Vericel Announces Q3 2024 Financial Results

Vericel Corporation, a renowned company in the advanced therapies segment for sports medicine and severe burn care, has released its financial results for the third quarter of 2024, ending September 30. The company has demonstrated notable growth across multiple financial metrics and achieved significant business milestones.

The company reported a total revenue increase of 27%, reaching $57.9 million. This growth was driven primarily by the MACI® product, which saw a revenue increase of 19% to $44.7 million, and the burn care sector, which grew by 66% to $13.2 million. The latter includes $12.2 million from Epicel® and $1.1 million from NexoBrid®. The company’s gross margin improved to 72%, up by 480 basis points compared to the prior year. Despite these gains, Vericel recorded a net loss of $0.9 million, or $0.02 per diluted share. However, adjusted EBITDA showed a substantial increase of 84%, reaching $10.0 million, and the adjusted EBITDA margin improved by 540 basis points to 17%. The company’s operating cash flow was positive at $10.2 million, and it held approximately $151 million in cash, restricted cash, and investments, with no debt.

In terms of year-to-date performance, Vericel reported a total revenue increase of 22% to $161.8 million. The MACI segment grew by 19% to $129.0 million, while burn care revenue rose by 35% to $32.9 million. The gross margin for the year was 70%, up by 450 basis points. The net loss for the period was $9.4 million, or $0.19 per diluted share. Non-GAAP adjusted EBITDA for the year increased by 103%, reaching $23.6 million, with the adjusted EBITDA margin rising by 580 basis points to 15%. The operating cash flow for the year to date was $36 million.

Vericel also highlighted significant business achievements, including record revenues for the third quarter and the highest quarterly revenue for Epicel. The company also reported record numbers of MACI biopsies and surgeons performing these biopsies. Additionally, NexoBrid made significant strides with over 70 Pharmacy and Therapeutics committee submissions, leading to approximately 50 burn centers gaining approval and placing initial orders.

A major milestone was the FDA approval for MACI Arthro™, designed to repair cartilage defects in the knee using custom-designed arthroscopic delivery instruments. The company is also on track to submit an IND for MACI Ankle™ in the first half of 2025, with clinical studies expected to begin in the second half of the year. Another significant achievement was the FDA approval for a pediatric indication for NexoBrid for eschar removal in children with deep partial-thickness and full-thickness thermal burns.

Nick Colangelo, President and CEO of Vericel, expressed optimism about the company’s trajectory, citing strong revenue and profitability growth, as well as significant regulatory milestones. He emphasized that Vericel is well-positioned to continue delivering high revenue and profit growth in the coming years, supported by the strong performance of its core products, the recent launch of MACI Arthro, and ongoing growth initiatives.

For the full year 2024, Vericel maintained its total net revenue guidance of $238 to $242 million, reflecting a growth rate of 20% to 23%. The company also raised its profitability guidance, aiming for a 72% gross margin and a 22% adjusted EBITDA margin, compared to previous projections of 71% and 21%, respectively.

In summary, Vericel Corporation has showcased robust financial performance and strategic progress in the third quarter of 2024. With significant revenue growth, improved gross margins, and important regulatory approvals, the company is on a solid path to achieving its financial and operational goals for the year and beyond.