Vericel (VCEL) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		49,358,408
Entity Central Index Key	0000887359
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 53,681	$ 69,088
Restricted cash	16,669	17,778
Short-term investments	48,053	40,469
Accounts receivable (net of allowance for doubtful accounts of $12 and $43, respectively)	48,479	58,356
Inventory	15,756	13,087
Other current assets	7,882	6,853
Total current assets	190,520	205,631
Property and equipment, net	88,413	41,635
Intangible assets, net	6,406	6,875
Right-of-use assets	71,561	73,462
Long-term investments	32,895	25,283
Other long-term assets	610	771
Total assets	390,405	353,657
Current liabilities:
Accounts payable	20,884	22,347
Accrued expenses	14,343	17,215
Current portion of operating lease liabilities	6,119	6,187
Total current liabilities	41,346	45,749
Operating lease liabilities	91,344	81,856
Other long-term liabilities	243	100
Total liabilities	132,933	127,705
COMMITMENTS AND CONTINGENCIES (Note 12)
Shareholders’ equity:
Common stock, no par value; shares authorized — 75,000; shares issued and outstanding — 49,265 and 47,829, respectively	669,735	629,229
Accumulated other comprehensive gain (loss)	359	(100)
Accumulated deficit	(412,622)	(403,177)
Total shareholders’ equity	257,472	225,952
Total liabilities and shareholders’ equity	$ 390,405	$ 353,657

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 12	$ 43
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	49,265,000	47,829,000
Common stock, shares outstanding (in shares)	49,265,000	47,829,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Product sales, net	$ 57,905	$ 45,581	$ 161,848	$ 132,520
Total revenue	57,905	45,581	161,848	132,520
Cost of product sales	16,252	14,973	48,240	45,451
Gross profit	41,653	30,608	113,608	87,069
Research and development	6,093	5,676	19,874	16,141
Selling, general and administrative	38,025	29,989	107,694	90,123
Total operating expenses	44,118	35,665	127,568	106,264
Loss from operations	(2,465)	(5,057)	(13,960)	(19,195)
Other income (expense):
Interest income	1,578	1,262	4,850	3,196
Interest expense	(154)	(150)	(460)	(444)
Other income (expense)	140	(1)	125	(18)
Total other income	1,564	1,111	4,515	2,734
Loss before income taxes	(901)	(3,946)	(9,445)	(16,461)
Income tax benefit	0	(286)	0	(286)
Net loss	$ (901)	$ (3,660)	$ (9,445)	$ (16,175)
Net loss per common share:
Basic (in USD per share)	$ (0.02)	$ (0.08)	$ (0.19)	$ (0.34)
Diluted (in USD per share)	$ (0.02)	$ (0.08)	$ (0.19)	$ (0.34)
Weighted-average common shares outstanding:
Basic (in shares)	49,085	47,649	48,639	47,537
Diluted (in shares)	49,085	47,649	48,639	47,537
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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (901)	$ (3,660)	$ (9,445)	$ (16,175)
Other comprehensive income (loss):
Unrealized gain on investments	632	158	459	515
Comprehensive loss	$ (269)	$ (3,502)	$ (8,986)	$ (15,660)

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, 2022		47,253
Beginning balance at Dec. 31, 2022	192,272	$ 593,245	(978)	(399,995)
Increase (Decrease) in Shareholders' Equity
Net loss	(16,175)
Unrealized (loss) gain on investments	515
Ending balance (in shares) at Sep. 30, 2023		47,684
Ending balance at Sep. 30, 2023	204,380	$ 621,013	(463)	(416,170)
Beginning balance (in shares) at Mar. 31, 2023		47,507
Beginning balance at Mar. 31, 2023	193,978	$ 602,104	(636)	(407,490)
Increase (Decrease) in Shareholders' Equity
Net loss	(5,020)			(5,020)
Stock-based compensation expense	8,761	$ 8,761
Stock option exercises (in shares)		68
Stock option exercises	889	$ 889
Shares issued under the Employee Stock Purchase Plan (in shares)		18
Shares issued under the Employee Stock Purchase Plan	384	$ 384
Issuance of stock for restricted stock unit vesting (in shares)		26
Restricted stock withheld for employee tax remittance (in shares)		(3)
Restricted stock withheld for employee tax remittance	(79)	$ (79)
Unrealized (loss) gain on investments	15		15
Ending balance (in shares) at Jun. 30, 2023		47,616
Ending balance at Jun. 30, 2023	198,928	$ 612,059	(621)	(412,510)
Increase (Decrease) in Shareholders' Equity
Net loss	(3,660)			(3,660)
Stock-based compensation expense	7,924	$ 7,924
Stock option exercises (in shares)		50
Stock option exercises	787	$ 787
Shares issued under the Employee Stock Purchase Plan (in shares)		13
Shares issued under the Employee Stock Purchase Plan	329	$ 329
Issuance of stock for restricted stock unit vesting (in shares)		8
Restricted stock withheld for employee tax remittance (in shares)		(3)
Restricted stock withheld for employee tax remittance	(86)	$ (86)
Unrealized (loss) gain on investments	158		158
Ending balance (in shares) at Sep. 30, 2023		47,684
Ending balance at Sep. 30, 2023	$ 204,380	$ 621,013	(463)	(416,170)
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
Ending balance at Mar. 31, 2024	$ 233,896	$ 641,180	(245)	(407,039)
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	(9,445)
Unrealized (loss) gain on investments	$ 459
Ending balance (in shares) at Sep. 30, 2024	49,265	49,265
Ending balance at Sep. 30, 2024	$ 257,472	$ 669,735	359	(412,622)
Beginning balance (in shares) at Mar. 31, 2024		48,489
Beginning balance at Mar. 31, 2024	233,896	$ 641,180	(245)	(407,039)
Increase (Decrease) in Shareholders' Equity
Net loss	(4,682)			(4,682)
Stock-based compensation expense	9,520	$ 9,520
Stock option exercises (in shares)		329
Stock option exercises	4,020	$ 4,020
Shares issued under the Employee Stock Purchase Plan (in shares)		14
Shares issued under the Employee Stock Purchase Plan	414	$ 414
Issuance of stock for restricted stock unit vesting (in shares)		34
Restricted stock withheld for employee tax remittance (in shares)		(4)
Restricted stock withheld for employee tax remittance	(163)	$ (163)
Unrealized (loss) gain on investments	(28)		(28)
Ending balance (in shares) at Jun. 30, 2024		48,862
Ending balance at Jun. 30, 2024	242,977	$ 654,971	(273)	(411,721)
Increase (Decrease) in Shareholders' Equity
Net loss	(901)			(901)
Stock-based compensation expense	9,224	$ 9,224
Stock option exercises (in shares)		382
Stock option exercises	5,442	$ 5,442
Shares issued under the Employee Stock Purchase Plan (in shares)		9
Shares issued under the Employee Stock Purchase Plan	353	$ 353
Issuance of stock for restricted stock unit vesting (in shares)		16
Restricted stock withheld for employee tax remittance (in shares)		(4)
Restricted stock withheld for employee tax remittance	(255)	$ (255)
Unrealized (loss) gain on investments	$ 632		632
Ending balance (in shares) at Sep. 30, 2024	49,265	49,265
Ending balance at Sep. 30, 2024	$ 257,472	$ 669,735	$ 359	$ (412,622)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (9,445)	$ (16,175)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization expense	4,027	3,483
Stock-based compensation expense	28,578	25,416
Amortization of premiums and discounts on marketable securities	(542)	(788)
Amortization of debt issuance costs	161	161
Non-cash lease costs	5,139	4,291
Other	25	18
Changes in operating assets and liabilities:
Inventory	(2,669)	3,365
Accounts receivable	9,877	6,810
Other current assets	(1,029)	(627)
Accounts payable	(1,639)	360
Accrued expenses	(2,887)	(2,562)
Operating lease liabilities	6,182	1,408
Other non-current assets and liabilities, net	143	65
Net cash provided by operating activities	35,921	25,225
Investing activities:
Purchases of investments	(52,612)	(36,254)
Sales and maturities of investments	38,416	60,890
Expenditures for property and equipment	(50,187)	(12,178)
Purchases of intangible assets	0	(7,500)
Net cash (used in) provided by investing activities	(64,383)	4,958
Financing activities:
Net proceeds from common stock issuance	17,255	4,614
Payments on employee’s behalf for taxes related to vesting of restricted stock unit awards	(5,309)	(2,262)
Other	0	(41)
Net cash provided by financing activities	11,946	2,311
Net (decrease) increase in cash, cash equivalents, and restricted cash	(16,516)	32,494
Cash, cash equivalents, and restricted cash at beginning of period	86,866	51,067
Cash, cash equivalents, and restricted cash at end of period	70,350	83,561
Supplemental disclosure of cash flow information:
Right-of-use asset and lease liability recognized	3,238	36,022
Additions to property and equipment included in accounts payable	10,301	5,568
Reconciliation to amounts within the condensed consolidated balance sheets:
Cash and cash equivalents	53,681	60,473
Restricted cash	16,669	23,088
Total cash, cash equivalents, and restricted cash at end of period	$ 70,350	$ 83,561

Organization

Organization	9 Months Ended
	Sep. 30, 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 that is indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Since MACI’s commercial launch, a treating surgeon has been able to use MACI to treat a patient through an open surgical procedure. In August 2024, however, the U.S. Food & Drug Administration (“FDA”) approved a supplemental Biologics License Application (“sBLA”) expanding the MACI indication to add instructions for the arthroscopic delivery of MACI to the product’s approved labeling. MACI Arthro™ allows surgeons to evaluate and prepare the cartilage defect site as well as deliver the MACI implant through small incisions using custom-designed arthroscopic instruments developed by the Company (“MACI Arthro instruments”). MACI Arthro became commercially available in the United States during the third quarter of 2024 and the Company began selling the MACI Arthro instruments at that time. 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 adult and pediatric patients with deep partial-thickness and/or full thickness thermal burns. Following the FDA’s approval of a Biologics License Application for NexoBrid in December 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 Ongoing Military Conflicts in the Middle East 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 military conflicts in the Middle East region involving Israel, and the Company 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 material disruption to its ongoing supply of commercial NexoBrid to the United States. To the extent the conflicts in the Middle East region intensify or expand to include additional countries or militant groups 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. As of the date of this report, the Company maintains an ample supply of NexoBrid at its U.S.-based third-party logistics provider. 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 September 30, 2024, the Company had an accumulated deficit of $412.6 million and had a net loss of $9.4 million during the nine months ended September 30, 2024. The Company had cash and cash equivalents of $53.7 million and investments of $80.9 million as of September 30, 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	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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	9 Months Ended
	Sep. 30, 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, MACI Arthro instruments, 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 set forth 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 treating surgeon 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 Arthro Instruments MACI Arthro instruments are sold directly to hospitals and ambulatory surgical centers based upon rates set forth in price lists. The Company recognizes revenue from the sale of MACI Arthro instruments upon delivery of the instruments, at which time the customer (the facility) is in control of the instruments. MACI Arthro instruments can be used by an orthopedic surgeon to deliver MACI to a treated patient using an arthroscopic approach. The customer’s order of a MACI implant is separate from the process of ordering the MACI Arthro instruments. Therefore, the sale of the MACI Arthro instruments and any sale of implants are distinct 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 September 30, 2024. The total allowance for uncollectible consideration as of September 30, 2024 and December 31, 2023 was $4.8 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 nine months ended September 30, 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 September 30, 2024, the Company did not hold a direct contract or distribution agreement with BARDA, or take title to the product procured by BARDA. In December 2022, the FDA approved a BLA for NexoBrid, granting a license for its 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. In August 2024, the FDA additionally approved NexoBrid for pediatric use. 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 or other 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 September 30, Nine Months Ended September 30, Revenue by product (in thousands) 2024 2023 2024 2023 MACI implants, kits, and instruments Implants based on contracted rate sold through a specialty pharmacy (a) $ 31,637 $ 22,598 $ 90,246 $ 68,220 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 3,473 5,030 10,160 13,526 Implants sold direct based on contracted rates (c) 6,968 5,797 21,465 19,932 Implants sold direct subject to third-party reimbursement (d) 1,083 1,432 3,227 2,974 Biopsy kits and instruments - direct bill 469 457 1,530 1,517 Change in estimates related to prior periods (e) 1,026 2,275 2,345 1,945 Total MACI implants, kits, and instruments 44,656 37,589 128,973 108,114 Epicel Direct bill (hospital) 12,184 7,394 30,606 23,808 NexoBrid (f) 1,065 598 2,269 598 Total revenue $ 57,905 $ 45,581 $ 161,848 $ 132,520 (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	9 Months Ended
	Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Selected Balance Sheet Components	Selected Balance Sheet Components Inventory Inventory consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Raw materials $ 11,854 $ 11,348 Work-in-process 1,850 1,210 Finished goods 2,052 529 Total inventory $ 15,756 $ 13,087 Property and Equipment Property and Equipment, net consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Machinery and equipment $ 5,901 $ 5,562 Furniture, fixtures and office equipment 1,647 1,731 Computer equipment and software 9,972 9,116 Leasehold improvements 15,927 14,901 Construction in process 80,544 32,531 Total property and equipment, gross 113,991 63,841 Less accumulated depreciation (25,578) (22,206) Total property and equipment, net $ 88,413 $ 41,635 Depreciation expense for the three and nine months ended September 30, 2024 was $1.2 million and $3.5 million, respectively, and $1.0 million and $3.0 million, respectively, for the same periods in 2023. Intangible Assets Intangible assets, net consisted of the following: September 30, 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 $ (1,094) $ 6,406 $ 7,500 $ (625) $ 6,875 Amortization expense for the three and nine months ended September 30, 2024 was $0.2 million and $0.5 million, respectively, and $0.2 million and $0.5 million, respectively, for the same periods in 2023. Future amortization expense of intangible assets as of September 30, 2024 is estimated to be as follows: (In thousands) Amount Remainder of 2024 $ 156 2025 625 2026 625 2027 625 2028 625 Thereafter 3,750 Total $ 6,406 Accrued Expenses Accrued Expenses consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Bonus-related compensation $ 7,580 $ 9,757 Employee-related accruals 3,087 3,503 Insurance reimbursement-related liabilities 3,336 3,591 Other accrued expenses 340 364 Total accrued expenses $ 14,343 $ 17,215

Leases

Leases	9 Months Ended
	Sep. 30, 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 began on July 1, 2024 (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 nine months ended September 30, 2024, the Company recorded a right-of-use asset related to landlord-owned improvements incurred of approximately $3.6 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 and nine months ended September 30, 2024 and 2023, lease expense of less than $0.1 million was recorded related to short-term leases. For the three and nine months ended September 30, 2024 , the Company recognized $3.2 million and $9.6 million, respectively, of operating lease expense and $3.2 million and $7.1 million, respectively, for the same period in 2023. For the three and nine months ended September 30, 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 September 30, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 71,561 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,119 $ 6,187 Non-current Operating Operating lease liabilities $ 91,344 $ 81,856 Total leased liabilities $ 97,463 $ 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 began on July 1, 2024 (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 nine months ended September 30, 2024, the Company recorded a right-of-use asset related to landlord-owned improvements incurred of approximately $3.6 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 and nine months ended September 30, 2024 and 2023, lease expense of less than $0.1 million was recorded related to short-term leases. For the three and nine months ended September 30, 2024 , the Company recognized $3.2 million and $9.6 million, respectively, of operating lease expense and $3.2 million and $7.1 million, respectively, for the same period in 2023. For the three and nine months ended September 30, 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 September 30, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 71,561 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,119 $ 6,187 Non-current Operating Operating lease liabilities $ 91,344 $ 81,856 Total leased liabilities $ 97,463 $ 88,043

Investments

Investments	9 Months Ended
	Sep. 30, 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: September 30, 2024 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 5,543 $ 3 $ — $ — $ 5,546 Corporate notes 68,255 365 (15) — 68,605 U.S. government agency bonds 6,791 7 (1) — 6,797 $ 80,589 $ 375 $ (16) $ — $ 80,948 Classified as: Short-term investments $ 48,053 Long-term investments 32,895 $ 80,948 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	9 Months Ended
	Sep. 30, 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 September 30, 2024. The following table summarizes the valuation of the Company’s financial instruments that are measured at fair value on a recurring basis: September 30, 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 $ 29,333 $ 29,333 $ — $ — $ 34,672 $ 34,672 $ — $ — Commercial paper (a) 5,546 — 5,546 — 4,876 — 4,876 — Corporate notes 68,605 — 68,605 — 47,159 — 47,159 — U.S. government agency bonds 6,797 — 6,797 — 13,971 — 13,971 — U.S. government securities (a) 15,904 — 15,904 — 24,874 — 24,874 — $ 126,185 $ 29,333 $ 96,852 $ — $ 125,552 $ 34,672 $ 90,880 $ — (a) Approximately $15.9 million of U.S. government securities as of September 30, 2024, and approximately $23.9 million of U.S. government securities and $1.2 million of commercial paper as of December 31, 2023, had an original maturity of 90 days or less and is recorded as a cash equivalent. 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	9 Months Ended
	Sep. 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 the employee stock purchase plan) is summarized in the following table: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Cost of product sales $ 762 $ 660 $ 2,914 $ 2,341 Research and development 1,095 892 3,281 2,862 Selling, general and administrative 7,367 6,372 22,383 20,213 Total non-cash stock-based compensation expense $ 9,224 $ 7,924 $ 28,578 $ 25,416 Service-Based Stock Options During the three and nine months ended September 30, 2024, the Company granted service-based options to purchase common stock of 105,025 and 745,412, respectively, and 58,500 and 594,217, respectively, for the same periods in 2023. The weighted-average grant-date fair value of service-based options granted during the three and nine months ended September 30, 2024 was $27.73 and $28.08 per option, respectively, and $22.36 and $18.80, respectively, for the same periods in 2023. Restricted Stock Units During the three and nine months ended September 30, 2024, the Company granted 35,610 and 622,535 restricted stock units, respectively, and 23,520 and 552,841, respectively, for the same periods in 2023. The weighted-average grant-date fair value of restricted stock units granted during the three and nine months ended September 30, 2024 was $47.59 and $48.19 per unit, respectively, and $36.51 and $30.24, respectively, for the same periods in 2023.

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (Amounts in thousands, except per share amounts) 2024 2023 2024 2023 Net loss $ (901) $ (3,660) $ (9,445) $ (16,175) Basic weighted-average common shares outstanding 49,085 47,649 48,639 47,537 Effect of dilutive stock options and restricted stock units — — — — Diluted weighted-average common shares outstanding 49,085 47,649 48,639 47,537 Basic loss per common share $ (0.02) $ (0.08) $ (0.19) $ (0.34) Diluted loss per common share $ (0.02) $ (0.08) $ (0.19) $ (0.34) Anti-dilutive shares excluded from diluted net loss per common share: Stock options 6,115 6,859 6,115 6,859 Restricted stock units 1,142 943 1,142 943

NexoBrid License and Supply Agr

NexoBrid License and Supply Agreements	9 Months Ended
	Sep. 30, 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. NexoBrid is a topically-administered biological orphan product containing proteolytic enzymes, for which the FDA approved a BLA in December 2022 permitting the product’s use for the removal of eschar in adults with deep partial-thickness and/or full thickness thermal burns. Subsequently, in August 2024, the FDA approved a supplemental BLA expanding NexoBrid’s indication to include pediatric patients. 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. 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 September 30, 2024, the sales milestone payments are not yet probable and therefore, not recorded as a liability. The Company also pays 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 was completed during the third quarter of 2022. As a part of BARDA’s commitment to procure NexoBrid, the Company received a percentage of gross profit for sales directly to BARDA. As of September 30, 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	9 Months Ended
	Sep. 30, 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. As of September 30, 2024, 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.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (901)	$ (4,682)	$ (3,862)	$ (3,660)	$ (5,020)	$ (7,495)	$ (9,445)	$ (16,175)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Three Months Ended September 30, Nine Months Ended September 30, Revenue by product (in thousands) 2024 2023 2024 2023 MACI implants, kits, and instruments Implants based on contracted rate sold through a specialty pharmacy (a) $ 31,637 $ 22,598 $ 90,246 $ 68,220 Implants subject to third party reimbursement sold through a specialty pharmacy (b) 3,473 5,030 10,160 13,526 Implants sold direct based on contracted rates (c) 6,968 5,797 21,465 19,932 Implants sold direct subject to third-party reimbursement (d) 1,083 1,432 3,227 2,974 Biopsy kits and instruments - direct bill 469 457 1,530 1,517 Change in estimates related to prior periods (e) 1,026 2,275 2,345 1,945 Total MACI implants, kits, and instruments 44,656 37,589 128,973 108,114 Epicel Direct bill (hospital) 12,184 7,394 30,606 23,808 NexoBrid (f) 1,065 598 2,269 598 Total revenue $ 57,905 $ 45,581 $ 161,848 $ 132,520 (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)	9 Months Ended
	Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Schedule of inventory	Inventory consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Raw materials $ 11,854 $ 11,348 Work-in-process 1,850 1,210 Finished goods 2,052 529 Total inventory $ 15,756 $ 13,087
Schedule of property and equipment, net	Property and Equipment, net consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Machinery and equipment $ 5,901 $ 5,562 Furniture, fixtures and office equipment 1,647 1,731 Computer equipment and software 9,972 9,116 Leasehold improvements 15,927 14,901 Construction in process 80,544 32,531 Total property and equipment, gross 113,991 63,841 Less accumulated depreciation (25,578) (22,206) Total property and equipment, net $ 88,413 $ 41,635
Schedule of finite-lived intangible assets	Intangible assets, net consisted of the following: September 30, 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 $ (1,094) $ 6,406 $ 7,500 $ (625) $ 6,875
Schedule of finite-lived intangible assets, future amortization expense	Future amortization expense of intangible assets as of September 30, 2024 is estimated to be as follows: (In thousands) Amount Remainder of 2024 $ 156 2025 625 2026 625 2027 625 2028 625 Thereafter 3,750 Total $ 6,406
Schedule of accrued expenses	Accrued Expenses consisted of the following: (In thousands) September 30, 2024 December 31, 2023 Bonus-related compensation $ 7,580 $ 9,757 Employee-related accruals 3,087 3,503 Insurance reimbursement-related liabilities 3,336 3,591 Other accrued expenses 340 364 Total accrued expenses $ 14,343 $ 17,215

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of assets and liabilities	Operating and finance lease assets and liabilities are as follows: (In thousands) Classification September 30, 2024 December 31, 2023 Assets Operating Right-of-use assets $ 71,561 $ 73,462 Liabilities Current Operating Current portion of operating lease liabilities $ 6,119 $ 6,187 Non-current Operating Operating lease liabilities $ 91,344 $ 81,856 Total leased liabilities $ 97,463 $ 88,043

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 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: September 30, 2024 Gross Unrealized Estimated Fair Value (In thousands) Amortized Cost Gains Losses Credit Losses Commercial paper $ 5,543 $ 3 $ — $ — $ 5,546 Corporate notes 68,255 365 (15) — 68,605 U.S. government agency bonds 6,791 7 (1) — 6,797 $ 80,589 $ 375 $ (16) $ — $ 80,948 Classified as: Short-term investments $ 48,053 Long-term investments 32,895 $ 80,948 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)	9 Months Ended
	Sep. 30, 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: September 30, 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 $ 29,333 $ 29,333 $ — $ — $ 34,672 $ 34,672 $ — $ — Commercial paper (a) 5,546 — 5,546 — 4,876 — 4,876 — Corporate notes 68,605 — 68,605 — 47,159 — 47,159 — U.S. government agency bonds 6,797 — 6,797 — 13,971 — 13,971 — U.S. government securities (a) 15,904 — 15,904 — 24,874 — 24,874 — $ 126,185 $ 29,333 $ 96,852 $ — $ 125,552 $ 34,672 $ 90,880 $ — (a) Approximately $15.9 million of U.S. government securities as of September 30, 2024, and approximately $23.9 million of U.S. government securities and $1.2 million of commercial paper as of December 31, 2023, had an original maturity of 90 days or less and is recorded as a cash equivalent.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 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 the employee stock purchase plan) is summarized in the following table: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Cost of product sales $ 762 $ 660 $ 2,914 $ 2,341 Research and development 1,095 892 3,281 2,862 Selling, general and administrative 7,367 6,372 22,383 20,213 Total non-cash stock-based compensation expense $ 9,224 $ 7,924 $ 28,578 $ 25,416

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (Amounts in thousands, except per share amounts) 2024 2023 2024 2023 Net loss $ (901) $ (3,660) $ (9,445) $ (16,175) Basic weighted-average common shares outstanding 49,085 47,649 48,639 47,537 Effect of dilutive stock options and restricted stock units — — — — Diluted weighted-average common shares outstanding 49,085 47,649 48,639 47,537 Basic loss per common share $ (0.02) $ (0.08) $ (0.19) $ (0.34) Diluted loss per common share $ (0.02) $ (0.08) $ (0.19) $ (0.34) Anti-dilutive shares excluded from diluted net loss per common share: Stock options 6,115 6,859 6,115 6,859 Restricted stock units 1,142 943 1,142 943

Organization (Details)

Organization (Details) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024 USD ($) product	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2024 USD ($) segment product	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of commercial-stage products | product	3						3
Number of reportable segments | segment							1
Accumulated deficit	$ 412,622						$ 412,622		$ 403,177
Net loss	901	$ 4,682	$ 3,862	$ 3,660	$ 5,020	$ 7,495	9,445	$ 16,175
Cash and cash equivalents	53,681			$ 60,473			53,681	$ 60,473	$ 69,088
Investments	$ 80,900						$ 80,900

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($) pharmacy	Dec. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Number of specialty pharmacies | pharmacy	2
Allowance for doubtful accounts	$ 4.8	$ 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Product sales, net	$ 57,905	$ 45,581	$ 161,848	$ 132,520
Total revenue	57,905	45,581	161,848	132,520
Change in estimates related to prior periods
Disaggregation of Revenue [Line Items]
Product sales, net	1,026	2,275	2,345	1,945
M A C I Implants and kits
Disaggregation of Revenue [Line Items]
Product sales, net	44,656	37,589	128,973	108,114
Through Intermediary | MACI implants, kits, and instruments | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	31,637	22,598	90,246	68,220
Through Intermediary | MACI implants, kits, and instruments | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	3,473	5,030	10,160	13,526
Time-and-materials contract | MACI implants, kits, and instruments | Time-and-materials contract
Disaggregation of Revenue [Line Items]
Product sales, net	1,083	1,432	3,227	2,974
Provider or Facility | MACI implants, kits, and instruments | Contract rate
Disaggregation of Revenue [Line Items]
Product sales, net	6,968	5,797	21,465	19,932
Provider or Facility | NexoBrid
Disaggregation of Revenue [Line Items]
NexoBrid	1,065	598	2,269	598
Directly to consumer | Biopsy kits
Disaggregation of Revenue [Line Items]
Product sales, net	469	457	1,530	1,517
Directly to consumer | Epicel
Disaggregation of Revenue [Line Items]
Product sales, net	$ 12,184	$ 7,394	$ 30,606	$ 23,808

Selected Balance Sheet Compon_3

Selected Balance Sheet Components - Summary of inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory:
Raw materials	$ 11,854	$ 11,348
Work-in-process	1,850	1,210
Finished goods	2,052	529
Total inventory	$ 15,756	$ 13,087

Selected Balance Sheet Compon_4

Selected Balance Sheet Components - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property and equipment, net:
Total property and equipment, gross	$ 113,991	$ 63,841
Less accumulated depreciation	(25,578)	(22,206)
Total property and equipment, net	88,413	41,635
Machinery and equipment
Property and equipment, net:
Total property and equipment, gross	5,901	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	9,972	9,116
Leasehold improvements
Property and equipment, net:
Total property and equipment, gross	15,927	14,901
Construction in process
Property and equipment, net:
Total property and equipment, gross	$ 80,544	$ 32,531

Selected Balance Sheet Compon_5

Selected Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation	$ 1.2	$ 1	$ 3.5	$ 3
Licensing Agreements
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 0.2	$ 0.2	$ 0.5	$ 0.5

Selected Balance Sheet Compon_6

Selected Balance Sheet Components -Schedule of finite-lived intangible assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 6,406	$ 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	(1,094)	(625)
Total	$ 6,406	$ 6,875

Selected Balance Sheet Compon_7

Selected Balance Sheet Components -Schedule of finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total	$ 6,406	$ 6,875
Licensing Agreements
Finite-Lived Intangible Assets [Line Items]
Remainder of 2024	156
2025	625
2026	625
2027	625
2028	625
Thereafter	3,750
Total	$ 6,406	$ 6,875

Selected Balance Sheet Compon_8

Selected Balance Sheet Components - Schedule of accrued expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued expenses
Bonus-related compensation	$ 7,580	$ 9,757
Employee-related accruals	3,087	3,503
Insurance reimbursement-related liabilities	3,336	3,591
Other accrued expenses	340	364
Total accrued expenses	$ 14,343	$ 17,215

Leases - Narrative (Details)

Leases - Narrative (Details) ft² in Thousands, $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 01, 2023 USD ($) renewal_option $ / ft²	Jul. 29, 2022 USD ($)	Jan. 31, 2022 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Apr. 30, 2023 USD ($)	Jan. 28, 2022 ft²
Lessee, Lease, Description [Line Items]
Right-of-use assets				$ 71,561		$ 71,561		$ 73,462
Short-term lease costs (less than)				100	$ 100	100	$ 100
Operating lease expense				3,200	3,200	9,600	7,100
Finance lease expense (less than)					$ 100		$ 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
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			$ 3,600		$ 3,600
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	Sep. 30, 2024	Dec. 31, 2023
Assets
Operating	$ 71,561	$ 73,462
Current
Operating	6,119	6,187
Non-current
Operating	91,344	81,856
Total leased liabilities	$ 97,463	$ 88,043

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 80,589,000		$ 80,589,000		$ 65,852,000
Gross Unrealized Gains	375,000		375,000		1,000
Gross Unrealized Losses	(16,000)		(16,000)		(101,000)
Credit Losses	0		0		0
Estimated Fair Value	80,948,000		$ 80,948,000		$ 65,752,000
Remaining contractual maturity period			3 years		3 years
Impairments of assets	0	$ 0	$ 0	$ 0
Short-term investments
Marketable Securities [Line Items]
Estimated Fair Value	48,053,000		48,053,000		$ 40,469,000
Long-term investments
Marketable Securities [Line Items]
Estimated Fair Value	32,895,000		32,895,000		25,283,000
Commercial paper
Marketable Securities [Line Items]
Amortized Cost	5,543,000		5,543,000		3,638,000
Gross Unrealized Gains	3,000		3,000		1,000
Gross Unrealized Losses	0		0		0
Credit Losses	0		0		0
Estimated Fair Value	5,546,000		5,546,000		3,639,000
Corporate notes
Marketable Securities [Line Items]
Amortized Cost	68,255,000		68,255,000		47,228,000
Gross Unrealized Gains	365,000		365,000		0
Gross Unrealized Losses	(15,000)		(15,000)		(69,000)
Credit Losses	0		0		0
Estimated Fair Value	68,605,000		68,605,000		47,159,000
U.S. government securities
Marketable Securities [Line Items]
Amortized Cost					983,000
Gross Unrealized Gains					0
Gross Unrealized Losses					0
Credit Losses					0
Estimated Fair Value					983,000
U.S. government agency bonds
Marketable Securities [Line Items]
Amortized Cost	6,791,000		6,791,000		14,003,000
Gross Unrealized Gains	7,000		7,000		0
Gross Unrealized Losses	(1,000)		(1,000)		(32,000)
Credit Losses	0		0		0
Estimated Fair Value	$ 6,797,000		$ 6,797,000		$ 13,971,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	$ 80,948	$ 65,752
Commercial paper
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	5,546	3,639
U.S. government agency bonds
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value	6,797	13,971
U.S. government securities
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value		983
Recurring
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	126,185	125,552
Recurring | Level 1
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	29,333	34,672
Recurring | Level 2
Liabilities that are measured at fair value on a recurring basis
Assets, fair value	96,852	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	5,546	4,876
Recurring | Commercial paper | Cash and cash equivalents
Liabilities that are measured at fair value on a recurring basis
Debt securities, fair value		1,200
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	5,546	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	68,605	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	68,605	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	6,797	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	6,797	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	15,904	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	15,900	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	15,904	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	29,333	34,672
Recurring | Money market funds | Level 1
Liabilities that are measured at fair value on a recurring basis
Money market funds	29,333	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 ($)	Sep. 30, 2024 USD ($)
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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 9,224	$ 7,924	$ 28,578	$ 25,416
Cost of product sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	762	660	2,914	2,341
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	1,095	892	3,281	2,862
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total non-cash stock-based compensation expense	$ 7,367	$ 6,372	$ 22,383	$ 20,213

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock-Based Compensation
Stock options granted (in shares)	105,025	58,500	745,412	594,217
Stock options weighted average grant-date fair value (in dollars per share)	$ 27.73	$ 22.36	$ 28.08	$ 18.80
Restricted stock units
Stock-Based Compensation
Restricted stock units granted (shares)	35,610	23,520	622,535	552,841
Restricted stock units weighted-average grant date fair value (in dollars per share)	$ 47.59	$ 36.51	$ 48.19	$ 30.24

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Net Income (Loss) Attributable to Parent [Abstract]
Net loss	$ (901)	$ (4,682)	$ (3,862)	$ (3,660)	$ (5,020)	$ (7,495)	$ (9,445)	$ (16,175)
Basic weighted-average common shares outstanding (in shares)	49,085			47,649			48,639	47,537
Effect of dilutive stock options and restricted stock units (in shares)	0			0			0	0
Diluted weighted-average common shares outstanding (in shares)	49,085			47,649			48,639	47,537
Basic loss per common share (in USD per share)	$ (0.02)			$ (0.08)			$ (0.19)	$ (0.34)
Diluted loss per common share (in USD per share)	$ (0.02)			$ (0.08)			$ (0.19)	$ (0.34)
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)	6,115			6,859			6,115	6,859
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)	1,142			943			1,142	943

NexoBrid License and Supply A_2

NexoBrid License and Supply Agreements (Details) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2023	May 31, 2019	Sep. 30, 2024	Sep. 30, 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