Vericel (VCEL) 10-Q 8 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,601,736
Entity Central Index Key	0000887359
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 62,938	$ 69,088
Restricted cash	7,804	17,778
Short-term investments	47,710	40,469
Accounts receivable (net of allowance for doubtful accounts of $87 and $43, respectively)	49,934	58,356
Inventory	13,557	13,087
Other current assets	7,775	6,853
Total current assets	189,718	205,631
Property and equipment, net	56,392	41,635
Intangible assets, net	6,719	6,875
Right-of-use assets	73,682	73,462
Long-term investments	29,433	25,283
Other long-term assets	717	771
Total assets	356,661	353,657
Current liabilities:
Accounts payable	19,432	22,347
Accrued expenses	11,026	17,215
Current portion of operating lease liabilities	6,012	6,187
Total current liabilities	36,470	45,749
Operating lease liabilities	86,141	81,856
Other long-term liabilities	154	100
Total liabilities	122,765	127,705
COMMITMENTS AND CONTINGENCIES (Note 12)
Shareholders’ equity:
Common stock, no par value; shares authorized — 75,000; shares issued and outstanding — 48,489 and 47,829, respectively	641,180	629,229
Accumulated other comprehensive loss	(245)	(100)
Accumulated deficit	(407,039)	(403,177)
Total shareholders’ equity	233,896	225,952
Total liabilities and shareholders’ equity	$ 356,661	$ 353,657

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 87	$ 43
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	48,489,000	47,829,000
Common stock, shares outstanding (in shares)	48,489,000	47,829,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Product sales, net	$ 51,281	$ 41,017
Total revenue	51,281	41,017
Cost of product sales	15,927	14,497
Gross profit	35,354	26,520
Research and development	6,418	5,212
Selling, general and administrative	34,400	29,485
Total operating expenses	40,818	34,697
Loss from operations	(5,464)	(8,177)
Other income (expense):
Interest income	1,762	839
Interest expense	(153)	(145)
Other expense	(7)	(12)
Total other income	1,602	682
Net loss	$ (3,862)	$ (7,495)
Net loss per common share:
Basic (in USD per share)	$ (0.08)	$ (0.16)
Diluted (in USD per share)	$ (0.08)	$ (0.16)
Weighted-average common shares outstanding:
Basic (in shares)	48,141	47,387
Diluted (in shares)	48,141	47,387
Revenue, Product and Service [Extensible List]	Product [Member]	Product [Member]
Cost, Product and Service [Extensible List]	Product [Member]	Product [Member]

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,862)	$ (7,495)
Other comprehensive (loss) gain:
Unrealized (loss) gain on investments	(145)	342
Comprehensive loss	$ (4,007)	$ (7,153)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Gain (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		47,253
Beginning balance at Dec. 31, 2022	$ 192,272	$ 593,245	$ (978)	$ (399,995)
Increase (Decrease) in Shareholders' Equity
Net loss	(7,495)			(7,495)
Stock-based compensation expense	8,731	$ 8,731
Stock option exercises (in shares)		132
Stock option exercises	2,009	$ 2,009
Shares issued under the Employee Stock Purchase Plan (in shares)		11
Shares issued under the Employee Stock Purchase Plan	216	$ 216
Issuance of stock for restricted stock unit vesting (in shares)		183
Restricted stock withheld for employee tax remittance (in shares)		(72)
Restricted stock withheld for employee tax remittance	(2,097)	$ (2,097)
Unrealized (loss) gain on investments	342		342
Ending balance (in shares) at Mar. 31, 2023		47,507
Ending balance at Mar. 31, 2023	$ 193,978	$ 602,104	(636)	(407,490)
Beginning balance (in shares) at Dec. 31, 2023	47,829	47,829
Beginning balance at Dec. 31, 2023	$ 225,952	$ 629,229	(100)	(403,177)
Increase (Decrease) in Shareholders' Equity
Net loss	(3,862)			(3,862)
Stock-based compensation expense	9,834	$ 9,834
Stock option exercises (in shares)		487
Stock option exercises	6,779	$ 6,779
Shares issued under the Employee Stock Purchase Plan (in shares)		9
Shares issued under the Employee Stock Purchase Plan	247	$ 247
Issuance of stock for restricted stock unit vesting (in shares)		265
Restricted stock withheld for employee tax remittance (in shares)		(101)
Restricted stock withheld for employee tax remittance	(4,909)	$ (4,909)
Unrealized (loss) gain on investments	$ (145)		(145)
Ending balance (in shares) at Mar. 31, 2024	48,489	48,489
Ending balance at Mar. 31, 2024	$ 233,896	$ 641,180	$ (245)	$ (407,039)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities:
Net loss	$ (3,862)	$ (7,495)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization expense	1,378	1,158
Stock-based compensation expense	9,834	8,731
Amortization of premiums and discounts on marketable securities	(102)	(290)
Amortization of debt issuance costs	54	54
Non-cash lease costs	1,771	1,112
Other	7	12
Changes in operating assets and liabilities:
Inventory	(470)	616
Accounts receivable	8,422	8,180
Other current assets	(922)	263
Accounts payable	(4,883)	(274)
Accrued expenses	(6,198)	(3,079)
Operating lease liabilities	2,119	(1,128)
Other non-current assets and liabilities, net	54	0
Net cash provided by operating activities	7,202	7,860
Investing activities:
Purchases of investments	(22,555)	(9,787)
Sales and maturities of investments	11,120	21,500
Expenditures for property and equipment	(14,017)	(1,413)
Purchases of intangible assets	0	(7,500)
Net cash (used in) provided by investing activities	(25,452)	2,800
Financing activities:
Net proceeds from common stock issuance	7,026	2,225
Payments on employee’s behalf for taxes related to vesting of restricted stock unit awards	(4,900)	(2,097)
Other	0	(21)
Net cash provided by financing activities	2,126	107
Net (decrease) increase in cash, cash equivalents, and restricted cash	(16,124)	10,767
Cash, cash equivalents, and restricted cash at beginning of period	86,866	51,067
Cash, cash equivalents, and restricted cash at end of period	70,742	61,834
Supplemental disclosure of cash flow information:
Right-of-use asset and lease liability recognized	1,991	419
Additions to property and equipment included in accounts payable	12,115	2,282
Reconciliation to amounts within the condensed consolidated balance sheets:
Cash and cash equivalents	62,938	61,834
Restricted cash	7,804	0
Total cash, cash equivalents, and restricted cash at end of period	$ 70,742	$ 61,834

Organization

Organization	3 Months Ended
	Mar. 31, 2024
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 leading provider of 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”) for North American rights to NexoBrid (anacaulase-bcdb), a topically administered biological orphan product containing proteolytic enzymes, which is indicated for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. Following the FDA’s approval of a Biologics License Application for NexoBrid on December 28, 2022, the Company began commercial sales of NexoBrid in the U.S. during the third quarter of 2023. 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 conditions. 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. 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 condensed consolidated financial statements. The War in Israel and Gaza In May 2019, the Company entered into exclusive license and supply agreements with MediWound, under which MediWound manufactures and supplies NexoBrid to the U.S. market on a unit price basis. MediWound develops and manufactures NexoBrid, in part, at its facilities in Yavne, Israel. The Company continues to monitor the ongoing conflict in Israel and is in close communication with MediWound leadership. MediWound’s NexoBrid manufacturing operations are continuing and, as of the date of this disclosure, MediWound does not anticipate a disruption to its ongoing supply of commercial NexoBrid to the United States. To the extent the war between Israel and Hamas intensifies or expands to include additional countries or militant groups in the region and MediWound’s facilities in Israel are damaged or destroyed, travel to and from Israel is halted or inhibited, or significant key MediWound operational personnel are called to military service, MediWound’s ability to continue to supply NexoBrid to the U.S. market could be disrupted. Liquidity The accompanying condensed 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 March 31, 2024, the Company had an accumulated deficit of $407.0 million and had a net loss of $3.9 million during the three months ended March 31, 2024. The Company had cash and cash equivalents of $62.9 million and investments of $77.1 million as of March 31, 2024. 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 condensed consolidated financial statements. If revenues decline for a sustained period, the Company may need to access additional capital; however, the Company may not be able to obtain additional financing on acceptable terms or at all. The terms of any additional financing may adversely affect the holdings or the rights of the Company’s shareholders. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and investments in marketable debt securities. The Company may maintain deposits in financial institutions in excess of the insurance coverage offered by the Federal Deposit Insurance Corporation, the loss of which could have a negative effect on its operations and liquidity. The Company believes that it is not exposed to significant credit risk as its deposits, including cash and cash equivalents, are held at multiple high credit quality financial institutions. The Company has not experienced any losses on these deposits; however no assurances can be provided that there will not be losses experienced in the future. The Company believes that the market risk arising from its holdings of these financial instruments is mitigated based on the fact that many of these securities are either government-backed or of high credit rating.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Vericel are unaudited and have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenue and expenses. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. The financial statements reflect, in the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary to state fairly the financial position and results of operations as of and for the periods indicated. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenue and expenses. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all the information and notes required by U.S. GAAP for complete financial statements. These c ondensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 29, 2024 (“Annual Report”). Recent Accounting Pronouncements No new accounting standards were adopted during the three months ended March 31, 2024. The Company considers the applicability and impact of any recent Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”), as noted below: In November 2023 , the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The disclosure requirements must be applied retrospectively to all prior periods presented in the financial statements. The effective date for the standard is for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 , with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 , Improvements to Income Tax Disclosures , to provide more detailed income tax disclosure requirements. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as information on income taxes paid. The disclosure requirements will be applied on a prospective basis, with the option to apply it retrospectively. The effective date for the standard is for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Revenue Recognition and Product Sales, Net The Company recognizes product revenue from sales of MACI biopsy kits, MACI implants, Epicel grafts, and NexoBrid 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 each specialty pharmacy a fee in each instance when it dispenses MACI for use in treating a patient. Both Orsini and AllCare perform collection activities to collect payment from customers. In addition, the Company sells MACI directly to hospitals pursuant to an agreed upon purchase order and to a distributor, DMS Pharmaceutical Group, Inc. (“DMS”) at a contracted rate for the treatment of patients at military facilities throughout the U.S. The Company engages a third party to provide services in connection with a patient support program to manage patient cases and to ensure that complete and correct billing information is provided to the insurers and hospitals. 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 a MACI implant 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 through its specialty pharmacies, 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, Financial Instruments - Credit Losses . 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 March 31, 2024. The total allowance for uncollectible consideration as of March 31, 2024 and December 31, 2023 was $5.3 million and $5.6 million, respectively. Changes to the estimate of the amount of consideration that will not be collected could have a material impact on the revenue recognized. A 50 basis points change to the estimated uncollectible percentage could result in an approximately $0.4 million decrease or increase in the revenue recognized for the three months ended March 31, 2024. 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 period. 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, beginning in 2020 the U.S. Biomedical Advanced Research and Development Authority (“BARDA”) procured quantities of NexoBrid from MediWound, for use as a medical countermeasure in the event of a mass casualty emergency in the U.S. involving thermal burns. The initial, quarterly, procurement of NexoBrid by BARDA under its agreement with MediWound completed during the third quarter of 2022. The Company recognized revenue based on a percentage of gross profits for sales of NexoBrid to BARDA upon delivery, at which time BARDA was in control of the product. As of March 31, 2024, the Company did not hold a direct contract or distribution agreement with BARDA, or take title to the product procured by BARDA. 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 orphan product containing proteolytic enzymes, which is indicated for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. The Company sells NexoBrid to specialty distributors. These customers subsequently resell NexoBrid to hospitals and burn centers. Product revenue is recorded net of reserves for specialty distributor fees, prompt payment discounts and allowances for returns, as applicable. The Company recognizes product revenue from sales of NexoBrid when the specialty distributors take control of the product, which typically occurs upon delivery to the specialty distributors. Revenue by Product and Customer The following table and descriptions below show the products from which the Company generated its revenue for the periods indicated: Three Months Ended March 31, Revenue by product (in thousands) 2024 2023 MACI implants and kits Implants based on contracted rate sold through a specialty pharmacy (a) $ 27,196 $ 22,698 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 3,253 3,485 Implants sold direct based on contracted rates (c) 6,402 6,919 Implants sold direct subject to third-party reimbursement (d) 1,185 501 Biopsy kits - direct bill 565 535 Change in estimates related to prior periods (e) 1,580 52 Total MACI implants and kits 40,181 34,190 Epicel Direct bill (hospital) 10,664 6,827 NexoBrid (f) 436 — Total revenue $ 51,281 $ 41,017 (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 expectations 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 U.S. commercial revenue of NexoBrid.

Selected Balance Sheet Componen

Selected Balance Sheet Components	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Selected Balance Sheet Components	Selected Balance Sheet Components Inventory Inventory consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Raw materials $ 10,858 $ 11,348 Work-in-process 1,745 1,210 Finished goods 954 529 Total inventory $ 13,557 $ 13,087 Property and Equipment Property and Equipment, net consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Machinery and equipment $ 5,822 $ 5,562 Furniture, fixtures and office equipment 1,647 1,731 Computer equipment and software 9,976 9,116 Leasehold improvements 14,901 14,901 Construction in process 47,474 32,531 Total property and equipment, gross 79,820 63,841 Less accumulated depreciation (23,428) (22,206) Total property and equipment, net $ 56,392 $ 41,635 Depreciation expense for the three months ended March 31, 2024 and 2023 was $1.2 million and $1.0 million, respectively. Intangible Assets Intangible assets, net consisted of the following: March 31, 2024 December 31, 2023 (In thousands) Useful Life (in years) Amortization Method Cost Accumulated Amortization Net Cost Accumulated Amortization Net NexoBrid license 12 Straight-line $ 7,500 $ (781) $ 6,719 $ 7,500 $ (625) $ 6,875 Amortization expense for the three months ended March 31, 2024 and 2023 was $0.2 million. Future amortization expense of intangible assets as of March 31, 2024 is estimated to be as follows: (In thousands) Amount Remainder of 2024 $ 469 2025 625 2026 625 2027 625 2028 625 Thereafter 3,750 Total $ 6,719 Accrued Expenses Accrued Expenses consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Bonus-related compensation $ 3,932 $ 9,757 Employee-related accruals 3,394 3,503 Insurance reimbursement-related liabilities 3,385 3,591 Other accrued expenses 315 364 Total accrued expenses $ 11,026 $ 17,215

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Leases The Company leases facilities in Ann Arbor, Michigan, Cambridge, Massachusetts and Burlington, 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 manufacturing, laboratory and office space in Burlington, Massachusetts (the “Premises”), which is currently being constructed. Once constructed, the Premises will serve as the Company’s new corporate headquarters and primary manufacturing facility. In April 2023, in connection with the Burlington Lease, the Company entered into a construction escrow agreement (the “Construction Escrow Agreement”) with the facility’s landlord and an escrow agent. Pursuant to the terms of the Construction Escrow Agreement, in April 2023, the Company began funding, into an escrow account maintained by the escrow agent, a portion of its share of tenant improvement construction costs at the facility, which are designated as restricted cash. At the same time, the facility’s landlord began funding a portion of its tenant improvement allowance through a separate escrow account. The Company funded the remaining 50% of its required cost amount, or approximately $28.3 million, with cash on hand, pursuant to the Construction Escrow Agreement in April 2024. The term of the Burlington Lease began on June 1, 2023, (the “Commencement Date”), when the Company gained control of and commenced tenant improvement work at the Premises. 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 $24.4 million. The tenant improvement allowance is being used towards the design and construction of the tenant improvements made to the Premises, subject to the terms set forth in the Burlington Lease. The Company was not involved in the initial construction of the core and shell of the building. On June 1, 2023, the Company gained control of the Premises to begin construction of its tenant improvements. As such, the corresponding right-of-use asset and lease liability of $35.5 million was recorded on the Company’s condensed consolidated balance sheet. As there was not an implicit rate within the lease available, the Company estimated the incremental borrowing rate of 7.7%, based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. The lease term of 13.1 years does not include the lease extension option, as the Company is not reasonably certain to exercise that option. The Company has determined that certain improvements to the Premises are landlord-owned improvements and costs incurred for these improvements are accounted for as a variable lease payment. In the three months ended March 31, 2024, the Company recorded a right-of-use asset related to landlord-owned improvements incurred of approximately $1.8 million. 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 (see Note 8, “Revolving Credit Agreement” for further details), 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 three months ended March 31, 2024 and 2023, lease expense of less than $0.1 million was recorded related to short-term leases. For the three months ended March 31, 2024 and 2023 , the Company recognized $3.2 million and $1.7 million, respectively, of operating lease expense. For the three months ended March 31, 2023, the Company recognized less than $0.1 million of financing lease expense . Operating and finance lease assets and liabilities are as follows: (In thousands) Classification March 31, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 73,682 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,012 $ 6,187 Non-current Operating Operating lease liabilities $ 86,141 $ 81,856 Total leased liabilities $ 92,153 $ 88,043
Leases	Leases The Company leases facilities in Ann Arbor, Michigan, Cambridge, Massachusetts and Burlington, 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 manufacturing, laboratory and office space in Burlington, Massachusetts (the “Premises”), which is currently being constructed. Once constructed, the Premises will serve as the Company’s new corporate headquarters and primary manufacturing facility. In April 2023, in connection with the Burlington Lease, the Company entered into a construction escrow agreement (the “Construction Escrow Agreement”) with the facility’s landlord and an escrow agent. Pursuant to the terms of the Construction Escrow Agreement, in April 2023, the Company began funding, into an escrow account maintained by the escrow agent, a portion of its share of tenant improvement construction costs at the facility, which are designated as restricted cash. At the same time, the facility’s landlord began funding a portion of its tenant improvement allowance through a separate escrow account. The Company funded the remaining 50% of its required cost amount, or approximately $28.3 million, with cash on hand, pursuant to the Construction Escrow Agreement in April 2024. The term of the Burlington Lease began on June 1, 2023, (the “Commencement Date”), when the Company gained control of and commenced tenant improvement work at the Premises. 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 $24.4 million. The tenant improvement allowance is being used towards the design and construction of the tenant improvements made to the Premises, subject to the terms set forth in the Burlington Lease. The Company was not involved in the initial construction of the core and shell of the building. On June 1, 2023, the Company gained control of the Premises to begin construction of its tenant improvements. As such, the corresponding right-of-use asset and lease liability of $35.5 million was recorded on the Company’s condensed consolidated balance sheet. As there was not an implicit rate within the lease available, the Company estimated the incremental borrowing rate of 7.7%, based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. The lease term of 13.1 years does not include the lease extension option, as the Company is not reasonably certain to exercise that option. The Company has determined that certain improvements to the Premises are landlord-owned improvements and costs incurred for these improvements are accounted for as a variable lease payment. In the three months ended March 31, 2024, the Company recorded a right-of-use asset related to landlord-owned improvements incurred of approximately $1.8 million. 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 (see Note 8, “Revolving Credit Agreement” for further details), 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 three months ended March 31, 2024 and 2023, lease expense of less than $0.1 million was recorded related to short-term leases. For the three months ended March 31, 2024 and 2023 , the Company recognized $3.2 million and $1.7 million, respectively, of operating lease expense. For the three months ended March 31, 2023, the Company recognized less than $0.1 million of financing lease expense . Operating and finance lease assets and liabilities are as follows: (In thousands) Classification March 31, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 73,682 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,012 $ 6,187 Non-current Operating Operating lease liabilities $ 86,141 $ 81,856 Total leased liabilities $ 92,153 $ 88,043

Investments

Investments	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [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 condensed consolidated balance sheets on a settlement date basis. The following tables summarize the gross unrealized gains and losses of the Company’s marketable securities: March 31, 2024 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 7,396 $ — $ (13) $ — $ 7,383 Corporate notes 56,803 — (199) — 56,604 U.S. government securities 2,473 — (1) — 2,472 U.S. government agency bonds 10,713 — (29) — 10,684 $ 77,385 $ — $ (242) $ — $ 77,143 Classified as: Short-term investments $ 47,710 Long-term investments 29,433 $ 77,143 December 31, 2023 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 3,638 $ 1 $ — $ — $ 3,639 Corporate notes 47,228 — (69) — 47,159 U.S. government securities 983 — — — 983 U.S. government agency bonds 14,003 — (32) — 13,971 $ 65,852 $ 1 $ (101) $ — $ 65,752 Classified as: Short-term investments $ 40,469 Long-term investments 25,283 $ 65,752

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
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, U.S. government securities, 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, 2023 to March 31, 2024. The following table summarizes the valuation of the Company’s financial instruments that are measured at fair value on a recurring basis: March 31, 2024 December 31, 2023 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 $ 36,617 $ 36,617 $ — $ — $ 34,672 $ 34,672 $ — $ — Commercial paper (a) 8,873 — 8,873 — 4,876 — 4,876 — Corporate notes 56,606 — 56,606 — 47,159 — 47,159 — U.S. government agency bonds (a) 10,684 — 10,684 — 13,971 — 13,971 — U.S. government securities (a) 23,763 — 23,763 — 24,874 — 24,874 — $ 136,543 $ 36,617 $ 99,926 $ — $ 125,552 $ 34,672 $ 90,880 $ — (a) Approximately $1.5 million of commercial paper and $21.3 million of U.S. government securities had an original maturity of 90 days or less and is recorded as a cash equivalent as of March 31, 2024. Approximately $23.9 million of U.S. government securities and $1.2 million of commercial paper had an original maturity of 90 days or less and is recorded as a cash equivalent as of December 31, 2023. 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.

Revolving Credit Agreement

Revolving Credit Agreement	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Revolving Credit Agreement	Revolving Credit Agreement On 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 March 31, 2024, 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).

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation 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 (collectively the “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. 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: Three Months Ended March 31, (in thousands) 2024 2023 Cost of product sales $ 1,241 $ 885 Research and development 1,221 977 Selling, general and administrative 7,372 6,869 Total non-cash stock-based compensation expense $ 9,834 $ 8,731 Service-Based Stock Options During the three months ended March 31, 2024 and 2023, the Company granted service-based options to purchase common stock of 507,162 and 467,957, respectively. The weighted-average grant-date fair value of service-based options granted during the three months ended March 31, 2024 and 2023 was $28.21 and $18.00 per option, respectively. Restricted Stock Units During the three months ended March 31, 2024 and 2023, the Company granted 538,425 and 496,505 restricted stock units, respectively. The weighted-average grant-date fair value of restricted stock units granted during the three months ended March 31, 2024 and 2023 was $48.25 and $29.82 per unit, respectively.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share A summary of net loss per common share is presented below: Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2024 2023 Net loss $ (3,862) $ (7,495) Basic weighted-average common shares outstanding 48,141 47,387 Effect of dilutive stock options and restricted stock units — — Diluted weighted-average common shares outstanding 48,141 47,387 Basic loss per common share $ (0.08) $ (0.16) Diluted loss per common share $ (0.08) $ (0.16) Anti-dilutive shares excluded from diluted net loss per common share: Stock options 6,730 6,918 Restricted stock units 1,201 954

NexoBrid License and Supply Agr

NexoBrid License and Supply Agreements	3 Months Ended
	Mar. 31, 2024
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. The FDA subsequently approved a BLA for the product on December 28, 2022. NexoBrid is a topically-administered biological orphan product, which 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. The FDA’s December 2022 approval of NexoBrid resulted in the achievement of a $7.5 million regulatory milestone payment pursuant to the terms of the license agreement. The Company recorded the $7.5 million milestone for the licensing rights to commercially sell NexoBrid in the U.S. as an intangible asset as of December 31, 2022 (see Note 4, “Selected Balance Sheet Components” for further details). The $7.5 million milestone payment was paid to MediWound in February of 2023. Additionally, the Company is 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 NexoBrid in North America exceed $75.0 million. As of March 31, 2024, 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 is manufacturing and will continue to 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 possesses the option to extend the initial term of the agreement by an additional 24 months, which it did in May 2022. After the initial term, the Company may extend the supply agreement on an annual basis for up to 10 additional years, at its sole discretion. Under the supply agreement, the Company is permitted to establish an alternate source of supply in certain circumstances, including the event of a supply failure. Additionally, beginning in 2020, BARDA procured quantities of NexoBrid from MediWound for use as a medical countermeasure in the event of a mass casualty emergency in the U.S. involving thermal burns. The initial, quarterly, procurement of NexoBrid by BARDA under its agreement with MediWound completed during the third quarter of 2022. As a part of BARDA’s commitment to procure NexoBrid, the Company has received a percentage of gross profit for sales directly to BARDA. As of March 31, 2024, the Company did not hold a direct contract or distribution agreement with BARDA, or take title to the product procured by BARDA.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 condensed consolidated financial statements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (3,862)	$ (7,495)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Kevin McLaughlin [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 11, 2024, Kevin McLaughlin, a member of the Vericel Corporation Board of Directors, entered into a Rule 10b5-1 trading arrangement providing for the potential sale of up to 35,000 shares of our common stock between August 7, 2024, and August 8, 2025;
Name	Kevin McLaughlin
Title	member of the Vericel Corporation Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 11, 2024
Arrangement Duration	366 days
Aggregate Available	35,000
Robert Zerbe [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 12, 2024, Robert Zerbe, Chairman of the Vericel Corporation Board of Directors, entered into a Rule 10b5-1 trading arrangement providing for the potential sale of up to 17,500 shares of our common stock between September 3, 2024, and August 29, 2025;
Name	Robert Zerbe
Title	Chairman of the Vericel Corporation Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 12, 2024
Arrangement Duration	360 days
Aggregate Available	17,500
Sean Flynn [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 13, 2024, Sean Flynn, Vericel Corporation’s Chief Legal Officer, entered into a Rule 10b5-1 trading arrangement providing for the potential sale of up to 40,075 shares of our common stock between June 13, 2024 and May 30, 2025;
Name	Sean Flynn
Title	Chief Legal Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 13, 2024
Arrangement Duration	351 days
Aggregate Available	40,075
Jonathan Siegal [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 13, 2024, Jonathan Siegal, Vericel Corporation’s Principal Accounting Officer, entered into a 10b5-1 Plan providing for the potential sale of up to 42,577 shares of our common stock between June 13, 2024 and February 28, 2025; and
Name	Jonathan Siegal
Title	Principal Accounting Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 13, 2024
Arrangement Duration	260 days
Aggregate Available	42,577
Joseph Mara [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 15, 2024, Joseph Mara, Vericel Corporation’s Chief Financial Officer, entered into a Rule 10b5-1 trading arrangement providing for the potential sale of up to 5,000 shares of our common stock between June 13, 2024 and May 30, 2025.
Name	Joseph Mara
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 15, 2024
Arrangement Duration	351 days
Aggregate Available	5,000

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and investments in marketable debt securities. The Company may maintain deposits in financial institutions in excess of the insurance coverage offered by the Federal Deposit Insurance Corporation, the loss of which could have a negative effect on its operations and liquidity. The Company believes that it is not exposed to significant credit risk as its deposits, including cash and cash equivalents, are held at multiple high credit quality financial institutions. The Company has not experienced any losses on these deposits; however no assurances can be provided that there will not be losses experienced in the future. The Company believes that the market risk arising from its holdings of these financial instruments is mitigated based on the fact that many of these securities are either government-backed or of high credit rating.
Recent Accounting Pronouncements	Recent Accounting Pronouncements No new accounting standards were adopted during the three months ended March 31, 2024. The Company considers the applicability and impact of any recent Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”), as noted below: In November 2023 , the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The disclosure requirements must be applied retrospectively to all prior periods presented in the financial statements. The effective date for the standard is for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 , with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 , Improvements to Income Tax Disclosures , to provide more detailed income tax disclosure requirements. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as information on income taxes paid. The disclosure requirements will be applied on a prospective basis, with the option to apply it retrospectively. The effective date for the standard is for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Three Months Ended March 31, Revenue by product (in thousands) 2024 2023 MACI implants and kits Implants based on contracted rate sold through a specialty pharmacy (a) $ 27,196 $ 22,698 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 3,253 3,485 Implants sold direct based on contracted rates (c) 6,402 6,919 Implants sold direct subject to third-party reimbursement (d) 1,185 501 Biopsy kits - direct bill 565 535 Change in estimates related to prior periods (e) 1,580 52 Total MACI implants and kits 40,181 34,190 Epicel Direct bill (hospital) 10,664 6,827 NexoBrid (f) 436 — Total revenue $ 51,281 $ 41,017 (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 expectations 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 U.S. commercial revenue of NexoBrid.

Selected Balance Sheet Compon_2

Selected Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Schedule of inventory	Inventory consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Raw materials $ 10,858 $ 11,348 Work-in-process 1,745 1,210 Finished goods 954 529 Total inventory $ 13,557 $ 13,087
Schedule of property and equipment, net	Property and Equipment, net consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Machinery and equipment $ 5,822 $ 5,562 Furniture, fixtures and office equipment 1,647 1,731 Computer equipment and software 9,976 9,116 Leasehold improvements 14,901 14,901 Construction in process 47,474 32,531 Total property and equipment, gross 79,820 63,841 Less accumulated depreciation (23,428) (22,206) Total property and equipment, net $ 56,392 $ 41,635
Schedule of finite-lived intangible assets	Intangible assets, net consisted of the following: March 31, 2024 December 31, 2023 (In thousands) Useful Life (in years) Amortization Method Cost Accumulated Amortization Net Cost Accumulated Amortization Net NexoBrid license 12 Straight-line $ 7,500 $ (781) $ 6,719 $ 7,500 $ (625) $ 6,875
Schedule of finite-lived intangible assets, future amortization expense	Future amortization expense of intangible assets as of March 31, 2024 is estimated to be as follows: (In thousands) Amount Remainder of 2024 $ 469 2025 625 2026 625 2027 625 2028 625 Thereafter 3,750 Total $ 6,719
Schedule of accrued expenses	Accrued Expenses consisted of the following: (In thousands) March 31, 2024 December 31, 2023 Bonus-related compensation $ 3,932 $ 9,757 Employee-related accruals 3,394 3,503 Insurance reimbursement-related liabilities 3,385 3,591 Other accrued expenses 315 364 Total accrued expenses $ 11,026 $ 17,215

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Schedule of assets and liabilities	Operating and finance lease assets and liabilities are as follows: (In thousands) Classification March 31, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 73,682 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,012 $ 6,187 Non-current Operating Operating lease liabilities $ 86,141 $ 81,856 Total leased liabilities $ 92,153 $ 88,043

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [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: March 31, 2024 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 7,396 $ — $ (13) $ — $ 7,383 Corporate notes 56,803 — (199) — 56,604 U.S. government securities 2,473 — (1) — 2,472 U.S. government agency bonds 10,713 — (29) — 10,684 $ 77,385 $ — $ (242) $ — $ 77,143 Classified as: Short-term investments $ 47,710 Long-term investments 29,433 $ 77,143 December 31, 2023 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 3,638 $ 1 $ — $ — $ 3,639 Corporate notes 47,228 — (69) — 47,159 U.S. government securities 983 — — — 983 U.S. government agency bonds 14,003 — (32) — 13,971 $ 65,852 $ 1 $ (101) $ — $ 65,752 Classified as: Short-term investments $ 40,469 Long-term investments 25,283 $ 65,752

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule 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: March 31, 2024 December 31, 2023 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 $ 36,617 $ 36,617 $ — $ — $ 34,672 $ 34,672 $ — $ — Commercial paper (a) 8,873 — 8,873 — 4,876 — 4,876 — Corporate notes 56,606 — 56,606 — 47,159 — 47,159 — U.S. government agency bonds (a) 10,684 — 10,684 — 13,971 — 13,971 — U.S. government securities (a) 23,763 — 23,763 — 24,874 — 24,874 — $ 136,543 $ 36,617 $ 99,926 $ — $ 125,552 $ 34,672 $ 90,880 $ — (a) Approximately $1.5 million of commercial paper and $21.3 million of U.S. government securities had an original maturity of 90 days or less and is recorded as a cash equivalent as of March 31, 2024. Approximately $23.9 million of U.S. government securities and $1.2 million of commercial paper had an original maturity of 90 days or less and is recorded as a cash equivalent as of December 31, 2023.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
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: Three Months Ended March 31, (in thousands) 2024 2023 Cost of product sales $ 1,241 $ 885 Research and development 1,221 977 Selling, general and administrative 7,372 6,869 Total non-cash stock-based compensation expense $ 9,834 $ 8,731

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 per common share is presented below: Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2024 2023 Net loss $ (3,862) $ (7,495) Basic weighted-average common shares outstanding 48,141 47,387 Effect of dilutive stock options and restricted stock units — — Diluted weighted-average common shares outstanding 48,141 47,387 Basic loss per common share $ (0.08) $ (0.16) Diluted loss per common share $ (0.08) $ (0.16) Anti-dilutive shares excluded from diluted net loss per common share: Stock options 6,730 6,918 Restricted stock units 1,201 954

Organization (Details)

Organization (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment product	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of commercial-stage products | product	3
Number of reportable segments | segment	1
Accumulated deficit	$ 407,039		$ 403,177
Net loss	3,862	$ 7,495
Cash and cash equivalents	62,938	$ 61,834	$ 69,088
Short term investments	$ 77,100

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) pharmacy	Dec. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Number of specialty pharmacies | pharmacy	2
Allowance for doubtful accounts	$ 5.3	$ 5.6
Change in estimate of uncollectible (percent)	0.50%
Change in revenue recognized due to 0.5% change in uncollectible percentage	$ 0.4

Revenue - Summary of Disaggrega

Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Product sales, net	$ 51,281	$ 41,017
Total revenue	51,281	41,017
Change in estimates related to prior periods
Disaggregation of Revenue [Line Items]
Product sales, net	1,580	52
M A C I Implants and kits
Disaggregation of Revenue [Line Items]
Product sales, net	40,181	34,190
Through Intermediary | MACI implants and kits | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	27,196	22,698
Through Intermediary | MACI implants and kits | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	3,253	3,485
Time-and-materials contract | MACI implants and kits | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	1,185	501
Provider or Facility | MACI implants and kits | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	6,402	6,919
Provider or Facility | NexoBrid
Disaggregation of Revenue [Line Items]
NexoBrid	436	0
Directly to consumer | Biopsy kits
Disaggregation of Revenue [Line Items]
Product sales, net	565	535
Directly to consumer | Epicel
Disaggregation of Revenue [Line Items]
Product sales, net	$ 10,664	$ 6,827

Selected Balance Sheet Compon_3

Selected Balance Sheet Components - Summary of inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory:
Raw materials	$ 10,858	$ 11,348
Work-in-process	1,745	1,210
Finished goods	954	529
Total inventory	$ 13,557	$ 13,087

Selected Balance Sheet Compon_4

Selected Balance Sheet Components - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property and equipment, net:
Total property and equipment, gross	$ 79,820	$ 63,841
Less accumulated depreciation	(23,428)	(22,206)
Total property and equipment, net	56,392	41,635
Machinery and equipment
Property and equipment, net:
Total property and equipment, gross	5,822	5,562
Furniture, fixtures and office equipment
Property and equipment, net:
Total property and equipment, gross	1,647	1,731
Computer equipment and software
Property and equipment, net:
Total property and equipment, gross	9,976	9,116
Leasehold improvements
Property and equipment, net:
Total property and equipment, gross	14,901	14,901
Construction in process
Property and equipment, net:
Total property and equipment, gross	$ 47,474	$ 32,531

Selected Balance Sheet Compon_5

Selected Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Depreciation	$ 1.2	$ 1
Licensing Agreements
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 0.2	$ 0.2

Selected Balance Sheet Compon_6

Selected Balance Sheet Components -Schedule of finite-lived intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 6,719	$ 6,875
Licensing Agreements
Property, Plant and Equipment [Line Items]
Useful Life (in years)	12 years	12 years
Cost	$ 7,500	$ 7,500
Accumulated Amortization	(781)	(625)
Total	$ 6,719	$ 6,875

Selected Balance Sheet Compon_7

Selected Balance Sheet Components -Schedule of finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total	$ 6,719	$ 6,875
Licensing Agreements
Finite-Lived Intangible Assets [Line Items]
Remainder of 2024	469
2025	625
2026	625
2027	625
2028	625
Thereafter	3,750
Total	$ 6,719	$ 6,875

Selected Balance Sheet Compon_8

Selected Balance Sheet Components - Schedule of accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accrued expenses
Bonus-related compensation	$ 3,932	$ 9,757
Employee-related accruals	3,394	3,503
Insurance reimbursement-related liabilities	3,385	3,591
Other accrued expenses	315	364
Total accrued expenses	$ 11,026	$ 17,215

Leases - Narrative (Details)

Leases - Narrative (Details) ft² in Thousands, $ in Thousands			1 Months Ended	3 Months Ended
	Jun. 01, 2023 USD ($) renewal_option $ / ft²	Jul. 29, 2022 USD ($)	Jan. 31, 2022 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Apr. 30, 2023 USD ($)	Jan. 28, 2022 ft²
Lessee, Lease, Description [Line Items]
Right-of-use assets				$ 73,682		$ 73,462
Short-term lease costs (less than)				100	$ 100
Operating lease expense				3,200	1,700
Finance lease expense (less than)					$ 100
25 Network Drive, Burlington, Massachusetts
Lessee, Lease, Description [Line Items]
Area of real estate property | ft²								126
Percent contributed to escrow account							50%
Escrow deposit amount							$ 28,300
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 per square foot | $ / ft²	200
Tenant improvement allowance	$ 24,400
Right-of-use assets	35,500			$ 1,800
Lease liability	$ 35,500
Estimated incremental borrowing rate	0.077
Term of contract	13 years 1 month 6 days
Letter of credit cash deposit			$ 6,000
Letter of credit cash deposit lease year three		$ 4,200
Letter of credit cash deposit lease year six		$ 1,800
Minimum | 25 Network Drive, Burlington, Massachusetts
Lessee, Lease, Description [Line Items]
Monthly contractual lease payments	$ 600
Maximum | 25 Network Drive, Burlington, Massachusetts
Lessee, Lease, Description [Line Items]
Monthly contractual lease payments	$ 800

Leases - Summary of assets and

Leases - Summary of assets and liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Operating	$ 73,682	$ 73,462
Current
Operating	6,012	6,187
Non-current
Operating	86,141	81,856
Total leased liabilities	$ 92,153	$ 88,043

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 77,385,000		$ 65,852,000
Gross Unrealized Gains	0		1,000
Gross Unrealized Losses	(242,000)		(101,000)
Credit Losses	0		0
Estimated Fair Value	$ 77,143,000		$ 65,752,000
Remaining contractual maturity period	3 years		3 years
Impairments of assets	$ 0	$ 0
Short-term investments
Marketable Securities [Line Items]
Estimated Fair Value	47,710,000		$ 40,469,000
Long-term investments
Marketable Securities [Line Items]
Estimated Fair Value	29,433,000		25,283,000
Commercial paper
Marketable Securities [Line Items]
Amortized Cost	7,396,000		3,638,000
Gross Unrealized Gains	0		1,000
Gross Unrealized Losses	(13,000)		0
Credit Losses	0		0
Estimated Fair Value	7,383,000		3,639,000
Corporate notes
Marketable Securities [Line Items]
Amortized Cost	56,803,000		47,228,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(199,000)		(69,000)
Credit Losses	0		0
Estimated Fair Value	56,604,000		47,159,000
U.S. government securities
Marketable Securities [Line Items]
Amortized Cost	2,473,000		983,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(1,000)		0
Credit Losses	0		0
Estimated Fair Value	2,472,000		983,000
U.S. government agency bonds
Marketable Securities [Line Items]
Amortized Cost	10,713,000		14,003,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(29,000)		(32,000)
Credit Losses	0		0
Estimated Fair Value	$ 10,684,000		$ 13,971,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	$ 77,143	$ 65,752
Commercial paper
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	7,383	3,639
U.S. government agency bonds
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	10,684	13,971
U.S. government securities
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	2,472	983
Recurring
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	136,543	125,552
Recurring | Level 1
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	36,617	34,672
Recurring | Level 2
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	99,926	90,880
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	8,873	4,876
Recurring | Commercial paper | Cash and cash equivalents
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	1,500	1,200
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	8,873	4,876
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	56,606	47,159
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	56,606	47,159
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	10,684	13,971
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	10,684	13,971
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 | U.S. government securities
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	23,763	24,874
Recurring | U.S. government securities | Cash and cash equivalents
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	21,300	23,900
Recurring | U.S. government securities | Level 1
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	0	0
Recurring | U.S. government securities | Level 2
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	23,763	24,874
Recurring | U.S. government securities | 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	36,617	34,672
Recurring | Money market funds | Level 1
Liabilities that are measured at fair value on a recurring basis
Money market funds	36,617	34,672
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

Revolving Credit Agreement (Det

Revolving Credit Agreement (Details) - Line of credit	Jul. 29, 2022 USD ($)	Mar. 31, 2024 USD ($)
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

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - Employee stock purchase plan and service-based stock options - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 9,834	$ 8,731
Cost of product sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	1,241	885
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	1,221	977
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 7,372	$ 6,869

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-Based Compensation
Granted (in shares)	507,162	467,957
Weighted average grant-date fair value (in dollars per share)	$ 28.21	$ 18
Restricted stock units
Stock-Based Compensation
Restricted stock units granted (shares)	538,425	496,505
Weighted-average grant date fair value (in dollars per share)	$ 48.25	$ 29.82

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net Income (Loss) Attributable to Parent [Abstract]
Net loss	$ (3,862)	$ (7,495)
Basic weighted-average common shares outstanding (in shares)	48,141	47,387
Effect of dilutive stock options and restricted stock units (in shares)	0	0
Diluted weighted-average common shares outstanding (in shares)	48,141	47,387
Basic loss per common share (in USD per share)	$ (0.08)	$ (0.16)
Diluted loss per common share (in USD per share)	$ (0.08)	$ (0.16)
Stock options
Anti-dilutive shares excluded from diluted net loss per common share:
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)	6,730	6,918
Restricted stock units
Anti-dilutive shares excluded from diluted net loss per common share:
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)	1,201	954

NexoBrid License and Supply A_2

NexoBrid License and Supply Agreements (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Feb. 28, 2023	May 31, 2019	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Purchases of intangible assets			$ 0	$ 7,500
MediWound Ltd
Related Party Transaction [Line Items]
Consideration payment for license		$ 17,500
Contingent consideration		7,500			$ 7,500
Milestone payments, assumed intangible assets					$ 7,500
Purchases of intangible assets	$ 7,500
Maximum contingent consideration		125,000
Sales threshold for first milestone		$ 75,000
Term of supply agreement		5 years
Renewal term of supply agreement		24 months
Supply agreement additional term		10 years