Vericel (VCEL) 10-K 23 Feb 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 17, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-35280
Entity Registrant Name	VERICEL CORPORATION
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	94-3096597
Entity Address, Address Line One	64 Sidney Street
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02139
City Area Code	617
Local Phone Number	588-5555
Title of 12(b) Security	Common Stock (No par value)
Trading Symbol	VCEL
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1,178,602,023
Entity Common Stock, Shares Outstanding		47,364,276
Documents Incorporated by Reference	Document Form 10-K Reference Proxy Statement for the Annual Meeting of Shareholders for the fiscal year ended December 31, 2022, scheduled for May 3, 2023 Items 10, 11, 12, 13 and 14 of Part III
Entity Central Index Key	0000887359
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Boston, Massachusetts

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 51,067	$ 68,330
Short-term investments	68,471	35,068
Accounts receivable (net of allowance for doubtful accounts of $47 and $40, respectively)	46,539	37,437
Inventory	15,986	13,381
Other current assets	4,803	4,246
Total current assets	186,866	158,462
Property and equipment, net	15,837	13,308
Intangible assets, net	7,500	0
Restricted cash	0	211
Right-of-use assets	41,535	45,720
Long-term investments	19,962	25,687
Other long-term assets	1,303	317
Total assets	273,003	243,705
Current liabilities:
Accounts payable	16,930	9,016
Accrued expenses	16,190	14,045
Current portion of operating lease liabilities	4,302	2,950
Other current liabilities	41	41
Total current liabilities	37,463	26,052
Operating lease liabilities	43,268	47,147
Other long-term liabilities	0	44
Total liabilities	80,731	73,243
COMMITMENTS AND CONTINGENCIES (Note 15)
Shareholders’ equity:
Common stock, no par value; shares authorized — 75,000; shares issued and outstanding — 47,253 and 46,880, respectively	593,245	553,902
Accumulated other comprehensive loss	(978)	(154)
Accumulated deficit	(399,995)	(383,286)
Total shareholders’ equity	192,272	170,462
Total liabilities and shareholders’ equity	$ 273,003	$ 243,705

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 47	$ 40
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	47,253,000	46,880,000
Common stock, shares outstanding (in shares)	47,253,000	46,880,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue, Product and Service [Extensible List]	Product [Member]	Product [Member]	Product [Member]
Product sales, net	$ 163,698	$ 153,075	$ 121,968
Other revenue	667	3,109	2,211
Total revenue	$ 164,365	$ 156,184	$ 124,179
Cost, Product and Service [Extensible List]	Product [Member]	Product [Member]	Product [Member]
Cost of product sales	$ 54,577	$ 50,159	$ 39,951
Gross profit	109,788	106,025	84,228
Research and development	19,943	16,287	13,020
Selling, general and administrative	106,903	97,592	68,836
Total operating expenses	126,846	113,879	81,856
(Loss) income from operations	(17,058)	(7,854)	2,372
Other income (expense):
Interest income	1,341	224	691
Interest expense	(366)	(4)	(6)
Other income (expense)	95	52	(13)
Total other income	1,070	272	672
(Loss) income before income taxes	(15,988)	(7,582)	3,044
Income tax expense (benefit)	721	(111)	180
Net (loss) income	$ (16,709)	$ (7,471)	$ 2,864
Net (loss) income per common share:
Basic (in USD per share)	$ (0.35)	$ (0.16)	$ 0.06
Diluted (in USD per share)	$ (0.35)	$ (0.16)	$ 0.06
Weighted-average common shares outstanding:
Basic (in shares)	47,130	46,472	45,221
Diluted (in shares)	47,130	46,472	47,282

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (16,709)	$ (7,471)	$ 2,864
Other comprehensive (loss) income:
Unrealized (loss) gain on investments	(824)	(168)	(7)
Comprehensive (loss) income	$ (17,533)	$ (7,639)	$ 2,857

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Gain (loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019		44,864,000
Beginning balance at Dec. 31, 2019	$ 111,091	$ 489,749	$ 21	$ (378,679)
Increase (Decrease) in Shareholders' Equity
Net (loss) income	2,864			2,864
Stock-based compensation expense	13,843	$ 13,843
Stock option exercises (in shares)		790,000
Stock option exercises	5,582	$ 5,582
Shares issued under the Employee Stock Purchase Plan (in shares)		117,000
Shares issued under the Employee Stock Purchase Plan	1,050	$ 1,050
Issuance of stock for restricted stock unit vesting (shares)		47,000
Restricted stock withheld for employee tax remittance (in shares)		(14,000)
Restricted stock withheld for employee tax remittance	(163)	$ (163)
Unrealized loss on investments	(7)		(7)
Ending balance (in shares) at Dec. 31, 2020		45,804,000
Ending balance at Dec. 31, 2020	134,260	$ 510,061	14	(375,815)
Increase (Decrease) in Shareholders' Equity
Net (loss) income	(7,471)			(7,471)
Stock-based compensation expense	34,322	$ 34,322
Stock option exercises (in shares)		968,000
Stock option exercises	9,928	$ 9,928
Shares issued under the Employee Stock Purchase Plan (in shares)		43,000
Shares issued under the Employee Stock Purchase Plan	1,256	$ 1,256
Issuance of stock for restricted stock unit vesting (shares)		96,000
Restricted stock withheld for employee tax remittance (in shares)		(31,000)
Restricted stock withheld for employee tax remittance	(1,665)	$ (1,665)
Unrealized loss on investments	$ (168)		(168)
Ending balance (in shares) at Dec. 31, 2021	46,880,000	46,880,000
Ending balance at Dec. 31, 2021	$ 170,462	$ 553,902	(154)	(383,286)
Increase (Decrease) in Shareholders' Equity
Net (loss) income	(16,709)			(16,709)
Stock-based compensation expense	$ 37,183	$ 37,183
Stock option exercises (in shares)	234,707	234,000
Stock option exercises	$ 2,401	$ 2,401
Shares issued under the Employee Stock Purchase Plan (in shares)		49,000
Shares issued under the Employee Stock Purchase Plan	1,251	$ 1,251
Issuance of stock for restricted stock unit vesting (shares)		134,000
Restricted stock withheld for employee tax remittance (in shares)		(44,000)
Restricted stock withheld for employee tax remittance	(1,492)	$ (1,492)
Unrealized loss on investments	$ (824)		(824)
Ending balance (in shares) at Dec. 31, 2022	47,253,000	47,253,000
Ending balance at Dec. 31, 2022	$ 192,272	$ 593,245	$ (978)	$ (399,995)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating activities:
Net (loss) income	$ (16,709)	$ (7,471)	$ 2,864
Adjustments to reconcile net (loss) income to net cash flows from operating activities:
Depreciation and amortization expense	3,981	2,965	2,383
Stock-based compensation expense	37,183	34,322	13,843
Amortization of premiums and discounts on marketable securities	107	949	318
Amortization of debt issuance costs	90	0	0
Non-cash lease costs	4,222	4,422	4,445
Other	22	7	93
Changes in operating assets and liabilities:
Inventory	(2,605)	(4,025)	(2,540)
Accounts receivable	(9,102)	(2,933)	(2,336)
Other current assets	(557)	(353)	(940)
Accounts payable	1,437	1,491	33
Accrued expenses	2,145	2,752	3,345
Operating lease liabilities	(2,527)	(3,086)	(3,951)
Other non-current assets and liabilities, net	0	0	15
Net cash provided by operating activities	17,687	29,040	17,572
Investing activities:
Purchases of investments	(69,554)	(60,021)	(63,057)
Sales and maturities of investments	40,944	64,435	48,523
Expenditures for property and equipment	(7,596)	(7,915)	(2,626)
Net cash used in investing activities	(36,206)	(3,501)	(17,160)
Financing activities:
Net proceeds from common stock issuance	3,652	11,184	6,632
Debt issuance costs	(1,076)	0	0
Payments on employee's behalf for taxes related to vesting of restricted stock unit awards	(1,492)	(1,665)	(163)
Other	(39)	(348)	(28)
Net cash provided by financing activities	1,045	9,171	6,441
Net (decrease) increase in cash, cash equivalents, and restricted cash	(17,474)	34,710	6,853
Cash, cash equivalents, and restricted cash at beginning of period	68,541	33,831	26,978
Cash, cash equivalents, and restricted cash at end of period	51,067	68,541	33,831
Supplemental disclosure of cash flow information:
Right-of-use asset and lease liability recognized	137	192	29,573
Additions to property and equipment and intangible assets included in accounts payable	7,824	1,373	531
Restricted stock held for employee tax remittance included in accounts payable	0	46	0
Interest paid	109	4	6
Taxes paid	0	379	147
Reconciliation of amounts within the consolidated balance sheets:
Cash and cash equivalents	51,067	68,330	33,620
Restricted cash	0	211	211
Total cash, cash equivalents, and restricted cash at end of period	$ 51,067	$ 68,541	$ 33,831

Organization

Organization	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Vericel Corporation, a Michigan corporation (together with its consolidated subsidiaries referred to herein as the Company, or Vericel), was incorporated in March 1989 and began employee-based operations in 1991. The Company is a fully-integrated, commercial-stage biopharmaceutical company and is a leader in advanced therapies for the sports medicine and severe burn care markets. Vericel currently markets three commercial-stage products in the U.S., MACI ® , Epicel ® and NexoBrid ® . MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns comprising greater than or equal to 30 percent of total body surface area (“TBSA”). The Company also holds an exclusive license from MediWound Ltd. (“MediWound”) to commercialize NexoBrid (anacaulase-bcdb) in North America. On December 28, 2022, the U.S. Food and Drug Administration (“FDA”) approved a Biologics License Application (“BLA”) for NexoBrid, granting a license for commercial use in the U.S. NexoBrid is a topically-administered biological product containing proteolytic enzymes and is indicated for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. The Company operates its business primarily in the U.S. in one reportable segment - the research, product development, manufacture and distribution of cellular therapies and specialty biologics for use in the treatment of specific diseases. The Company is subject to risks common to companies in the life sciences industry including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, commercialization of existing and new products, and compliance with FDA regulations and approval requirements, as well as the ability to grow the Company’s business through appropriate commercial strategies. COVID-19 In March 2020, the World Health Organization declared the spread of a novel strain of coronavirus (“COVID-19”) to be a pandemic. This pandemic has contributed to an economic downturn on a global scale, as well as significant volatility in the financial markets. Since the pandemic’s inception, and at times, there has been significant volatility in the Company’s results of operations on a quarterly basis due to the widespread and periodic cancellation or delay of elective MACI surgical procedures throughout the U.S., staffing shortages and the Company’s ability to access customers. The Company continues to manufacture MACI and Epicel and has begun efforts to commercialize NexoBrid in North America following the FDA’s approval of the submitted BLA on December 28, 2022. The Company maintains a significant safety stock of all key raw materials, and it does not expect that current global supply chain interruptions will impact the Company’s ongoing manufacturing operations of MACI and Epicel. Additionally, although the Company has not experienced material shipping delays, significant disruption of air travel could result in the inability to deliver MACI or Epicel final products to customer sites within appropriate timeframes, which could adversely impact its business. Currently, the Company is not aware of COVID-19 related impacts on its distributors, operations or third-party service providers’ ability to manage patient cases. With the recent FDA approval of NexoBrid, MediWound has begun preparations to manufacture and supply sufficient quantities of NexoBrid to meet customer demand. To date, MediWound has not indicated that it expects pandemic-related disruptions to affect its ability to manufacture and supply NexoBrid. The Company believes that a resurgence of COVID-19 because of emerging variants or other factors could result in additional disruptions that could impact its business and operations in the future, including intermittent restrictions on the ability of its personnel to travel and access customers for selling, marketing, training, case support and product development feedback, delays in approvals by regulatory bodies, delays in product development efforts, and additional government requirements or other incremental mitigation efforts that may further impact its capacity to manufacture, sell and support the use of its products. The War in Ukraine The ongoing war between Russia and Ukraine and the related sanctions and other penalties imposed by countries across the globe against Russia are continuing to create substantial uncertainty in the global economy and have contributed to heightened inflation and supply chain disruptions. While the Company does not have operations in Russia or Ukraine and does not have exposure to distributors, or third-party service providers in Russia or Ukraine, it is unable to predict the ultimate impact that these actions will have on the global economy or on its financial condition, results of operations, and cash flows as of the date of these consolidated financial statements. Liquidity The accompanying consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of December 31, 2022, the Company had an accumulated deficit of $400.0 million and had a net loss of $16.7 million for the year ended December 31, 2022. The Company had cash and cash equivalents of $51.1 million and investments of $88.4 million as of December 31, 2022. The Company expects that cash from the sales of its products and existing cash, cash equivalents, investments, and available borrowing capacity will be sufficient to support the Company’s current operations through at least 12 months from the issuance of these consolidated financial statements. To the extent the U.S. experiences a worsening in COVID-19 infections or additional virus variants emerge that result in more serious disease or limit the effectiveness of existing vaccines, however subsequent healthcare measures – to include the postponement or cessation of elective and other surgical procedures – may cause the Company to experience a reduction in business and resulting revenue. This, consequently, may result in irrecoverable losses of customers and significantly impact the Company’s long-term liquidity, potentially requiring the Company to engage in layoffs, furloughs and/or reductions in salaries. The Company also may need to access additional capital; however, the Company may not be able to obtain additional financing on acceptable terms or at all, particularly in light of the various negative impacts on the global economy and financial markets, which are currently being experienced. The terms of any additional financing may adversely affect the holdings or the rights of the Company’s shareholders.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, certain judgments regarding revenue recognition, inventory valuation, stock option valuation, deferred tax assets and liabilities and accrued expenses. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments reflected in these consolidated financial statements or a revision of the carrying value of its assets or liabilities as of the issuance of these consolidated financial statements. These estimates may change as new events occur and additional information is obtained. Actual results could materially differ from those estimates. Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase and consist primarily of demand deposits, money market funds, U.S. government agency bonds and commercial paper. Restricted Cash Amounts included in restricted cash as of December 31, 2021, represent those required to be set aside to meet contractual terms of a lease agreement held by the Company. Investments Investments classified as short-term have maturities of less than one year. Investments classified as long-term are those that: (i) have a maturity of greater than one year, and (ii) the Company does not intend to liquidate within the next twelve months, although these funds are available for use and, therefore, are classified as available-for-sale. The Company’s investment strategy is to buy short-duration marketable securities with a high credit rating. As of December 31, 2022 and 2021, all marketable securities held by the Company had remaining contractual maturities of three years or less. Unrealized gains are included as a component of accumulated other comprehensive income in the consolidated balance sheets and consolidated statements of shareholders’ equity and a component of total comprehensive (loss) income in the consolidated statements of comprehensive (loss) income, until realized. Unrealized losses are evaluated for impairment under ASC 326 , Financial Instruments - Credit Losses (“ASC 326”), to determine if the impairment is credit-related or non-credit-related. Credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings, and non-credit-related impairment is recognized in other comprehensive (loss) income, net of taxes. Leases The Company determines if an arrangement is a lease at inception, in accordance with ASC Topic 842, Leases . All operating lease commitments with a lease term greater than 12 months are recognized as right-of-use assets and liabilities, on a discounted basis on the balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Certain of the Company’s lease agreements include lease payments that are adjusted periodically for an index or rate. The leases are initially measured using the present value of the projected payments adjusted for the index or rate in effect at the commencement date. In addition to rent, the leases may require the Company to pay additional amounts for taxes, insurance, maintenance and other expenses, which do not transfer a good or service to the Company and are generally referred to as non-lease components. Variable non-lease components are not measured as part of the right-of-use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right-of-use asset and liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has options to renew lease terms for facilities and other assets. Some leases contain clauses for renewal at the Company’s option with renewal terms that generally extend the lease term from 1 to 5 years. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if it is reasonably certain to exercise the option on the basis of economic factors. Certain lease agreements contain options to purchase the leased property and options to terminate the lease. A portfolio approach is applied to certain lease contracts with similar characteristics. Inventory Inventories are measured at the lower of cost or net realizable value. Cost is calculated based upon standard-cost which approximates costs determined on the first-in, first-out method. The Company periodically reviews its inventories for excess or obsolescence and writes down obsolete or other unmarketable inventory to its estimated net realizable value. If the actual net realizable value is less than that estimated by the Company, or if it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required. In all cases, product inventory is carried at the lower of cost or its estimated net realizable value. Amounts written down are charged to cost of product sales. Accounts Receivable Accounts receivable are initially recorded at the contractual amount owed by the customer or based on expected payments from the insurance provider, hospital or patient. Allowances for doubtful accounts are established when the facts and circumstances indicate that a receivable may not be collectible. Potential credit risk exposure has been evaluated for the Company’s accounts receivable in accordance with ASC 326 . The Company assesses risk and determines a loss percentage by pooling accounts receivable based on similar risk characteristics. The loss percentage is calculated through the use of forecasts that are based on current and historical economic and financial information. Property and Equipment, net Property and equipment are initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. After initial measurement, property and equipment are carried at cost less accumulated depreciation. Repair and maintenance costs of property and equipment are expensed as incurred. The depreciable value of property and equipment is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives of property and equipment are as follows: • Machinery and equipment: 3 to 10 years • Furniture, fixtures and office equipment: 5 years • Computer equipment and software: 3 years • Leasehold improvements: shorter of the remaining life of the lease or 15 years The costs of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale or disposal credited or charged to operations. Intangible Assets, net The Company amortizes its intangible assets on a straight-line basis over their estimated economic lives, unless another amortization method is deemed to be more appropriate. In determining the useful lives of intangible assets, the Company considers the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, market influence and other economic factors. Intangible assets are assessed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the carrying amount of an asset is not recoverable, an impairment loss is recorded as a permanent reduction in the amount by which the carrying amount of the asset exceeds its fair value. Revenue Recognition The Company recognizes product revenue from sales to a customer (whether a distributor, or hospital) following the five step model in Accounting Standards Codification 606, Revenue Recognition (“ ASC 606”): (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Under this revenue standard, the Company recognizes revenue when its customer obtains control of the promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods. There are no contractual rights of returns, refunds or similar obligations related to MACI, MACI biopsy kits, Epicel or NexoBrid; however, in certain limited cases the Company will accept a product return if a surgery is canceled. Revenue is not recognized in certain canceled cases. For MACI, MACI biopsy kits, Epicel and NexoBrid, there are no variable pricing arrangements related to warranties or rebates offered to customers. The majority of orders are due within 60 to 90 days of delivery. Shipping and handling fees are included as a component of revenue. The Company recognizes any commission fees as an expense when incurred. These fees are included in selling, general, and administrative expenses. See Note 3, “Revenue” for further discussion on revenues. Research and Development Expense Research and development expenses are expensed as incurred. These expenditures relate to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of consumers and patients. Stock-Based Compensation The Company’s accounting for stock-based compensation requires it to determine the fair value of common stock issued in the form of stock option awards and restricted stock units. The fair value of restricted stock units held by the employees is determined based on the fair value of the Company’s common stock on the date of the grant. Compensation expense is recorded for restricted stock units that are expected to vest over the expected vesting period. The fair value of stock options held by the employees is determined using a Black-Scholes option valuation method. Key assumptions in determining fair value include volatility, risk-free interest rate, dividend yield and expected term. The assumptions used in calculating the fair value of stock options represent the Company’s best estimates; however, these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and different assumptions are used, the stock-based compensation expense could be materially different in the future. In addition, the Company estimates the expected forfeiture rate and only recognizes expense for those stock options expected to vest over the service period. The estimated forfeiture rate considers the historical experience of the Company’s stock-based awards. If the actual forfeiture rate is different from the estimate, expense is adjusted accordingly. The Company records the expense for stock options and restricted stock units using a graded-vesting attribution method. The Company also has an Employee Stock Purchase Plan (“ESPP”) which is a compensatory plan. Compensation expense is recorded based on the fair value of the purchased options at the grant date, which corresponds to the first day of each purchase period, and is amortized over the purchase period. Comprehensive (Loss) Income Comprehensive (loss) income is the change in shareholders’ equity during a period arising from unrealized gains or losses related to the Company’s investments. Income Taxes Deferred tax assets are recognized for deductible temporary differences and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized based on the weight of available evidence. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. The Company records uncertain tax positions in the consolidated financial statements only if it is more likely than not that the uncertain tax position will be sustained upon examination by the taxing authorities. The Company records interest and penalties related to uncertain tax positions in income tax expense. Net (Loss) Income Per Common Share Basic earnings per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, plus the potential dilutive effect of other securities if those securities were converted or exercised. During periods in which the Company incurs net losses, both basic and diluted loss per common share is calculated by dividing the net loss by the weighted-average shares of common stock outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive. Financial Instruments The Company’s financial instruments include accounts receivables, accounts payable and accrued expenses for which the current carrying amounts approximate market value, based upon their short-term nature and marketable debt securities which are classified as available-for-sale and carried at fair value on a settlement date basis. Recent Accounting Pronouncements No new accounting standards were adopted during the year ended December 31, 2022. The Company considers the applicability and impact of any recent Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). Based on the assessment, the ASU’s were determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial statements.

Revenue

Revenue	12 Months Ended
	Dec. 31, 2022
Risks and Uncertainties [Abstract]
Revenue	Revenue Revenue Recognition and Product Sales, Net As disclosed in Note 2, the Company recognizes product revenue from sales of MACI biopsy kits, MACI implants, Epicel grafts and other sources following the five-step model in Accounting Standards Codification 606, Revenue Recognition. MACI Biopsy Kits MACI biopsy kits are sold directly to hospitals and ambulatory surgical centers based on contracted rates in an approved contract or sales order. The Company recognizes MACI kit revenue upon delivery of the biopsy kit, at which time the customer (the facility) is in control of the kit. The kit is used by the doctor to provide a sample of cartilage tissue to the Company, which can later be used to manufacture a MACI implant. The ordering of the kit does not obligate the Company to manufacture an implant nor does the receipt of the cartilage tissue by the Company from the customer following biopsy. The customer’s order of an implant is separate from the process of ordering the biopsy kit. Therefore, the sale of the biopsy kit and any subsequent sale of an implant are distinct contracts and are accounted for separately. MACI Implants The Company contracts with two specialty pharmacies, Orsini Pharmaceutical Services, Inc. (“Orsini”) and AllCare Plus Pharmacy, Inc. (“AllCare”) to distribute MACI in a manner in which the Company retains the credit and collection risk from the end customer. The Company pays both specialty pharmacies a fee for each patient to whom MACI is dispensed. Both Orsini and AllCare perform collection activities to collect payment from customers. The Company engages a third-party to provide services in connection with a patient support program to manage patient cases and to ensure complete and correct billing information is provided to the insurers and hospitals. In addition, the Company also sells MACI directly to DMS Pharmaceutical Group, Inc. (“DMS”) for patients treated at military treatment facilities. The sales directly to DMS are made at a contracted rate. Prior authorization and confirmation of coverage level by the patient’s private insurance plan, hospital or government payer is a prerequisite to the shipment of product to a patient. The Company recognizes product revenue from sales of all MACI implants upon delivery at which time the customer obtains control of the implant and the claim is billable. The total consideration that the Company expects to collect in exchange for MACI implants (the “Transaction Price”) may be fixed or variable. Direct sales to hospitals or distributors are recorded at a contracted price, and there are typically no forms of variable consideration. When the Company sells MACI the patient is responsible for payment; however, the Company is typically reimbursed by a third-party insurer or government payer, subject to a patient co-pay amount. Reimbursements from third-party insurers and government payers vary by patient and payer and are based on either contracted rates, publicly available rates, fee schedules or past payer precedents. Net product revenue is recognized net of estimated contractual allowances, which considers historical collection experience from both the payer and patient, denial rates and the terms of the Company’s contractual arrangements. The Company estimates expected collections for these transactions using the portfolio approach. The Company records a reduction to revenue at the time of sale for its estimate of the amount of consideration that will not be collected. In addition, potential credit risk exposure has been evaluated for the Company’s accounts receivable in accordance with ASC 326. The Company assesses risk and determines a loss percentage by pooling accounts receivable based on similar risk characteristics. The loss percentage is calculated through the use of forecasts that are based on current and historical economic and financial information. This loss percentage was applied to the accounts receivables as of December 31, 2022. The total allowance for uncollectible consideration was $6.1 million and $7.0 million as of December 31, 2022, and 2021, respectively. Changes to the estimate of the amount of consideration that will not be collected could have a material impact to the revenue recognized. A 50 basis points change to the estimated uncollectible percentage could result in approximately $0.4 million decrease or increase in the revenue recognized for the year ended December 31, 2022. Changes in estimates of the Transaction Price are recorded through revenue in the period in which such change occurs. Changes in estimates related to prior periods are shown in the Revenue by Product and Customer table below and relate primarily to changes in the initial expected reimbursement or collection expectation upon completion of the billing claims process for MACI implants that occurred in a prior year. Epicel The Company sells Epicel directly to hospitals and burn centers based on contracted rates stated in an approved contract or purchase order. Similar to MACI, there is no obligation to manufacture Epicel grafts upon receipt of a skin biopsy, and Vericel has no contractual right to receive payment until the product is delivered to the hospital. The Company recognizes product revenue from sales of Epicel upon delivery to the hospital, at which time the customer is in control of the Epicel grafts and the claim is billable to the hospital. NexoBrid The Company entered into exclusive license and supply agreements with MediWound in May 2019, pursuant to which MediWound will manufacture and supply NexoBrid on a unit price basis, which may be increased pursuant to the terms of the agreements. Additionally, since 2020 the U.S. Biomedical Advanced Research and Development Authority (“BARDA”) has been procuring NexoBrid from MediWound, for use as a medical countermeasure in the event of a mass casualty emergency in the U.S. involving thermal burns. That quarterly procurement of NexoBrid by BARDA under its agreement with MediWound completed during the third quarter of 2022, although BARDA holds an option to procure additional quantities of NexoBrid for emergency response preparedness in the future. As of December 31, 2022, the Company did not hold a direct contract or distribution agreement with BARDA, or take title to the product procured by BARDA. The Company recognized revenue based on a percentage of gross profits for sales of NexoBrid to BARDA upon delivery, at which time BARDA is in control of the product. Additionally, on December 28, 2022, the FDA approved a BLA for NexoBrid, granting a license for commercial use in the U.S. NexoBrid is a topically-administered biological product containing proteolytic enzymes and is indicated for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. Revenue by Product and Customer The following table and descriptions below shows the products from which the Company generated its revenue: Year Ended December 31, Revenue by product (in thousands) 2022 2021 2020 MACI implants and kits Implants based on contracted rate sold through a specialty pharmacy (a) $ 81,388 $ 71,969 $ 57,593 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 18,695 16,000 16,320 Implants sold direct based on contracted rates (c) 24,261 18,714 15,144 Implants sold direct subject to third-party reimbursement (d) 3,499 2,821 2,754 Biopsy kits - direct bill 2,090 2,194 1,908 Change in estimates related to prior periods (e) 2,034 (144) 713 Total MACI implants and kits 131,967 111,554 94,432 Epicel Direct bill (hospital) 31,731 41,521 27,536 NexoBrid revenue (f) 667 3,109 2,211 Total revenue $ 164,365 $ 156,184 $ 124,179 (a) Represents implants sold through Orsini and AllCare whereby such specialty pharmacies have a direct contract with the underlying insurance provider. The amount of reimbursement is based on contracted rates at the time of sale supported by the pharmacy’s direct contracts. (b) Represents implants sold through Orsini and AllCare whereby such specialty pharmacy does not have a direct contract with the underlying payer and are subject to third-party reimbursement. The amount of reimbursement is established based on publicly available rates, fee schedules or past payer precedents. (c) Represents implants sold directly from the Company to the facility based on a contract and known price agreed upon prior to the surgery date. Also represents direct sales under a contract to specialty distributor DMS. (d) Represents implants sold directly from the Company to the facility based on a contract and known price agreed upon prior to the surgery date. The payment terms are subject to third-party reimbursement from an underlying insurance provider. (e) Primarily represents changes in estimates related to implants sold through Orsini or AllCare and relate to changes to the initial expected reimbursement or collection expectation upon completion of the billing claims process. The change in estimates is a result of additional information, changes in collection expectations or actual cash collections received in the current period. (f) Represents revenue based on a percentage of gross profits for sales of NexoBrid to BARDA, pursuant to the license agreement between the Company and MediWound (see note 14). Concentration of Credit Risk The Company’s total revenue and accounts receivable concentration from a MACI customer for the year ended and as of December 31, 2022 was 12% and 10%, respectively. There was no revenue concentration for the years ended December 31, 2021 or 2020, greater than 10%. For the Company’s total accounts receivable balances, there were no customers as of December 31, 2021 with a concentration greater than 10%.

Selected Balance Sheet Componen

Selected Balance Sheet Components	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Selected Balance Sheet Components	Selected Balance Sheet Components Inventory Inventory consisted of the following: December 31, (In thousands) 2022 2021 Raw materials $ 15,101 $ 12,676 Work-in-process 832 644 Finished goods 53 61 Total inventory $ 15,986 $ 13,381 Property and Equipment Property and Equipment, net consisted of the following: December 31, (In thousands) 2022 2021 Machinery and equipment $ 5,041 $ 4,522 Furniture, fixtures and office equipment 1,710 1,551 Computer equipment and software 8,224 7,769 Leasehold improvements 13,689 10,617 Construction in process 5,438 3,097 Financing right-of-use lease 37 74 Total property and equipment, gross 34,139 27,630 Less accumulated depreciation (18,302) (14,322) Total property and equipment, net $ 15,837 $ 13,308 Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $4.0 million, $3.0 million and $2.4 million, respectively. Intangible Assets The Company’s intangible assets of $7.5 million is comprised of a license for NexoBrid, as a result of regulatory approval received on December 28, 2022. The intangible will be amortized to cost of goods sold using a straight-line method over its expected twelve-year economic useful life. There was no amortization expense recognized during the year ended December 31, 2022. Future amortization expense of intangible assets as of December 31, 2022 is estimated to be as follows: (In thousands) Amount 2023 $ 625 2024 625 2025 625 2026 625 2027 625 Thereafter 4,375 Total $ 7,500 Accrued Expenses Accrued Expenses consisted of the following: December 31, (In thousands) 2022 2021 Bonus related compensation $ 7,132 $ 6,305 Employee related accruals 3,101 3,616 Insurance reimbursement-related liabilities 5,030 3,973 Other accrued expenses 927 151 Total accrued expenses $ 16,190 $ 14,045

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	Leases The Company leases facilities in Ann Arbor, Michigan and Cambridge, Massachusetts. The Ann Arbor facility includes office space, and the Cambridge facilities include clean rooms, laboratories for MACI and Epicel manufacturing and office space. The Company also leases offsite warehouse space, and other computer-related equipment. On January 28, 2022, the Company entered into a lease agreement (the “Burlington Lease”) to lease approximately 126,000 square feet of to-be-constructed manufacturing, laboratory and office space in Burlington, Massachusetts (the “Premises”). Once constructed, the Premises will serve as the Company’s new corporate headquarters and primary manufacturing facility. The term of the Burlington Lease is currently expected to begin in 2023, 12 months following the landlord’s commencement of construction of the core and shell of the building in which the Premises are located (the “Commencement Date”). The Company’s obligation to pay rent for the Premises will begin on the earlier of: 13 months from the Commencement Date; or the date on which the Company first occupies the Premises to conduct operations (the “Rent Commencement Date”). The initial term of the Lease is 144 months following the Rent Commencement Date. The Company has a one-time option to extend the term of the Lease for an additional 10 years, exercisable under certain conditions and at a market rate determined in accordance with the Burlington Lease. The annual base rent of the Burlington Lease is initially $57 per square foot per year, subject to annual increases of 2.5%. Monthly contractual payments are expected to range from $0.6 million to $0.8 million. Additionally, the Company is responsible for reimbursing the landlord for the Company’s share of the Premises’ property taxes and certain other operating expenses. The Burlington Lease also provides for a tenant improvement allowance from the landlord in an amount equal to $200 per square foot of the Premises, or approximately $25.1 million in total, towards the design and construction of certain tenant improvements made to the Premises, subject to the terms set forth in the Burlington Lease. The Company is not involved in the initial construction of the core and shell of the building and will record the lease liability and right-of-use asset on its consolidated balance sheet when the construction is substantially completed and it obtains control of the Premises, which is currently expected to be on or around the Commencement Date. In January 2022, in connection with the execution of the Burlington Lease, the Company issued a letter of credit collateralized by cash deposits of approximately $6.0 million. Subsequent to the execution of the Revolving Credit Agreement on July 29, 2022, the letter of credit is issued under the sub-facility limit of the Revolving Credit Agreement. Such letter of credit shall be reduced to approximately $4.2 million and $1.8 million at the conclusion of the third and sixth lease years, respectively, provided certain conditions set forth in the Burlington Lease are satisfied. For the year ended December 31, 2022 and 2021, lease expense of less than $0.1 million was recorded related to short-term leases. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $6.9 million, $7.3 million and $6.3 million, respectively, of operating lease expense. For the years ended December 31, 2022, 2021 and 2020, the Company recognized less than $0.1 million of financing lease expense. Operating and finance lease assets and liabilities are as follows: December 31, (In thousands) Classification 2022 2021 Assets Operating Right-of-use assets $ 41,535 $ 45,720 Finance Property and equipment, net 37 73 Total leased assets $ 41,572 $ 45,793 Liabilities Current Operating Current portion of operating lease liabilities $ 4,302 $ 2,950 Finance Other current liabilities 41 41 Non-current Operating Operating lease liabilities 43,268 47,147 Finance Other long-term liabilities — 44 Total leased liabilities $ 47,611 $ 50,182 Cash paid for amounts included in the measurement of the Company’s operating lease liabilities was $5.3 million, $6.0 million, and $5.8 million for the year ended December 31, 2022, 2021, and 2020, respectively. Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: (In thousands) Operating Leases Finance Leases Total 2023 $ 4,302 $ 41 $ 4,343 2024 6,946 — 6,946 2025 6,348 — 6,348 2026 6,530 — 6,530 2027 6,726 — 6,726 Thereafter 30,251 — 30,251 Total lease payments $ 61,103 $ 41 $ 61,144 Less: interest (13,533) — (13,533) Present value of lease liabilities (a) $ 47,570 $ 41 $ 47,611 (a) As of December 31, 2022, the Burlington Lease has not yet commenced. The Burlington Lease has future minimum lease payments of approximately $98.9 million and a tenant improvement allowance of $25.1 million with a lease term of 144 months. These undiscounted amounts are not included in this table. An explicit rate is not provided in some of the Company’s leases, therefore the Company uses a mix of incremental borrowing rates based on the information available at commencement date through market sources including relevant peer borrowing rates, as well as implicit and explicit rates in determining the present value of lease payments. Lease terms and discount rates are as follows: December 31, 2022 2021 Weighted-average remaining lease term (years) Operating leases 8.9 9.8 Finance leases 0.5 1.5 Weighted-average discount rate Operating leases 5.4% 5.4% Finance leases 5.0% 5.0%
Leases	Leases The Company leases facilities in Ann Arbor, Michigan and Cambridge, Massachusetts. The Ann Arbor facility includes office space, and the Cambridge facilities include clean rooms, laboratories for MACI and Epicel manufacturing and office space. The Company also leases offsite warehouse space, and other computer-related equipment. On January 28, 2022, the Company entered into a lease agreement (the “Burlington Lease”) to lease approximately 126,000 square feet of to-be-constructed manufacturing, laboratory and office space in Burlington, Massachusetts (the “Premises”). Once constructed, the Premises will serve as the Company’s new corporate headquarters and primary manufacturing facility. The term of the Burlington Lease is currently expected to begin in 2023, 12 months following the landlord’s commencement of construction of the core and shell of the building in which the Premises are located (the “Commencement Date”). The Company’s obligation to pay rent for the Premises will begin on the earlier of: 13 months from the Commencement Date; or the date on which the Company first occupies the Premises to conduct operations (the “Rent Commencement Date”). The initial term of the Lease is 144 months following the Rent Commencement Date. The Company has a one-time option to extend the term of the Lease for an additional 10 years, exercisable under certain conditions and at a market rate determined in accordance with the Burlington Lease. The annual base rent of the Burlington Lease is initially $57 per square foot per year, subject to annual increases of 2.5%. Monthly contractual payments are expected to range from $0.6 million to $0.8 million. Additionally, the Company is responsible for reimbursing the landlord for the Company’s share of the Premises’ property taxes and certain other operating expenses. The Burlington Lease also provides for a tenant improvement allowance from the landlord in an amount equal to $200 per square foot of the Premises, or approximately $25.1 million in total, towards the design and construction of certain tenant improvements made to the Premises, subject to the terms set forth in the Burlington Lease. The Company is not involved in the initial construction of the core and shell of the building and will record the lease liability and right-of-use asset on its consolidated balance sheet when the construction is substantially completed and it obtains control of the Premises, which is currently expected to be on or around the Commencement Date. In January 2022, in connection with the execution of the Burlington Lease, the Company issued a letter of credit collateralized by cash deposits of approximately $6.0 million. Subsequent to the execution of the Revolving Credit Agreement on July 29, 2022, the letter of credit is issued under the sub-facility limit of the Revolving Credit Agreement. Such letter of credit shall be reduced to approximately $4.2 million and $1.8 million at the conclusion of the third and sixth lease years, respectively, provided certain conditions set forth in the Burlington Lease are satisfied. For the year ended December 31, 2022 and 2021, lease expense of less than $0.1 million was recorded related to short-term leases. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $6.9 million, $7.3 million and $6.3 million, respectively, of operating lease expense. For the years ended December 31, 2022, 2021 and 2020, the Company recognized less than $0.1 million of financing lease expense. Operating and finance lease assets and liabilities are as follows: December 31, (In thousands) Classification 2022 2021 Assets Operating Right-of-use assets $ 41,535 $ 45,720 Finance Property and equipment, net 37 73 Total leased assets $ 41,572 $ 45,793 Liabilities Current Operating Current portion of operating lease liabilities $ 4,302 $ 2,950 Finance Other current liabilities 41 41 Non-current Operating Operating lease liabilities 43,268 47,147 Finance Other long-term liabilities — 44 Total leased liabilities $ 47,611 $ 50,182 Cash paid for amounts included in the measurement of the Company’s operating lease liabilities was $5.3 million, $6.0 million, and $5.8 million for the year ended December 31, 2022, 2021, and 2020, respectively. Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: (In thousands) Operating Leases Finance Leases Total 2023 $ 4,302 $ 41 $ 4,343 2024 6,946 — 6,946 2025 6,348 — 6,348 2026 6,530 — 6,530 2027 6,726 — 6,726 Thereafter 30,251 — 30,251 Total lease payments $ 61,103 $ 41 $ 61,144 Less: interest (13,533) — (13,533) Present value of lease liabilities (a) $ 47,570 $ 41 $ 47,611 (a) As of December 31, 2022, the Burlington Lease has not yet commenced. The Burlington Lease has future minimum lease payments of approximately $98.9 million and a tenant improvement allowance of $25.1 million with a lease term of 144 months. These undiscounted amounts are not included in this table. An explicit rate is not provided in some of the Company’s leases, therefore the Company uses a mix of incremental borrowing rates based on the information available at commencement date through market sources including relevant peer borrowing rates, as well as implicit and explicit rates in determining the present value of lease payments. Lease terms and discount rates are as follows: December 31, 2022 2021 Weighted-average remaining lease term (years) Operating leases 8.9 9.8 Finance leases 0.5 1.5 Weighted-average discount rate Operating leases 5.4% 5.4% Finance leases 5.0% 5.0%

Investments

Investments	12 Months Ended
	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Investments	Investments Marketable debt securities held by the Company are classified as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities , and carried at fair value in the accompanying consolidated balance sheets on a settlement date basis. The following tables summarize the gross unrealized gains and losses of the Company’s marketable securities as of December 31, 2022 and 2021: December 31, 2022 Gross Unrealized (In thousands) Amortized Cost Gains Losses Credit Losses Estimated Fair Value Commercial paper $ 15,707 $ — $ (101) $ — $ 15,606 Corporate notes 52,159 — (831) — 51,328 U.S. government agency bonds 21,545 — (46) — 21,499 $ 89,411 $ — $ (978) $ — $ 88,433 Classified as: Short-term investments $ 68,471 Long-term investments 19,962 $ 88,433 December 31, 2021 Gross Unrealized (In thousands) Amortized Cost Gains Losses Credit Losses Estimated Fair Value Commercial paper $ 10,243 $ — $ (12) $ — $ 10,231 Corporate notes 50,666 — (142) — 50,524 $ 60,909 $ — $ (154) $ — $ 60,755 Classified as: Short-term investments $ 35,068 Long-term investments 25,687 $ 60,755

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Option, Restricted Stock Units and Equity Incentive Plans The Company has historically had various stock incentive plans and agreements that provide for the issuance of non-qualified and incentive stock options and restricted stock units as well as other equity awards. Such awards may be granted by the Company’s Board of Directors to certain of the Company’s employees, directors and consultants. Options and restricted stock units granted to employees and non-employees under these plans expire no later than ten years from the date of grant. Options and restricted stock units generally become exercisable or vest over a four year period (other than options and restricted stock units awarded annually to non-employee directors, which generally vest over one year, and options and restricted stock units awarded to non-employee directors upon initial appointment to the Vericel Board of Directors, which generally vest over a three year period), under a graded-vesting methodology for stock options and annually on the anniversary grant date for restricted stock units, following the date of grant. The Company generally issues new shares upon the exercise of stock options or vesting of restricted stock units. The Vericel Corporation 2022 Omnibus Incentive Plan (“2022 Plan”) was approved on April 27, 2022, and provides incentives through the grant of stock options, stock appreciation rights, restricted stock awards and restricted stock units. The exercise price of stock options granted under the 2022 Plan shall not be less than the fair market value of the Company’s common stock on the date of grant. The 2022 Plan replaced the 1992 Stock Option Plan, the 2001 Stock Option Plan, the Amended and Restated 2004 Equity Incentive Plan, the 2009 Second Amended and Restated Omnibus Incentive Plan, the 2017 Omnibus Incentive Plan, and the Amended and Restated 2019 Omnibus Incentive Plan (“Prior Plans”), and no new grants have been granted under the Prior Plans after approval of the 2022 Plan. However, the expiration or forfeiture of options previously granted under the Prior Plans will increase the number of shares available for issuance under the 2022 Plan. As of December 31, 2022, there were 3,818,536 shares available for future grant under the 2022 Plan. Stock Compensation Expense Non-cash stock-based compensation expense (service-based stock options, restricted stock units and employee stock purchase plan) is summarized in the following table: Years Ended December 31, (in thousands) 2022 2021 2020 Cost of product sales $ 3,630 $ 3,681 $ 1,949 Research and development 5,261 4,120 1,884 Selling, general and administrative 28,292 26,521 10,010 Total non-cash stock-based compensation expense $ 37,183 $ 34,322 $ 13,843 Service-Based Stock Options The fair value of each service-based stock option grant for the reported periods is estimated on the date of the grant using the Black-Scholes option-pricing model using the assumptions noted in the following table: Year Ended December 31, Service-Based Stock Options 2022 2021 2020 Expected dividend rate —% —% —% Expected stock price volatility 63.8 - 75.3% 71.5 - 76.7% 71.1 - 78.7% Risk-free interest rate 1.5 - 4.4% 0.53 -1.5% 0.33 -1.7% Expected life (years) 5.3 - 6.3 5.3 - 6.3 5.3 - 6.3 The weighted-average grant-date fair value of service-based options granted during the years ended December 31, 2022, 2021, and 2020 was $19.83, $32.96 and $8.86, respectively. The following table summarizes the activity for service-based stock options for the indicated periods: Service-Based Stock Options Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Thousands) Outstanding at December 31, 2021 5,669,690 $ 22.49 7.2 $ 113,985 Granted 1,348,824 33.37 Exercised (234,707) 10.22 Expired (31,436) 36.20 Forfeited (143,224) 31.42 Outstanding at December 31, 2022 6,609,147 $ 24.89 6.8 $ 56,708 Exercisable at December 31, 2022 4,205,883 $ 18.49 5.8 $ 51,204 As of December 31, 2022, 6,311,629 shares are vested and expected to vest. As of December 31, 2022, there was approximately $31.6 million of total unrecognized compensation cost related to non-vested service-based stock options granted under the 2022 Plan and the Prior Plans. That cost is expected to be recognized over a weighted-average period o f 2.7 y ears. The total intrinsic value of stock options exercised for the years ended December 31, 2022, 2021, and 2020 was $5.4 million, $39.5 million and $10.5 million, respectively. Restricted Stock Units The following table summarizes the activity for restricted stock units for the indicated periods: Restricted Stock Units Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 398,748 $ 36.30 Granted 422,958 33.71 Vested (135,380) 35.45 Forfeited (38,152) 34.98 Unvested at December 31, 2022 648,174 $ 34.86 The weighted-average grant-date fair value of restricted stock units granted during the years ended December 31, 2022, 2021, and 2020 was $33.71, $52.07 and $11.41, respectively. At December 31, 2022 the total unrecognized compensation cost related to the restricted stock units was $13.2 million, and the weighted-average period over which that cost is expected to be recognized was 2.8 years . The total fair value of restricted stock units vested in the years ended December 31, 2022 and 2021 was $4.6 million and $5.3 million, respectively. Employee Stock Purchase Plan

Revolving Credit Agreement

Revolving Credit Agreement	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Revolving Credit Agreement	Revolving Credit AgreementOn July 29, 2022, the Company, as borrower, entered into a $150.0 million five-year senior secured revolving credit agreement by and among the Company, the other loan parties thereto, the lenders party thereto, and JPMorgan Chase Bank, N.A., as the administrative agent (the “Revolving Credit Agreement”). The Revolving Credit Agreement includes a $15.0 million sub-facility for the issuance of letters of credit, of which the Company is utilizing approximately $6.2 million. Amounts available under the Revolving Credit Agreement are for the working capital needs and other general corporate purposes of the Company. The Company incurred and capitalized approximately $1.1 million of debt issuance costs related to the Revolving Credit Agreement. Outstanding borrowings under the Revolving Credit Agreement bear interest, with pricing based from time to time at the Company’s election at (i) the Secured Overnight Financing Rate (“SOFR”) plus 0.10% plus a spread ranging from 1.25% to 2.50% as determined by the Company’s Total Net Leverage Ratio (as defined in the Revolving Credit Agreement) or (ii) the alternative base rate (as defined in the Revolving Credit Agreement) plus a spread ranging from 0.25% to 1.50% as determined by the Company’s Total Net Leverage Ratio. The Revolving Credit Agreement also includes a commitment fee, which ranges from 0.20% to 0.25% as determined by the Company’s Total Net Leverage Ratio. The Company is permitted to voluntarily prepay borrowings under the Revolving Credit Agreement, in whole or in part, without premium or penalty. On any business day on which the total amount of outstanding Revolving Loans (as defined in the Revolving Credit Agreement) and letters of credit exceeds the total Revolving Commitments (as defined in the Revolving Credit Agreement), the Company must prepay the Revolving Loans in an amount equal to such excess. As of December 31, 2022, there are no outstanding borrowings under the Revolving Credit Agreement. The Revolving Credit Agreement contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. The Revolving Credit Agreement requires the Company to be in quarterly compliance, measured on a trailing four quarter basis, with a financial covenant. The maximum Total Net Leverage Ratio (as defined in the Revolving Credit Agreement is 3.50 to 1.00. The Company may elect to increase the maximum Total Net Leverage Ratio to 4.00 to 1.00 for a period of four consecutive quarters in connection with a Permitted Acquisition (as defined in the Revolving Credit Agreement). The Revolving Credit Agreement contains usual and customary restrictions on the ability of the Company and its subsidiaries to: (i) incur additional indebtedness (ii) create liens; (iii) consolidate, merge, sell or otherwise dispose of all, or substantially all, of its assets; (iv) sell certain assets; (v) pay dividends on, repurchase or make distributions in respect of capital stock or make other restricted payments; (vi) make certain investments; (vii) repay subordinated indebtedness prior to stated maturity; and (viii) enter into certain transactions with its affiliates. Obligations under the Revolving Credit Agreement are secured by first priority liens over substantially all of the assets of Vericel Corporation, excluding certain subsidiaries (subject to customary exclusions set forth in the Revolving Credit Agreement and the other transaction documents).

Net (Loss) Income Per Common Sh

Net (Loss) Income Per Common Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net (Loss) Income Per Common Share	Net (Loss) Income Per Common Share A summary of net (loss) income per common share is presented below: Year Ended December 31, (Amounts in thousands, except per share amounts) 2022 2021 2020 Net (loss) income $ (16,709) $ (7,471) $ 2,864 Basic weighted-average common shares outstanding 47,130 46,472 45,221 Effect of dilutive stock options and restricted stock units — — 2,061 Diluted weighted-average common shares outstanding 47,130 46,472 47,282 Basic (loss) income per common share $ (0.35) $ (0.16) $ 0.06 Diluted (loss) income per common share $ (0.35) $ (0.16) $ 0.06 Anti-dilutive shares excluded from diluted net (loss) income per common share: Stock options 6,609 5,670 2,204 Restricted stock units 648 399 —

Shareholder's Equity

Shareholder's Equity	12 Months Ended
	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholder's Equity	Shareholder’s Equity At-the-Market Offering On August 27, 2021, the Company entered into a Sales Agreement with SVB Leerink LLC, as sales agent (“SVB Leerink”), pursuant to which it may offer and sell up to $200.0 million of shares of the Company’s common stock, no par value per share (“ATM Shares”). The ATM Shares to be offered and sold under the Sales Agreement will be issued and sold pursuant to an automatically effective shelf registration statement on Form S-3ASR (File No. 333-259119) filed by the Company on August 27, 2021, which expires three years from the filing date. The Company also filed a prospectus supplement relating to the offering and sale of the ATM Shares on August 27, 2021. The Company is not obligated to make any sales of ATM Shares, and SVB Leerink is not required to sell any specific number or dollar amount of the ATM Shares under the Sales Agreement. The Company capitalized certain legal, professional accounting and other third-party fees that were directly associated with in-process stock financings as deferred offering costs until such financings are consummated. As of December 31, 2022, the Company has sold no shares pursuant to the Sales Agreement.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company’s fair value measurements are classified and disclosed in one of the following three categories: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The commercial paper, corporate notes, and U.S. government agency bonds are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. There were no transfers into or out of Level 3 from December 31, 2020 to December 31, 2022. The following table summarizes the valuation of the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2022 December 31, 2021 Fair value measurement category Fair value measurement category (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 1,262 $ 1,262 $ — $ — $ 1,258 $ 1,258 $ — $ — Commercial paper (a) 15,606 — 15,606 — 18,229 — 18,229 — Corporate notes 51,328 — 51,328 — 50,524 — 50,524 — U.S. government agency bonds (a) 27,976 — 27,976 — — — — — $ 96,172 $ 1,262 $ 94,910 $ — $ 70,011 $ 1,258 $ 68,753 $ — (a) Approximately $6.5 million of U.S. government agency bonds and $8.0 million of commercial paper had an original maturity of 90 days or less and is recorded as a cash equivalent as of December 31, 2022 and 2021, respectively. The fair values of the cash equivalents and marketable securities are based on observable market prices. The Company’s accounts receivables, accounts payable and accrued expenses are valued at cost which approximates fair value.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The components of (loss) income before income taxes are summarized as follows: Year Ended December 31, (In thousands) 2022 2021 2020 U.S. $ (15,912) $ (7,367) $ 2,767 Foreign (76) (104) 97 (Loss) income before income taxes $ (15,988) $ (7,471) $ 2,864 A reconciliation of income taxes computed using the U.S. federal statutory rate to the taxes reported in the consolidated statements of operations is as follows: Year Ended December 31, (In thousands) 2022 2021 2020 (Loss) income before income taxes $ (15,988) $ (7,471) $ 2,864 Federal statutory rate 21 % 21 % 21 % Taxes computed at federal statutory rate (3,357) (1,569) 601 State and local income taxes (630) (345) 200 Nondeductible stock-based compensation 1,168 (4,311) 437 Federal and state rate change 574 47 249 Research and orphan drug credits (644) (413) (8,827) Other 267 (87) 132 Change in valuation allowance 3,343 6,567 7,388 Reported income taxes $ 721 $ (111) $ 180 Deferred tax assets (liabilities) consist of the following: Year Ended December 31, (In thousands) 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 7,020 $ 11,571 Employee benefits and stock-based compensation 18,028 11,470 Research and development costs 7,530 5,059 Intangible assets 1,770 2,544 Operating lease liabilities 11,846 12,822 Inventory reserve 2,780 2,833 Tax credit carryforward 11,143 10,498 Other, net 12 13 Total deferred tax assets 60,129 56,810 Less: valuation allowance (47,290) (43,947) Total net deferred tax assets 12,839 12,863 Deferred tax liabilities: Right-of-use assets (10,891) (12,266) Property and equipment, net (1,948) (597) Total net deferred tax liabilities (12,839) (12,863) Net deferred tax assets and liabilities $ — $ — As of December 31, 2022, the Company had U.S. federal net operating loss carryforwards of $23.1 million, of which $11.2 million begin to expire in 2033 and the remainder do not expire but are subject to 80% limitation. As of December 31, 2022, the Company had state net operating loss carryforwards of $20.9 million that begin to expire in 2034. The projected annual limitation on the use of the net operating losses that existed prior to September 17, 2014 resulting from the Company’s change in control in 2014 per Section 382 of the Internal Revenue Code is $0.8 million. As a result, a significant portion of the net operating losses and tax credit carryforwards will expire prior to their utilization, regardless of the level of future profitability. As of December 31, 2022, the Company’s U.S. federal tax credit carryforwards available to offset future profits are $11.1 million. Based on the research and development and orphan drug credit tax studies performed during 2020, the Company had a sufficient basis to claim the credits and recognized a tax credit carryforward in the 2020 tax year. These credit carryforwards will expire between 2034 and 2040. In accordance with the accounting guidance for income taxes, the Company estimates whether recoverability of its deferred tax assets is “more likely than not”, based on forecasts of taxable income in the related tax jurisdictions. In this estimate, the Company uses historical results, projected future operating results based upon approved business plans, eligible carry forward periods, tax planning opportunities and other relevant considerations. Based on these factors, including historical losses incurred by the Company, a full valuation allowance for the deferred tax assets, including the deferred tax assets for the aforementioned net operating losses and credits has been provided, since they are not more likely than not to be realized. If sufficient positive evidence exists in future periods to support a release of some or all of the valuation allowance, such a release would likely have a material impact on the Company’s results of operations. The change in the valuation allowance was an increase of $3.3 million and $6.6 million for the years ended December 31, 2022 and 2021, respectively. The Company assesses uncertain tax positions in accordance with the guidance for accounting for uncertain tax positions. This pronouncement prescribes a recognition threshold and measurement methodology for recording within the consolidated financial statements uncertain tax positions taken, or expected to be taken, in the Company’s income tax returns. To the extent the uncertain tax positions do not meet the “more likely than not” threshold, the Company derecognizes such positions. To the extent the uncertain tax positions meet the “more likely than not” threshold, the Company measures and records the highest probable benefit, and establishes appropriate reserves for benefits that exceed the amount likely to be sustained upon examination. The Company currently has not recorded any uncertain tax positions and does not anticipate that unrecognized tax benefits will significantly increase or decrease within the next twelve months. The Company files U.S. federal and state income tax returns with varying statute of limitations. During the year-ended December 31, 2020, examinations by U.S. tax authorities were completed for 2017 and 2018. Due to the Company’s net operating loss carryforwards, federal income tax returns from incorporation are still subject to examination. The Company files in several state tax jurisdictions and is subject to examination in years ranging from incorporation to 2022.

Employee Savings Plan

Employee Savings Plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Savings Plan	Employee Savings Plan The Company has a 401(k) savings plan that allows participating employees to contribute a portion of their salary, subject to annual limits and minimum qualifications. The Board may, at its sole discretion, approve Company matching contributions to the plan. The Company made contributions of $1.1 million, $1.0 million and $0.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Nexobrid License and Supply Agr

Nexobrid License and Supply Agreements	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
NexoBrid License and Supply Agreements	NexoBrid License and Supply Agreements On May 6, 2019, the Company entered into exclusive license and supply agreements with MediWound to commercialize NexoBrid in North America. NexoBrid is a topically-administered biological product, which was approved by the FDA on December 28, 2022 for commercial use in the U.S. NexoBrid contains proteolytic enzymes and is indicated for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. Pursuant to the terms of the license agreement, following the FDA approval of NexoBrid, MediWound transferred the BLA to Vericel effective February 20, 2023. Both MediWound and Vericel, under the supervision of a Central Steering Committee comprised of members of both companies will continue to guide the development of NexoBrid in North America (the “Central Steering Committee”). NexoBrid is approved in the European Union (“EU”) and other international markets and has been designated as an orphan biologic in the U.S., EU and other international markets. In May 2019, the Company paid MediWound $17.5 million in consideration for the license, which was recorded as research and development expense during 2019. Pursuant to the terms of the license agreement, the Company is also obligated to pay MediWound a $7.5 million regulatory milestone payment within thirty days of BLA approval of NexoBrid. The FDA approved the NexoBrid BLA on December 28, 2022. As of December 31, 2022, the Company recorded the $7.5 million milestone payment for the licensing rights to commercially sell NexoBrid in the U.S., as an intangible asset. The $7.5 million payment for the intangible asset occurred in February 2 023. The Company is additionally obligated to pay MediWound up to $125.0 million, which is contingent upon meeting certain sales milestones. The first sales milestone payment of $7.5 million would be triggered when annual net sales of NexoBrid or improvements to it in North America exceed $75.0 million. As of December 31, 2022, the sales milestone payments are not yet probable and therefore, not recorded as a liability. The Company also will pay MediWound tiered royalties on net sales ranging from mid-high single-digit to mid-teen percentages, subject to customary reductions. Pursuant to the terms of the Company’s supply agreement with MediWound, MediWound will manufacture NexoBrid for the Company on a unit price basis, which may be increased pursuant to the terms of the supply agreement. MediWound is obligated to supply the Company with NexoBrid for sale in North America on an exclusive basis for the first five years of the term of the supply agreement. Under the supply agreement, the Company possess the option to extend the initial term of the agreement by an additional 24 months, which it did in May 2022. After the exclusivity period or upon supply failure, the Company will be permitted to establish an alternate source of supply. Since 2020, BARDA has been procuring NexoBrid from MediWound for use as a medical countermeasure in the event of a mass casualty emergency in the U.S. involving thermal burns. That quarterly procurement of NexoBrid by BARDA under its agreement with MediWound completed during the third quarter of 2022, although BARDA holds an option to procure additional quantities of NexoBrid in the future for emergency response preparedness. As a part of BARDA’s commitment to procure NexoBrid, the Company has received a percentage of gross profit for sales directly to BARDA. If, in the future, BARDA procures NexoBrid directly from Vericel, the Company will pay a percentage of gross profits to MediWound on initial committed amounts and a royalty on any additional BARDA purchases of NexoBrid beyond the initial committed amount. As of December 31, 2022, the Company does not hold a direct contract or distribution agreement with BARDA.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time-to-time, the Company could be a party to various legal proceedings arising in the ordinary course of business. The costs and outcome of litigation, regulatory, investigatory or other proceedings cannot be predicted with certainty, and some lawsuits, claims, actions or proceedings may be disposed of unfavorably to the Company and could have a material adverse effect on the Company’s results of operations or financial condition. In addition, intellectual property disputes often have a risk of injunctive relief which, if imposed against the Company, could materially and adversely affect its financial condition or results of operations. If a matter is both probable to result in material liability and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible material loss or range of loss. If such loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. As of December 31, 2022, the Company had no material ongoing litigation in which the Company was a party or any material ongoing regulatory or other proceedings and had no knowledge of any investigations by government or regulatory authorities in which the Company is a target that could have a material adverse effect on its current business. Manufacturing and Supply Agreements Matricel — In October 2015, the Company signed a long-term supply agreement with Matricel GmbH (“Matricel”) for the ACI-Maix collagen membrane used in the manufacture of MACI. The Company and Matricel amended the agreement on March 17, 2018. Under the agreement, the Company has committed to purchase annually approximately $0.6 million per year. The Company has fulfilled this commitment for each of the years ended December 31, 2022, 2021 and 2020, respectively. The agreement is effective until March 31, 2023. Manufacture, Supply and Other Agreements — The Company has entered into various agreements relating to the manufacture of its products and the supply of certain components. If the manufacturing or supply agreements expire or are otherwise terminated, the Company may not be able to identify and obtain ancillary materials that are necessary to develop its products and such expiration and termination could have a material effect on the Company’s business. The Company’s purchase commitments consist of minimum purchase amounts of materials used in the Company’s cell manufacturing process to manufacture its marketed cell therapy products. In addition, the Company also pays for usage of offsite warehouse space. In February 2021, the terms of one of the warehouse operating agreements were extended through March 31, 2027. Future minimum purchase commitments related to the Company’s contractual obligations are as follows: Payments Due by Period Contractual Obligations (In thousands) Total 2023 2024 2025 2026 2027 More than 5 Years Purchase commitments $ 3,416 $ 3,416 $ — $ — $ — $ — $ — Warehouse operating agreement 5,788 1,776 1,819 849 886 458 — Total $ 9,204 $ 5,192 $ 1,819 $ 849 $ 886 $ 458 $ —

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, certain judgments regarding revenue recognition, inventory valuation, stock option valuation, deferred tax assets and liabilities and accrued expenses. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments reflected in these consolidated financial statements or a revision of the carrying value of its assets or liabilities as of the issuance of these consolidated financial statements. These estimates may change as new events occur and additional information is obtained. Actual results could materially differ from those estimates.
Cash Equivalents	Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase and consist primarily of demand deposits, money market funds, U.S. government agency bonds and commercial paper.
Restricted cash	Restricted Cash Amounts included in restricted cash as of December 31, 2021, represent those required to be set aside to meet contractual terms of a lease agreement held by the Company.
Investments	Investments Investments classified as short-term have maturities of less than one year. Investments classified as long-term are those that: (i) have a maturity of greater than one year, and (ii) the Company does not intend to liquidate within the next twelve months, Unrealized gains are included as a component of accumulated other comprehensive income in the consolidated balance sheets and consolidated statements of shareholders’ equity and a component of total comprehensive (loss) income in the consolidated statements of comprehensive (loss) income, until realized. Unrealized losses are evaluated for impairment under ASC 326 , Financial Instruments - Credit Losses
Leases	Leases The Company determines if an arrangement is a lease at inception, in accordance with ASC Topic 842, Leases . All operating lease commitments with a lease term greater than 12 months are recognized as right-of-use assets and liabilities, on a discounted basis on the balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Certain of the Company’s lease agreements include lease payments that are adjusted periodically for an index or rate. The leases are initially measured using the present value of the projected payments adjusted for the index or rate in effect at the commencement date. In addition to rent, the leases may require the Company to pay additional amounts for taxes, insurance, maintenance and other expenses, which do not transfer a good or service to the Company and are generally referred to as non-lease components. Variable non-lease components are not measured as part of the right-of-use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right-of-use asset and liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Inventory	Inventory Inventories are measured at the lower of cost or net realizable value. Cost is calculated based upon standard-cost which approximates costs determined on the first-in, first-out method. The Company periodically reviews its inventories for excess or obsolescence and writes down obsolete or other unmarketable inventory to its estimated net realizable value. If the actual net realizable value is less than that estimated by the Company, or if it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required. In all cases, product inventory is carried at the lower of cost or its estimated net realizable value. Amounts written down are charged to cost of product sales.
Accounts Receivable	Accounts Receivable Accounts receivable are initially recorded at the contractual amount owed by the customer or based on expected payments from the insurance provider, hospital or patient. Allowances for doubtful accounts are established when the facts and circumstances indicate that a receivable may not be collectible. Potential credit risk exposure has been evaluated for the Company’s accounts receivable in accordance with ASC 326 .
Property and Equipment, net	Property and Equipment, net Property and equipment are initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. After initial measurement, property and equipment are carried at cost less accumulated depreciation. Repair and maintenance costs of property and equipment are expensed as incurred. The depreciable value of property and equipment is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives of property and equipment are as follows: • Machinery and equipment: 3 to 10 years • Furniture, fixtures and office equipment: 5 years • Computer equipment and software: 3 years • Leasehold improvements: shorter of the remaining life of the lease or 15 years The costs of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale or disposal credited or charged to operations.
Intangible Assets, net	Intangible Assets, net The Company amortizes its intangible assets on a straight-line basis over their estimated economic lives, unless another amortization method is deemed to be more appropriate. In determining the useful lives of intangible assets, the Company considers the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, market influence and other economic factors. Intangible assets are assessed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the carrying amount of an asset is not recoverable, an impairment loss is recorded as a permanent reduction in the amount by which the carrying amount of the asset exceeds its fair value.
Revenue Recognition	Revenue Recognition The Company recognizes product revenue from sales to a customer (whether a distributor, or hospital) following the five step model in Accounting Standards Codification 606, Revenue Recognition (“ ASC 606”): (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Under this revenue standard, the Company recognizes revenue when its customer obtains control of the promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods. There are no contractual rights of returns, refunds or similar obligations related to MACI, MACI biopsy kits, Epicel or NexoBrid; however, in certain limited cases the Company will accept a product return if a surgery is canceled. Revenue is not recognized in certain canceled cases. For MACI, MACI biopsy kits, Epicel and NexoBrid, there are no variable pricing arrangements related to warranties or rebates offered to customers. The majority of orders are due within 60 to 90 days of delivery. Shipping and handling fees are included as a component of revenue. The Company recognizes any commission fees as an expense when incurred. These fees are included in selling, general, and administrative expenses. See Note 3, “Revenue” for further discussion on revenues.
Research and Development Expense	Research and Development Expense
Stock-Based Compensation	Stock-Based Compensation The Company’s accounting for stock-based compensation requires it to determine the fair value of common stock issued in the form of stock option awards and restricted stock units. The fair value of restricted stock units held by the employees is determined based on the fair value of the Company’s common stock on the date of the grant. Compensation expense is recorded for restricted stock units that are expected to vest over the expected vesting period. The fair value of stock options held by the employees is determined using a Black-Scholes option valuation method. Key assumptions in determining fair value include volatility, risk-free interest rate, dividend yield and expected term. The assumptions used in calculating the fair value of stock options represent the Company’s best estimates; however, these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and different assumptions are used, the stock-based compensation expense could be materially different in the future. In addition, the Company estimates the expected forfeiture rate and only recognizes expense for those stock options expected to vest over the service period. The estimated forfeiture rate considers the historical experience of the Company’s stock-based awards. If the actual forfeiture rate is different from the estimate, expense is adjusted accordingly. The Company records the expense for stock options and restricted stock units using a graded-vesting attribution method.
Comprehensive (Loss) Income	Comprehensive (Loss) Income Comprehensive (loss) income is the change in shareholders’ equity during a period arising from unrealized gains or losses related to the Company’s investments.
Income Taxes	Income Taxes Deferred tax assets are recognized for deductible temporary differences and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized based on the weight of available evidence. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. The Company records uncertain tax positions in the consolidated financial statements only if it is more likely than not that the uncertain tax position will be sustained upon examination by the taxing authorities. The Company records interest and penalties related to uncertain tax positions in income tax expense.
Net (Loss) Income Per Common Share	Net (Loss) Income Per Common ShareBasic earnings per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, plus the potential dilutive effect of other securities if those securities were converted or exercised. During periods in which the Company incurs net losses, both basic and diluted loss per common share is calculated by dividing the net loss by the weighted-average shares of common stock outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive.
Financial Instruments	Financial Instruments The Company’s financial instruments include accounts receivables, accounts payable and accrued expenses for which the current carrying amounts approximate market value, based upon their short-term nature and marketable debt securities which are classified as available-for-sale and carried at fair value on a settlement date basis.
Recent Accounting Pronouncements	Recent Accounting Pronouncements No new accounting standards were adopted during the year ended December 31, 2022. The Company considers the applicability and impact of any recent Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). Based on the assessment, the ASU’s were determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2022
Risks and Uncertainties [Abstract]
Disaggregation of Revenue	The following table and descriptions below shows the products from which the Company generated its revenue: Year Ended December 31, Revenue by product (in thousands) 2022 2021 2020 MACI implants and kits Implants based on contracted rate sold through a specialty pharmacy (a) $ 81,388 $ 71,969 $ 57,593 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 18,695 16,000 16,320 Implants sold direct based on contracted rates (c) 24,261 18,714 15,144 Implants sold direct subject to third-party reimbursement (d) 3,499 2,821 2,754 Biopsy kits - direct bill 2,090 2,194 1,908 Change in estimates related to prior periods (e) 2,034 (144) 713 Total MACI implants and kits 131,967 111,554 94,432 Epicel Direct bill (hospital) 31,731 41,521 27,536 NexoBrid revenue (f) 667 3,109 2,211 Total revenue $ 164,365 $ 156,184 $ 124,179 (a) Represents implants sold through Orsini and AllCare whereby such specialty pharmacies have a direct contract with the underlying insurance provider. The amount of reimbursement is based on contracted rates at the time of sale supported by the pharmacy’s direct contracts. (b) Represents implants sold through Orsini and AllCare whereby such specialty pharmacy does not have a direct contract with the underlying payer and are subject to third-party reimbursement. The amount of reimbursement is established based on publicly available rates, fee schedules or past payer precedents. (c) Represents implants sold directly from the Company to the facility based on a contract and known price agreed upon prior to the surgery date. Also represents direct sales under a contract to specialty distributor DMS. (d) Represents implants sold directly from the Company to the facility based on a contract and known price agreed upon prior to the surgery date. The payment terms are subject to third-party reimbursement from an underlying insurance provider. (e) Primarily represents changes in estimates related to implants sold through Orsini or AllCare and relate to changes to the initial expected reimbursement or collection expectation upon completion of the billing claims process. The change in estimates is a result of additional information, changes in collection expectations or actual cash collections received in the current period. (f) Represents revenue based on a percentage of gross profits for sales of NexoBrid to BARDA, pursuant to the license agreement between the Company and MediWound (see note 14).

Selected Balance Sheet Compon_2

Selected Balance Sheet Components (Tables)	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of inventory	Inventory consisted of the following: December 31, (In thousands) 2022 2021 Raw materials $ 15,101 $ 12,676 Work-in-process 832 644 Finished goods 53 61 Total inventory $ 15,986 $ 13,381
Schedule of property and equipment, net	Property and Equipment, net consisted of the following: December 31, (In thousands) 2022 2021 Machinery and equipment $ 5,041 $ 4,522 Furniture, fixtures and office equipment 1,710 1,551 Computer equipment and software 8,224 7,769 Leasehold improvements 13,689 10,617 Construction in process 5,438 3,097 Financing right-of-use lease 37 74 Total property and equipment, gross 34,139 27,630 Less accumulated depreciation (18,302) (14,322) Total property and equipment, net $ 15,837 $ 13,308
Schedule of finite-lived intangible assets, future amortization expense	Future amortization expense of intangible assets as of December 31, 2022 is estimated to be as follows: (In thousands) Amount 2023 $ 625 2024 625 2025 625 2026 625 2027 625 Thereafter 4,375 Total $ 7,500
Schedule of accrued expenses	Accrued Expenses consisted of the following: December 31, (In thousands) 2022 2021 Bonus related compensation $ 7,132 $ 6,305 Employee related accruals 3,101 3,616 Insurance reimbursement-related liabilities 5,030 3,973 Other accrued expenses 927 151 Total accrued expenses $ 16,190 $ 14,045

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Assets and liabilities	Operating and finance lease assets and liabilities are as follows: December 31, (In thousands) Classification 2022 2021 Assets Operating Right-of-use assets $ 41,535 $ 45,720 Finance Property and equipment, net 37 73 Total leased assets $ 41,572 $ 45,793 Liabilities Current Operating Current portion of operating lease liabilities $ 4,302 $ 2,950 Finance Other current liabilities 41 41 Non-current Operating Operating lease liabilities 43,268 47,147 Finance Other long-term liabilities — 44 Total leased liabilities $ 47,611 $ 50,182
Maturity of lease liabilities	Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: (In thousands) Operating Leases Finance Leases Total 2023 $ 4,302 $ 41 $ 4,343 2024 6,946 — 6,946 2025 6,348 — 6,348 2026 6,530 — 6,530 2027 6,726 — 6,726 Thereafter 30,251 — 30,251 Total lease payments $ 61,103 $ 41 $ 61,144 Less: interest (13,533) — (13,533) Present value of lease liabilities (a) $ 47,570 $ 41 $ 47,611 (a) As of December 31, 2022, the Burlington Lease has not yet commenced. The Burlington Lease has future minimum lease payments of approximately $98.9 million and a tenant improvement allowance of $25.1 million with a lease term of 144 months. These undiscounted amounts are not included in this table.
Maturity of lease liabilities	Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: (In thousands) Operating Leases Finance Leases Total 2023 $ 4,302 $ 41 $ 4,343 2024 6,946 — 6,946 2025 6,348 — 6,348 2026 6,530 — 6,530 2027 6,726 — 6,726 Thereafter 30,251 — 30,251 Total lease payments $ 61,103 $ 41 $ 61,144 Less: interest (13,533) — (13,533) Present value of lease liabilities (a) $ 47,570 $ 41 $ 47,611 (a) As of December 31, 2022, the Burlington Lease has not yet commenced. The Burlington Lease has future minimum lease payments of approximately $98.9 million and a tenant improvement allowance of $25.1 million with a lease term of 144 months. These undiscounted amounts are not included in this table.
Lease term and discount rate	Lease terms and discount rates are as follows: December 31, 2022 2021 Weighted-average remaining lease term (years) Operating leases 8.9 9.8 Finance leases 0.5 1.5 Weighted-average discount rate Operating leases 5.4% 5.4% Finance leases 5.0% 5.0%

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Schedule of fair value of securities, not including cash	The following tables summarize the gross unrealized gains and losses of the Company’s marketable securities as of December 31, 2022 and 2021: December 31, 2022 Gross Unrealized (In thousands) Amortized Cost Gains Losses Credit Losses Estimated Fair Value Commercial paper $ 15,707 $ — $ (101) $ — $ 15,606 Corporate notes 52,159 — (831) — 51,328 U.S. government agency bonds 21,545 — (46) — 21,499 $ 89,411 $ — $ (978) $ — $ 88,433 Classified as: Short-term investments $ 68,471 Long-term investments 19,962 $ 88,433 December 31, 2021 Gross Unrealized (In thousands) Amortized Cost Gains Losses Credit Losses Estimated Fair Value Commercial paper $ 10,243 $ — $ (12) $ — $ 10,231 Corporate notes 50,666 — (142) — 50,524 $ 60,909 $ — $ (154) $ — $ 60,755 Classified as: Short-term investments $ 35,068 Long-term investments 25,687 $ 60,755

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of non-cash stock-based compensation expense	Non-cash stock-based compensation expense (service-based stock options, restricted stock units and employee stock purchase plan) is summarized in the following table: Years Ended December 31, (in thousands) 2022 2021 2020 Cost of product sales $ 3,630 $ 3,681 $ 1,949 Research and development 5,261 4,120 1,884 Selling, general and administrative 28,292 26,521 10,010 Total non-cash stock-based compensation expense $ 37,183 $ 34,322 $ 13,843
Schedule of fair value assumptions	The fair value of each service-based stock option grant for the reported periods is estimated on the date of the grant using the Black-Scholes option-pricing model using the assumptions noted in the following table: Year Ended December 31, Service-Based Stock Options 2022 2021 2020 Expected dividend rate —% —% —% Expected stock price volatility 63.8 - 75.3% 71.5 - 76.7% 71.1 - 78.7% Risk-free interest rate 1.5 - 4.4% 0.53 -1.5% 0.33 -1.7% Expected life (years) 5.3 - 6.3 5.3 - 6.3 5.3 - 6.3
Summary of activity for service-based stock options	The following table summarizes the activity for service-based stock options for the indicated periods: Service-Based Stock Options Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Thousands) Outstanding at December 31, 2021 5,669,690 $ 22.49 7.2 $ 113,985 Granted 1,348,824 33.37 Exercised (234,707) 10.22 Expired (31,436) 36.20 Forfeited (143,224) 31.42 Outstanding at December 31, 2022 6,609,147 $ 24.89 6.8 $ 56,708 Exercisable at December 31, 2022 4,205,883 $ 18.49 5.8 $ 51,204
Summary of activity for restricted stock awards	The following table summarizes the activity for restricted stock units for the indicated periods: Restricted Stock Units Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 398,748 $ 36.30 Granted 422,958 33.71 Vested (135,380) 35.45 Forfeited (38,152) 34.98 Unvested at December 31, 2022 648,174 $ 34.86

Net (Loss) Income Per Common _2

Net (Loss) Income Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method	A summary of net (loss) income per common share is presented below: Year Ended December 31, (Amounts in thousands, except per share amounts) 2022 2021 2020 Net (loss) income $ (16,709) $ (7,471) $ 2,864 Basic weighted-average common shares outstanding 47,130 46,472 45,221 Effect of dilutive stock options and restricted stock units — — 2,061 Diluted weighted-average common shares outstanding 47,130 46,472 47,282 Basic (loss) income per common share $ (0.35) $ (0.16) $ 0.06 Diluted (loss) income per common share $ (0.35) $ (0.16) $ 0.06 Anti-dilutive shares excluded from diluted net (loss) income per common share: Stock options 6,609 5,670 2,204 Restricted stock units 648 399 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of valuation of the Company's investments and financial instruments that are measured at fair value on a recurring basis	The following table summarizes the valuation of the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2022 December 31, 2021 Fair value measurement category Fair value measurement category (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 1,262 $ 1,262 $ — $ — $ 1,258 $ 1,258 $ — $ — Commercial paper (a) 15,606 — 15,606 — 18,229 — 18,229 — Corporate notes 51,328 — 51,328 — 50,524 — 50,524 — U.S. government agency bonds (a) 27,976 — 27,976 — — — — — $ 96,172 $ 1,262 $ 94,910 $ — $ 70,011 $ 1,258 $ 68,753 $ — (a) Approximately $6.5 million of U.S. government agency bonds and $8.0 million of commercial paper had an original maturity of 90 days or less and is recorded as a cash equivalent as of December 31, 2022 and 2021, respectively.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Summary of components of (loss) income before income taxes	The components of (loss) income before income taxes are summarized as follows: Year Ended December 31, (In thousands) 2022 2021 2020 U.S. $ (15,912) $ (7,367) $ 2,767 Foreign (76) (104) 97 (Loss) income before income taxes $ (15,988) $ (7,471) $ 2,864
Schedule of reconciliation of income taxes computed using the federal statutory rate to the taxes reported in consolidated statements of operations	A reconciliation of income taxes computed using the U.S. federal statutory rate to the taxes reported in the consolidated statements of operations is as follows: Year Ended December 31, (In thousands) 2022 2021 2020 (Loss) income before income taxes $ (15,988) $ (7,471) $ 2,864 Federal statutory rate 21 % 21 % 21 % Taxes computed at federal statutory rate (3,357) (1,569) 601 State and local income taxes (630) (345) 200 Nondeductible stock-based compensation 1,168 (4,311) 437 Federal and state rate change 574 47 249 Research and orphan drug credits (644) (413) (8,827) Other 267 (87) 132 Change in valuation allowance 3,343 6,567 7,388 Reported income taxes $ 721 $ (111) $ 180
Schedule of deferred tax assets	Deferred tax assets (liabilities) consist of the following: Year Ended December 31, (In thousands) 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 7,020 $ 11,571 Employee benefits and stock-based compensation 18,028 11,470 Research and development costs 7,530 5,059 Intangible assets 1,770 2,544 Operating lease liabilities 11,846 12,822 Inventory reserve 2,780 2,833 Tax credit carryforward 11,143 10,498 Other, net 12 13 Total deferred tax assets 60,129 56,810 Less: valuation allowance (47,290) (43,947) Total net deferred tax assets 12,839 12,863 Deferred tax liabilities: Right-of-use assets (10,891) (12,266) Property and equipment, net (1,948) (597) Total net deferred tax liabilities (12,839) (12,863) Net deferred tax assets and liabilities $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum purchase commitments related to contractual obligations	Future minimum purchase commitments related to the Company’s contractual obligations are as follows: Payments Due by Period Contractual Obligations (In thousands) Total 2023 2024 2025 2026 2027 More than 5 Years Purchase commitments $ 3,416 $ 3,416 $ — $ — $ — $ — $ — Warehouse operating agreement 5,788 1,776 1,819 849 886 458 — Total $ 9,204 $ 5,192 $ 1,819 $ 849 $ 886 $ 458 $ —

Organization (Details)

Organization (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) product segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of commercial-stage products | product	3
Number of reportable segments | segment	1
Accumulated deficit	$ 399,995	$ 383,286
Net loss	16,709	7,471	$ (2,864)
Cash and cash equivalents	51,067	$ 68,330	$ 33,620
Short term investments	$ 88,400

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2022
Furniture, fixtures and office equipment
Property, Plant and Equipment
Useful lives (in years)	5 years
Computer equipment and software
Property, Plant and Equipment
Useful lives (in years)	3 years
Leasehold improvements
Property, Plant and Equipment
Useful lives (in years)	15 years
Minimum
Property, Plant and Equipment
Duration of lease renewal terms	1 year
Minimum | Machinery and equipment
Property, Plant and Equipment
Useful lives (in years)	3 years
Maximum
Property, Plant and Equipment
Duration of lease renewal terms	5 years
Maximum | Machinery and equipment
Property, Plant and Equipment
Useful lives (in years)	10 years

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) pharmacy	Dec. 31, 2021 USD ($)
Risks and Uncertainties [Abstract]
Number of specialty pharmacies | pharmacy	2
Allowance for doubtful accounts	$ 6.1	$ 7
Change in estimate of uncollectible (percent)	0.50%
Change in revenue recognized due to 0.5% change in uncollectible percentage	$ 0.4

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Product sales, net	$ 163,698	$ 153,075	$ 121,968
Other revenue	667	3,109	2,211
Total revenue	164,365	156,184	124,179
Accounting Standards Update 2014-09 | Change in estimates related to prior periods
Disaggregation of Revenue [Line Items]
Product sales, net	2,034	(144)	713
M A C I Implants And Kits
Disaggregation of Revenue [Line Items]
Product sales, net	131,967	111,554	94,432
Through Intermediary | MACI implants and kits | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	81,388	71,969	57,593
Through Intermediary | MACI implants and kits | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	18,695	16,000	16,320
Time-and-materials contract | MACI implants and kits | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	3,499	2,821	2,754
Provider or Facility | MACI implants and kits | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	24,261	18,714	15,144
Provider or Facility | NexoBrid
Disaggregation of Revenue [Line Items]
Other revenue	667	3,109	2,211
Directly to consumer | Biopsy kits
Disaggregation of Revenue [Line Items]
Product sales, net	2,090	2,194	1,908
Directly to consumer | Epicel
Disaggregation of Revenue [Line Items]
Product sales, net	$ 31,731	$ 41,521	$ 27,536

Revenue - Concentration of Risk

Revenue - Concentration of Risk (Details) - Customer concentration - MACI	12 Months Ended
	Dec. 31, 2022
Revenue Concentration
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	12%
Accounts Receivable Concentration
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	10%

Selected Balance Sheet Compon_3

Selected Balance Sheet Components - Schedule of inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory:
Raw materials	$ 15,101	$ 12,676
Work-in-process	832	644
Finished goods	53	61
Total inventory	$ 15,986	$ 13,381

Selected Balance Sheet Compon_4

Selected Balance Sheet Components - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property and equipment, net:
Financing right-of-use lease	$ 37	$ 74
Total property and equipment, gross	34,139	27,630
Less accumulated depreciation	(18,302)	(14,322)
Total property and equipment, net	15,837	13,308
Machinery and equipment
Property and equipment, net:
Total property and equipment, gross	5,041	4,522
Furniture, fixtures and office equipment
Property and equipment, net:
Total property and equipment, gross	1,710	1,551
Computer equipment and software
Property and equipment, net:
Total property and equipment, gross	8,224	7,769
Leasehold improvements
Property and equipment, net:
Total property and equipment, gross	13,689	10,617
Construction in process
Property and equipment, net:
Total property and equipment, gross	$ 5,438	$ 3,097

Selected Balance Sheet Compon_5

Selected Balance Sheet Components - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment
Depreciation and amortization expense	$ 3,981,000	$ 2,965,000	$ 2,383,000
Intangible assets, net	7,500,000	$ 0
Licensing Agreements
Property, Plant and Equipment
Intangible assets, net	$ 7,500,000
Finite lived intangible assets useful life	12 years
Amortization expense	$ 0

Selected Balance Sheet Compon_6

Selected Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 625
2024	625
2025	625
2026	625
2027	625
Thereafter	4,375
Total	$ 7,500	$ 0

Selected Balance Sheet Compon_7

Selected Balance Sheet Components - Schedule of accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accrued expenses
Bonus related compensation	$ 7,132	$ 6,305
Employee related accruals	3,101	3,616
Insurance reimbursement-related liabilities	5,030	3,973
Other accrued expenses	927	151
Total accrued expenses	$ 16,190	$ 14,045

Leases - Narrative (Details)

Leases - Narrative (Details) ft² in Thousands, $ in Millions		1 Months Ended	12 Months Ended
	Jan. 28, 2022 USD ($) ft² $ / ft² renewal_option	Jan. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Short-term lease costs (less than)			$ 0.1	$ 0.1
Operating lease expense			6.9	7.3	$ 6.3
Finance lease expense (less than)			0.1	0.1	0.1
Measurement of lease liability			$ 5.3	$ 6	$ 5.8
25 Network Drive, Burlington, Massachusetts
Lessee, Lease, Description [Line Items]
Area of real estate property | ft²	126
Lease comment, grace period	12 months
Rent start date, term	13 months
Term of contract	144 months
Number of renewal options | renewal_option	1
Lease option to extend term	10 years
Annual lease per square foot | $ / ft²	57
Annual lease base rent square subject to increase percentage	2.50%
Tenant improvement allowance	$ 25.1
Tenant improvement allowance per square foot | $ / ft²	200
Letter of credit cash deposit		$ 6
Letter of credit cash deposit lease year three		4.2
Letter of credit cash deposit lease year six		$ 1.8
25 Network Drive, Burlington, Massachusetts | Minimum
Lessee, Lease, Description [Line Items]
Monthly contractual lease payments	$ 0.6
25 Network Drive, Burlington, Massachusetts | Maximum
Lessee, Lease, Description [Line Items]
Monthly contractual lease payments	$ 0.8

Leases - Assets And Liabilities

Leases - Assets And Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Operating	$ 41,535	$ 45,720
Finance	37	73
Total leased assets	41,572	45,793
Current
Operating	4,302	2,950
Finance	41	41
Non-current
Operating	43,268	47,147
Finance	0	44
Present value of lease liabilities	$ 47,611	$ 50,182
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
2023	$ 4,302
2024	6,946
2025	6,348
2026	6,530
2027	6,726
Thereafter	30,251
Total	61,103
Less: interest	(13,533)
Present value of lease liabilities	47,570
Finance Leases
2023	41
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Total lease payments	41
Less: interest	0
Present value of lease liabilities	41
2023	4,343
2024	6,946
2025	6,348
2026	6,530
2027	6,726
Thereafter	30,251
Total lease payments	61,144
Less: interest	(13,533)
Present value of lease liabilities	47,611	$ 50,182
Future minimum lease payments	61,103
25 Network Drive, Burlington, Massachusetts
Operating Leases
Total	98,900
Finance Leases
Future minimum lease payments	98,900
Tenant improvement allowance	$ 25,100
Term of contract	144 months

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term - Operating lease term	8 years 10 months 24 days	9 years 9 months 18 days
Weighted-average remaining lease term - Finance lease term	6 months	1 year 6 months
Weighted-average discount rate - Operating lease discount rate	5.40%	5.40%
Weighted-average discount rate - Finance lease discount rate	5%	5%

Investments - Schedule of Fair

Investments - Schedule of Fair Value of Securities, Not Including Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Amortized Cost	$ 89,411	$ 60,909
Gains	0	0
Losses	(978)	(154)
Credit Losses	0	0
Estimated Fair Value	88,433	60,755
Short-term investments
Marketable Securities [Line Items]
Estimated Fair Value	68,471	35,068
Long-term investments
Marketable Securities [Line Items]
Estimated Fair Value	19,962	25,687
Commercial paper
Marketable Securities [Line Items]
Amortized Cost	15,707	10,243
Gains	0	0
Losses	(101)	(12)
Credit Losses	0	0
Estimated Fair Value	15,606	10,231
Corporate notes
Marketable Securities [Line Items]
Amortized Cost	52,159	50,666
Gains	0	0
Losses	(831)	(142)
Credit Losses	0	0
Estimated Fair Value	51,328	$ 50,524
U.S. government agency bonds
Marketable Securities [Line Items]
Amortized Cost	21,545
Gains	0
Losses	(46)
Credit Losses	0
Estimated Fair Value	$ 21,499

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Asset impairment charges	$ 0	$ 0

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended			96 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Stock-Based Compensation
Awards available for future grant under the Plan (in shares)	3,818,536			3,818,536
Expected to vest (in shares)	6,311,629			6,311,629
Total unrecognized compensation cost	$ 31.6			$ 31.6
Intrinsic value of stock options exercised	$ 5.4	$ 39.5	$ 10.5
Stock options
Stock-Based Compensation
Expiration period	10 years
Vesting period	4 years
Weighted average grant-date fair value (in USD per share)	$ 19.83	$ 32.96	$ 8.86
Weighted average period over which unrecognized compensation is expected to be recognized	2 years 8 months 12 days
Restricted stock units
Stock-Based Compensation
Weighted average period over which unrecognized compensation is expected to be recognized	2 years 9 months 18 days
Granted (in USD per share)	$ 33.71	$ 52.07	$ 11.41
Unrecognized compensation cost	$ 13.2			$ 13.2
Fair value of vested awards	$ 4.6	$ 5.3
Restricted stock units | Awarded annually | Nonemployee directors
Stock-Based Compensation
Vesting period	1 year
Restricted stock units | Awarded upon initial appointment to the BOD | Nonemployee directors
Stock-Based Compensation
Vesting period	3 years
Employee Stock Purchase Plan
Stock-Based Compensation
Common stock available for issuance (in shares)	1,000,000			1,000,000
Common stock granted since inception (in shares)				796,849

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of non-cash stock-based compensation expense (Details) - Employee stock purchase plan and service-based stock options - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 37,183	$ 34,322	$ 13,843
Cost of product sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	3,630	3,681	1,949
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	5,261	4,120	1,884
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 28,292	$ 26,521	$ 10,010

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of fair value assumptions (Details) - Stock options	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock-Based Compensation
Expected dividend rate	0%	0%	0%
Expected stock price volatility, minimum	63.80%	71.50%	71.10%
Expected stock price volatility, maximum	75.30%	76.70%	78.70%
Risk-free interest rate, minimum	1.50%	0.53%	0.33%
Risk-free interest rate, maximum	4.40%	1.50%	1.70%
Minimum
Stock-Based Compensation
Expected life (years)	5 years 3 months 18 days	5 years 3 months 18 days	5 years 3 months 18 days
Maximum
Stock-Based Compensation
Expected life (years)	6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 18 days

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of activity for service-based stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Options
Outstanding at the beginning of the period (in shares)	5,669,690
Granted (in shares)	1,348,824
Exercised (in shares)	(234,707)
Expired (in shares)	(31,436)
Forfeited (in shares)	(143,224)
Outstanding at the end of the period (in shares)	6,609,147	5,669,690
Exercisable at the end of the period (in shares)	4,205,883
Weighted Average Exercise Price
Outstanding at the beginning of the period (in USD per share)	$ 22.49
Granted (in USD per share)	33.37
Exercised (in USD per share)	10.22
Expired (in USD per share)	36.20
Forfeited (in USD per share)	31.42
Outstanding at the end of the period (in USD per share)	24.89	$ 22.49
Exercisable at the end of the period (in USD per share)	$ 18.49
Weighted Average Remaining Contractual Term
Outstanding	6 years 9 months 18 days	7 years 2 months 12 days
Exercisable at end of period	5 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding	$ 56,708	$ 113,985
Exercisable at end of period	$ 51,204

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of restricted stock awards activity (Details) - Restricted stock units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Restricted Stock Units
Outstanding at beginning of period (in shares)	398,748
Granted (in shares)	422,958
Vested (in shares)	(135,380)
Forfeited (in shares)	(38,152)
Unvested at end of period (in shares)	648,174	398,748
Weighted-Average Grant Date Fair Value
Unvested at beginning of period (in USD per share)	$ 36.30
Granted (in USD per share)	33.71	$ 52.07	$ 11.41
Vested (in USD per share)	35.45
Forfeited (in USD per share)	34.98
Unvested at end of period (in USD per share)	$ 34.86	$ 36.30

Revolving Credit Agreement (Det

Revolving Credit Agreement (Details) - Line of Credit	Jul. 29, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Issuance of letters of credit	$ 6,200,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Debt instrument, term	5 years
Debt issuance costs, net	$ 1,100,000
Outstanding borrowings		$ 0
Leverage ratio	3.50
Increase option for leverage ratio	4
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Line of credit facility, commitment fee (in percent)	0.20%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Line of credit facility, commitment fee (in percent)	0.25%
Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)	0.10%
Revolving Credit Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)	1.25%
Revolving Credit Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)	2.50%
Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)	0.25%
Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)	1.50%
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 15,000,000

Net (Loss) Income Per Common _3

Net (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net Income (Loss) Attributable to Parent [Abstract]
Net (loss) income	$ (16,709)	$ (7,471)	$ 2,864
Basic weighted-average common shares outstanding (in shares)	47,130	46,472	45,221
Effect of dilutive stock options and restricted stock units (in shares)	0	0	2,061
Diluted weighted-average common shares outstanding (in shares)	47,130	46,472	47,282
Basic (loss) income per common share (in USD per share)	$ (0.35)	$ (0.16)	$ 0.06
Diluted (loss) income per common share (in USD per share)	$ (0.35)	$ (0.16)	$ 0.06
Stock options
Anti-dilutive shares excluded from diluted net (loss) income per common share:
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)	6,609	5,670	2,204
Restricted stock units
Anti-dilutive shares excluded from diluted net (loss) income per common share:
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)	648	399	0

Shareholder's Equity - Narrativ

Shareholder's Equity - Narrative (Details) $ in Millions	Aug. 27, 2021 USD ($)
Shareholders' Equity
At the market offering, sales agreement, expiration period	3 years
At The Market
Shareholders' Equity
Sale of stock authorized value	$ 200

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	$ 88,433	$ 60,755
Corporate notes
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	51,328	50,524
U.S. government agency bonds
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	21,499
Recurring
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	96,172	70,011
Recurring | Level 1
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	1,262	1,258
Recurring | Level 2
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	94,910	68,753
Recurring | Level 3
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	0	0
Recurring | Commercial Paper
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	15,606	18,229
Recurring | Commercial Paper | Cash and Cash Equivalents
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value		8,000
Recurring | Commercial Paper | Level 1
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | Commercial Paper | Level 2
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	15,606	18,229
Recurring | Commercial Paper | Level 3
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | Corporate notes
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	51,328	50,524
Recurring | Corporate notes | Level 1
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | Corporate notes | Level 2
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	51,328	50,524
Recurring | Corporate notes | Level 3
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | U.S. government agency bonds
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	27,976	0
Recurring | U.S. government agency bonds | Cash and Cash Equivalents
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	6,500
Recurring | U.S. government agency bonds | Level 1
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | U.S. government agency bonds | Level 2
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	27,976	0
Recurring | U.S. government agency bonds | Level 3
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | Money market funds
Liabilities that are measured at fair value on a recurring basis
Money market funds	1,262	1,258
Recurring | Money market funds | Level 1
Liabilities that are measured at fair value on a recurring basis
Money market funds	1,262	1,258
Recurring | Money market funds | Level 2
Liabilities that are measured at fair value on a recurring basis
Money market funds	0	0
Recurring | Money market funds | Level 3
Liabilities that are measured at fair value on a recurring basis
Money market funds	$ 0	$ 0

Income Taxes - Components of In

Income Taxes - Components of Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S.	$ (15,912)	$ (7,367)	$ 2,767
Foreign	(76)	(104)	97
(Loss) income before income taxes	$ (15,988)	$ (7,471)	$ 2,864

Income Taxes - Summary of Recon

Income Taxes - Summary of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of income taxes computed using the federal statutory rate to the taxes reported in consolidated statements of operations
(Loss) income before income taxes	$ (15,988)	$ (7,471)	$ 2,864
Federal statutory rate	21%	21%	21%
Taxes computed at federal statutory rate	$ (3,357)	$ (1,569)	$ 601
State and local income taxes	(630)	(345)	200
Nondeductible stock-based compensation	1,168	(4,311)	437
Federal and state rate change	574	47	249
Research and orphan drug credits	(644)	(413)	(8,827)
Other	267	(87)	132
Change in valuation allowance	3,343	6,567	7,388
Reported income taxes	$ 721	$ (111)	$ 180

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 7,020	$ 11,571
Employee benefits and stock-based compensation	18,028	11,470
Research and development costs	7,530	5,059
Intangible assets	1,770	2,544
Operating lease liabilities	11,846	12,822
Inventory reserve	2,780	2,833
Tax credit carryforward	11,143	10,498
Other, net	12	13
Total deferred tax assets	60,129	56,810
Less: valuation allowance	(47,290)	(43,947)
Total net deferred tax assets	12,839	12,863
Deferred tax liabilities:
Right-of-use assets	(10,891)	(12,266)
Property and equipment, net	(1,948)	(597)
Total net deferred tax liabilities	(12,839)	(12,863)
Net deferred tax assets and liabilities	$ 0	$ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Projected annual limitation on the use of the net operating losses that existed prior to September 17, 2014	$ 800
General business tax credit carryforward	11,143	$ 10,498
Increase (decrease) in valuation allowance	3,300	$ 6,600
Federal | Internal Revenue Service
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	23,100
Net operating loss carryforwards which begin to expire in 2033	11,200
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 20,900

Employee Savings Plan (Details)

Employee Savings Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Contributions made under 401(k) savings plan	$ 1.1	$ 1	$ 0.8

NexoBrid License and Supply A_2

NexoBrid License and Supply Agreements (Details) - USD ($) $ in Millions	1 Months Ended		12 Months Ended
	Feb. 23, 2023	May 31, 2019	Dec. 31, 2022
Related Party Transaction [Line Items]
Renewal term of supply agreement		24 months
MediWound Ltd
Related Party Transaction [Line Items]
Consideration payment for license		$ 17.5
Contingent consideration		7.5
Milestone payments, assumed intangible assets			$ 7.5
Maximum contingent consideration		125
Sales threshold for first milestone		$ 75
Term of supply agreement		5 years
MediWound Ltd | Subsequent event
Related Party Transaction [Line Items]
Payment to acquire intangible assets	$ 7.5

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Purchase obligation, annual commitment	$ 3,416	$ 600

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 31, 2015
Purchase commitments
Total	$ 3,416
2023	3,416	$ 600
2024	0
2025	0
2026	0
2027	0
More than 5 Years	0
Warehouse operating agreement
Total	5,788
2023	1,776
2024	1,819
2025	849
2026	886
2027	458
More than 5 Years	0
Contractual Obligation, Fiscal Year Maturity [Abstract]
Total	9,204
2023	5,192
2024	1,819
2025	849
2026	886
2027	458
More than 5 Years	$ 0