Vericel (US:VCEL)2021-05-05 12:06Financial Performance - Vericel's net revenue for Q1 2021 was $34.6 million, a 29.5% increase from $26.7 million in Q1 2020, driven by strong volume growth for MACI and Epicel[99]. - MACI generated $23.8 million in revenue for Q1 2021, up from $20.3 million in Q1 2020, reflecting a 7.4% increase[101]. - Epicel revenue increased to $9.8 million in Q1 2021 from $6.4 million in Q1 2020, representing a 53.1% growth[94]. - The net loss for Q1 2021 was $3.3 million, an improvement from a net loss of $4.7 million in Q1 2020[97]. - Gross profit for the three months ended March 31, 2021, was $22.985 million, an increase from $16.756 million in the same period in 2020, resulting in a gross profit margin of 66% compared to 63%[102][103]. Operating Expenses - Total operating expenses for Q1 2021 were $26.3 million, compared to $21.8 million in Q1 2020, indicating a 20.5% increase[98]. - Research and development costs decreased to $3.630 million for the three months ended March 31, 2021, from $3.763 million in the same period in 2020, with significant expenses allocated to MACI and Epicel[104]. - Selling, general and administrative costs rose to $22.660 million for the three months ended March 31, 2021, up from $18.069 million in the same period in 2020, primarily due to increased stock-based compensation and sales force expenses[105]. - Non-cash stock-based compensation expense increased to $7.019 million for the three months ended March 31, 2021, from $3.768 million in the same period in 2020, driven by rising stock prices[108]. Cash Flow and Investments - Cash provided by operating activities was $10.086 million for the three months ended March 31, 2021, compared to $4.686 million in the same period in 2020, reflecting improved cash collections[111]. - As of March 31, 2021, total cash and cash equivalents were $58.2 million, with short-term investments of $25.4 million and long-term investments of $26.0 million[111]. - The company generated $12.186 million from investing activities during the three months ended March 31, 2021, compared to $13.742 million in the same period in 2020[111]. - The company believes its current cash and investments will support operations for at least 12 months, although ongoing COVID-19 impacts may affect this outlook[115]. - A 1% unfavorable change in interest rates could result in a decrease of approximately $0.4 million in the fair value of the investment portfolio as of March 31, 2021[120]. Regulatory and Market Conditions - The FDA accepted the BLA for NexoBrid on September 16, 2020, with a PDUFA target date of June 29, 2021, for potential approval[90]. - The company maintains a significant safety stock of key raw materials and does not expect current supply chain interruptions to impact manufacturing operations[86]. - MACI procedures were significantly impacted by COVID-19 restrictions in early 2020, but the effects had largely dissipated by Q1 2021[82]. - Epicel procedure volumes were less affected by the pandemic, although some slowdown was observed in Q2 2020[83]. Other Income - Total other income decreased to $159,000 for the three months ended March 31, 2021, compared to $371,000 in the same period in 2020, mainly due to lower returns on investments[106].