plans to launch arthroscopic MACI in 2024, which is expected to drive broader surgeon adoption and further growth acceleration [12][22] - NexoBrid is anticipated to become a standard of care in eschar removal, with a significant share of its $300 million addressable market in the U.S. [23] - The company aims to leverage its existing burn care commercial infrastructure to support the launch of NexoBrid with limited incremental investment [18] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2023, with MACI growth expected to be approximately 20% in Q1 compared to the previous year [21][30] - The company expects total revenue for 2023 to increase to approximately $180 million to $188 million, driven by continued growth in MACI and the launch of NexoBrid [19][30] - Management highlighted the potential for increased utilization among current MACI users with the introduction of arthroscopic delivery [13] Other Important Information - The company ended 2022 with approximately $140 million in cash and investments and no debt [7][29] - The anticipated capital investment for the new cell therapy manufacturing facility is projected to be in the range of $30 million to $40 million for 2023 [34] Q&A Session Summary Question: Concerns about Epicel guidance and NexoBrid expectations - Management acknowledged the volatility of Epicel revenue and indicated that the $24 million run rate is a reasonable starting point, with NexoBrid expected to help offset variability [37][40] Question: Clarification on MACI growth and sales force adequacy - Management confirmed that the sales force is currently sized appropriately but will reassess based on the potential for increased surgeon adoption with arthroscopic MACI [44][47] Question: Insights on NexoBrid's market strategy - Management stated that the launch strategy for NexoBrid will target both current Epicel users and high-volume burn centers, with a focus on gaining P&T committee approvals [60][61] Question: Update on the new manufacturing facility timeline - Management confirmed that the new facility is on track for completion by the end of 2024, with commercial production expected to begin in early 2026 [62]

▼ VERICEL | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------------|-----------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | VERICEL | | | | | | | | | FEBRUARY 23, 2023 | Q4 2022 RESULTS | | | | | | | | | | | | | | | Safe Harbor Vericel Q4 2022 Financial Results – February 23, 2023 2 Vericel cautions you that all statements other than statements of historical fact included in this presentation that address act ...

for the fiscal year ended December 31, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35280 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 VERICEL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No ...

VERICEL CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35280 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identif ...

▼ VERICEL VERICEL Q2 2022 RESULTS AUGUST 3, 2022 Safe Harbor 2 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35280 VERICEL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35280 VERICEL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificat ...