Vericel (VCEL)2024-11-07 18:52Financial Data and Key Metrics Changes - The company reported total revenue growth of 27%, achieving approximately 41.7 million, representing 72% of net revenue, an increase of 480 basis points compared to the previous year [17] - Net loss narrowed to 0.02 per share, compared to 0.08 per share, in the prior year [18] - Adjusted EBITDA increased 84% to 44.7 million, on track for approximately 20% growth for the full year [15][21] - Total Burn Care revenue grew 66% to 12.2 million [15][16] - NexoBrid revenue increased sequentially to 1.1 million, with more burn centers adopting the product [16] Market Data and Key Metrics Changes - The company achieved record third-quarter highs for MACI biopsies and the number of surgeons taking biopsies, indicating robust growth in underlying growth drivers [9] - Over 70 burn centers completed P&T committee submissions for NexoBrid, with approximately 50 centers placing initial orders [11] Company Strategy and Development Direction - The company aims to sustain high revenue growth for MACI and establish a second high-growth franchise in burn care [12] - The recent FDA approval of MACI Arthro positions the company for sustained high revenue and profit growth [8] - The company plans to initiate the MACI Ankle development program and expects to submit an IND in the first half of 2025 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of high top-line growth and significant margin expansion in 2024 [22] - The company anticipates durable growth in its core portfolio and expects MACI Arthro to significantly impact overall MACI utilization [26] - Management noted that the cash generation profile will improve significantly in 2025 and beyond as the company completes its new manufacturing facility [57] Other Important Information - The company maintained its total revenue guidance for the full year at 238 million to 76 million to 151 million in cash, restricted cash, and investments, and no debt [19] Q&A Session All Questions and Answers Question: Can you talk about the drivers for growth next year, particularly for NexoBrid? - Management indicated that while they are not providing specific guidance for 2025, they expect continued progression for NexoBrid and strong growth for MACI [31][34] Question: What are you seeing from the new 2,000 surgeons in terms of MACI Arthro? - Management noted that initial cases are coming from both existing MACI users and new surgeons, indicating strong early interest [40][42] Question: How do you see MACI Arthro impacting your overall growth? - Management expects MACI Arthro to provide a modest contribution to growth initially, with potential for greater impact as adoption increases [36][61] Question: Can you provide insights on MACI pricing and potential increases in 2025? - Management stated that they typically implement high single-digit price increases annually and expect to do so in 2025 [75] Question: How is the training for MACI Arthro procedures being conducted? - Management explained that training is primarily done online, with additional hands-on training available through cadaver labs [88][90]