VCEL - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Vericel Corporation Third 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, Nick Colangelo, Vericel's President and CEO. Thank you. ahead. go Please

Nick Colangelo

and Quarter operator, results everyone. to Welcome business Thank conference good call Third XXXX financial to Vericel's highlights. you, morning, discuss and our

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

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

presentation have reported revenues can on million. viewed directly a also call website. of today's morning, We or our that short total highlights net be third on quarter This webcast with the $XX.X from accessed record we

third revenue expectations, XX% strong the in driven which MACI performance, third exceeded was revenue of quarter continued recovery our June quarter. that by V-shaped MACI the started Our over XXXX. in the as grew

preparedness. Epicel reported the revenue response second procurement revenue We NexoBrid also and highest net our BARDA history emergency for first quarterly reported in related the to

gross margin and record flow revenue profitability million, as for $X.X cash the XX%, significant and reported generated of Our of quarter. a performance quarter flow of operating strong net cash third positive $X.X income million we

the great given challenges flow-positive goal the of same and period that BLA quarter, third XXXX. of revenues also June total company year With a announcing the through PDUFA accepted during From in to is growth the delivery these an to the FDA related results, and we date the assigned to NexoBrid in generated period. for significant first NexoBrid review achievement announced compared we've revenue, BARDA in XXXX, the this has addition for operational and standpoint, cash the year-to-date a XX,

you of among heard, we there in not NexoBrid us to the surgeon marketing join of for States, the and to NexoBrid our thought initiatives pre-commercialization and underway those is As able United planned a leaders also in have recent who great Investor enthusiasm Analyst burn were half second support approval. the deal Day only upon launch of on extensive medical XXXX but

give end of quarter for point several as the growth XXXX. of fourth approach the we on the our we've we strong demonstrate significant growth significant key As metrics year, us results that progress XXXX regarding a challenging profile confidence quarter move into potential the and third made to in and resiliency long-term acceleration this our

briefly for forward, performance details Before I'll covering commercial looking the expectations of additional our quarter. and financial highlights third our cover

or XX% million driven third for profit Total preparedness. revenue quarter the included also XXXX. million, to $XX.X in was quarter the related $X.X $XX.X XXXX. for for of was compared earlier for BARDA XXXX. million XX% third response Gross million, expenses force share for $X.X of revenue, operating or Total $XX third to compared share of As of XXXX. adjusted quarter million period revenue $XX.X revenue million was million, the for $X.X the compared the employee or and the in $XX.X $X.X of earlier, million were million MACI the increase per quarter quarter increased $XX.X Epicel net compared MACI $X.X was to third XXXX quarter Epicel EBITDA and of million incremental mentioned total quarter primarily to of in Non-GAAP respectively, compared of expenses $XX.X million for compared third revenues $X.X to included $X.X the $XX.X and and to million, for net quarter emergency the net related for income procurement of per XXXX. revenues quarter million expansion The the or Net sales same quarter revenues to $X.XX to of NexoBrid year. $X.XX the revenues by to the in of million million this MACI the

of a all-time last high this cash quarter quarter of reflects year revenue level. we XXXX, of were fact and $XX able million the the levels compared flow; to Finally, comp December company for company at cash XX, had as underlying the in it as We despite generated made the both the total million quarter, of $X.X to and and, debt. operating as Clearly, our $XX.X Epicel to million sales flow, execute of cash additional end of investments expansions. of that similar and very strong and business investments was the we've the strong we our a deliver from grow fundamentals revenues profitability believe the continues that high third in no force and the despite

quarter how for outlook performance we by growth underlying MACI's was and for of regarding the implants this I'll view time, performance, quarter monthly a fourth September. biopsies, how in record generated further third Our drivers XXXX biopsies double-digit they beyond. we insight MACI, share and achieved high performance MACI shape driven in the and as for and our revenue, and To provide

group XXXX received adoption surgeons focal that surgeons saw This a treatment for broad large growth part adding previously XXXX. of from preferred biopsies to increasingly represented growth in similar earnings fourth surgeons in supports repair of was past, that that taking significant per rate to taken on surgeons us there X,XXX conversion cartilage around larger the MACI drive that the taking surgeons on increase Despite over pandemic had XX in XX% approximately resulting highest taken this to we'll this MACI: adopting gives due fact of the we surgeons in over frequency and surgeons surgeon the terms rate number average the in territories an Of that respect last the XXXX, in in to far by growth of of of implants. symptomatic our as was of had are and of the knee. three MACI we the biopsies, As had the biopsies biopsies and of challenges XXXX. we quarter key a to call expansion the the year, biopsies new reported quarter expect the number the levers our third the return still to rate to surgeons the a number confidence in With growth grow in expansion reflected from taking particular growth as X,XXX year defects we which in surgeons MACI's biopsies, discussed added never force target strategy biopsy. sales year in XXXX. XXXX high-volume note, number of taking the course by cartilage biopsies This reach our strong

of to In surgeon, XXXX the average third levels. per of terms biopsies were already number taken back quarter rates,

into for taking the MACI expect surgeon for to combined biopsies, from which, forward strong we'd growth an surgeons acceleration per when up levels, sets increase XXXX. a current very in in with Looking biopsies XXXX, our expectation

pleased our that Finally, for the we we're that and be the base environment, surgeon to expect given expansion in historical within of XXXX. very remained rate the range, has the the biopsy conversion current case

the maintain has Epicel Epicel helped new quarter. and believe includes this this our with has full is carried steady clinical structure support into seen We've since Epicel. And to representatives force structure, year. our specialists. both May, the fourth that challenges This volumes throughout trend which year sales sales despite the first monthly Turning new the we momentum and

sales the we scale structure target Epicel the become have another could year users believe additional force expand next we believe drive of growth leg the anticipation of that centers and that as NexoBrid ahead. in Epicel launch, we As years the in we'll for right we to

Day, phases detail to the wound of Finally, Analyst leadership a burn our by our franchise as unique enhance in position the burn in and pathway. market Investor having discussed products believe both for closure the position we burn innovative recent for Vericel addition create debridement of company's the during care NexoBrid will treatment that highly care strategic and

that a as we the penetration broader burn will Epicel increase of we than which million the Given share build expansion supports be to $XXX burn The over a patients targeting addition with burn commercial footprint, our market will addressable the market U.S. NexoBrid larger uptake voice a of Epicel we'll and addressable segment believe and care the hospitalized larger of presence of care in triple drive NexoBrid in both much market. alone, our expand

spend a in we're very for operating will expectations market believe to the in minutes our NexoBrid, the environment the an be To discussing excited we XXXX United XXXX, and So opportunity beyond. upon bring in it contributor approval, growth to I'll and quarter. the up, to wrap fourth and States meaningful to current a few have our

and the in biopsies, increase or as change result any reinstatement rapid the in on challenging cases to outpatient case second not of the not elective environment, point, of of the its have to is say a seen fourth the its reimbursement MACI even Barring forecast we're discussed, quarter, to we While the of the we new a MACI of position COVID-XX exactly the could profile in half a the prior can restrictions recent we scheduled in we've a favorable impact in widespread well-positioned pandemic. that, MACI surgery how that growth this surgeries, nature believe COVID-XX trajectory to of given trends effects return MACI in surgeries potential activations patients, as status. previously

surgeons in outperformed with Florida, growth Texas fourth around those how view, of during although helped research states country cases our in in experience, As national the has in MACI increased in for expected average market That performance the dynamics quarter, this we was COVID support quarter. times including hospitalizations, third are practice a in actually thinking and states, with the about rates calibrate regarding together quarter. the spike COVID-XX California there MACI the

quarter, key the the terms outperformance volume for fourth from Our step-up in seasonal MACI metrics significant all our and in the in normal quarter dynamics expectations third MACI to quarter. to sequential in a fourth point the certainly the third of increased

As well earlier, May, I and since mentioned continued consistently been performing has Epicel trend into October. that

monitoring able increased, expectations flow be we for to this to now fourth related the positive the revenue generate cash total with growth quarter. the the the and revenue procurement, to NexoBrid achieve generate around net month, the quarter. revenue We're conditions current second also million BARDA evolving second in quarter, And COVID-XX in We fourth of shipment change fourth which absent the closely expect our in the should NexoBrid full a this to have BARDA product XXXX. company for revenue year and dynamics. net would the double-digit later expect net and in market half Together $X of in income the growth in

executed Our of milestones goal we third results, of company as exceedingly achieved attaining marketing our stronger approval performance strong during than NexoBrid MACI and generated financial Epicel, for expected drove quarter important well the States. United commercial the in and towards

third highly years ahead. confident and we're results related strong Our concludes This our remain and our demonstrated prepared of we in strength business, remarks. of track the quarter across revenue the profit to our to growth while and uncertainties several remain, on fundamentals deliver the measures, COVID-XX business underlying in

As presentation call. additional is today's website highlights available on reminder, a provides the of our

I'd to the questions. open the Now, like to your operator call

Operator

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

Ryan Zimmerman

I if questions. I Hey, finer hopping around growth MACI like on band the strong thanks I was the the today. I between apologize But put the fourth Q a for one-man so calls, want missed for to this. in a point taking I guess quarter. Congrats

modeling it I growth, double-digit growth think for the based mid little But at on certainly, commentary bit now. would assuming about levels. commentary single-digit your Epicel the suggest holds its a current something product and right Street's higher,

put that on my any and point your MACI? expectations to So, one, two, around is correct; then, thinking finer commentary around a

Nick Colangelo

do. yes, I Well,

I around last correct. revenues is think can about product million. your at Obviously, look year, were thinking from $XX.X that which the you total in

that back double-digit answer just with growth rate, then MACI. Epicel respect and you that out to get current think run to I you apply if then the to So

Ryan Zimmerman

Understood.

Okay.

maybe particularly what mean, number little heads that from to new previously? the the bit surgeons, I'd perspective, -- versus, the just saw physician But of force, in You biopsies, drove for from third been love that it or addition demand looking about uptick sales say, drivers you given laid the terms biopsy sales doing. the the patient of versus you perspective talked in growth force, such the the you out surgeons. just understand marketing that some MACI of different has quarter, be the a initiatives could I in and of the what it may kind coming at if an bifurcate the that relative in of you've drivers that from underlying adoption rates in to that of and a

Nick Colangelo

expected guess I did segments saying regions, Day, pretty among then and mention that so would territories, last surgeons. we call discussed And had rationale all majority appropriate who the to growth on fact never Well, in we for consistent I essentially sure patient we expanded thing pleased biopsy the on we third the level taken volume about of saw on performance there make to the highest that, and across the breadth again, be new new very new we that the by XX of had One why our before. We with sales quarter start the was our talk that supports a the was the performance. surgeons MACI terms flow. of did frequency Analyst our our reach these of in the we in on of surgeon force, bringing

maybe scheduled, canceled. than And cases would volume there one, number were being “catch-up”. And to cases were April previously third some less and we two were that really XX% then March were rescheduled. has canceled, quarter late there So for and cases, components, that related be, that us, in probably X% of said

and historical On number expected lower. just to based little front, have the we we that hey, certain was biopsies theoretical would to said, convert a on implants, of a averages,

it, the was a third would in that XX% the normally to XXXX. converted much comparable time the we're phenomenon. really half. related first of call got So And the catch-up in biopsies, August maybe quarter early converting by implants in we of the biopsies that rest to But the is September, have to to of pretty that age that age the biopsy July-ish,

new forward. that exclusively driven almost outlook, supports growth now mostly patient at driven our So really, really by going or point, It's this flow.

Ryan Zimmerman

I’ll the back color. Appreciate Okay. Thank you. queue. in hop

Operator

question next with Leerink. Danielle Your comes from SVB Antalffy

Danielle Antalffy

I heard Thank consensus Nick, guidance not question. at Good me, now. I for on specifically push you and think, just morning. -- growing rates taking as giving about utilization, But my you're you you to XXXX so -- if correctly. physicians just right little look of where bit biopsies growing is, much excuse you appreciate a talked I at and

of given MACI how parts, to moving mean, some could can growth sort about So, head into metrics you the moving you even maybe a able parts could lot of and so think qualitatively, help talk the this to, us comp as we to of QX? out. how think about easy year, shape next you're of of, us sense in I there's talk a that the give

Nick Colangelo

in point a the trying the XXXX kind your it yes. where forward, say Thanks, we're do to per levels not a does for and that Well, obviously, of the back for And in we What would from disruptions, look rate. make sort say you we being now that growth we in mid-XX% And consensus going Danielle appreciate surgeon, was, we're saw expect commentary to of I and XXXX biopsying at rate of, of, say growth baseline gets the I MACI you our growth the to those is a that That, terms think range. biopsies to to is sort our towards that perspective. combined additional get XXXX acknowledgment the company, going give sense I surgeons new with can reference seem question. talked good right that XXXX. that, now. guidance absent We in had over sort about pre-COVID to, are expecting of back that

Danielle Antalffy

of actually Okay. Yes, makes lot sense. that

then for visibility on know there. probably talk little Epicel, There's that. around I Thanks it Epicel and I and but Okay. follow-up -- is know more a And maybe lot of NexoBrid just volatile a -- wrong quarter-to-quarter. word, the a bit jumps not is pretty

the rep that visibility drive having something this help can in much. talk Epicel So More Thanks consistency about, drive you're to may be NexoBrid how bag leverage is you going in Epicel so and sales? it sales higher business? that could the to more also

Nick Colangelo

what I clinical is structure, reiterate sales this reps I think both have new would remarks, said impact we Well, with force is -- a positive prepared support echo specialists, the our I the and having or that what first full Yes. the sales where year and do we in that business. on

monthly variable, consistent we're As but you typically extremely has performance. Epicel pretty noted, been seeing

well. fourth that the progressing of right around quarter fourth quarter our so third we commentary the moving to is that seems in as quarter, into And or for saw the sort be what

sense And Epicel for a will so think I fourth think be quarter. that we the you where gives of

we'll moving run of force NexoBrid And terms for launch to year, the clinical that next into level sort new sales reps, the expansion a is folks to we in of, or of support do we beginning and or bring same launch, In of as for done the intend ahead the specialists of the sales sort plan you MACI, seven previously. on year. ahead add playbook so. We at know, manager of have MACI quarter

so, on, utilization expect centers, and Epicel. of it, XX or and certainly, we broadening we'll so top that yes, that now penetration be help expect the or and NexoBrid, country. XX it in focus there's we we With burn And to XXX for will certainly do the -- reach, call increase

Danielle Antalffy

Thank you.

Operator

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

Kevin DeGeeter

of taking that go a capital with essentially there options debt it's for just little sheet, sustainably pretty bit business Hey, we here maybe as structure cost my Nick, profitable, a healthy talk about like guys. pretty question. forward looks -- well. you Thanks can low as out balance

levers a of potential have to you lot So pull.

M&A share for investments buy just reinvestment other structures versus development, prioritize for of potential of capital. by maybe external versus us sort could and So business internal you

Nick Colangelo

Got opportunities products, we new therapy I cell or care verticals, it. good like in a we've as will burn current highly points, external franchises, done, find financial Yes, that expand to sports our look that at new would other always opportunities call in our continue, medicine profile. profile think, innovative we us allow if to or have words concentrated

know, will to development you hurdle, opportunities, as the continue pretty for more Those, know, makes look. are have We'll sense front, of sporadic sort high do well. at we'll so we that. and to we continue it us. those business on look You a those But happen when as

have management sort that facilities, We're initiatives period. In upgrading underway. investment, five-year terms we at X obviously looking lifecycle internal over expansion -- are and a XX of plus year year to always, of, plans capacity

as into there time be buyback say the those capital all yet. ventured continue certainly we we'll So territory think obviously, may rates. about with over have high-growth there But these not I very would move parameters we requirements we forward. as share

Kevin DeGeeter

manufacturing to following discussion that just of run of maybe to informative? with diversification does as Kind or you that perhaps of remind make that you regard run topic. And about manufacturing what type on threshold expansion about timely think sort up upgrades, can us structure, the rate geographic infrastructure, made to regard on of discussions? when of to With kind a particularly how MACI MACI, rates, of

Nick Colangelo

about of MACI. a since years the the couple probably We've volumes capacity couple past, and more or we've past Yes. of launched essentially over in been years our again, doubled talked we've sort years here. And of it's now,

years say, And you'll you you do and so, to strategic making have out to where start moves. you certainly, be, those those we think when three do five and need look making to

out high, are saying, three pinch to in any our year, the Obviously, month December where in capacity. And so, around. creates typically you where navigate capacity are we're to looking volumes a double so that we're need of and points point and other the that we years constraints certain terms five at

get years you while And of that, we five years, capacity it. ahead three so, I or it, would adequate the for just say have need three next call so, to to

now, cetera. that et alternatives different at looking we're So,

Kevin DeGeeter

Great. Thanks questions. for taking my

Nick Colangelo

Okay. Thanks, Kevin.

Operator

Ladenburg Cohen, from next Your Thalman. question Jeffrey comes

Jeffrey Cohen

how Nick, you? Hi are

Nick Colangelo

Jeff. Good, Thanks.

Jeffrey Cohen

for U.S. So NexoBrid a if diagram and on I Epicel. you the kind could to of bit launch you Venn as ask far about in with as the overlap the plans wanted little about discuss

overlap strategy You in there? talked how opportunities support as about new for kind sales current Can as which as well bringing go-to-market being centers, some you talk out far about centers managers and as and are some already serviced see of launch. you that

Nick Colangelo

and to would Yes. call marketing the on And Analyst so presentation and Investor we the I and where folks sales expansion plans, covered sort pre-approval the point Day medical force on. initiatives our of

would fall say, kind current buckets. so, of the And into I Jeff, activities three

campaign of will disease launched association a meeting meeting, and at the this state launch. continue product ahead of that You approval, awareness year, was American virtual that ahead Burn have and past

right We access have, initiatives, is brand development course, well. then, that ongoing obviously, now. of And as market

do were those of on Investor sort launch. and typical our kind It's So, of events all laid of buckets of Day call. out of Roland Analyst ahead sequence three by you the

so review And review off. BLA FDA, for there's Once kick initiatives accepted the a lot those or you activities. for filed been that by has those of the

in all engaged those activities. So we're deeply of

In one of have and sales we and support reps sales force XX clinical the currently director specialists. terms sales national expansion,

So as person one a think sales to reports. about little you difficult many XX personnel, direct that for towards have that's getting

we'll managers, our by structure territories a in clinical reps have terms is two have are support we'll two MACI that and that regional of and with much again, specialists. So, both essentially XX regions structure like supported then

the all of centers out centers the sort Epicel-appropriate patients those of patients. which are, we call focused of top is will country, burn burn right to XXX think I the XX Epicel the that's next the patients the burn have see So, mentioned, is centers sort so we on typically that on question, are of the number about like probably the as catastrophic right part burn routinely because centers, your the in now, which not the

the do So, of of end that. focus we upper sort on

going XX,XXX to we've of virtually the XXX need hospitalized debridement. before, As some of centers talked all burn patients about are across sort those

provide broader set don't product. And in of prepared centers. us use to my allow we a I on increase And opportunities uptake mentioned centers focus as that expect the our currently those efforts Epicel certainly to so, will that remarks, burn in NexoBrid will the

be a of the So, do synergies lot question. of think there Venn diagram portion of in there we terms your will

Jeffrey Cohen

to questions it. wanted about. and just me, And go Got to Ryan your then commentary Okay. QX secondly review that some for has back

double-digit fourth growth quarter, MACI You annual for for correct? talked double-digit growth, about

Nick Colangelo

Yes. What we said was product double-digit growth.

So, combined. current but certainly, have for and products for our our commercial expectations based Epicel increased quarter, our product performance, the fourth MACI on QX and double-digit that growth

last the there. $XX.X So do million, the about products from at year, were so you can math sort of

Jeffrey Cohen

Okay. may, BARDA And it, the million? quarters, the on then anticipate one the more continue question, lastly, In levels, at near-term, approximately next to you four NexoBrid. if I would $X current procurement call

Nick Colangelo

Yes.

quarter. So about about third we've we We over year million fourth next left the $X.X I for million $X.X in there's the yes, think million quarter. the had that, suggested And said you then, spread $X in quarters. four

Jeffrey Cohen

Perfect.

Nick Colangelo

last one point So just around that.

study of terms the have next we ongoing. activities, that our just I'd prelaunch do you remind In

in country sites be, So up at those all will assuming with launch. have the XX of NexoBrid centers there and will that are about running, experience

Jeffrey Cohen

Thanks, Nick. Perfect.

Nick Colangelo

you. Thank

Operator

Your next with question Securities. Krum from comes Truist Kaila

Kaila Krum

our for much so Thanks guys. Hi questions. taking

a I of more first, lot to training learning next is be something with talking virtual think going year. are efficient So about sort of that how companies into just

that there heading curious, will efficiencies sort think any you may And XXXX not into considered? have so I'm are otherwise we stick cost guys perhaps of

Nick Colangelo

obviously employing tools. been have We of a Yes. number virtual

falls of peers surgeons the for a how that times. sort -- particular sort So MACI, of these in really and category on interacting peer-to-peer our number this are Roland with in Day, into their covered, and Analyst

making where mentioned more been again, all we've a LinkedIn and using for so peer-to-peer platforms they those are surgical using significant that like be And Doximity, community. and the we've like that And third during using. second a surgeons VuMedi, initiatives tremendous the investments go had in Doximity surgeon And which watch certainly and is We is are something quarter. we'll in success called response these KOLCast. tremendous procedures.

a So a allow to cost structure maintain lower it And we've continue had do is us year. to we'll to certainly as what of this does that. bit plan

continue normal virtual get we'll So travel effective that And how We're meantime, back of tools. highly might sort by of middle we'll see resumes. to planning the year. next those engage the in it to

Kaila Krum

Great.

I sales that and then I proven your to Thank you've And you out you you. your MACI guys do force is sales with as it up well? have can you burn as Okay. use that effectively. force call learned scale an think, scale mean, there from guys ability or obviously, maybe anything

Nick Colangelo

I Well, Yes. appreciate that.

of this all, we for straight fourth First year, was MACI sales one. of past This the year. more significant expanded bit the a a force

will second will ground we've the and been opportunities obviously one involves we this of home the been of then field we business three out running first the or the hire at around They during force their in same be of training be on surgeries as sales the hit for for virtual why and but well. And preparation. home last that the in do think intended and experience our two training, the do have we we and we we expansions training where and Epicel not quarter at so us extensive thing to quarter. least for office only first in are office a playbook home MACI field that's And and certain training kind end and of And home sort a the is MACI gaining managers that have years, field dynamics of there also that we've effective there how given where come training hire done year, the And that. into effective exact year. the training, reps day in the to

have expansion, with applied that been we expansions to will successful in learnings we the have be specialists. to of our as just all MACI reps five be support we've the well. XXXX clinical for that So started And one clear, led Epicel to

now seven four up we're reps Epicel, specialists. clinical to for So and

XX the sales a Epicel on doubled growth years. well done have third was year double-digit row for and product for the year force that's we've any have of a been and seen So certainly market in not as our last disruption

Kaila Krum

. you. Thank

Nick Colangelo

Thank you.

Operator

next Our with Wainwright. H.C. from question comes RK

Swayampakula Ramakanth

you. just questions indicators metrics a but a have of if bit more Good Congratulations around a leading have been know answered, them. color. of of Nick. Most MACI. on you the lot can Thank my quarter. a you gave I give couple for little great see to morning, want just I I

the you you as were said about by XX,XXX far XXXX, biopsies the concerned, biopsies. end talking are As of

could year-to-date, far? us of number So roughly the you what have at biopsies this gotten point, you give so

Nick Colangelo

Yes.

rough of said number. conversion given numbers, do were specific biopsy in in the sort you we've in implant declines gives we of the just biopsy by to correct year known, get me sort surgeons expect get so the looking average some mid-to-high but this the a XXXX. XX%, is of The in math XXXX. had sort we own biopsies I is at saw to there of even sent do your X,XXX can per you. you with Let who biopsies you What number in revenues out can think the implant we've was price growth QX. on And rate market And so not said there XXXX. we that that The in

Swayampakula Ramakanth

quick question Then on the one Great. just financials.

expansion at maybe? it facing, in end that to by flat margin, better, this you because even expect on help margin are XXX decline or do year. actually you we fourth a and of of least your year, there last XXXX, terms been revert to In the basis-point get Obviously, was gross what actually of But quarter a there's XXXX, there. gross

Nick Colangelo

and know, certainly, our quarter, Well, quarter volume be high so fourth that it's highest the you as in in the to pretty margins tend by far time. Yes.

will with it year. think in be I line yes, last so, And roughly

that, So of the sort we're obviously, results. quarter pleased second very given with

Swayampakula Ramakanth

questions. for talk And I you Thanks you. soon. my taking Thank to will

Nick Colangelo

Great. Thank you.

Operator

have questions no this Colangelo, you closing are Mr. remarks? There at do any time.

Nick Colangelo

to just We very like today. would I you progress. for on in forward keeping you No, participating updated our say look our thank continued to and the much call interest appreciate

Thanks. a have So great day.

Operator

concludes call. This conference today's

You may now disconnect.

Vericel (VCEL) 5 Nov 202020 Q3 Earnings call transcript