VCEL - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Vericel Corporation Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Eric Burns, Vice President of Finance and Investor Relations.

Eric Burns

Thank you, operator, and good morning, everyone.

call and President Joe our today's Officer, Chief Mara. on Colangelo; Nick Chief me are and Vericel's Executive Joining Financial Officer,

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

are In forward-looking of represent as views today of results quarter Relations note our and press views upon website. will our of Investor release Please I any our addition, relied financial that our today's statements all of only section with a turn subsequent date. to should as fourth Nick. not call representing over in copy the available call as now short the a be presentation and highlights from

Dominick C. Colangelo

everyone. Thank you, Eric, morning, and good

growth results the As of FDA revenue our last results construction higher growth for company several and to the company's XXXX, growth GAAP cash also MACI for as company commercial increased operating which support corporate flow operating increased The The for to key nearly franchises. delivered flow facility, pediatric will of our generating profit business objectives in Burn the more year of and Arthro, also significant million cash Care company both the $XX over company headquarters perspective, as and the revenue financial flow. profitability continued years profitability a highlighted achieved the business even operating approval preliminary new delivered another growth the The along was and top-tier as MACI From company total more million. outstanding NexoBrid and $XX of revenue total growth year, for achieved of year delivered cash with including approval XX% significant completing as in adjusted launch well in release $XXX indication EBITDA growth and financial and manufacturing and a or ahead. month, million. XX% than

more underlying was For record close versus highest highlighted margin over adjusted since XX% quarter. versus of with sequential $XX as gross and any surgeons, fundamentals year to delivered of well year company taking of had EBITDA of strong strong growth quarter, quarter the revenue biopsies MACI MACI the quarterly as and launch. third million than and profitability, implants, the by biopsies margin we in driven $XX growth nearly XX%, the by had record as performance surgeons quarter income implanting XX% fourth quarter a fourth net $XX million. record million, fourth the very of XX% of the representing revenue prior MACI's number

$X.X interest and million the since a at year, in highest number execute the results, For Based biopsy surgeon MACI's as level key launch, in by very at significantly another our surgeons which in significant per uptick overall and increases demonstrates of with rate. are to were level. slight any drivers, productivity high. The continues extremely MACI that peer-to-peer in drivers, results in growth MACI growth team strength together of remains of to well these per increased in quarter programs at on programs, strength rep as at time high as full the a those driven including attendance conversion sales key these biopsies biopsy XXXX surgeon commercial rep the growth

significant strong launch momentum the date, In addition, to year. providing cover Joe's have Arthro for to as MACI the been key Arthro I'll very for several begin indicators following performance comments, MACI

million. compared patient. number a $XX grafts patient lower fourth due year to full was below second a Burn issues in into third run to We and rates Epicel revenue as quarter, revenue fewer Care treatments result high-growth franchise Epicel per with of of approximately recent we XXXX, had quarter, to the patient the health developed increasing In biopsies although more a also XX%

results move NexoBrid. continued strong high relatively quarter, Overall, quarterly of injuries Overall critical Epicel can indicator the profitability While variable as for be now as Epicel revenue hospital provide inflection their an XXXX as turn leading our generation over several ended XX% continued our to of to the XXXX, was very in XXXX detailed I'll XXXX. a the and sales review the beyond. and call small adoption population for grew we business well cash of patient underlying results in in into more a demand the executed of in and the nature given NexoBrid the growth year and Epicel demand and strong revenue generated guidance financial versus result the we company as a quarter with well fourth increased Joe force. of third Burn XX% Care expect as and dormant orders expanded in strengthening accounts year, for we as

Joseph Mara

morning, good everyone. and Nick, Thanks,

$X gross an the year full year margin of the financial years. the Gross revenue. than P&L. Revenue line and significant revenue, quarter quarter and the revenue our across In margin, quarter, revenue of both million net strong and quarter was higher revenue profit revenue. As performance million, margin million preliminary ahead all for was financial guidance million, million record fourth and $XX.X translated sequential growth step-up The and XXX financial $XX.X quarter, fourth XX% of and to prior in XX% of highest into consisted Epicel of adjusted of to margin year. net revenue our NexoBrid with revenue year. XX% and of growth increased approximately the basis results even year start MACI increase $XX.X of third growth year $XXX.X initial $XXX.X Epicel company's for was adjusted $XXX.X sequentially was Vericel net EBITDA the an $X XXXX franchises million, in had very Nick and the the million XXX coming basis the in XX% for for the year of and and the $X.X X for growing was fourth XXXX. XX% with expansion million. was our the representing increased ahead $X with XX% year, with compared revenue revenue our outstanding revenue by guidance gross versus year $XX.X million ahead of stronger, revenue with referenced, of margin of and our substantial the guidance Care gross to or Full NexoBrid last preannounced quarter income points closed results both Care out points the to million our XX% year driven million Burn were in Total prior for results. of fourth over representing EBITDA high Burn

For XXXX. were points Total the was versus highest prior $XXX year $XX.X XX% the or revenue, the the gross to million net operating represents profit million margin approximately quarter year of for the XXX expenses quarter, gross in and company $XXX.X basis to million date. compared for any which increased in

net income prior for with perspective, in across coming net employee of XXXX, million expenses share marketing both loss for the The the quarter, and helped additional was profitability into in franchises. GAAP share increase year. From due were XXXX year or operating a Arthro, development goal increase increased well in related profitability a operating primarily key and to initiatives the million the million a same physician improvement expenses the or MACI of headcount compared $XX expenses the achieved in engagement per million $X.XX representing as to for period of launch in an a company million For $XX.X significant as $X.XX full over to $X.X year, compared $XX versus that activities per XXXX. $XX.X commercial drive

month. in or start and XX% EBITDA quarter XXX In of to adjusted margin, approximately EBITDA also prior net $XX.X year the year addition, XX% of the to gross compared And adjusted was last revenue announced $XX.X share ahead of revenue increase $XX.X an to Non-GAAP to per XX% the income representing $X.XX net XXXX. ahead our million net basis Similar for the preliminary of or year. fourth $X.XX fourth per $XX the for million for the or XX% of of or guidance results quarter for million margin versus significantly XXXX, compared to net to $XX recent XX% share million guidance of points was income million grew of XX% the most ahead our grew year. initial

in company quarter, adjusted quarter representing adjusted increase of versus the million the EBITDA an net XX% to revenue, year, or $XX.X XX% points XXX highest date. the to basis for over margin of the prior grew For EBITDA any

double cash, ending the from our $XXX continue to year and investments approximately in $XXX increased Importantly, cash than significant XX% as investments line very in results company's debt, year the for balance The with profitability top of operating facility. flow cash company CapEx restricted adjusted the start growth was the despite approximately EBITDA million revenue of the no the cash profile. our $XX.X and XXXX, growth of at XX% for up year and the leverage generated million full of as in more million a new P&L top-tier strong demonstrate year

XXXX. for Turning guidance to financial

grow start XX% guidance of the XX% announced XX%, XX%. gross to XX% are XX% margin the to year We with to to EBITDA maintaining and the expected year of revenue margin of full adjusted at

guidance, used and In we both are framework terms similar a for was our XXXX in as of XXXX franchises. revenue using

the growth For to with growth MACI, growth of the as starting revenue MACI continuing point, XXXX serve price in primary strong another growth surgeon a range, revenue XX% low growth, and biopsy to we and as biopsy expect year drivers. expect similar

While MACI MACI's in strong in growth does revenue, change initial will the to contribute start cases guidance a to our not year MACI current significant trends. Arthro build

the we high continued throughout the year the year progression expect Care revenue full single-digit with For of range. NexoBrid Burn million in revenue franchise,

single-digit by revenue As approximately prior driven an in year increase in similar QX, in to quarterly we year $XX a mix million the be strong the to percentage first quarter in Epicel, $XX After revenue full primarily starting of with in as expect expect growth years. range, high close full a the very year a million MACI we price. for to point

quarterly recent are of in the per to at range, trends, due For Burn patient health to grafts Care, patient Epicel and mainly of issues. although continue our currently end the treatments lower quarter patient first typical ahead be biopsies

first will quarter, starting the a $X million the million $X Burn range. for Care revenue As we point expect in to be

down strong margin growth. expect another we profitability P&L, the of and expansion Moving year very

quarter, fourth is on have highest of expect include typical, operating the facility, the in year building-related of margins of million. quarterly expenses expenses approximately which XXXX. following that expected lowest of the to the our first quarter the our $XX and of note we terms the expect is progression be important In are highest of year. margins, operating margins year depreciation will have the new the to now in and Full approximately as to to quarter $XXX other It construction in is million incremental starting expenses revenue completion

incremental the building-related increase low these range double-digit are percentage core in to expenses, Excluding operating expenses expected XXXX. in

of spend vast a facility Finally, decrease complete, XXXX. the majority the significant with in we expenditures anticipate in new for capital the

mid-single-digit run now total, to half final We inflection is after year, rates return facility, purchases continued the call of this expected announced the equipment which in with to In high primarily in to generation. the to the we supports to and midterm new earlier in expect XX% $XX top-tier annual CapEx further $XX high profile profitability adjusted increased that margin year points and EBITDA the XX% cash the gross million the million in in the I enhancement Nick. of CapEx approximately by profitability a back for to will corresponding which guidance XXXX. company's significantly the growth high of margin over the in related revenue millions XXXX, lower first range this of targets range turn

Dominick C. Colangelo

years ahead. had expect strong strong in company XXXX XXXX, in and a The Joe. the performance we and year Thanks, continued

Arthro While X,XXX-target less less high-volume targets well positive MACI we're Surgeon as postoperative of both our interest a option with launch, has arthroscopy market noted postoperative which early the may in previous and engagement been clearly benefits still MACI seeing we're MACI the faster in feedback incremental surgeons significant in procedure the as now base. incisions, surgeon are that very the potential our offers as X,XXX surgeons requiring and patient by patients. Arthro for treatment smaller and research recovery invasive supports pain part result

biopsies trained performance Arthro XXX to key approximately launch, for of date, MACI femoral have meaningful previous of implants smaller of new early treating indicators our defects number scheduled users, we've from completed had In a condyles. have several received each outside segments the or and of terms the of our and of from cases have MACI MACI MACI non-MACI some had targets Arthro-only Arthro surgeons surgeon MACI the

the more our MACI that time. which over growth surgeons trained significant to year MACI largest MACI higher surgeons, a broader trained than MACI drive biopsy may that the that of a these suggesting patient And be at primarily trained the encompasses that been Looking potential population defects, surgeons is those to expected use rate trained, market. closely MACI addressable be are of activity for percentage importantly, patella for surgeons considering not historically have implant segment a start their for surgeons substantially increase the Arthro in would the

order progress initial bolster we're meaningful So MACI utilization the trends a use to strong overall by impact NexoBrid overall, centers the on pleased this We're MACI current high-growth as continue over with will encouraged very potentially into recent the and regularly launch have believe and more NexoBrid. and that trajectory. year with Arthro its sequential positive for carrying in fourth orders the also in quarter hospital growth

strong, and and number users, in become for in designed both we the Similar usage Burn and more continue in which XXXX. initiatives proposition the from have also will is Care to footprint that products to uptake Importantly, now XXXX, we year. to our expect sales XXXX utilization as saw NexoBrid key place dormant larger remains efficacy entire drive of value have year NexoBrid to we for larger on force, and this dynamic NexoBrid with and we centers our drive continue of consistent a in cross-trained Epicel the accounts new

remain the of submit clinical and growth ankle study half would also the MACI year. MACI development addressable year and second the first in IND program market longer-term to into to the substantial indication in potential expect half III the With expand of other markets. MACI an $X continue for billion, orthopedic this to track estimated represents a initiate of enable an driver company advance and to ankle We the on Phase

complete, facility open United the in provides market Finally, facility meet requirements, commercial we've OUS construction tech to company with our remarks. both ahead an your commercialize continued new the our and designed questions. of on MACI as This which We'll to of Overall, track and for and the growth based We've to process well for evaluation our initiatives. new facility strength positioned revenue other next growth U.S. unique long-term combination of very now and XXXX the commercial year. begin growth believe continue long-term in initiated on in global portfolio, and manufacturing remain States. manufacturing concludes manufacturing company. profitability the value the strategic the expand to This a creation sustained is initiated prepared recently and MACI we're call transfer of the several opportunities Arthro potentially flexibility the deliver the outside core progress we the for of the and requirements we regulatory recent MACI years geographies launch opportunities to high to on

Operator

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

Ryan Zimmerman

wrong, that in contributions it all broader this you base, math, for customer with adoption the be the guidance When about talk doesn't on in in but MACI think MACI broader to year, year, and and I want the appear potentially start the could with it assuming that wouldn't But training why growth, if both first I Arthro the which the about through the could, the the training, that come and to my Arthro. a XX% contribution year? both Congrats but guidance. growth the of meaningful a for progress. in we is, you're I guess, I reconcile quarter, expectations from with when MACI for the for context MACI by

Joseph Mara

is this Joe. Ryan,

on start this I'll So, one.

appreciate So, I question. the

framework think and is point, starting on XXXX. I we And company we've very a essentially from couple we the about framework obviously, basis, year for So, your last had years. to as year a a the reaffirmed I'd similar we the year think full a as perspective, guidance, MACI of our say solid think point

strong continuing So drivers, same expand and growth surgeons core price. think biopsies, to about our

about really that. growth probably the That's high starting point. So, to, comment just a XXX it, to the That drivers And on XX% core it's your of gets MACI. growth. you question, low something kind of XX% call is I call good think from the XXXs, range, it, in

that, on to we start your have we're But this to the early out into significant mentioned, importantly, We indicators start that and year. date. building indicators it's of guidance Nick an question, gates. to potentially MACI to MACI to in encouraging due would perspective... the change a of Arthro. is clearly, not the not trained there And of are the a again, number say I the including that, assume Arthro in Having MACI to point, and on been are the very said MACI from strong. we to then XXX outperform surgeons trends opportunity think kind in QX a going at But year As seeing answer the year,

Dominick C. Colangelo

Yes, please, Joe.

Joseph Mara

QX there. on the for on just MACI in So question

think you quarter. think a yes, from about couple about So perspective, think so a pieces first of the to guidance I important as

similar a off mid-teens. higher on strong We're dynamics. up growth ago XX%. So fourth XX%. the a using We off quarter, year-over-year a than we of that was kind last same also we're little This strong fourth very around We bit first QX. We guided the coming in essentially in framework guidance a a year year, a off, year basis. ended used were coming which quarter,

similar in that a higher in range. bit midpoint It's is little the guidance a very XX%. actually Our around

So we consistent similar want first a from we're approach to just a make perspective. have off, sure and year-over-year

impact X we have MACI fewer selling day day will and in the cases fewer that other The for piece do quarter. have is an X

So, points. around for that's XXX basis us,

range, it, for you're of you So, in call to year. kind XX% which if last the, that, adjust similar more is

we're So general right half, strong MACI, we're guidance We year, that's the for way the set and a point kind about think MACI we thinking think up about Arthro. first of in starting the thinking is the we're QX. still for the including how

Ryan Zimmerman

you've to a on fact sites, mean, NexoBrid number for this NexoBrid What P&T kind the of franchise historically hear sites number the going accelerate of it's the and of a take that hair stepped Nick, kind here. quarter. order expectations et I the also to turning the are We Maybe adoption And of reconcile that trying just that committee, minute for 'XX? about in think to XX% ordering talked, QX here? do cetera. you I'm NexoBrid to sales what with growth QX to down from didn't

Dominick C. Colangelo

Thanks, Ryan.

QX that the So, dynamic, talked the launch up as obviously, phase of in of hospital XX%. about kind sort early we've orders, is were

talked our on based we recognize specialty Cardinal. about XPL purchases before, revenue our distributor we've As from

inventory mismatches different can have ended to they're end And what And you as levels that's definitely happening. so, managing really up year. the

focused really we're demand. the hospital underlying on So,

come we As it to continue. continued as consistent We've QX. prepared big a expect in that seen to as hospitals mentioned pretty become more begin users, we remarks, was progression our in the and we year into momentum

last for revenue a meaningful that's of kind and we where the Joe year. NexoBrid think high versus single-digit pretty were guidance I mentioned year, uptick

Operator

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

Michael Kratky

One you little bit thing the talked about rate. out, conversion that a stood

uptick into increase continue conversion in year be out to for beyond? see your So, would then is call your rate in that that And any expect the rate? a conversion factored you you guidance capacity? what that Do XXXX could lastly, potential this and factors in responsible

Dominick C. Colangelo

uptick saw So a I the the mentioned, conversion on so we for year, yes, as small rate.

that X,XXX said before see customer always X,XXX that our MACI customer as surgeons to we've matured, think base of likely Arthro sort you'd expanded was little a drift. the case base our I from for which we

the was primarily I reason it. And think for that so,

customer As base that a we lot of more forward, be MACI we're with again, the in Arthro. launch the go will adding surgeons

we haven't for mentioned, our We provide guidance really Again, factored a things upside. option big certainly movement the year. surgery that the in rate with believe less. those the of So, in that patients hurdle arthroscopic for sort potentially as with potentially moving Joe of conversion kinds an forward could the are be

about, see talked time, hopeful the we're So, always but into not guidance that's conversion our over year. for we've as baked to increase,

Michael Kratky

And then maybe one follow-up. just

XXX You had on helpful some trained Arthro. commentary MACI the surgeons for

any we get that there's pace how should the new color provide from could think MACI if at the on or surgeons seeing previously the you're curious of not using about on some trained to and board? can Just you which they start utilization

Dominick C. Colangelo

Yes.

of activity talked we last kind QX us QX, about the and monster as is the cases bringing really to year, obviously with for a very were quarter that. So, a home finish we is for of and successful lot

Arthur And is so, MACI launch really kicking into from our this year. perspective, the start to full gear

And As some you biopsies right? that we for now commentary right from we've leading the of previous of mention user and sort giving cases know, segments. MACI of or either us, a you did because around scheduled completed X nonuser all seen kind that's indicator we're

that's encouraging. So the encouraging trained the of biopsy total, growth outperforming surgeon that's very have you when sort obviously

of about Arthro. of MACI optimism all these give potential a lot And us impact I the indicators so, think

and We from we've the of we're innings to early share seen sort to you what here, just are, as Arthro of on biopsies the with time know, early wanted lines given leading kind implants, but commentary indicators some MACI of to sort in date. the

Operator

with Richard next comes question Our Newitter from Truist Securities.

Felipe Lamar

Lamar on for Rich. Felipe is This

guys making trained. on are being the you real Just physicians progress

was it XXXX. I XXX in think

incremental like incremental can XXXX? XXXX, growth just added out us being expectations color Looking on for to and some for revenue contributions you give any potential physicians

Dominick C. Colangelo

good they like over talked we'll And year, to continue XXXX. And be course year QX, our cases would we the surgeons. get as so goal has number JPMorgan that now, to of to the QX. we're as Obviously, team of trained surgeons, to, is ended continuing we we about Obviously, to around during just haven't MACI the a talked expect meaningful doing with as already XXX year train we So in then and as alluded in. we're surgeons the a that XXX that at obviously, obviously clear, up commercial and baked of to conference. would to progression about start into this Joe Arthro we

We yet. have for is reality the MACI mean, already growth I year. year for not guidance the is the last above

So obviously, increase we we're hope and expecting rate. maintaining Arthro that some as there's upside growth obviously the to progresses MACI in if some But it will.

Felipe Lamar

And then little just on the for know performance a high single-digit lumpy. Epicel. bit growth I guide has been

So, help that of be could the for would through understand growth you if Epicel us 'XX, cadence helpful.

Joseph Mara

of from Epicel the an a if points. framework, about So, think perspective, important I you think couple

some of But a grew year. with quarterly part last was full the year was sales in a performance higher full of share NexoBrid. the So XX% obviously, We for an basis. voice on had the year year, there very perspective, We strong. force expanded had from We a variability. market

good lot XXXX. Epicel signs in So, of a on

Epicel, a to bit high I little think to start a guide probably is bit going of year, more in the on a more traditional we're be range. that little single-digit or which perhaps conservative

that So million, around gets to minus. or you of plus $XX probably kind

part a important volume very guidance remarks of framework. you growth as some we the about prepared that the framework, think little is basis do think point, essentially, on growth I is in had because that's from we get price on as think one the I Epicel year-over-year well

we volume that's, appropriate particularly still range. call basis, think of we starting off a flat some a We if an us have of that see a variability. from will that From that last framework very kind I year. as gets Epicel, quarterly strong perspective, think, high it, a can year, year. certainly for we year-over-year essentially, this point So year about I saw on kind coming perspective, single-digit into But think the I think flat,

Operator

next from TD comes Josh with Jennings Cowen. Our Instructions] [Operator question

Joshua Jennings

performance expansion I ask I Nick EBITDA gross the LRP an to now right that team trajectory. QX a of and get you the if put high margin next that why adjusted Joe, of over kind even XXs guys suggests lot in you margin the and ramp-up years. also, couple was expectations of targets table. just hoping adjusted confidence any about EBITDA attractive put to the gave manufacturing margin, high facility, I confidence, there's better in the start the kind the are as time? margin think more you XXXX margins XXs maybe the help of on a just gross expansion in understanding new wanted turbulence was the to us there out think margins just But

Joseph Mara

Josh, thanks the for question.

say So, targets. kind things midterm increasing would of on our a couple I of

a started of and mid- year long you think on the midterm And a if So, range. call we a, with ago. kind said year of get we about thinking kind it, guidance can term, assumption XXXX, margin the to a the gross that of perspective, from XX%. we midterm to plus XX% was That

we overperformed XX% all outperformed our up year, expectation, of significantly got So obviously, the a we throughout initial on full year to the progress basis. and as kind way

and that mid-XX% can year. kind kind of range we're year, close of bit it improve little a we to So, think last this we on exiting

certainly time that wanted perspective. is the kind think this year. part in terms of update reasoning to gross start So, thinking why like margin we That's year of a the I about of the that from right

which around a if point, year we that And from at So, essentially about point a X fourth scale. quarter, we an XX% point is of a were think data in it's XXs, margin important few in about kind high this to the perspective. be can gross think years as you where your

-- are because the really I building next don't to decade. to be the this right think et margin, of targets kind 'XX, I there But cetera, will gross by want incorporate end get will et the cetera, have of the in years. into into too now far of couple the we

year, We We had the on right adjusted quite side. briefly, similar line it's a bit assume XX% shape little And example. of where year. is started XX% you it's margin EBITDA going on 'XX, maintain given What particularly story 'XX, point this year. to last in at -- think could a the year. we it's it's of top kind if quarter, the from basis. we vary then of a can adjusted marker EBITDA assumption a now look the at And kind year the gross I a fourth But So, think building that but to got up last go on bit like we we margin. as just that kind expansion at we to it strong full exactly for of looks great side, that we include a ended if XX% again, X

think that margin by as thinking the revenue it, as about Arthro, and around a the MACI points end to year decade, next So, few we over we the growth it's of expansion call opportunity, the of reasonable years. X think of think the cetera, et kind we assume, about about

about targets So thinking year. that's why want to make the we midterm start we're the the and kind of to update how

Joshua Jennings

on are potentially they maybe the to with XXXX, Arthro. in MACI benefiting the that if now at are -- I on condyle patients biopsy femoral been up and some a it's bank biopsy them follow-up get is that to if condyle back thinking driver wanted and for go volume but that about femoral surgeon candidates the And to commercial they're lesions not ask that for lesions MACI growth also that's just trained base and some in Arthro up, MACI of a potential seeing least just small how MACI bank of the have that sized effort

Dominick C. Colangelo

really that arthroscopic and expect, I advance nice biopsies which an their each job commercial to of as that discussions think, look reps say, you'd administration, so of of take provide converted that our back haven't go might did launch they surgeons. to a kind hey, Josh, a team could be of have list of with for the to candidates patients date, these in

So those And done. course, of were examples fourth the those quarter I'd even over planned of to days be had approval, open femoral the an some first case of and would was that all done Arthro. been MACI and say that of a existing case there early condyle where of was that launch Obviously, have days after cases happened. certainly then was couple to that done shifted in

early actually contributed in well. So has those some cases to I may and have mentioned, will as and as to certainly that contribute cases, XXXX of happened

Operator

of [Operator Instructions] Canaccord from Genuity. the comes Caitlin question next Cronin line Our from

Caitlin Cronin

you sizing So if team ramps? sales the existing a I And then just sales in days for What's a commercial the color to early on Arthro for touched the focus the just and you'll any more touch conduct on on MACI team. focus org. biopsies on year mean exercise MACI for the team year? as force just this this strategy

Dominick C. Colangelo

highs I mean, as to to cetera. et the job the all-time revenue of close surgeons, So, implants, team really all all hands-on QX, a with I bring underlying and sort home, it's of nice MACI record out on that, deck the quarter did biopsies, mentioned, and obviously, doing metrics

focus meeting big a all obviously national in in Arthro was that So sales MACI QX about the launch. January was

And so that's the a year. force this sales for activity for high priority

even expected take expressed effect. lot more surgeon hundreds their price level surgeons. that earlier opportunity. think really say I'd doesn't to if kind a earnest trained significantly move had about have implant the year when one we with MACI Arthro a point, And kind kick the at throughout And year. the just in in each off I can around of start It So, a does of to to it really the our you needle efforts think enthusiasm of of is there's big high what we that line

organization So, understands I think everybody in our that.

expansion the of sizing, XX from force meaningful kind to territories we terms a back In of XXXX. XX sales did last in

the sort we workload, we we higher geographically volume, previously think this dispersed managers territory analysis, analysis wrapped to the but the every to will And the year. of it said we'll junior way that that something I it's have some more help we could outcome will the is have the territory then realignment, reps, of depending bigger year. a with middle essentially second And of hope we junior we don't up If part of meaningful you did support for us. more of that want anything similar have territories, from do ran expansions playbook to we along more that, year. prior the the added in will it's some of when analysis what the that like each the half the implement that refreshing have refreshing the be XXXX somewhat or do during that the we wrapped if XXXX year, is probably XXXX. by disrupt in which We'll through it expanded obviously into year year of that's because to be

Caitlin Cronin

in new What to assessing and move expect just expansion? cadence you opportunity, materialize you've MACI the that begin you to might OUS the of on as the do currently you XXXX facility noted opportunities there. then the And for start that

Dominick C. Colangelo

evaluation hope producing in we've be this The say would timing XXXX. would we I this be in off facility and be would expect year. MACI to kicked the to commercially

obviously that I there's attractive a once think it be component expect you go to there might regulatory to decide talked into. previously we've countries we'd

this move of And probably time basis, on frames. opportunity, different so XXXX country-by-country of XXXX, that in those be a And time. but will a would sort can more take some and

launch, and mentioned. but 'XX So, I 'XX, it will not be wouldn't as a expect, I XXXX probably

Operator

Our Mason next question with from comes Inc. Carrico Stephens

Mason Carrico

We these starter your Arthro surgeons scheduling programs? do many biopsies training How post Arthro are one trends What one country And you after the adoption these utilization you Technique or these following taking how them around on after kind seeing of and even year? procedures attend of you to of saw events? are see begin soon this programs surgeon offering program. the on guys of a

Dominick C. Colangelo

Yes.

events number, I training of have a this number we mentioned before, a opportunities. I've So, and think different

a MACI back minute, just Just ways Open, can for trained. to take like be there a are step surgeons different

sort training we to of our of online materials. submission, submit part the As had

used it, dozen cadaver individual well. training a kind that with, train some do we online on programs, surgeons lab mentioned, models attend which can call choose programs of can Arthro sort time. They kind have to of bigger They synthetic and have go MACI or these if as are can as simply or that. of start at can So, surgeons X of you be a they

as of ways of of mentioned, several course lot year, a just together regional where individual there's We'll tend trainings different the be those So, as on program, number you and bring there'll but surgeons them do is can one during the we surgeons of train. the a The of to weekends. well. STAR

think I we think with pretty XXX that that to good -- mean, It's certainly mentioned trained already. I we're off early earlier surgeons I meaningfully So, start to in the certainly expect year. a increase I throughout We'd the year.

that get And even right? so, taking be make trained, you surgeons trying goes that they're can time. some can a trained. and You that biopsies it videos before or expect later surgery. that take saying see having we're biopsies then attended without right to will They get the trained sure seen peer-to-peer program the and We trained all the get maybe having before

sort been So, who And been early we've this have ways those only as mentioned what you've We're biopsies a the not rate is now, growth surgeons, there's a happens. than very different year. seen from I think seen, significantly the the earlier, that of and bunch of February trained. it's -- in but the already, I through is trained there's coming greater

of surgeries they sense a done. some you And of exactly gives that how taking think I when it's start on then, get course, dynamic biopsies. patient of So, quickly idea the

Mason Carrico

MACI, of what give infrastructure required the potential would thoughts be targeting support on to OUS maybe would an there us your you the international And markets on could you like look commercial initial and just what expansion business? MACI

Dominick C. Colangelo

Yes.

conducted have MACI some reintroduce And in in to into and required manufacturing here facility would this Europe of U.S. a was that That approved lot changes for trial, reasons, was this do fact pivotal And Europe. for product the with the have the was the that had then when kind over. MACI market. to XX there been just study the bought shipped business years study in made ago. you to various been remind would the clinical So we

interrupt so, weren't we we in our that, with global mind. manufacturing requirements but for this U.S. going facility did And to build manufacturing

So, will for that to We there conducted run the be Europe. attractive expect of study. are in pivotal European The markets. was number do clinical countries a already study to a have SUMMIT we believe study not

market So, again, opportunity, regulatory process. requirements, reimbursement, be of a country-by-country is et and go we'll look that a regulatory cetera. the And our at both it expectation will more basis on

reminder, for positive we another a As the U.K. that nice product. opinion have did was the in

So, go look foundation there's in some South into well countries Europe. countries as in at to points as for kind We'll in good of America certain Pacific. back starting certain potentially also us Asia

commercial at be basis. certain are There infrastructure, basis. with country-by-country will on in be way of that kind I will So, a that's think And country-by-country a it where the a, we'll Europe countries it. vary The approaching these countries more something use might patients again, treated we small excellence. There doing number are centers That's where of about think a be injuries own. cartilage of kinds to can distributor. or want our a we of may partner a on

So the that as well. of part assessment will be

Operator

of Our Co with Jeffrey next line question comes from Thalmann the Inc. & Ladenburg Cohen

Jeffrey Cohen

QX the On and year readout.

of in locations? or sites the and So, the this a perhaps well a I the of back the you IND give MACI Ankle about for talk of of the is, size firstly, as questions couple half sense guess, year could patient us population as

Dominick C. Colangelo

to work part is first ankle submitted the on MACI the the itself, With the the working just done. that and with then half program. of done, there's past preclinical some obviously development to will IND the That of work plan in which, we the sort needs we compiled study been So study year. be our of study, half be always plus for over initiate FDA complete for again, the of We've the that essentially the expect the expect for year. and second as in year would

patient SUMMIT study. in a the numbers, patients the of there of couple were hundred terms In

defects. these more smaller just a expect along lines, You'd something because those are bit probably little

a we the study -- want it You won't results. the sure will took demonstrate of we to would at that to X to XX X-year power be it, conducting kind years the But enroll. regulatory SUMMIT of make couple a months roughly it the process. those study, appropriately There's When look parameters call MACI be of be to you kinds to through go years within the study. follow-up,

potential and We for OUS well opportunities XXXX set the of on this year in the we currently, and decade MACI that back beyond. So, think in really of Arthro decade. is MACI half growth But this of MACI this top a in strong XXXX-plus MACI really up next earnest company. kind for going in then consider forward, Ankle the and core opportunity the of context again,

Jeffrey Cohen

And then label size pediatrics. NexoBrid? effect on commercial organization of that Congrats on about it second areas the for us, could on the open Any may points and scope to you that talk up? call expanded or the regarding

Dominick C. Colangelo

basically all -- we went middle products. XX yes, the year kind of to reps with you'll Well, recall, expanded of territories if last we both in to selling

that So in plan that was had kind place. we of the ultimate

Tier that that The mentioned at around the XX about has there's XX Tier indication, pediatric occurred. we were about already X pediatric targets. Burn there centers The and time, X indication, So pediatric country.

the So included product And well. now. those centers are a are U.S. pediatric study the the using obviously on already are definitely that there that as list centers there handful as a in of was

So, familiarity with the the product even before approval.

Operator

line next Swayampakula the from HCW. Our of comes with question Ramakanth

Swayampakula Ramakanth

me. from couple A quick of questions

in already in And meetings product that MACI? the that hurdle that separate are does product itself, Arthro the is cycle? On commercial using require P&T cross the hospitals to another

Dominick C. Colangelo

MACI, drug drug own is So which the its J-code. clear, substance same the has the just and for product be to

hospital separately unless and a to built buy build. so And wants

we're P&T procedures. instruments now MACI committee us. not that approvals expensive. It's the for of generator a been approval are equation for committee require have Arthro. never There open are part particularly These some for the institutions MACI that revenue So, back selling for

but have something to are it Arthro is to through hurdle forward -- of process, that there with cases really to where move kind able been not cases. go So, you not that has a being MACI it's

Swayampakula Ramakanth

centers help running program, the using for that study line that IND, centers the are be MACI? And would in of enrollment ankle planning the study the some already on time that and to So, this the would as the also same you're such? conduct reducing as initiate

Dominick C. Colangelo

will at promote, ankle cover cases part doing of but are number those a are do and done Europe are point, there MACI surgeons payers Certainly, certainly back that there cases. surgeons can't self-pay day mean ankle patient I procedures. It some we that in cases. are that insurance and this Yes. cases who U.S. a the out are the knee ankle do, there was either there. are surgeons big of obviously, there or the publications in pretty both in who And yes, business already

obvious those potential are go-tos clinical as study. So in the sites

Swayampakula Ramakanth

margin mean, down question I expansion of the and the margin of is gross on on coming -- the over years. gross growth The last the the

matter in So, -- starts too margin new already a that manufacturing would coming with gross there the is facility before really initially not that the that much? should on Or dip be board, facility completely contributing?

Joseph Mara

So, for this the year, we've obviously given guidance.

kind be XX% We expect to of range. XX%, that in

But we years. with P&L. we're gross certainly, hugely feel taking to the think its expect margin number decade. side works And starting as 'XX. facility we by in right from, may of a probably P&L, couple costs over of We 'XX as the in kind the it, the But OpEx probably through obviously earlier, facility we like the will 'XX I as the said facility. can not about it XXs as perspective, next as year. of be of 'XX. to we consideration this new linear. mix be definitely to the that initially, the end longer-term that similar, thinking we're year the like high on I move lot kind I the think say, will as into we a of Again, obviously we're from get be a But exactly next Generally, XXs would that manufacturing it through of those it from the a of material would that works way I kind the high kind don't call say is feel perspective

Swayampakula Ramakanth

then And itself. franchise the on last from Burn question me is

of of will then sustainable, are of And sort not terms the that think helping grow -- beyond? the but are do what to are In franchise, doing factors Burn for only which this mean, the what many year that? be factors ones generally how you I

Dominick C. Colangelo

growth mentioned, it XX% expect of while year franchise good you variable performance, a Joe as up the Burn year had continue, Care into to Well, Epicel kind Epicel of year the underlying the had has we look NexoBrid starting terms a we was company the Joe I being still carried of contribute we revenue orders think will pretty said in last strong range. high to At the time, quarter as mentioned, on same through and basis, in that if single-digit quarter-to-quarter, obviously, fourth obviously hospital at in terms QX. the for for in demand

this little year million from a point expect a throughout we this year. so, $X NexoBrid growing single and digits continued year progression to last as And high starting over for revenue

kind contribute So, last of full for versus both and the the its larger we to execution as the sales think throughout we as force will enhance part only products, to contribute growth expect well team team we care year continue year continues to having move burn year, think year. that the to of as that I

Operator

for I'm showing Nick this at like time. would it to no I now further to closing questions turn remarks. back

Dominick C. Colangelo

Vericel. continued strong expect I Okay. company continued the year momentum growth want great Well, and Obviously, a just to in thank for your everyone really questions we year, and had XXXX. interest last in and

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

Operator

participation does in the This for conclude you today's Thank program. your conference.

You now may disconnect.

Vericel (VCEL) 27 Feb 252024 Q4 Earnings call transcript