VCEL - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to Vericel’s Fourth Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. I would like to remind you that this call is being recorded for replay. I will now turn the conference call over to Eric Burns, Vericel’s Head of Financial Planning and Analysis, and Investor Relations. ahead. go Please

Eric Burns

and quarter operator, results everyone. to Welcome business Thank conference good call fourth XXXX financial to Vericel’s highlights. you, morning, discuss and our

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

represent In website. fourth 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 on our and can on Officer, and viewed Chief directly a Nick. also now call website. Nick I turn Joe to Chief today's Financial am will We or our that call short Vericel's the Mara. highlights Colangelo; President be call on by over I webcast with the Executive from Officer, accessed this joined

Nick Colangelo

approximately throughout financial on Total begin Eric, Joe million. year the will growth for and and despite the guidance for the in then provide today’s Thank to another profit COVID-XX XX% everyone. year our more operational of impacts increased revenue performance XXXX. for our financial well and update delivered and expectations opening year. of to the year continued by morning, The and as and revenue you, $XXX as call the Q&A. discussing before financial good strong Company full call XXXX quarter I’ll highlights fourth current detailed trends a

the launched in growth of in at compounded XXXX. pre-announced month we last with end range Our line MACI revenue since was higher was we also the that which our topline growth annual

quarter variant November no emergence and fourth resulting EBITDA our demonstrated in the XXXX, in strong unexpected December, revenue million and with fourth continues once as $XX grow. in respect on in our quarterly the nearly compared prior year million generated results, record operating as in adjusted $XXX P&L late flow MACI in ending Omicron and impact the the in and to period the quarter of again cash also to revenue quarterly With leverage MACI business same the We debt investments we growth increased flow XXXX achieving cash and and to the despite the cash quarter. performance

with We consecutive Epicel million of From drivers MACI the see also another strength $X.X fifth as revenue quarter. we and finished brand level a high from engagement the and year underlying of perspective we for surgeons continue for for to commercial strong across patients. the a over growth quarter generated

fourth Importantly, our approximately biopsies to was rate the of taking than growth surgeon surgeons number practises is a individual biopsy key growth record increase in our MACI also biopsy with driven strong higher high an number we met the goal was biopsies taking of number MACI of biopsies biopsies penetration per pandemic. The as XX%, quarter. of by it now in for prior indicator performance another in for surgeons and of year XX% the the the of and quarterly the in increasing generated the

sales in our commercial burns number the for XX% and XXXX. growth the also the over execution large significant We over team. per of the further with due part Epicel coming number both over to Epicel these help key into care to burn indicators addressable growth number drivers in of for treating the continued driven strong million grafts drive Epicel’s biopsies we driven Epicel’s and $XXX in across that by Epicel penetration will strength This average Epicel. the increase plus believe growth patient market key of to performance was by patients was in year performance was also which of We a continue XX% is see the outstanding by believe years.

we a discuss we to further regarding in million million in in growth. a will this and I $XXX expect to operating and continued to to increase but environment As our approximately announced revenue the cash the $XXX flow framework guidance moment, current morning, financial our minute Joe total details to expansion wanted profit take with margin guidance. XXXX provide underlying strong

we XXXX. connection January, generated As we strong XXXX and surgeons with both in and pre-announcement in biopsy our growth in MACI discussed throughout in biopsies

a their impact was pre-op on Omicron to and in cases a were This screening. cases deferring pronounced resulted the case as implant December again during scheduled COVID-XX COVID-XX historical emergence as of for factors the more throughout cancelled conversion the patients due variety saw the MACI in because patients related positive patterns much disrupted. variant of tested during we being However, growth biopsy implant year,

this While continuous at general the of forward, the these begin biopsy MACI normalization moving improve created improvement that related and the conditions the of expect in rates remains throughout point conversion we year. wave the first this the see We've contribute Omicron recapture believe should COVID-XX year, backlog quarter. growth dynamics started to to backlog uncertain in patient February, carryover given into timing the to to related a we of this

the assumes because revenue the would flow a the over in our predict, remain in improvement wider some COVID assumes for higher The scenarios COVID-XX environment, range represent disruption this of the impact XXXX. which, revenue first headwinds disruption additional during and year. end the and difficult initial modest we've which financial lower year significant However, gradual but rates timing beyond our more of and assumed guidance The dynamics to improvements of our healthcare range a range year. conversion related continued of quarter, within patient end

to growth for our MACI over total we each to years. MACI rate product quarterly Epicel in expect our XX Importantly, and quarter next with compounded annual line for that growth throughout revenue percent the of And maintain rate growth year. increase several we range expect revenue is plus the the the midpoint year-over-year

expansion operating profile. also We cash and to as further generate strong profitability year, we additional margin flow this in and increases our adjusted expect enhance EBITDA

our XXXX. the on Turning a track pipeline, remain a for resubmission to half potential first NexoBrid of in position midyear for we NexoBrid in the would of which commercial the launch BLA, U.S.

continue to initiatives lifecycle for We also important MACI. advance management

offers FDA less the MACI, year the with an of meet expand even custom use to potential in to clinical program to the delivery believe cartilage procedure for expect for and treatment arthroscopic MACI knee. of this to discuss we development later system, the make which and invasive the the simpler defects our We

increase We also billion. our program, MACI to continue which approximately $X believe overall we ankle to advance could addressable market our MACI

well discuss and demonstrates for capacity XXXX. call now full headquarters confidence Finally, for therapy we're art manufacturing corporate turn have manufacturing significantly year the in and to of Boston results new the advanced commercial plans in the as fourth MACI quarter ahead. guidance increase Joe our to to expected in area. and very in the earlier as and to pleased our begin month our years announced continued cell over is will trajectory Epicel facility, The XXXX, state the financial I'll new this a facility financial our manufacturing growth for which

Joe Mara

statement, to year Starting Thanks total net Nick. in everyone. with XX% growth grew the million strong our driven income revenue the Good both for franchises. full $XXX.X of MACI morning, by $XX.X to to net the revenue versus million XX% fourth X% quarter XXXX. Epicel grew to fourth for revenue $XX.X $XXX.X million, quarter grew of increased revenue XX% while million. Total the

due revenue in million third to shipments quarter for XXXX sequentially fourth MACI compared NexoBrid revenue grew $X.X COVID-XX in above strong quarter quarter product volumes, XXXX similar straight was fourth Omicron was variant, for the X% BARDA the the $X.X prior versus Epicel the QX period X% on to While revenue Epicel. Despite excluding same sequential results continued the MACI XX% $X.X increased million related fifth in to million, increase of million the quarter XXXX. XX% of quarter growing $XX.X revenues fourth versus year. impact primarily a

in income income stock to for or $XX.X adjusted increase appreciation. due EBITDA quarter versus our revenue revenue in of quarter shortfall for Gross in decline million, $XX.X quarter And of positive up revenue the Non-GAAP XX% per $XX.X for initial adjusted quarter fourth $X.XX the million to for XX% driven Total to XXXX. the $X.X This period margin by now of quarter was were revenue BARDA to XX% for Net compared was price The revenue. million quarter addition, the net that by by XXXX. due is EBITDA. share, million the of or same expectations in In million approximately quarter in compared million, the gross $XX compared fourth operating the in importantly, expenses meet included $X.XX primarily was the of to sixth demand. net related was or share per also net of non-cash for operating quarter, to profit is or for for driven this net scale quarter mainly expenses consecutive total NexoBrid we've $XX.X revenue, compensation for expected part large the the prepared. expense, to generated response the higher procurement of $X.X million emergency share the of fourth XXXX.

$XX.X million increase was full the $XX XXXX. in EBITDA $XX.X For an of year non-GAAP approximately to million, compared million, adjusted

we the million approximately the as year. compared of to company cash approximately $XX generated flow of debt. full year, and the cash of XX Finally, in million XXXX, And December for the $XX.X operating in and the of $XXX million no $XXX and as million quarter investments, end had

capital related over in build manufacturing up wanted XXXX office next This the space Before years. to for a historical that I increased turning to guidance, free XXXX new additional growth of building capacity expenditures, help which in relative trends. few Cambridge was to on out comment to the to

new new to increase capital spend expected in well as of MACI make expect capital for expect of million. we be to expected to XXXX, in million investments guidance $XXX in $XXX revenue to XXXX. XXXX, Transitioning our as $XXX are financial our the preliminary to to $XXX year facility XXXX, full our is total for expenditures range we revenue begin as the million. although million for majority of facility We

given within impacts the of As assuming COVID-XX dynamics, normalization healthcare mentioned, of and scenarios wider capacity a Nick and the patient variability behavior potential this revenue around the system. uncertainty related flow patient at point, range business, overall the on for are of the the MACI XXXX of timing we

to biopsies Importantly, XXXX we throughout during that we surgeons we of backlog, the expect And MACI conversion gradual that begin year. driven of some although digit are started the expecting biopsy trends double be taking this another the growth year. year recapture to and normalize COVID to

a we're what of to accelerating full MACI expect more in of also quarterly would typical to to While parts are We during growth the late subsequent beginning we the our and first trends seeing approximately will to quarter, quarters still number represent improve QX volume percentage year there trends in rates improve with are a of moving XX%. continue year-over-year year. broadly, of throughout project volume

expect Epicel average. revenue per of For midpoint, million full $XX.X FSL, the in year approximately this the will quarter At on $XX.X range million revenue million. be we to $XX.X

million rate new However, anticipate more take line in to of to and with quarter team run we quarter be quarter. the first $X.X we expect up a recent to revenues it run Epicel that that or rate burn higher approximately in as add that get a the two will per will continues centers,

For BARDA this year expect anticipate and of QX remaining million do the revenue this NexoBrid, commercial in of we not NexoBrid $X.X year. related from revenue approximately recognizing

and XX% expenses range to for the the operating year is be full margin be Moving to gross to down XXXX. approximately year Non-GAAP expect of in be from expected to approximately $XXX EBITDA at XX% margin and million. we to XX% $XXX P&L adjusted million the full increase

operating meaningful, the EBITDA million year growth increase points our approximately our from This approximately is to to expected in adjusted full in prepared flow. remarks. cash in For meaningful $XX $XX continued XXXX concludes XXXX, million to also which

questions. We will your open the now call to

Operator

Instructions]. [Operator

from is of question Ryan first Zimmerman Your BTIG.

open. is line Your

Ryan Zimmerman

the Thanks backlog morning. the progress last backlog by congrats on want There's your taking good this there's I with about and start the quarter. year. $X questions and million think the MACI. I I Hey, guidance Nick comments think to Joe, from I on through MACI quarter, there. help for though. our on estimates a appreciate the and us first guess your

of like much ex this that rate how so some sounds guidance And what that assumed backlog? it, in that It of kind and the underlying is of on year? growth MACI,

Joe Mara

that take Thanks, and start Ryan, this I'll is question. Joe,

think guidance be I environment the about in I operating So, a we're we the in way the to as remarks, MACI thinking we of year. talked certainly have is, the we're prepared want for mindful of think it in, we we think as range the backlog, about terms wider about

about I think you're as we right. the think backlog,

So that of kind in about we the talked $X being range. number million QX, in

As actually we increase. saw came an out QX, we of

I'd say million. the $XX So number closer is to

how of or more of that scenarios, on our would guidance, we into we say are is would, higher end assuming the I terms In assume, would the a what plays certainly we or substantial is of certainly would number. the revenue through part it's substantive pulled part in backlog a as percentage. say lower that of much that I kind low And end, of

fully about, don't Certainly, the mean, we think MACI that growth we year, But competing we we dynamics. help. talked about think the kind kind of will can closer conversion the also for think some And have to impacts as So, rates of COVID of backlog normalize, I there's as get half year. flow year. patient normalizing of kind back fully we'll start the some until to we and

all So year. the think those the are I about certainly we of full think part equation, of

Ryan Zimmerman

then, talk I right. mean, a kind labor inflationary there's costs costs about understand. And of hearing your Joe raw companies largely your wage of the And development follow help Epicel pressures, material of just rising as up, material lower both costs a MACI. for given so me ton environment. Okay. and We're just related, are

the an be what adjusted want level, so, guidance those may your from pressures both, what thoughts EBITDA appreciating help Thanks. And and that SG&A on of about perspective, you think of, on level but R&D to kind I kind to get and us just just from about through loans? think feeling

Joe Mara

Yes no, thanks Ryan.

a operating So, environment the about and certainly in we're cost we're mindful guidance that year. from thinking we're of the of for considering as perspective, kind we're

we And kind make EBITDA gross can and up higher think longer we news your think basis. vendors of impact on on of a raw potential cost of to ahead as some items going to a similarly, our lot margin some an material I spend those impacts, tied we good on As the dollar think talked we about do about, I we're year-over-year adjusted other perspective, some are pieces. terms improve in our think a is on of team of see spend areas in got sure kind term But increases on certainly stock think, had on to point, of contracts. materials some of in the whatnot we our mean, I some do some perspective. enough I inflationary some, our

think remember. Cambridge it's lot labor time, some a there's I the been labor competition the here. and On important for to in quite We've of for piece, recognize area

a to in been on certainly So costs that's of it's that's, kind for I labor impact the think here we're environment something while, but that's going a basis. year-over-year bit in a more

I cost doing on But we're think would here the kind there, I of say. and side. manage solely are So, what to there some impacts can we

Ryan Zimmerman

questions. the taking for Thanks

Joe Mara

you. Thank

Operator

SVB is Your next from Leerink. question Danielle Antalffy of

Your open. line is

Danielle Antalffy

morning, much guys. so for Thanks question. good the taking Hey,

I backlog keep on I some potential and the think And have saying I'm you to patients touch and at that you in or you biopsy those the is, conversion how up? order Nick about what guess Joe, guess, treated? one funnel. that how do ensure then visibility are thinking rate. much a patients I mean, how I the patients to get have those do those Just with there's, point follow points question many do in actually

Nick Colangelo

hear question. Yes. good you. a Danielle, Hey, And from that's thanks, to great

really focused on we're right. something And here,

on worked the the for through went about of quarter. kind comment Joe first year, down. wave we're of how add of backlog I'll one the think And quarter. dynamics the I there just carried Omicron first Obviously, maybe into sort the So, that thinking

of hyper last have biopsies but point collected your we're are I something normal worked the would that that, year. here. year of talking the under would focused is were to So, circumstances more don't on that down over been think occur converted, we first any that that in dynamics, about, quarter, illusions backlog gets the the something course To we've the given sort consistently under expect of that that's we

a you We certainly of patient, the If sent the we're with a the in a know you're comes in a surgeon defects, etcetera. it commercial that the position biopsy unique running organization, certainly obviously, transmittal form. that. understand, in nature We

And having control don't can lose the with it's those so very able and that perspective, and, biopsies for we're we from stale. a easy both sales on to so that biopsy to surgeons, us to our reps marketing be they team make the able and focus extent sure those don't we go that to those lists, kind of discussions create

is on from to to be really focused last are the that QX and year. biopsies on, able commercial focus for initiatives we something QX, are on. So There instance, team

I And to a patients have management very make we are we're that pipeline. in So of staff offices regarding contact maintain positioned think we points. that in strong and with uniquely team sure surgeons, routinely the those is case touch course,

for I'll we the So we a certainly influence that think think we're, us. to end there. have, to the that's focus extent And we ability just possible.

Danielle Antalffy

it. Got

versus that's salesforce. your guys few Nick, right was Now days COVID? Thanks where been the I literally where helpful. salesforce early so have you Just curious think it years think And before you during COVID, today be? super needs last salesforce go a where salesforce expanded it's much. or about of guess the expansion Unfortunately, then the needs since the you you have here. you it from to is to Do

Nick Colangelo

in lot and One, we manageable terms bunch past kind more salesforce very and results that wanted was something down And And talked performance territories even that acquisitions, driving size. talked territories a new during target the we and geographic reasons, our times. for of And surge universe. COVID so the years expansion. increased the to needed the, with of the certainly to we to couple of, about think do. we're necessary I pleased we've a We've expansion the during reasons. yes, seen, for about sales those Well, we've on. get of it surgeon, new the Two,

were So reps we're very pleased. experienced highly added. And that we sales these

perspective, look, in we us pleased. salesforce much was recall expanded two it year take XXXX; to cover intended as We'll from pretty through three you'll a we're another back the So that period. very to when

of procedures sort just will year at we performance data, make procedurals line that forward. look that plus. of what going this I kind of that XXXX, our access whole over up for is data are the we as revenues tells MACI say right? chondroplasty, our procedural are mean, etcetera. that time are the the volumes market, market up to XX% And would us double since osteochondral microfractures, digits. end the for I period, that here, again, And graphs And So needs a bottom about have down

that was was that. I question effectiveness ever So to we we think think right the of expanding don't continue thought And the speaks our thing definitely to that certainly something certainly do, kind to we of salesforce. and it

Danielle Antalffy

Thank you. it. Got

Nick Colangelo

Danielle. Thanks,

Operator

from Cooley of Your next Chris Stephens. question is

line Your is open.

Chris Cooley

Good morning, and questions. thanks for taking the

we would and MACI ask I peers greater about, plays be the for Are so then would were there's versus submission surgeons But could that just comments cash in just where we quiet more better it us then target two, there just the help bit through and to practices, going Just what the bit of years? timing if Could us Obviously, help ahead two NexoBrid? maybe think help with taking to queue. surgeons COVID first, Joe timing much. now, existing about is if driving, But they I incentivized leverage; question, it how in incentivized expansion reach? sequential when just my I anything me, those this utilizing just year, with was faster little Thanks for time think prepared then the think, regard? you there the flow and you different helped and us and about ready broaden much familiar some were gave the for maybe within gating MACI if a from spend. this degree? go about expanding really the that second salesforce the normal there how already assume maybe the Is ramp OpEx they on in the number little I'll approximately should us And maybe spend impressive. XX%. the of talk biopsies this deeper get about it a think last year as The the of so think called you're their

Nick Colangelo

kind Chris, turn to then the you Nick. one take incentives salesforce build the for business. then, I'll your And questions over first Thanks of and regarding a and Joe. it how it's successful

the at their But talked their and at right. when exactly So in high sales sort the think that's reps as just investors implants addition the about what talked drivers commission it's a works. organization And we've day, to paid that's clear equity be throughout about to are of are incentive as before, I to very the on reps for That's company growth incentive salary level, and the basis we in, focused at the level. of the successful. territory the how analysts for and comp we the done, And end that are our on when, revenue. cash recognize

deeper their cases we sales of doing which practices, everything the a be about, surgeons is need taking biopsies, rep, per the and As activated number to surgeon, penetrating talked and biopsies is represented you converted. getting by expanding which those in then

organization, regional with particularly our the and throughout focus the is that sales in So directors reps. the

Joe Mara

morning. Chris, thanks. and Yes Thanks. Good

of a and some during question, components. second hugely from and we quarter-to-quarter get ahead There's anything, I flows expect year, then, wouldn't of you think obviously, lifecycle year. the from in have things started. variable half which investments look some of, kind will about OpEx balance side second in But an terms NexoBrid, on some XXXX. you were last the looking there a that some at certainly they look the of of perspective, were we're those There's I there the some On in years, as if mean, kind to couple say certainly of ebbs I perspective. back the would spend

a think work So, material of back to and number, quarter-to-quarter wouldn't ebb that full predict hugely quarters. although may from the perspective, it I of kind differences and of it flow, kind as year

Chris Cooley

Thank you.

Operator

from Jeffrey is question Ladenburg next Cohen Thalmann. of Your

line Your is open.

Jeffrey Cohen

how Hi, you? are Eric, Nick, Joe, and

Nick Colangelo

Thanks, Jeff. Good.

Jeffrey Cohen

from questions [ph]. of herein couple A

the So couple can XX, the discussing, guidance average particularly some us higher given a thus numbers the a for cautious think you've strong far succession on seems Epicel the been there you walk looking at trends that through there, or the months in and first of little five fact seen case, ASPs on now. know, you're we anything an it's I anything to read should in quarters about? aggregate

Nick Colangelo

Jeff. thanks, Yes

look Epicel’s XXXX, a So we growth in often years particularly market year, when obviously for at to on for close been now. XX a that the you as was has phenomenal product say, it back

our number graphs that or per this on XX% graphs, upwards prepared average past the big adjusted in patient. of XX increased that an used of over of uptick five as from graphs we the average. had Epicel we I fall about sort as as increase that, average growth, talked to XXX So, that, quarters, or the seen per piece the now patient we about last consistently well remarks mentioned Tam And six have in an my was

market that in, increase growth say, that the it for there graphs you in if per sort of the centers that's, that that, the to at And of of was did level about look patient premier two burn using. of kind or, year, you thirds can they were of due move what was where patient. so per up that last utilization the sort to And

these looking both but really body to from you're to realistic, we well. those burns, we're centers more biopsies the at adding growth it sort that perspective on when Epicel small time patients the being especially I treating where a is mentioned, it's So with think growth. as then over are that year, say, low patients we treated. may increasing But that obviously, baseline we’ll some get are area going of total more or of saw, exceeding in sort kind And and the last them. come large, right, of treating increase digit surface incremental growth double burn forward I focused And of as is

Joe Mara

Yes, maybe.

add, just to to yes, add as well. Just

couple a points. think I

average So graphs, patient, kind huge driver growth again, on there's of those a per last utilization, patient obviously year.

that high If actually pretty been has several back, you look quarters. consistently over

compare to run etcetera, last first we rate. as just couple year, part of other the kind that's to most the quarter, that's, for really, even highlight. A of So, things

if look quarters, that last run the $X.X at around right actually So, has been you million. several rate

If the last five across quarters. you look

million take at grow can of kind digit And into you it's think we centers But, look the XX plus. picture kind we bigger a driving business. view, up if If thinking double you and overall volume last again, year, burn adding range. really of that about that there's of one outlier,

get double that at for similar us. full and right into run now, are point. digit realistic this range, on where of So than and a basis, run rate, year at we're we're kind what of can kind growth But we we that that's rate again, we a least number in QX think seeing more

given think even going there's still the the to be ebbs we I as to of and flows, growth. product, drive So nature tried

more look flow. you still in as we're and back it it's the few last Although, overall, growth. digit that still stable. quarters, looking for But been will double I think ebb

Jeffrey Cohen

you talk year-over-year then you can XXXX, quarterly, picture just that. clarify increases wanted commentary. about to for And said, Perfect sequential

the year-over-year? mean, the but and don't QX mean you cadence QX of sequential, through You

Joe Mara

so. Yes,

first percent what which the you if and of the quarter of around I take and specifically talk the that full about there. be we MACI's revenue year XX%, about MACI, overall talking we'll if our the is, we're we or is year for year, the when think think I is, think pretty saying we're of business, you about, guidance seasonality. is typical for what said MACI kind So mean, progression the throughout

of given a HX. HX, of look kind HX years the we're probably little you loaded, think business toward percentage some lean or versus more back the at I kind seeing, of the least we'll more think slanted trends like were more about bit to when that the of

So a year-over-year look is play will seasonality, similar assume, have rates. year-over-year that there and see growth you'll each on quarter of MACI year-over-year increasing you if basis, what out quarterly when kind you at

just So to year-over-year to clarify, we XX. relative made

Jeffrey Cohen

Got been it. conversion and on some questions a recap, to couple and And just biopsies. for rates lastly then us, the of there's

So biopsy rate this quarter specifically, anything for any say, XX. excluding XXXX for far far, as commentary into any trends read thus thus conversion any XX XG mean, versus, far as for or year, I this trends,

beginning as of is far As the year, similar? it

Nick Colangelo

we've, in we carryover and the hasn't biopsies Yes an certainly Omicron would that of you year grow obviously, just etcetera. we're mentioned, that for year, the have as expect we changed. early and kind to say I

so again, digit rate, surgeon, you're biopsy, those continued then mentioned, penetration leading dynamic this you biopsy when double growth, have surgeons which sort practices, to going per And which Joe into have biopsies and higher increasing means definition, a right. at the of of by

So, for that certainly as is this expect that year we something well.

Jeffrey Cohen

Perfect. questions. Thanks the for taking

Operator

Your next question of is from Truist. Sam Bordovsky

Your is line open.

Sam Bordovsky

And kind it granularity biopsy target us can added that give XXXX, think of productivity expecting sort or of from normalized and into where matures, salesforce we market to high but whether MACI level difference then annual just COVID start of next? with taking thoughts for biopsy on about [Indiscernible] going sort on of into kind high the an basis? pre And just a as thanks the Doc to hopefully last the group, be level with growth in question. new expanded peak I'll any we we on just about growth docs upfront should Hi, how between off updated kind are going moving doc's we the year, Any and of a thoughts group you as forward. on then and think for off starting be more come forward, the reps the

Nick Colangelo

initial, start second really of question growth the I'll of biopsy well, all kind from Yes, size biopsy the coming year up end is when end the, surgeons over with about level. of the in growth. sort moving the fact coming kind market, sort the they see two first addressable or new the average we new terms of -- of segments of around up existing We sort believe the in. given board we've the the, previously users, that that surgeons of join, it the the I course a commented they the that that up mean, or across to that, kind of question of

getting we surgeons existing level. users, to kind growth see see we of new that So with

seen don't our so, past, customers. will anything that And surging we've growth is what expect board there than among which other be we sort of the in across the

Joe Mara

Yes. productivity on And just to metrics. add the

back certainly, about certainly that for think past, to ish So in up range. looking range two to talked we we're million revenue I get call the

talking versus XX, XX not there we've been If we kind at look is, trending full that improvement. an last can in kind guidance there's we on where of back And to quite but number you think We're get that our about. direction. based year of year, we're that certainly back

Operator

Thank you, Samuel.

from next RK Wainwright. Swayampakula Your question is of H.C.

line open. Your is

RK Swayampakula

of announcement MACI manufacturing obviously, have growth telegraphing by by, that facility, of Thank answered. just And, you. of new I'm Nick. and for questions Good comments and made, morning, quite both the my Epicel. of to Joe, your into you certain a expectation But our getting total bit been trying kind a understand

the what long level there do you So salesforce expectations of of year? expansion is you for Do optimal better -- And of you add what point? have thinking need think of Or how do on sort terms much, as this of still you tough sort the you at term, products. two salesforce, in the been growth to working even about said, your though was surgeon the obviously, years. end you by it salesforce we in salesforce in this groups. into a more at you allowed to has also, terms as into the said the the penetrate are are both Is

Nick Colangelo

comments. Thanks, can and start add Joe RK. additional I’ll you

first So term growth all, with Epicel. of as that new respect for is to MACI both mentioned, facility, intended and long the to support the we

under percent But, gone announcement think lifecycle compounded with be haven't year, a XX years, then there's our especially portfolio on, plus rate presence MACI. large side commercial penetrated for these growth really mid-decade. that of to we growth about, launch on for the and talked certainly the fact as of expect as given then, sort in beyond sort product And in annual markets, NexoBrid We through hopefully earlier burn an this management the the pre ahead when are we mid-decade. increased we layer multiple you

prospects XX% for to and of since revenues about up bullish MACI the are makes digits were And, XXXX, mentioning and really and that think declined up versus double as through mentioned decade repeat end addressable the myself, we're on we XXXX. earlier, you market market. by the we we have just beyond. while So obviously procedural that confident the When data for salesforce, overall the reasons the our

the through And a So certainly we before We've by were COVID. outgrow we're to through we outgrowing are COVID. it COVID. market margin outgrown wide when expect it clearly, we

That in And million good the expect the So really upon. a the certainly mean, that. kind feel execute to we're question the that expansion, about took by driven per well, but of change. grow we we to and continue be expansion, mentioned expect to through through just Joe don't That's beyond that before and productivity and we we ranges COVID Sam to X touched They up obviously I rep. back and to those as salesforce. about back the part, continue we brand. to step on

RK Swayampakula

you. Thank

growth, pipeline of their terms In the ankle. especially with MACI also and arthroscopic delivery of the

that expecting think how initiate little timelines, going some R&D some the FDA. through to those us the are those Could understand we give you said You color expenses of you more with forward? on to on so a conversations bit

Nick Colangelo

our, routinely can of we've layer kind you pretty said that previously. mean, with them. of kind margins management in And can salesforce start for in investors lifecycle just, we've these I'll the timeline expenses, expansions. shared thoughts. But, pre-empt absorb on and not in analysts our well that's Joe initiatives of to that are Yes, I but for expenditures so that with and those sort operating that we then,

understand to right plate for MACI right, by We little for now, range getting what give to that lot and expenditures, FDA, our that. a want until is But the to So of what like But a is with lot meet long the on-going thereafter, like look precise of in discuss to, on FDA long, plan with on going we around have that, of it's of cover plans, year. be around, we're our going what in course, placeholders to the detail that hard said this And, shortly you of also sort a so timelines we MACI. -- agree to we look is sort got work would development with arthroscopic same, FDA the program we later mid-year. the forward. is sort in plan but submission the the NexoBrid

for of So able arthroscopic current of delivery robust it, is towards the as be ankle just indication, decade, end kind a and a indication under more endeavor, be thinking. that of involve MACI we that more XXXX get more a said earlier, because our the of the would expect study plus to in it to clinical we would

Joe you anything? have So, if

Joe Mara

investment as and over a these add. think business about an it a not Yes, areas to think of term lifecycle kind you whole long perspective, mid are And to lot more I'd kind from the case we of and perspective certainly management. sense say, makes

Nick within structure, P&L annual meaningful few some there impact it's impacts, add We so be costs, the operating can years kind hugely an the not expense that over will but basis. much of will of on timeframe. said, our mean, operating manage kind cash In over think, of flow of built numbers. kind certainly it it's into as kind P&L I the and the that we an But, terms and and next existing not of

RK Swayampakula

Talk much. very you to Thank you, both. you Thank soon.

Nick Colangelo

you. thanks Okay, Thank RK.

Operator

at would turn like showing conference remarks. further I questions to this Colangelo closing I'm to Presenters, no the time. back Nick

Nick Colangelo

Vericel. all execute and And interest to business great. Company the you areas in of continued Okay, your thank in well across XXXX. very questions the well, Overall, all for continued your

ahead. We our line year company growth, both the our positioned financial our the by revenue long And growth opportunities for top term in another is expansion we and expect margin given flow sustained XXXX. operating significant of profile, years in for products, strong believe driven cash significant franchises the well market

the And interest the to So about a in we're great as we again, business questions and forward. thank excited Have you your day. company. for move want

Operator

Thank Thank you, today's you all gentlemen joining. presenters. Ladies and for conference this concludes call.

You may disconnect. now

Vericel (VCEL) 24 Feb 222021 Q4 Earnings call transcript