VCEL - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen thank you for standing by and welcome to the Vericel Corporation Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today. Gerard Michel, Vericel's Chief Financial Officer. you. Thank ahead. go Please

Gerard Michel

and conference everyone. financial call operator second results. to quarter XXXX to good you, Welcome morning Vericel's Thank discuss our

call, fully projections Securities Litigation Before that actual and Act of forward-looking may me let website. all Reform statements today. risks covered and available we more of represent and today's cause judgment our statements These Private we are making forward-looking could will expectations the from statements also remind involve our under XXXX, be the and begin, results on you of with differ as that to are filings SEC, in described uncertainties which our on our

as date. second quarter In a website. represent of available views addition, our and as Please copy forward-looking Investor as of press results our only our in statements section of any our the note representing Relations views relied that subsequent should is release all upon financial today not be of

short from will now have the to on Nick I website. also Colangelo. viewed Executive today’s our Chief webcast the or with call on and be can a Vericel’s turn over directly We Officer, that accessed call presentation President highlights

Nick Colangelo

COVID-XX In our net million quarter revenue. good MACI revenues second net quarter pandemic, the of and net and were the of from for profitability, including measures our case Thanks revenue, product Gerard, utilization. million approximately cash including we're $XX April Total with and $X $XX light scenario results, of pleased morning base everyone. very exceeded ongoing second which across several Epicel revenue, million

compared on country. revenues XX% the for quarter, same quarter as a saw lifted which decreased May, very emerged and long term and across progressed, periods to maintained approximately the As of recovery Total we'll and measures growth discuss we several were detail, Beginning and declined April and XXXX, restrictions. that our in a were restrictions March, COVID-XX surgeries in from to XX% the XX% we in in we ensure the the in elective more June June to strong that XXXX. initial we approximately compared we near increased XX% COVID-XX when in in implemented opportunities, position strong

case us the ended addition turned elective MACI ensure actions maintain out operational and to and with originally reductions impact to In for and minimizing recovery offset importantly a These across The also more our what the end allowed no the expenditures. accounts us surgeons and to we in keep in investments a thereby patients, in the us provide manufacture be balance to to deferred allowed compared and together second anticipated. appropriate to non-essential rapid quarter to implemented to discretionary receivable and readiness cash with reductions revenue, significant support entering utilization. the debt, we on decrease minimize quarter profitability, partially in workforce and million XXXX. surgeries Epicel to allowed of talented expenditures and the than spending cash $XX continuing intact that organization at million $XX approximately We capital

able midst to financial the in performance very quarter second were of deliver we all, a the in environment. all So challenging solid a for

flow. was and indicator product Overall, biopsies and this underlying the available of importantly, in XX% demonstrates growth. current a of strong capacity June strong deferred resume a a about normal biopsy was available Based the of we our capacity compared estimate in volume terms available in versus Yet, demand not revenue that recovery we XX% number capacity both surgical available in that business nearly the the and we MACI third patient on recovery June. generally in approximately growth in MACI July. followed to And to in June capacity increased in biopsies May, surgical but only conversion national implant offline volumes We In estimate MACI, rates, terms and for that we the second declined April, April in in approximately approximately and in in May, XX% through in biopsy of of to strong in in May, that June. XX% XX% a implants same trajectory and for compared periods MACI two-thirds available only with the well the was MACI saw X% elective periods estimate about of second growth performance, declined XX% while continued of only MACI XX% of half increased year. XX% May, MACI XXXX, in reasons, offline saw same positioned that cases, the in XX% quarter biopsies, implants was in XX% half and quarter, for surgical Likewise, strong believe biopsies in XX% of COVID-XX June. declined approximately of first MACI a and year. catch-up the but its We of is April headwinds. quarter April, the despite surgical first from XX% the was while approximately the and biopsies XXXX, the in June. outperformance in leading rebound in historical implants had which in that future the MACI

or on either an procedures surgical center. in performed hospital outpatient center surgery MACI a basis First, over XX% of an time ambulatory outpatient are the

team are healthy associated also patients focused management expect to is compared don't surgeon hospital cases they restrictions case or to finally, of of for timely young, individuals to less far surgeons function, patients symptomatic the including generally profile pain chronic despite favorable on to COVID-XX. offices manner. able likely And pipeline So procedures, facilities. with normal a that be MACI work typically and through on to by cases beds. and schedule orthopedics that and other to move significantly given both procedures who risk the MACI defer and reimbursement restrictions nature with patients and for maintain reschedule we treatment are injuries loss inpatient and procedures. in utilized has our factors And impacted less a MACI we any their believe likely have functionality are active otherwise

In the strong biopsies also demand demonstrates for pipeline, and recovery terms the MACI. the of refilling underlying

Importantly, quarter. we continue to receive new biopsies from in the surgeons second

earlier, While remained surgeons of June the I received growth declined volume, from And biopsy of as the relatively July. in biopsies new line continued absolute number that biopsies with biopsy we mentioned in saw and surgeons proportion the steady. through

XX% approximately through of biopsies XXXX. period approximately X% the same Epicel in compared second XX% second quarter, in which for half June, to XXXX. back increased Epicel the the We in And April for but the also the the Epicel declined second declined up in revenue to compared strong Overall, increased X% May to saw of X% quarter. in remains Epicel recovery graph a volume, quarter, year-to-date. quarter

Finally, Biologics submitted XX, that the we announced of on FDA. License June thermal NexoBrid burns for Application was the treatment for to severe the

dedication take a the for and operational patients in ahead standard strong it we'd as for circumstances. care the expect franchise. the will burn June, and that I'd internal for care review to a NexoBrid for and the of in of serving market BLA patients severe efforts submission the now second performance burns, difficult delivering of cycle, for NexoBrid and thank the market, in like to and commercial their a the midst moment with in believe we marketing for NexoBrid our XXXX. will approval our significantly expand Assuming employees addressable achieving all change our to quarter, U.S. our standard bring of timeline opportunity very We're to excited

Looking now on preclude providing moment. third expectations ongoing will share additional fundamental some details business. perspective the us our in ahead, for uncertainties we're to the I'll related in while and a COVID-XX confident full-year And our of quarter prospects Gerard from provide guidance,

third the we these not those the we've MACI. areas. therefore of suggest third pertain procedures Many to revenue of patients surgeries utilize expect of to over biopsy only a restrictions activity being of Despite apply in certain this significant do postponement regions any with in that would year and or the overnight, beds MACI to surgeries states that XXXX. not quarter First, implant and restrictions seen hospital generally in treated elective country, would quarter of date, growth decline on renewed implemented in inpatient

that the I mentioned that patients in even reasons will and we treatment able receive For MACI be earlier, to COVID-XX positioned, believe outbreaks. MACI is with well that areas

expect risk to high work terms recent restrictions the Epicel revenue the process create And restrictions of to for growth the centers support be second burn to revenue the centers. We challenges access levels quarterly COVID-XX sequentially gain to more near created sales certain in-person seen historical also get can those in quarter. quarter cases, our the representatives headwinds second through return populations increase sales on new obviously COVID-XX are into calls to centers, may with prior of ability to there limited. quarter as These at has access in over disruptions could to some in term sales force XXXX. while third patient

a However, for working third through this stated and great is the by the expectations demonstrated our quarter. results May job team's doing the and June challenge in

our Gerard in to turn revenue over this quarter financial second delivery BARDA I'll more details of procurement now results the take additional third recognize first which detail in later is into to under provide expect place to quarter. expectations we call with on on NexoBrid scheduled quarter MediWound’s moving Finally, contract, to the third and quarter. connection our the

Gerard Michel

million quarter of XX% quarter quarter revenue same quarter XXXX included was to to revenue for Epicel $XX.X Nick. MediWound million compared expenses product XXXX. revenue, quarter $XX.X license the $XX.X XX% revenues ended the $X.X million decreased ended $XX.X XXXX results, second quarter payments compared net second million were revenues $XX.X in with to million net of Epicel the operating net the XXXX. revenues, to included of June million $X.X period XX, XX% respectively upfront XXXX, the or in of for million, net MACI $XX.X second the North million, for of net Total for second XX, NexoBrid. compared million American million MACI for which to or $XX.X profit June million quarter of quarter net XXXX. revenue $XX for Thanks of license of revenues of net of product the to the for Gross compared Starting Total in net $XX.X total the and and

reductions per the the million $X.XX and license variable payment adjusted adjusted quarter cost salesforce compared of the was the expansion NexoBrid. remained essentially ended spend quarter inclusive June million XXXX, Vericel’s Excluding loss quarter the or share, million in with EBITDA net MACI the $XX.X share associated compared discretionary second for to Non-GAAP for $X.XX $X.X per or offset loss million increases $XX.X year. reductions was expenses the flat XXXX $X.X million operating $X.X in for the positive quarter license XX, second of as to this cost to $XX.X of million EBITDA for payment earlier XXXX.

to then conversion rates, key quarter, biopsy standard implants Turning have the COVID-XX-related our and based third account received on historical to this based guidance model, biopsies take projects which on into we our conversion and output factors. adjusted

While biopsies the XX% to closer growth July. quarter, in were prior XX% June expected second were up the into biopsies COVID-XX, Nick mentioned, we trend underlying which down continued as organic to robust a

the up the the normal instead into Although this to of first of our have there normally XX% half first our backlog QX and converted the be our quarter. convert factor is impact in the of patient flow, are A but be will will the third volume surgery volume and of from cash come in from convert to restrictions implants capacity. by overall to second the surgical quarter that expect will restrictions, from expect of offset approximately we elective COVID-XX half would quarter fewer XX% didn't biopsies due Overall, third on impacting model we implants, in of partially year, biopsies XXXX. second will

for an of less targeted in have but procedures. relative Nick restrictions on evolving the limited restrictions. a mentioned, systems, that balance – regions impact be recent We earlier an restrictions including less MACI have elective As had restrictions these and thus MACI will ones hospital and only of on which there set impact are to surgery impact year, the and of new will targeted more place, capacity, assume have

expect we mind, to second decline in from mid least in growth XX% third in the assumptions growth the to these single-digit quarter quarter. MACI With the improve

disruptions $X a quarter. from and revenue, a in in second least We the COVID-XX expect in average second at the level step XXXX to up FSL return represents million QX, which we to sequential its QX, quarter prior saw XXXX

expected $X approximately which the take quarter the to $X MediWound procurement absorb another XXXX. with by will contract, scheduled QX this that remaining the the the margins SG&A leading expenses to we proportional existing be higher quarter, is Operating recognize fourth variable later in to and quarter place at purchase are spread in equivalent We the see purchases in of expenses, delivery XX%. also an increases expect million of in at larger to this to first revenue MASI year same to relative salesforce least and a approximately or our connection BARDA also with quarter under approximate Gross QX with will in increase across level, full million in revenue QX.

XXXX. up still is of million had slightly we million from XX, down of the the June of As in $XX first investments, and end cash but which end the approximately $X quarter, of

the cash back scenarios. to my Nick. under now turn half completes financial I'll Looking ahead, net review. expect neutral remain the of call the relatively That year we for second flows most over

Nick Colangelo

Thanks Gerard.

pleased U.S. with quarter. working the seek mentioned we We're in results our also prepared while the Nexobrid the to as the and strengthen BLA environment the filing in concludes to forward our remarks. Nexobrid As uncertainties expect third BLA approval I in marketing further second of during process earlier, review That for we're the business XXXX. looking and we light with FDA in quarter remain current

the available of like And As to provides questions. a call. reminder, today's call on I'd turn to website presentation the the operator your our open to now highlights

Operator

line with Zimmerman BTIG. Your of first from Ryan is the Instructions] question [Operator

Ryan Zimmerman

wanted to flow the commentary quarter. the patient just and the on I third that the third you about expect So follow-up into quarter

the I'm I could you metrics. patient of kind a will anyway curious patients and think have only you came how to in in Gerard, Are question those second quarter. be flow just is XX% being may you said is? necessarily bit up if the I about made on guess because normal elaborate just didn't up catch-up and little people that XX% from that that show And XX% those

in in those parse to we are up. those dynamics so, being terms the loss And third new there, patients, I'll out we're and versus know and that patients stop made of let elaborate? some of that biopsies quarter you

Gerard Michel

Sure.

the catch-up have sitting if biopsies that quarter. know, you and hands of the converted predicting from exhausting fully look we we that have that And we know the the a as that which in. we exactly will as flow, at not We about number those came that come of catch-up at know bit in right. converted know full very end have - visibility but pool. end can the we all So of about we that some a quarter know biopsies of our almost it’s pipeline our close we predict ones numbers view the and don't in into did because of should that should back if XX% third and that convert, didn't that that pool come exhaust how we're okay, large liquid convert we will first much quite properly in fully nitrogen moment, the quarter that second throughout not to have those the cash-up And

placement the give happen about you we're for this light flow on after forward And little to and expecting the year in quarter, just therefore going normal third is a the that, we looking Going under later of at the what's in as quarter fourth biopsy model. we'll same the growth a normal the think bit think to little based to into probably going we normalize. to example, conversion flow flow

wave kind that We big more just anything if this of in not we're a think to normal, might we'll get looking to then biopsies of as get that catch-up a prudent. that Now reoccurred. out some catch-up, a thereafter. forecast. biopsy kind - I know get are you are not to back biopsies going of Nick, or. And to think state want our catch-up don't tidal dramatic We're the are things add We things for happen. steady to into we're assuming taking of increase not going that's don't

Nick Colangelo

Yes no, well, covered you I thank you. think it

Gerard Michel

Perfect.

Ryan Zimmerman

surgical May, think into April, for XX% just estimating And, capacity, talked I do capacity in was about XX% and you you around it in June. in and July? lastly, What XX%

Gerard Michel

Nick, question. the numbers We XX% are you say a we It’s good see place. would over is all where roughly?

Nick Colangelo

patients Yes, running, I I mean, as would. practices think are that's I obviously, fair. as seeing normally think many the and they're whether up they

maybe not many. commentary think would suggest as the quite I

On the the that they're on patients surgery. up moving other our in case are hand, to instance, seeing for to likely are patients more end symptomatic the

bit a of it. it's accurately of a I sort but captures situation, that So fluid think moving

Operator

Your Danielle line Antalffy next of is question with from the SVB Leerink.

Danielle Antalffy

with other just of it biopsy COVID. them patients to the system. my was And we recovery, you for That's on the I make two how taking the you have sort Gerard, Vericel perspective, them coming delivering actually things the And move you the quarter, which first much because younger, through to to them thing wondering hospital are point as pre-announcement, of patients this from consent so at Thanks many in when from a one cited that so procedure. good much dynamic don't fearing considered. have a spoken was can after question? have But order all from that had patients you and congrats this the in patients to unique the you question. pretty access consent of of was these help follow track up things of through

Nick Colangelo

Okay.

cetera. And probably the know get ability of of to that that's directly biopsies ability MACI. think any how contact to many HIPAA an that think biopsy, them have we we reps patients under also treat much are another doing and is system. set. activated and team's through, Those were treat, look said, two can we'll very that indicated I patient have do ones how biopsy we well, physician's very we intent to are XX% to contact those hey, catch biopsy set And office that can that them the get And in where this But check them of able the weren't great tell when a of some quarter. is there. but like were the and follow-up One very are reimbursement that consent That's course. a there is and end were do as from et from shepherd we've the less done gets still they the you the them more consent we a very up. you about frankly, came their they So or that there remind - so into those before There bit rapidly there those doing, patients then a their reach a the of by rescheduled are so through a one office was to to job. an actually particular them out us compliant the components shepherd pain, have done or communication really to can of intent quickly, they're indication, little we'd to matter like if the that physician's we from those we not remind can ones I there for doctors, if them

Danielle Antalffy

it say be Epicel that thinking I And about to around was NexoBrid. NexoBrid is And closer more might revenue more from are that's because like itself second perspective, you it contribution get a a centers, pretty thinking into guys NexoBrid then it a will sounds meaningful to how I becoming - sort leveraging my products. of about reality now but question

about can strategy think complimentary, much. way I the also synergies of right I how you it. talk would So little you sales a will If so about Epicel. launch say, to NexoBrid potentially and it Thank that's drive bit a of the guess, be and

Nick Colangelo

to Yes, components thanks, clarify, revenue are Danielle. just two there NexoBrid. Well, to so from the

order recognize the to The in contract, quarter the one, that starting remainder we fourth in expect the mentioned and XXXX. under this BARDA revenue quarter Gerard third first the with procurement another

the source NexoBrid that's would $X be next $X.X So next, in and million year. of one this or total, and quarter revenue, that $X about remaining then million million

component. one that's So

be Obviously, terms we if we to it care a the contribution In burn contributor franchise. deal NexoBrid. wouldn't substantial commercial didn't our of have the revenue from done think could

the benefit I hospitalized think patients $XXX the And we addressable the who plus in presentation, numbers NexoBrid for which the is know, of on year, from you $XXX might million based number believe seen patients plus about U.S. each you've NexoBrid. you for addressable corporate and XX,XXX. is in As about Epicel market of our the is market know, million

it issued be to but So we certainly haven't obviously contributor or we company. meaningful be revenue will believe product, around the could any guidance a forecasts and the believe we

Operator

next is question the Messer Needham and with from Chad Your of line Company.

Chad Messer

questions. sort the my going it's lead pre-COVID conversion? cases to what's Thanks of for implant mean, where vary, you taking the to from in get Historically, lead know I a biopsy average, you time know, from but time mean

Nick Colangelo

months a It about it's you half a soon for but And is it’s months. it's if actually till too know it's four post change and but four - know about that the meaningfully four don't COVID I about medium. compressed well meaningfully recently, ago year

Chad Messer

for in with? you're back able pull to things things have back on sort you'll some OpEx guidance and sales up you're Would in a and or other going your million you as that on characterize playing obviously, run that on go then And there is of XQ other things $X you those put $X catch-up that that as million for normal rate up, guidance place. up held a to are return perhaps discretionary maybe

Gerard Michel

for lot to the of There's things would on. quarters, say a for probably rate. run few dramatic next a that foreseeable I normal think is the I future catch-up not

Chad Messer

severe the seems just end an example by understand would referred I the COVID. But very user know burns for that are I has sites Epicel just less lockdown. it. during on the to, trying treated and to that you a severe I'm COVID be that from patient access And it mean impacted a thing to of burn needs for inability level, of an be here kind to, salesforce demand

You that can't put off.

maybe to product could understand, had they something that's, on this me do with recognized kept help restock sales way to try is the how it to and cyclical be I people know, be less could But during so don't be when the that of this accidents restricted? maybe it gotten cyclical kind or so So are could how the this a when procedure be is wouldn't shelf lockdown. just the

Nick Colangelo

Yes, that so then around one. the one, our in XXX-ish centers we're Chad active, Number take burn U.S., Epicel I'll XX pretty of typically year. strategy for and a

the So And access part in some around deepen where be for to that of clarify, strategy headwinds our was, my the and burn across in is not centers obviously active comment to penetration the now. we're centers there just Epicel broaden country. could

at Just but restricted the because could we're access the from biopsies, be are at, at calls certainly support surgeries. know, relatively sales a you obviously, standpoint, essentially case we unfettered there's

during procedures Our the then clinical support is team so there on. and takedown and

So cold when centers sort is our to a issue have was to, terms those all. is growth this cases, it they are we of, comes used. to, been had moving do to and in kind calls typically little just of Epicel environment. a in where in harder of at at strategy the And biopsy penetration surgery, not sales it's referring not access an aspect What of on I patients where

Epicel is you patients, obviously, critically June. of the So but with it, There that ill are these in backlog no great May we strength saw reasons in Epicel that from stated patients. was for

in May And so, saw saw growth QX XX%. up and a June. we growth good in We good

forward. expect going Epicel do well still we So, to

Chad Messer

had there clarification. I April. any have been if - Yes, off I was would just a in why appreciate you that reason wondering drop

it? just treated, severe treat For you in or a had there fewer we would seem example, if were patients it like fewer April, were have burn being burn patients burn to

Nick Colangelo

is so down, be absolutely Yes, things up they Chad a spike here. a going there's - numbers three be If are or on right. much about the severe to two us normal when you’re variability, what hard was. to One big or treated. it's There component burn, there's really have it's for definitive small driver

from that we industrial accidents. fewer thing hear did second some reps there The is, yes are

from It hard We driver. seem also was heard us much whether they be for that it seeing like as was to are reps, definitive doesn't other difference. to a

otherwise certainly as couldn't in Epicel into type And very, benefit which would the we helping get very as could. Now of from reps important to reps we are facilities Epicel. freely identify patients, patients most

feasible that, unlikely impact clearly we for not, accidents a we have sure, lack consistent talked also didn't drop it's factor that big was a not a feedback Whether be or So didn't access. or from get it's or industrial in an of but to. can't certainly shared reps because surgeons

Chad Messer

get I I number understood. small difficult yes Okay, it probably enough down. is to pin

Nick Colangelo

well Right said.

Chad Messer

this We went through this recovery? for in well July, but congrats yourself again on positioning

Nick Colangelo

Right, thank you.

Operator

Oppenheimer. with from question is the line Kevin of Your DeGeeter next

Kevin DeGeeter

Nick that we the seasonal are I guess with a typically question comments surgical unrelated thanks seeing that you here similar on August to capacity for into slowdown should our have the rates associated seasonality away we in vacation July any year? how in think half summer on surgeons the does of regard many similar and for Gerard utilixation. going of kind and and with and your travel second type In impact of about surgeons? short,

Gerard Michel

What that it's we've window. kind past use I as seeing, tough guidance shared. the this is baked of we've seasonality patterns out think everything the year, we're into really to

Nick Colangelo

quarter I this think quarter that. Obviously we third revenue Kevin, year, last we and to obviously make third said increase expect point, versus that to that

just normally mentioned, the all of As dynamics Gerard we take sort that captures into account.

Kevin DeGeeter

for timing product the a about centers. will half? or those channel some in Can And we NexoBrid, the for begin how you burn new just the about your And of you to in thinking you're as year think follow-up of about us the regard walk on NexoBrid earnest, those with like in commercial questions prelaunch through the second that should activities really think about are does strategy have burn particular have perhaps more a and even where Yes you issue strategies, thinking a remains and than COVID Epicel? where on remote a different, to that we're and how digital, a a impact perhaps selling marketing profile go-to-market world you sales use perhaps center the the real In NexoBrid? need for could there's kind for know of, setting.

Nick Colangelo

the there awareness. Yes, so there's brand those. is by activities, parts Meeting NexoBrid terms with this one of was And which the I'll pretty already was around rolled of that activities, development virtually activities, standard start Interestingly, we just and was top abstract we've And in cetera. delivered disease, of development payer doing of it of Dr. cadence the commercial state that state out up is awareness, the digitally disease et at year, sort actually, ABA ended Hickerson. a first five

So happening virtual been just world. in things more a are

begun activities, So launches our case. studies, be awareness, cadence, the brand happening fall all disease, and we've would access through payer year already development, this in pricing cetera the will the et typically state be

pretty standard. that's So,

patients. of, In different a again, hospitalized it's terms product, these but burn yes severe are

our I and set burn in clearly to is terms don't concentrated in of I centers. to we're our where commercialize here there think the but shipped add pharmacy in be there'll if sort want big don’t what's the to wheelhouse, Gerard So, of climb pretty of of be versus you to sort ability in product are burn there's a typically effectively know to a hospital likely anyway. hill to anything that. different that these dispensed centers, distribution model centers manufactured And, a

Operator

of Cohen Jeffrey Thalmann. is with Ladenburg next the from line Your question

Jeffrey Cohen

to that upon. So just I three wanted touch

step previous or than did you bit? the in just we talk linearly you probably think 'XX? margins ,and guess a little XX kind is and I about about points which thought and from QX, a talk firstly, QX of QX better over normalized I for set million back a rate, your increase QX away about what So could

Gerard Michel

such to volume Yes, look think increase, we so revenue declined basis I that - on forward I going I think volume. see marginal operating that see to really, heavily that it we're got a is will to going XX% number line. forward driven on pick the probably really we years quarter, dollar in see downwards to there what kind things margin continue we that back you see roughly on around XX% gross thing thought expect is flex expect same years, We've do if volume the to direction. get margin are think gave that we're look guidance past past by and this the should the whatever the change as of coming going and revenue margins other to an that We can on at margin and saw the you profit up you going use obviously you

margin quarter margin to this throw sales in, now an look that But you to of at be. On what side, the full again with million about extra $X operating have force. years you kind estimate operating should you our a if expense operating in past can plug

Jeffrey Cohen

last wanted BARDA as coming with far question, as sounds commentary probably… earlier to than Second goes, it of your or month, the contracts in I check that like just kind line more

Gerard Michel

and want investors year, out last earlier but we was statements, don't the we into to model control. said are asked direct a that and that, models come party and to not in and it don't because we direct to bake put will to year have that contract in their things What we're put month analysts not things we we this hopeful

confident normal that. only they're just know. postpone hands procurement benefit BARDA. job all to they'll other think with for schedule managing MediWound rather on managed with obvious won’t And full BARDA we're in I we the with to matters think a I firm place BARDA, as had the has get execute their relationship reasons, that and were

Jeffrey Cohen

And circle talk on a there as bump year. whole MACI in of want questions, percent mid-single $XX or you or then around MACI for just QX call the a lastly million for digits million side that about a I it $XX Ryan's some me QX to

from You up pool coming the think as that's comes fashion. some or a normalized of it catch-up catches and QX and percent well? theoretically in QX you the more in with That in

Gerard Michel

And we mid basically saw were that Yes. you of of XX% be from otherwise same flow. period the have that quarter see then in. single-digit patient to that that the be should normal going that expect will we second At we of is prior to delayed year, least, MACI over know, think growth come the from patients XX% in that

Nick Colangelo

$XX.X or sort or I dollar that. something on million absolute of I the around mean, that. value magnitude just believe revenue And MACI was, QX like of

increase this which that's obviously, so for And from the the starting year QX year. bake to last upon, point

Jeffrey Cohen

the that the you I on of how XX think question But the historic the much guess rather based from is do pool, pool it's…

Gerard Michel

I think by most the that depleted. end third quarter, of of been the catch-up will pool have

Nick Colangelo

that growth quarter, essentially the quarter, a similar point means QX July would the the see going sort by for Gerard's exhausted, in biopsies of through forward that of we're just but. definition that sort remainder pool expect fourth date plus for know, was the year, expect of essentially projecting we what you of based in that we That Right. and level upon that, third to the is we

Gerard Michel

And that patient organic to basically more back back flow. growth we're from - normal to

Operator

the Instructions] of [Operator is Wainwright. line question H.C. Your next Ramakanth from with Swayampakula

Swayampakula Ramakanth

been good answered, them. Most I questions have of morning, Gerard. but you, and Thank couple my of Nick have

that understand the $X On What, trying quarter the I'm growth? for Epicel it increase. behind behind about million that growth confidence just you're the stating to third Epicel - or so

Gerard Michel

of orders million Yes, end don't $X to hand end patients of just this we all looking over And away will biopsies we is kind to to be for frustrating is hard assumptions there. pass at that we of an road but out. that the what treated, is we - make these number one to it's quarter. average very the for year we of then about put know But we're trying highly and really because quarter hand. anyone in Epicel the certain so limited, the can of in it's back need have many QX increase variable variable obviously, the then a And models how take of and number the is, visibility variable they predict that before pick middle [FAD] it's

the And we the hand plugging of at it. then the kind and average of rates back using facts how that's do we're quarter. for end So

Swayampakula Ramakanth

Okay.

Gerard Michel

do To that.

Swayampakula Ramakanth

give first could conversion the in the versus saw change the Talking No, helpful. quarter? us that about you second you percentage rate, in that's biopsy quarter MACI conversion for

Gerard Michel

the it's any two a years two for It's question. conversion cohorts a conversion about it, have answer good because rate know are to - or past question what is, difficult because particular to don't we really quarter rates very time. age And over the

for back at the up catch-up the look occurs because When conversion the all different - dropped implants a what pop rates occurring. happened in quarters we in the the when model, is bit. weren't somewhat they Now past, all they

putting COVID it specific up. this moved yes, they for very might a points be maybe of world percentage aside the few percentage haven't and they've few a any dropped down in back points couple recovery, three Overall, But popping Now we right last or for cohort, to I four much think, its work fourth a but that again, time dynamics the temporary up percentage And the that'll get points in way the quarter will by quarter. be then through. years. the

Swayampakula Ramakanth

So the general last from question a me question. is

have behind to the seem what that You idea an three you third way you in almost have quarters quarters sense the by the looking.

the So year am for hesitancy what's talking itself? the and I

Nick Colangelo

possibility. not out April? to certainly from could don't find so that And I where simple. back that’s it's holds. I we're us we of the future think realm were think, October, in the None Well, outside right of close know we but what

as don't the degree overall dime. We can So we there. environment forward change that that's very in it. a kind to, of much I put future fundamentals think control think in don't the of anybody of we're the business. out we point. And in should confident that can our confidence at pretty want this know, a And all have We

Operator

I There turn any the questions. closing are remarks. to further the back over call no speakers will for

Nick Colangelo

everybody thanks joining your again. for this questions for us Great, in to well and your thank just company. I supporting the interest want for morning, continued

and a safe have stay So great day. Thanks.

Operator

for call. concludes you this conference gentlemen, Ladies Thank participating. and today's

disconnect. You may now

Vericel (VCEL) 5 Aug 202020 Q2 Earnings call transcript