Company Overview and Financial Performance - Vericel is a leader in advanced therapies in sports medicine and burn care, combining innovations in biology with medical technologies[5] - The company has a strong financial profile with ~$162 million in cash and investments[9] - Vericel achieved GAAP Net Income positive in 2024[9] - The company is driving high revenue growth and targets high-70% gross margin and high-30% adjusted EBITDA in the mid-term[17] - The company experienced 20% top-line growth in 2024 and expects continued high revenue growth in 2025 and beyond[18] Market Opportunity and Product Expansion - The total addressable market (TAM) opportunity is expanding to over $5 billion in the years ahead[10] - The core TAM is ~$4 billion, with an expanded TAM of ~$5 billion[11, 12] - MACI Arthro, launched in Q3 2024, targets the largest segment of the current MACI addressable market[9] - MACI Ankle study is anticipated to initiate in 2025, potentially increasing the total MACI addressable market to $4 billion[9, 53] - NexoBrid, launched in the U S in Q4 2023, significantly expands the total addressable market in burn care[9]

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Continued Strong Revenue Growth Translated Into Significant Profit Growth Q4 2019 Financial Performance vs. Q4 2018 Business Highlights MACI full-year revenue growth of 35%, Epicel full- Vericel Q4 2019 Financial Results – February 25, 2020 3 +26% +66 bps +$5.1 million Total Revenue Growth Gross Margin Expansion Adjusted EBITDA Improvement VERICEL Q4 2019 RESULTS FEBRUARY 25, 2020 Safe Harbor This presentation contains forward-looking statements, including, without limitation, statements regarding full-year ...

CAMBRIDGE, Mass., June 10, 2025 (GLOBE NEWSWIRE) -- Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today announced that the Company will participate in a fireside chat at the Truist Securities MedTech Conference at 9:20 a.m. ET on Tuesday, June 17 2025. Eric Burns ir@vcel.com +1 (734) 418-4411 Vericel is a leading provider of advanced therapies for the sports medicine and severe burn care markets. The Company combines innovations in bi ...

Summary of Vericel (VCEL) 2025 Conference Call Company Overview - **Company**: Vericel Corporation - **Industry**: Advanced therapies for sports medicine and severe burn care markets - **Key Products**: MACI (cell therapy for cartilage repair), NexoBrid (eschar removal), Epicel (permanent skin replacement) [1][2][4] Core Points and Arguments Product Leadership - Vericel is a leader in advanced therapies with a unique portfolio of specialty biologics and advanced cell therapies [2][3] - MACI is the leading restorative cartilage repair product and the only FDA-approved product in its class [3][5] - Recent FDA approval for AC Arthro is expected to enhance market penetration [3] Financial Performance - The company has shown significant revenue growth, with a compounded annual growth rate of approximately 20% since the launch of MACI in 2017 [9][11] - Burn care franchise grew by 22% last year, indicating strong performance in both segments [8] - Strong financial position with over $160 million in cash and no debt [7] Market Opportunity - Total Addressable Market (TAM) for the core portfolio is approximately $4 billion, potentially increasing to over $5 billion with the addition of MACI ankle indications [9] - There are about 750,000 knee cartilage repair procedures annually, with a significant commercial opportunity for MACI [13] Growth Initiatives - Plans to initiate a MACI ankle study and expand manufacturing capabilities to support international launches [8][10] - The MACI Arthro launch is expected to simplify procedures and increase market penetration [16][19] Burn Care Innovations - NexoBrid is positioned to change the standard of care for burn treatment by providing a less traumatic eschar removal method [22][23] - Epicel is the only FDA-approved permanent skin replacement, showing significant survival benefits for patients [26] Adoption and Training - Over 400 surgeons trained for MACI Arthro, with a biopsy growth rate exceeding 30% among trained surgeons [20][19] - Focus on expanding the commercial footprint and increasing utilization of both NexoBrid and Epicel [26][27] Additional Important Content - The company emphasizes the lack of near-term competitors and significant barriers to entry in the market [5][6] - The innovative nature of MACI and its broad label contribute to its market leadership [15] - Continuous exploration for new products in sports medicine and burn care markets to leverage existing capabilities [28]

Financial Data and Key Metrics Changes - The company achieved record total net revenue of $52.6 million for the first quarter, with MACI revenue of $46.3 million, Epicel revenue of $5 million, and NexoBrid revenue of $1.3 million [13] - MACI revenue grew by 15% year-over-year, which adjusts to approximately 17% growth when accounting for one fewer selling day in the quarter [14] - NexoBrid revenue increased by 207% year-over-year and 31% sequentially [14] - The net loss for the quarter was $11.2 million, or $0.23 per share, with non-GAAP adjusted EBITDA of $3.2 million, representing 6% of net revenue [16] Business Line Data and Key Metrics Changes - MACI had a strong quarter with record revenue exceeding $46 million, driven by strong underlying fundamentals and a growing surgeon customer base [6][5] - NexoBrid's revenue growth was significant, with over 200% increase compared to the previous year, indicating strong market penetration [10] - Epicel revenue was lower than anticipated due to a high percentage of canceled cases, but there was a strong start to the second quarter with graft volumes exceeding the first quarter [11][12] Market Data and Key Metrics Changes - The company expects total revenue growth of 22% to 25% for the second quarter, with MACI revenue projected to be approximately $54 million [18] - The addressable market for MACI is estimated at 60,000 patients annually, with significant opportunities in femoral condyle and trochlear defects [26][20] Company Strategy and Development Direction - The company is advancing the MACI Ankle Development Program and plans to initiate a Phase III clinical study in the second half of the year, which represents a substantial long-term growth driver [20] - The company plans to expand its MACI sales force in the second half of the year to support growth driven by MACI Arthro [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong second quarter performance based on positive trends observed in the first quarter, reaffirming full-year revenue guidance of 20% to 23% growth [5][17] - The company anticipates minimal impact from tariffs due to its domestic manufacturing and significant safety stock of materials [17] Other Important Information - The company generated $6.6 million in operating cash flow and ended the quarter with approximately $162 million in cash and no debt [16] - Management raised profitability guidance for the year, expecting gross margins to reach 75% and adjusted EBITDA margins to reach 26% [18] Q&A Session Summary Question: Can you discuss the market opportunity for femoral condyle and trochlear specifically? - Management indicated that the MACI Arthro instruments are designed for femoral condyle defects, which represent a significant portion of the addressable market, and there is potential for treating trochlear defects as well [26][27] Question: How do you see seasonality and pacing for MACI in the second half of the year? - Management noted that while MACI typically follows a prescriptive pattern, strong leading indicators suggest potential for stronger growth in the second half of the year [32][33] Question: What is the contribution of MACI Arthro to first quarter numbers? - Management acknowledged that while there was some incremental impact from MACI Arthro, the full effect is expected to be seen in the second half of the year [38][40] Question: How have recent trade war headlines impacted international views on MACI? - Management stated that they are evaluating potential for MACI outside the U.S. but will consider tariffs and trade impacts before making decisions [92] Question: Can you provide insights on conversion rates for MACI Arthro procedures? - Management indicated that it is early to assess conversion rates, but they expect higher rates over time due to the less invasive nature of the procedure [57][66] Question: What are the dynamics of cross-selling opportunities between Epicel and NexoBrid? - Management confirmed that they are seeing biopsies from previously dormant accounts and expect this trend to continue as they cross-sell products [61] Question: Can you elaborate on the sales force expansion plans? - Management indicated that while the expansion is not full-scale this year, they are preparing to add resources to support expected growth [80][81]

Financial Data and Key Metrics Changes - The company achieved record total net revenue of $52.6 million for Q1 2025, with MACI revenue of $46.3 million, Epicel revenue of $5 million, and NexoBrid revenue of $1.3 million [12] - MACI revenue grew by 15% year-over-year, which adjusts to approximately 17% growth when accounting for one fewer selling day in the quarter [12] - NexoBrid revenue increased by 207% year-over-year and 31% sequentially [12] - The net loss for the quarter was $11.2 million, or $0.23 per share, with non-GAAP adjusted EBITDA of $3.2 million, representing 6% of net revenue [15] Business Line Data and Key Metrics Changes - MACI had a strong quarter with record revenue exceeding $46 million, driven by strong underlying fundamentals and a growing surgeon customer base [6] - NexoBrid revenue showed significant growth, indicating progress in its launch and deeper penetration in ordering centers [10] - Epicel revenue was lower than anticipated due to a high percentage of canceled cases related to patient health issues, despite the highest number of biopsies since 2023 [10][13] Market Data and Key Metrics Changes - The company expects total revenue growth of 22% to 25% for Q2 2025, with MACI revenue projected to be approximately $54 million [17] - The addressable market for MACI is estimated at 60,000 patients annually, with significant opportunities in treating femoral condyle and trochlear defects [24][25] Company Strategy and Development Direction - The company plans to expand its MACI sales force in the second half of 2025, driven by strong early indicators from the MACI Arthro launch [9][19] - The MACI Ankle Development Program is on track to initiate Phase III clinical studies, representing a substantial long-term growth driver with an estimated market of $1 billion [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong underlying MACI business fundamentals and early indicators from the MACI Arthro launch, suggesting potential for incremental growth [20] - The company reaffirmed its full-year revenue guidance of 20% to 23% growth and raised profitability guidance, expecting gross margins to reach 75% and adjusted EBITDA margins to 26% for the year [17] Other Important Information - The company ended the quarter with approximately $162 million in cash, restricted cash, and investments, with no debt [15] - Management noted that tariffs are expected to have a negligible impact on the business due to domestic manufacturing and significant safety stock [16] Q&A Session Summary Question: Can you discuss the market opportunity for femoral condyle and trochlear specifically? - Management indicated that the MACI Arthro instruments are designed for femoral condyle defects, representing a significant portion of the addressable market, and surgeons are also using them for trochlear defects, expanding the potential market [24][25] Question: How do you see seasonality and pacing for MACI in the second half of the year? - Management acknowledged that while MACI typically follows a seasonal pattern, strong leading indicators suggest potential for enhanced growth in the second half of the year [30][31] Question: What is the contribution of MACI Arthro to the first quarter numbers? - Management noted that while it is difficult to quantify the exact contribution from MACI Arthro in Q1, they expect a more significant impact in the second half of the year [36][37] Question: How are you prioritizing MACI Arthro training among surgeon groups? - Management explained that training occurs through industry events and individual sessions, focusing first on existing MACI users before targeting new surgeons [92][93] Question: How has the recent trade war impacted your view on MACI internationally? - Management stated that they are evaluating the potential for MACI outside the U.S. and will consider trade impacts before making decisions [90][91]

Financial Performance - Total net revenue for Q1 2025 was $52.6 million, an increase from $51.3 million in Q1 2024 [5][21] - MACI net revenue grew by 15% to $46.3 million compared to the previous year [5][7] - Burn Care net revenue was $6.3 million, comprising $5.0 million from Epicel and $1.3 million from NexoBrid [5] - Gross margin remained stable at 69% [8] - The net loss for the quarter was $11.2 million, or $0.23 per diluted share, compared to a net loss of $3.9 million, or $0.08 per diluted share, in Q1 2024 [10][21] - Non-GAAP adjusted EBITDA for the quarter was $3.2 million, down from $7.2 million in Q1 2024 [10][22] Business Highlights - Approximately 400 MACI Arthro surgeons have been trained to date, with a year-to-date biopsy growth exceeding 30% for these trained surgeons [5][4] - The company reported the second highest number of MACI biopsies and surgeons taking biopsies since the product launch, with March recording the highest number of biopsies in any month since launch [5] - NexoBrid revenue increased by 207% year-over-year and 31% quarter-over-quarter [5] - Epicel saw the highest number of biopsies in a quarter since 2023 during Q1 2025 [5] Future Guidance - The company expects second quarter total revenue and MACI revenue growth to be in the low- to mid-20% range [5][6] - Full-year 2025 revenue guidance has been reaffirmed, with expected growth of 20% to 23% [6] - Profitability guidance has been raised to a gross margin of 74% and an adjusted EBITDA margin of 26% for the full year [6]

Company Overview - Vericel Corporation is a leader in advanced therapies for the sports medicine and severe burn care markets, combining innovations in biology with medical technologies to create a differentiated portfolio of cell therapies and specialty biologics [2] - The company markets three main products in the United States: MACI, Epicel, and holds an exclusive license for NexoBrid [2] Product Details - MACI is an autologous cellularized scaffold product for repairing symptomatic, full-thickness cartilage defects of the knee in adults [2] - Epicel is a permanent skin replacement for treating patients with deep dermal or full-thickness burns covering 30% or more of total body surface area [2] - NexoBrid is a biological orphan product indicated for eschar removal in patients with deep partial-thickness and/or full-thickness burns [2] Upcoming Events - Vericel Corporation will present at the Bank of America Securities 2025 Healthcare Conference on May 14, 2025, at 12:20 p.m. ET [1]

Core Insights - Vericel (NASDAQ: VCEL) operates in the regenerative medicine sector, which is currently undervalued by the market [1] - The company has achieved steady revenue growth through FDA-approved products such as MACI, Epicel, and NexoBrid, contrasting with larger biotech firms focused on blockbuster drug approvals [1] Company Overview - Vericel has established a niche in regenerative medicine, differentiating itself from larger biotech companies [1] - The company’s revenue-generating products are recognized for their FDA approval, contributing to consistent revenue growth [1] Market Position - The market tends to overlook Vericel in favor of larger biotech names, despite its strong performance and growth potential [1] - The focus on high-growth companies in sectors with potential for exponential expansion aligns with Vericel's business model [1]