Vericel Announces Preliminary Second Quarter 2020 Financial Results and Provides Business Updates
July 09 2020 - 8:30AM
Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies
for the sports medicine and severe burn care markets, today
announced preliminary financial results for the quarter ended June
30, 2020, and provided business updates.
Preliminary Second Quarter Financial
Results
- Preliminary total net product revenues for the second quarter
are expected to be approximately $20 million, including
approximately $15 million of MACI® (autologous cultured
chondrocytes on porcine collagen membrane) net revenue and
approximately $5 million of Epicel® (cultured epidermal autografts)
net revenue;
- Total net product revenues for the second quarter decreased
approximately 23% compared to the second quarter of 2019, with MACI
net revenue decreasing approximately 27% and Epicel net revenue
decreasing approximately 8% compared to the second quarter of
2019;
- Total net product revenues, which declined approximately 78% in
April and 32% in May compared to the same periods in 2019,
increased approximately 30% in June compared to June
2019;
- Total net product revenues for the first half of 2020 decreased
approximately 2% compared to the first half of 2019, with MACI net
revenue decreasing approximately 5% and Epicel net revenue
increasing approximately 7% compared to the first half of 2019;
and
- As of June 30, 2020, the company had approximately $81 million
in cash and investments and no debt.
Second Quarter Business Updates
- MACI implants, which declined approximately 84% in April and
37% in May compared to the same periods in 2019, increased
approximately 21% in June compared June 2019;
- MACI biopsies declined approximately 79% in April and 22% in
May compared to the same periods in 2019, and increased
approximately 23% in June compared June 2019;
- Approximately 70% of scheduled MACI cases that were cancelled
in the first half of 2020 due to the COVID-19 pandemic have been
rescheduled, with over 50% of the cancelled cases completed by the
end of the second quarter;
- Epicel graft volume, which declined 70% in April, increased
approximately 20% in the May through June period compared to the
same period in 2019; and
- Epicel biopsies increased by approximately 6% in the second
quarter compared to the second quarter of 2019.
“We saw a very strong recovery for MACI during the second
quarter as restrictions on elective surgeries were lifted across
the country,” said Nick Colangelo, President and CEO of
Vericel. “While considerable uncertainties related to
COVID-19 remain, absent a significant resurgence in restrictions
related to COVID-19 we expect growth for MACI in the third quarter,
albeit at a more moderate rate compared to pre-COVID-19 levels
given the decline in MACI biopsies in April and May. We will
continue to monitor the evolving landscape and we look forward to
updating investors on our second quarter earnings call.”
The company will host a webcast and conference call to discuss
its second quarter 2020 financial results and business highlights
on August 5, 2020 at 8:30am Eastern Time.
About Vericel CorporationVericel is a leader in
advanced therapies for the sports medicine and severe burn care
markets. The company markets two cell therapy products in the
United States. MACI® (autologous cultured chondrocytes on
porcine collagen membrane) is an autologous cellularized scaffold
product indicated for the repair of symptomatic, single or multiple
full-thickness cartilage defects of the knee with or without bone
involvement in adults. Epicel® (cultured epidermal
autografts) is a permanent skin replacement for the treatment of
patients with deep dermal or full-thickness burns greater than or
equal to 30% of total body surface area. The company also
holds an exclusive license for North American commercial rights to
NexoBrid®, a registration-stage biological orphan product for
debridement of severe thermal burns. For more information,
please visit the company’s website at www.vcel.com.
Epicel® and MACI® are registered trademarks of Vericel
Corporation. NexoBrid® is a registered trademark of MediWound Ltd.
and is used under license to Vericel Corporation. © 2020 Vericel
Corporation. All rights reserved.
Preliminary and Unaudited Nature of Reported
ResultsOur revenue expectations for the second quarter, as
well as our estimates concerning cash and investments are
preliminary, unaudited and are subject to adjustment in the course
of our ongoing internal control and review procedures.
Forward-Looking StatementsVericel cautions you
that all statements other than statements of historical fact
included in this press release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements. Although
we believe that we have a reasonable basis for the forward-looking
statements contained herein, they are based on current expectations
about future events affecting us and are subject to risks,
assumptions, uncertainties and factors relating to our operations
and business environment, all of which are difficult to predict and
many of which are beyond our control. Our actual results may
differ materially from those expressed or implied by the
forward-looking statements in this press release. These
statements are often, but are not always, made through the use of
words or phrases such as “anticipates,” “intends,” “estimates,”
“plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,”
“target,” “future,” “potential,” “goals” and similar words or
phrases, or future or conditional verbs such as “will,” “would,”
“should,” “could,” “may,” or similar expressions.
Among the factors that may result in differences are the
inherent uncertainties associated with our expectations concerning
expected revenue results for the second quarter of 2020 and
estimates of our cash and investments as of June 30, 2020.
Vericel’s revenue expectations for the second quarter, as well as
its estimates concerning cash and investments are preliminary,
unaudited and are subject to adjustment in the course of our
ongoing internal review. Our internal control procedures over
financial reporting have not yet been completed and, therefore, the
change in revenue and cash and investments as described herein have
not been evaluated under our internal control framework.
Additional factors that could cause actual results to differ
materially from those set forth in the forward-looking statements
include, but are not limited to uncertainties associated with the
scope, scale and duration of the impact of the COVID-19 pandemic,
growth in revenues for MACI and Epicel, the expected target surgeon
audience, the estimate of the commercial growth potential of our
products and product candidates, potential fluctuations in sales
and volumes and our results of operations over the course of the
year, competitive developments, market demand for our products,
changes in third party coverage and reimbursement, and our ability
to supply or meet customer demand for our products.
With respect to COVID-19, we are currently unable to reasonably
estimate the specific extent, or duration, of the impact of the
COVID-19 outbreak on our business, financial and operating
results. We are also unable to predict how the outbreak will
affect the pace with which state and local governments lift
restrictions on the performance of elective surgical procedures or
whether additional such restrictions may be imposed by states in
the future, the availability of physicians and/or their treatment
prioritizations or the impact of the outbreak on the overall
healthcare infrastructure. In addition, some patients who
have cancelled or postponed surgeries may not reschedule cases in a
timely fashion, or at all. Other disruptions or potential
disruptions include restrictions on the ability of Company
personnel to travel and access customers for training, promotion
and case support, and additional government-imposed quarantines and
requirements to “shelter at home” or other incremental mitigation
efforts that may impact our ability to source supplies for our
operations or our ability or capacity to manufacture, sell and
support the use of our products. The total impact of these
disruptions could have a material impact on the Company’s financial
condition, cash flows and results of operations.
These and other significant factors are discussed in greater
detail in Vericel’s Annual Report on Form 10-K for the year ended
December 31, 2019, filed with the Securities and Exchange
Commission (“SEC”) on February 25, 2020, Vericel’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2020, filed with the
SEC on May 11, 2020, and in other filings with the SEC. These
forward-looking statements reflect our views as of the date hereof
and Vericel does not assume and specifically disclaims any
obligation to update any of these forward-looking statements to
reflect a change in its views or events or circumstances that occur
after the date of this release except as required by law.
Investor Contacts:Lee SternSolebury
Troutlstern@troutgroup.com+1 (646) 378-2922
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