VCEL - Earnings call 3 2023 | Vericel Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Vericel's Third Quarter 2023 Conference Call. [Operator Instructions] I would also 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 Vice President of Finance and Investor Relations.

Eric Burns

Thank you, operator, and good morning, everyone. Welcome to Vericel's third quarter 2023 conference call to discuss our financial results and business highlights.Before we begin, let me remind you, on today's call, we will be making forward-looking statements covered under the Private Securities Litigation Reform act in 1995. the risks materially that described from in filings involve results cause more may available our differ are to expectations with statements and website. could uncertainties actual fully on These our which SEC, and are

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

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

Dominick C. Colangelo

XX% approximately for our addressable perspective, for Eric, a of Thank ahead was review milestones and third first the total track expectations year. and including then $XX.X half our morning, which call financial the the for begin I'll our delivery million, a in Joe in as NexoBrid you, as availability discussing guidance quarter, for Factors and by States, XXXX.From to care the detailed Validation United of more the the good third provide the rest well highlights today's achieved significantly business will everyone. the for launch franchise, commercial our of which the MACI our revenue company third to cash increased Human flow, revenue, financial third for another study updated revenue delivered on had call in we the quarter, continued excellent the as Q&A.The and quarter. market remains significant program, securing growth quarter guidance before and and total burn the and financial positive operating XXXX strong our for which financial quarter record profitability opening commercial quarter of expands performance of quarter, arthroscopic completing

as of to to margin positive generate ending straight and continued operating compared quarter gross with our we strong increased and the cash X quarter the We third earnings year, flow, year. also cash third total grown debt.Through nearly adjusted revenue nearly no profitability, for and this the the our delivered guidance $XXX first our investments of XXth quarters and last full-year and year, million XX%, we're raising of revenue time has

continued we're we in next positioned Importantly, growth as that launch to the NexoBrid accelerated core of believe MACI the business, look XXXX, based we strength toward on well revenue MACI year, uptake. in higher total deliver and arthroscopic anticipated

quarters of sustained $XX.X growth of growth and X XX% growth with compared commercial second consecutive to our adjusted and strengthening trajectory expansion a We million, with achieved high-growth MACI a revenue quarter representing sequential quarterly strong also sustained year-to-date. third MACI quarter has growth earnings of XXXX. of quarter profitability strong further perspective, by revenue expect our and growth.From margin, revenue another of had further third record gross XX% quarter primarily driven over and the XX%-plus metrics margin the

for had generated surgeons and results biopsies. core of the Given MACI highs growth our record the the now respect than XX% third more and to fourth continued as the these momentum and MACI number quarter year.We both revenue growth MACI we're quarter, guidance start biopsies full increasing expect also drivers, taking with strong we to for quarter a

first half completed for double-digit commercial that program morning another validation on we that management the surgeons year MACI expect remain year. and this MACI human biopsies.With initiatives, on the to growth for of remain factors this of we momentum for to the track We respect study track next lifecycle continue, we our we in taking as launch MACI arthroscopic during announced

As segment our consists X/X is the This condyles, X XX,XXX earnings opportunity patients for per to for centimeter treat about MACI X addressable to which the MACI. call, approximately year market femoral addressable defects the kit of square we of $X or discussed instrument MACI. on designed smaller billion on represents last arthroscopic the largest market

procedure. segment of option moving will GLP-X and represents ongoing on the weight the addition that in an our do Our the as alternative and expect business have procedures recent market to growth wanted loss I share weight orthopedic this products MACI, that overall in significant any to current surgeons potential respect that medtech the a procedures other regardless negative shift any expect With market of cartilage arthroscopic to GLP-X the usage, MACI and another impact of impact indicated from MACI, on meaningful positively industries. view arthroscopic research to MACI that for in we surgeons their loss their not and other innovation will their MACI arthroscopic product commentary and products We regarding ahead.Before impact a from delivery the the meaningful repair years MACI address believe MACI performance. or driver on

typically SUMMIT The caused MACI noted US approximately which level of BMI MACI and prior injuries.Typically, we've MACI back for experiencing knee debilitating average they pivotal use in weight-related for the below are patients and is product GLP-X without study of XX, XX, XXXX BMI the seeking since young, patients both indicated for average lower their in get activities As the BMI the in have other treated the to approximately a patients previously, was comorbidities. the healthy by to patients, to BMIs. enjoyed patients pain relatively MACI active otherwise physical patients are cartilage

a product. won't with be a treatment patient MACI eligible typical GLP for even So,

below specifically require patients BMIs XX be year. BMI MACI, patients addressable that have a of of XX,XXX our and In payer to typical per for from addition, with or excluded eligible high treatment with MACI policies patients market MACI we

NexoBrid this although important soon available patients products third Epicel treatment worked quarter. to patient per burn revenue treatment, actually health-related the with well approximately product the franchise, U.S. lower as in the total is after to activities burn of severe to that due the for solid utilization.Turning treated MACI to biopsy remained allows proportion are slightly $X expectations ensure the NexoBrid, GLP-X products line the with to patients product a successfully have a the the strong on that respect with very a Epicel now patients' serve eligible first moved U.S. commercially these in So, to would extent be of with to million. issues.With patients care to to grafts reported we're in our quarter, treat tailwind revenue Average patients available pleased quarter we in for of third FDA for underway, use quarter, more launch with our had the MACI became

delay, to centers at training and and and despite treating number commercial to product cases Committee NexoBrid supporting timing did Committee manufacturing remain teams the at focus defer initial related burn approval track their Our burn their and centers on patients.While around uncertainty center submissions supporting training of ultimate or of processes. P&T target Committee that a on to the medical P&T NexoBrid, are centers staffs, approvals first delay access P&T surgeons continue burn enable our availability cause to year-to-date

reestablishing the planned the activities on restarting ahead momentum been in these and As such, launch June. focused quarter fourth of in strong the that we've had we

guidance. that NexoBrid has believe number impact the some P&T in for approval additional Based the in make the care Joe now this will revenue a over community, second few NexoBrid the our already our in for first turn on and growth beyond.I'll be well our very of updated discuss expect the franchise burn we significant franchise burn and call become months strong to gained a care contribution Although over year, we year hospitals for XXXX Committee and past of the results in to enabling quarter continued have over positioned enthusiasm our financial month. next launch, XXXX third a to to NexoBrid to a high-growth company will financial

Joseph Mara

or increased representing total total with of growth third MACI versus has XX% its resumed third burn morning, X which the million $XX.X and million quarter was growth. million basis, with initial year, the million quarter from care quarters contribution revenue, everyone. consecutive revenue revenue prior revenue in and now profit and Total Starting quarter revenue versus increased was with it and stocking quarters was QX.Gross was prior of year, compared and of NexoBrid. for the the million $XX.X MACI, high-growth second million good quarter Epicel revenue of year.For year. $X.X for income has MACI the last grew of of XX% which a through year, meaningful both prior $X.X grew of for XX%-plus statement, prior revenue quarter, revenue net profile on to in the X Nick, the quarter and increased as comprised period consecutive Thanks, XX% company same the the $X for significant year in year-to-date acceleration Total the the XX% in net the prior increased for revenue, a the NexoBrid quarter third a XX% revenue versus the $XX.X versus

an points quarters approximately margin was XXX compared the increase For the gross of of XXXX. year, basis XX%, our to X

revenue in operating in revenue and quarter Non-GAAP years.The share was positive raising for increase $XXX.X The million, $XXX year. $XXX for of represents see the $XX.X now million of we in by through our for initial our approximately since generated the an In in loss our full-year for the represents prior year were growth a burn and the on results for million, care compared $XXX total ahead or adjusted with million to with prior the was Overall, third growth we our addition, and first of restricted no increased the operating prior cash, burn the revenue X at $X.XX expenses of debt.Turning were which have million than year outlook to revenue million prior-year for same is $X.XX and quarter is of to and we increasing available the And our million. XXXX. low-XX% our $XXX September. based primarily that to This the grew costs.Net million. also this of as research $XXX ended versus our was EBITDA consecutive NexoBrid, to quarter operating represents fourth for of the guidance, compared increase $XX and more third to $XX the results care, of period opportunity commercially versus are compared our share X guidance million an this franchises.Starting our adjusted to importantly, and guidance to revenue QX, Epicel quarter this million for XXXX year.For strong revenue million the approximately start financial QX versus for driven our our development MACI to $X.X prior and approximately our quarters we investments $XXX.X EBITDA cash updated prior million quarter million expenses increase growth guidance, XX% each the $X.X increase to guidance expenses due rates an both the now became time and the total QX cash update our sales $XXX the guidance guidance expansion full quarter generated to which the approximately flow are to we the XXXX. expect the versus both full-year pull-through and per increase for in outlook MACI, our per guidance metrics.Total company continue range million $X.X significant NexoBrid profitability of quarter. year, first for program with $X.X quarter, midpoint of second in marketing higher expectations late margin expectations to guidance includes million the quarter, for or $XXX XX%, gross for MACI third million key to

BARDA-related of available not that approximately As this revenue assumed scenario, XXXX, in of and $X a that reminder, be that we under we would recognize QX NexoBrid guidance until our would assumed prior year. million

also our the the after With million of expect care We U.S., an the of prior burn we anticipate care high-XX% now million. approximately to in guidance. BARDA BARDA-related increase of million of versus any burn and maintaining million in revenue the NexoBrid the quarter.We our full-year prior revenue, fourth availability range in with pleased of even be revenue EBITDA in expect $X.X million year.Overall, With our we $X revenue from percentage do removing adjusted third the margin this by the updated expect for procurement $XX.X $XX fourth commercial and change and now NexoBrid. our the are revenue for profitability the this performance guidance gross in year, very commercial not only quarter. of million guidance care encouraged updated are burn full $XX $XX.X midpoint revenue guidance, $X.X represents million quarter we start the mid-teens at the range to midpoint, represents This a to guidance to and

As company revenue anticipate higher execution a total MACI growth the our contributions well as we with look toward and core we products, strong XXXX, of continued as NexoBrid. rate on anticipated arthroscopic

to EBITDA our in with margin year.This next XXXX in enhance both prepared significantly concludes profile In and addition, adjusted anticipated P&L we margin increases our now remarks. expect gross

call your the questions. to up open will We

Operator

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

Ryan Zimmerman

just then of got up you sales you're and P&T kind through thinking side. have kind of -- NexoBrid But some quarter. of getting little follow-up year the for the and some then, to about just kind of for of which I year. just at you're both about next my elaborate thinking you're of fourth a think, of and end you've kind wondering revenue, I'll the in cartilage bit elaborate how can Committees commercialization us And a revenue, then quarter. cadence Nice about talked pace bit a these about of How little the help year. of on you little think if I can a front. kind Nick, I'm stocking third -- if next you quarter, bit into on the ask the questions kind

Dominick C. Colangelo

Ryan. Thanks, Yes.

So, question. the appreciate

for Joe terms year. and all, as fantastic That with happen by that. was start, next able I'll cross-functional well by of team work commentary do But work would availability accident. to FDA by able just So can doesn't that, it some about a accomplishment add be first the secure to in U.S. was to to just start our be we're how in And I it commercial team saying the thinking the tremendous of to

And training assumption Our of launch obviously, June, MediWound and was the geared our pre-commercial that materials from activities date. be and surgeons our to identifying commitment to original of that centers available product end all activities were do include product and the the course, then, of through at kind that. of be would to surgeons approval to shepherd burn and gaining the from Committee providing process, P&T for able essentially

we had So, activities, June towards process of had the some deferred Committee them around of clarity lot I burn there we of delayed of certainly as the product mentioned, training until momentum, we surprisingly, as delay. but a availability. postponed P&T were moving that with our was date, sort Obviously, sort or sort of not when manufacturing-related or continued centers, we

would that in last call, time.And became I on available. as obviously, from that control, P&T doing of and of identifying from P&T say those commitment earnest. Committee October, them, which, Committee again, restarted things the in plan approvals So, week actually the a we're regard. I mentioned goals, commercial submissions. then September, those product ahead champions, of we've includes gaining efforts our number of We secured Through sort the that since And our we

focused our team a job burn centers So, we on. our need on of are to XX initially done getting terms to that has where of kind be target we in good

where And we in and places been so, I early us originally July think have early the in October cadence and essentially to August. November, planned

year, those out up, of half revenue time, to it pushed expect said finish as meaningful we of to would continue coming little of the the at of And that so, And unfold. we bit, activities the obviously. in NexoBrid a back kind portion it sort had just

we We what think be positioned we'll well XXXX for that's going forward. pretty said. So,

Joseph Mara

Yes.

transitioning thinking add the this next just just to Just that into bit from raised year, kind for maybe points both think and cadence a key your NexoBrid. hit on frame -- in I we of Nick on we're terms QX of kind how maybe guidance But question year, of on franchises. to so of about kind

which is it's to on of the think of the side. understand your think part rate, important care burn exit I kind I question

a the we and now Nick NexoBrid. So, different we're than year QX last in back as with about, quarter, were in of half place talked the in

commercial guidance happen assumed revenues. prior BARDA again the XXXX, our until and assumed So, wouldn't had availability that

thinking in you're the in on XXXX, that the as in comes comes really that to about So, it's back remember -- important that, back the out, essentially $Xmillion revenue and revenue BARDA it's of quarter. by last NexoBrid commercial replaced

And about the next the at and launched cadence way NexoBrid so, it's the QX. the really look year, and been the for in of the of it, last as I we in think, kind year quarter revenue you essentially, think

Given in and of the of to that of about month. some was there this are QX QX, the of by the revenue patients, activities restarting, but to gets hospitals was especially And announced kind ultimately we think time in given stocking and kind late total. it those and XPL really to kind end distributors, QX really that's September, from in our

say we're year. So, think rate and as number into that's an about way QX probably how of kind of a and range it would we're about exit thinking about think is, next QX I we million probably in collectively, of we kind about $X the the

range as a start as to midyear next second the majority year. said, in half So, QX gets really, QX. vast we just assumed to of of been and our the what similar kind launch, that year, have year, of to revenue into you move And a the the revenue reiterate Nick we would again,

quarter. think, I really expectations well sets if much where I line really now, XXXX. about for we kind think of for are very up it X with, think essentially you And in So, us that's

as as that increase. see we to giving the expect higher is the at of at the year, of burn NexoBrid as start going guidance growth we the But certainly to into level, point. a start specific 'XX, to franchise. terms number growth not NexoBrid to, obviously, care talked get company-level this about we high And to be think, growth we're In we would a drive, to for kind

down that'll really and we So, think from quarters key uptake framework, about it I maybe think on few just the how and NexoBrid investor driver.And we comes it just the do because kind aspects. think when to lastly, important over perspective, a be help a the an to significant analyst of about couple it's of NexoBrid, then on kind think next of to

So one, the think center about we adoption. burn

reminder, So, centers of we're year a we we'd would just subset start, expect as place next second year, during a get increase actually is XX and targeting opportunity. of to then, those will the piece XXX patient the and about orders. a portion significant of P&T, then the meaningful about thinking the through And that and would those really

our is patients reminder, around XX,XXX an a So, annual as TAM on basis.

if probably each by So, that patients it's per around about per center, you center, month. down break XXX At it's year. XX

our going of how to kind we those think burn many the cadence come adoption, and to year, as down what's centers. about centers our next ultimately, So, is penetration within

So, a those into some as to weeks just on to it's give very metrics move early But literally launch, or of few expect weeks so days. year. I updates us it's would next we obviously into a couple start

Ryan Zimmerman

Very Okay. thorough.

about from growth. though, driving overall and lot to just your next the be make comments, there's of that appreciate coming I Just misinterpretation. accelerated can sure is company's no I NexoBrid, on a the year, clear growth want

coming guys arthroscopic now product on above are market the next have you XX% You right MACI, and year. to exiting

clear, you're be to growth you're the MACI, expecting this year. XX%-plus over seeing next accelerate specifically not that within year, Just to

Joseph Mara

Yes.

talked just and think about point, sort total reiterate I is of this at growth, to company clarify. we So, all

had say company year. as the you of we've our kind of we've year, kind range. a of MACI, So, on key we're plus of if at arthroscopic on we and think, ton of the have and based We we're I will next a momentum this kind talked indicators. at that just guidance can we be year XX% momentum saying, of additions XX% about, look MACI, under kind as that the this then NexoBrid on

also we probably price, I strong, to arthro solid And year, as QX. cycle as the surgeon half the MACI. of we be talked looking sales and launch, growth year arthro given biopsies, start. The on later about, more think set of we a next on kind kind we're on as layer of say, usage, of place the similar at seeing or we would then, the think anticipate framework so MACI, first probably likely is in better probably for another about continues up a by kind to you're you QX piece, MACI. I about it's And start pretty biopsies think time strong the for in think component year of kind core I kind the

said, It's Now, another not company your level, we MACI, year giving in being question. all very the at we're rates. strong that specific answer expect but growth to just

Ryan Zimmerman

No, Yes. to clarified. it make sure wanted Joe. that, appreciate was I I

Operator

Your Partners. the next Kratky question of comes from with Mike line Leerink

Michael Kratky

standpoint have since the on just And additional a any for on of color provide amidst MACI. of recent supply guess, is manufacturing I the XXXX? that emerged that your BARDA separate baking continuity then, product the Should in that some concerns I revenue? we on start geopolitical for the of follow-up that And then, of on NexoBrid, can expectations have be XQ? start first, you

Dominick C. Colangelo

Yes.

So start, thanks. Mike, I'll

continue, So, obviously, this we've October operations close have war in this began. ongoing Obviously, in during actually and Israel received the and we time. monitoring at manufacturing MediWound been deliveries been situation with after contact

the obviously, issues and to for are going we're this. control, continue to monitor But to So, the supply we product. time receive under continue being,

Joseph Mara

QX, in starting about, the year. now we our Yes. expire. piece, say, expect would is I not stockpile not priority given on that And That's The talked next product. commercial bake BARDA is just we into I assumption. don't would as to that again, the

get may would our more into But point, think it some visibility not point, to into bake at next at I that year. I as assumptions. get So, some we'll this make sense But we replenish.

Operator

terms just it some your on the from helpful. so just to clarify, fair side, of consider XXXX, does growth contribution dynamic Really comments it. in MACI to is that side? revenue that And additional the wanted MACI for preliminary arthroscopic then, Got say

Joseph Mara

No, definitely it Yes. does.

I think doing of probably starts growth with have on Based we're like talking cycle, we half -- launch I components, in into drivers just around the extend the the be probably of year the contributing. more MACI what to was is it'll impact we this and think then certainly year. until saying, business it's the core with But arthroscopic QX, MACI kind that when this a it'll sales back take really do to an midyear, expect XXXX. it

Operator

next comes Cohen question the with Jeff Your Thalmann. from Ladenburg line of

Jeffrey Cohen

MACI bit talk arthroscopic you up manufacture Could as and surgeon what then, upon as little itself for maybe instrument about kits? additional for will talk those and approaches. centers audience the opportunity and the be an And the assembly, surgeons about the based of far in delivery a kit opening

Dominick C. Colangelo

take I'll it. Jeff. Thanks, Yes.

are currently instruments instruments the So, used. you surgeons. those all, obviously will first available an We be disposable our -- kit to website implant kit can that of is that that on see have made

to arthro procedure. time, integrate open of the the an or And whether to so, over would idea be it's instruments, all an try

appealing essentially and of cartilage to that of open sizing there's We to were code we few relatively and designing data arthroscopic-only opening open and X,XXX as that we that a had did have done we of straightforward. didn't a additional surgeons the -- data target, exercise time, segment know surgeons, really able team on on based cartilage great repair procedures that but the think the surgeons find it. we procedure surgeons in acquire we intersection surgeons.In and that repair past, force are a a that back activity, of I that's did set terms obviously had have data CPT procedures instruments job targeting So, those And high-volume ago, about was cartilage sales there. years up about surgeons procedures. has in talked open on where the exercise At did out currently X,XXX on our about repair we we've

half this no-open-data probably now should it, the of X,XXX that become doing repair. there's cartilage for doing high exercise fall of surgeons So, of into many is of call team volumes actually targets And a how those category high-volume identify those, us. to commercial

So, to would calling that reminder, that on X,XXX number both My surgeons as currently a X,XXX a And we said targets be the haven't yet. just market guess on. is, locked in utilize would new expect research more it's that procedures probably we of of procedures MACI. do the be currently And procedures then, is not to other using shift arthroscopic arthroscopic component us. to opportunity other do that the would MACI or part that surgeons course, growth MACI for

Jeffrey Cohen

did not certain Have they inflationary And commentary in one. more quick on diminished overall guidance degree? nice to could we're Joe, a a pressures? you one then, you comment for but the -- margins, have looking of beat QX. Any on some

Joseph Mara

just of gross margin the expansion. on obviously, kind margin focused and we're would say, I Yes. that

the pull-through. be kind margins. So, revenue of certainly, higher think, We're helps seeing of higher kind higher I us. We're at seeing growth,

lot I of kind think to of So, that's margins don't and I the already, just manage think effectively. baked a in certainly, kind we're trying -- of

as So, we a out from enhance I margins team additional focus to year call the new year, about perspective, remarks. and pressure. think just we that's but next can to nothing right adding top also in prepared there's line, into those now, talked to the do this a what grow

Operator

next question Securities. Samuel Truist your the with comes line And Rudowski of from

Samuel Brodovsky

on clarifying start to a want ask one to off, just Just NexoBrid.

of that 'XX largely is long should taking revenue? a that -- one, at of comment, contribution when be we think? still stocking be half expected you can And first revenue to revenue? procedural think that in XQ, how do point what And presumed the stocking With sort about driver you over? think Is

Dominick C. Colangelo

Yes.

days distributors product Joe specialty our quarter. Cardinal of couple I of the our think to of shipped mentioned, the we're from kind -- the in as was XPL -- last

locations. kind They So, it's obviously, activity is year. -- X there's think uptake sort of stocking right? main They sort at initial about essentially distributors. this in essentially of about X hospitals. quarter The different They of stocking think of once have happened, that done

I'd so, initial through Committee Joe initial kind as getting orders, forward. build treated. model of we phase. getting we're through patients into That just, getting really our the And kind approvals, getting That's it's mentioned, how now, And the going P&T of that say then turns reorders. --

say, fourth up utilization feeds and start board, get kind were quarter ramp of see through we we'll then I'd as these on So, that to we the initial talking and the uptake hospitals again, into about. revenue, some QX that and

Samuel Brodovsky

then, component growth of And terms helpful. That's next price in on that Okay. year? any adding should arthroscopic, thinking about to we be revenue

Dominick C. Colangelo

I'd itself, main to on price from of would typical expect and say, do revenue talked about, we year. so, right? Yes. taken we've MACI year, again really again, that we've next implant as the And the -- is increases, each our component

an obviously, think take. in of still shape instrument having the the of of sort of would then, price sort we set will process increase that help is I the innovative MACI instrument That, And determining sort we're be contributes business. little well. main our as for of the of would like driver currently, revenue bit opportunities kits but a kind revenue biopsies not where it

Samuel Brodovsky

or next the better expectation medium about here? guess, we as for arthroscopic over, it. MACI I years it's it, mix call the frame Got versus sort the the but be like between of traditional mix, think early of what the is will few over it, mix open a revenue term, reasonable to days sort here, maybe way implant

Dominick C. Colangelo

right, is question. it early a days. is Yes. you're That And good

launch it that question do cycle, given a revenue it's take surgeons a is Joe prospectively? initial going the I'll be, think one, QX mentioned, back. to look the at kind of and Maybe I as important, step assuming

by earlier, said great we getting expected in third we done. factors team quarter and human the that complete job the the study As to

We the year. the approval X-month by supplement the publicly, expect, get typically period prior of statute review said them we to shorter of a end although as submit time. a period, That's try within by they done to

femoral going question as portion In to prospectively? do patients be, what the words, approval first to kind that's we anticipated you to of of of and biopsies identify of X of sort -- points MACI going of to will of then, year come the I'm the half and kind now So, kind look gets again timing the contributing. first square revenue start X when for you think you you're towards centimeter kind other sort arthroscopic defects patients for cycle implants, the into with it back instruments typical are the at half of which from condyles. from could on go available surgeons the latter And of in. year when launch.The the

determined you sort think what like. out years, of mix As of kind it's looks that to the into I move be exactly midterm

X/X patella defects, mentioned, rest of opportunities, If into at be cetera. of sort market, eligible it arthroscopic larger of the you the more defects and defects the into looked addressable the category as or that we fall sort kind of open of sort fall of et

you So, bounds it think some up of puts might around I sort over time being. think what that could end

Operator

Your next the with comes Inc. from question of Stephens line George Sellers

George Sellers

Maybe with the quarter. question option. arthroscopic a the on on Congrats sticking delivery

touched target to on from need commercial commercialization maybe You Or X,XXX a be reps delivery surgeons, hired? touched option? that imply of arthroscopic perspective, launching sales extra pieces. about a should on Would we the that just how you of some regulatory few arthroscopic-only think timeline some the ahead of some I'm range. X,XXX to investments curious, the of

Dominick C. Colangelo

Yes.

of alluding headcount to number of kind of support would of Joe a again, we reps from Just the margin has to. But and would rollout. adding that relatively sort a small nothing change that of anticipate kind the profile kind specialists perspective, support been

a launch of year. call somewhere course support when the range, our sort half expanded in care similar dozen to NexoBrid, a of of the kind to, of burn it, dozen over the So, like folks we franchise a

George Sellers

That's could it's very NexoBrid with the the color initial might days any switching you look on like? rollout, just know of of what opportunity franchise, us that still I helpful. some And to early but maybe give Okay. or care then, cross-selling burn Epicel indications the really pull-through maybe

Dominick C. Colangelo

only centers third as And about have orders of the Yes. in again, from quarter We second talking to refer biopsies and not kind we we or we the group had as there well. continued mentioned reps Epicel dormant call, had of once we NexoBrid, place NexoBrid on that into that what but actually Epicel even NexoBrid-only quarter. initial naive because, reps received in the

availability clarified. noted, did was our We as product it's of of remaining fill kind you days. recently, early NexoBrid So, once positions couple

And the yet. we had force full so, really haven't out there

doubt a tell. would both part NexoBrid and our pull-through reps, that But strategy that expect So, talking in absolutely be the they're continue. of absolutely then no that and there's time we having was larger about to I think the initially products, will footprint, Epicel-only going and would both

Operator

the from Arthur of HCW. comes question He line next with your And

Yu He

Congrats strong R.K. is have on another Most my on Arthur of quarter. been for This asked. questions

When for study? the on quick more And one give ankle we're MACI. product -- arthroscope, there starting on any have the you beyond could for color timing exact new on how in a us future looking the the color is more you Just MACI?

Dominick C. Colangelo

Yes. Thanks.

previously, talked arthroscopic a of opportunity -- long and our in competition. MACI MACI current indication kind we towards MACI layer no obviously ankle of gives as you strength So, potential really about think of just the as vision, near-term runway paint mid-decade, decade, the is with of ankle we the kind sort core on indication, then the end a and long-term the

we'd about to we're early in there, sometime that to is that work towards mentioned needs study, previously, FDA, excited ongoing. after that initial may done, as And that a pretty XXXX. XXXX, So, steps but work The that end or potentially some expect position, in is the discussions there opportunity. I've the be be preclinical we of initiate that is with

Operator

over further questions back the have no I turn we time. will now Nick Colangelo. this And to at call

Dominick C. Colangelo

we well the year even we're And grown to the year strong a has through positioned XX% and XXXX. And the results for stronger the operate year. we've across company very we high I just this throughout that milestones closing, just a X achieved revenue very at at Okay. as Well, delivered and level to very nearly quarters much. an entire continues first in of significant point, believe a wanted the thank to strong total of business, mentioned, perspective, close you in revenue as financial kind reiterate XXXX.From

starting continued revenue total perspective, MACI cash each by in core And really strong profitability metrics momentum our to from a the on more on very as as continuing long-term we sustained expect strengthening drive XXXX, We overall, a further in anticipated profitability year delivered growth and no and $XXX for on operating to deliver continuing bring to in ahead. margin and strong as deliver investments strength increase well and and remain we're our in profitability company obviously, years, excited and quarter our products, even forward growth. innovative the and focused of with than our positive and to expect finish to growth financial cash sustained in flow we've XXXX, a million NexoBrid. as the arthro contributions position look to From of driven high and debt.So X to expansion strategy XXXX, more patients products revenue significant earnings a we adjusted in based years

look updates forward next So, have we day. providing a call. on Thanks to great further and again, our

Operator

conference concludes your today's This for participation. call. Thank you

You may now disconnect.

Vericel (VCEL) 8 Nov 232023 Q3 Earnings call transcript