Vericel Corporation (VCEL) Bundle
A Brief History of Vericel Corporation
Vericel Corporation, a leader in advanced cell therapies for the treatment of patients with severe burn injuries and cartilage repair, was founded in 1989. The company has a rich history of innovation and growth, particularly in the development of its flagship products: MACI (matrix-induced autologous chondrocyte implantation), Epicel (cultured epidermal autografts), and NexoBrid (a topical enzymatic agent for the removal of eschar in burn patients).
Key Milestones
- 2014: Vericel acquired the rights to MACI and Epicel, enhancing its product portfolio and market position.
- 2022: The FDA approved NexoBrid for use in the United States, marking a significant milestone in the treatment of severe burns.
- 2023: The company began to commercialize NexoBrid and expanded its operations into pediatric indications.
- 2024: Vericel reported substantial revenue growth across all product lines.
Financial Performance Overview
As of September 30, 2024, Vericel reported the following financial performance metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $57.9 million | $45.6 million | 27.0% |
| Gross Profit | $41.7 million | $30.6 million | 36.1% |
| Net Loss | ($901,000) | ($3.7 million) | 75.4% |
| Research and Development Expenses | $6.1 million | $5.7 million | 7.3% |
| Selling, General and Administrative Expenses | $38.0 million | $30.0 million | 26.8% |
For the nine months ended September 30, 2024, the financial data was as follows:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $161.8 million | $132.5 million | 22.1% |
| Net Loss | ($9.4 million) | ($16.2 million) | 41.6% |
Product Revenue Breakdown
Revenue by product for the three months ended September 30, 2024, was as follows:
| Product | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| MACI | $44.7 million | $37.6 million | 18.8% |
| Epicel | $12.2 million | $7.4 million | 64.8% |
| NexoBrid | $1.1 million | $598,000 | 78.1% |
Operational Highlights
Vericel's operational focus has been on expanding its manufacturing capabilities and enhancing its product offerings. The company is currently constructing a new facility in Burlington, Massachusetts, which is expected to significantly increase its production capacity. The total cost of this facility is projected to be approximately $28.3 million, with an annual base rent of $57 per square foot, subject to annual increases of 2.5% .
As of September 30, 2024, Vericel's cash, cash equivalents, and restricted cash totaled $70.4 million with short-term investments of $48.1 million and long-term investments of $32.9 million .
Future Outlook
Vericel Corporation is well-positioned for continued growth, driven by its innovative product pipeline and expanding market presence. The management anticipates that the demand for its products will remain strong, particularly with the recent commercial launch of NexoBrid and the ongoing development of MACI for arthroscopic procedures .
A Who Owns Vericel Corporation (VCEL)
Institutional Ownership
As of 2024, institutional ownership of Vericel Corporation (VCEL) is significant. The following table outlines the top institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,350,000 | 6.8% |
| The Vanguard Group, Inc. | 3,100,000 | 6.3% |
| State Street Corporation | 2,800,000 | 5.7% |
| Invesco Ltd. | 1,500,000 | 3.1% |
| Wellington Management Group LLP | 1,200,000 | 2.5% |
Insider Ownership
Insider ownership is also noteworthy, with key executives holding a significant portion of shares. The following table presents the insider ownership details:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Nick Colangelo | President & CEO | 1,000,000 | 2.0% |
| Michael B. Dyer | Chief Financial Officer | 500,000 | 1.0% |
| Mark D. Bloom | Chief Operating Officer | 400,000 | 0.8% |
| Various Other Executives | Various | 700,000 | 1.4% |
Recent Stock Performance
As of September 30, 2024, Vericel Corporation's stock performance includes:
- Current Share Price: $13.50
- Market Capitalization: $650 million
- 52-Week High: $17.00
- 52-Week Low: $10.50
- Average Daily Trading Volume: 150,000 shares
Recent Financial Performance
For the nine months ended September 30, 2024, Vericel reported:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $161,848 |
| Net Loss | $(9,445) |
| Gross Profit | $113,608 |
| Operating Expenses | $127,568 |
| Cash and Cash Equivalents | $70,350 |
Conclusion on Ownership Structure
The ownership structure of Vericel Corporation as of 2024 indicates a diverse range of institutional investors alongside significant insider ownership, reflecting confidence in the company’s future prospects.
Vericel Corporation (VCEL) Mission Statement
Company Overview
Vericel Corporation is a fully-integrated, commercial-stage biopharmaceutical company focused on advanced therapies for the sports medicine and severe burn care markets. As of 2024, it markets three commercial products: MACI®, Epicel®, and NexoBrid®.
Mission Statement
Vericel Corporation's mission is to enhance the lives of patients by providing innovative, clinically-proven therapies that improve patient outcomes in the areas of sports medicine and severe burn care. The company is committed to advancing the science of regenerative medicine through the development and commercialization of its proprietary products.
Financial Performance
As of September 30, 2024, Vericel reported total revenue of $161.8 million for the nine months ended, compared to $132.5 million for the same period in 2023, marking an increase of 22.1%.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $161,848,000 | $132,520,000 | 22.1% |
| Gross Profit | $113,608,000 | $87,069,000 | 30.5% |
| Net Loss | ($9,445,000) | ($16,175,000) | 41.6% |
| Basic Loss per Share | ($0.19) | ($0.34) | 44.1% |
Product Performance
Vericel's product lines have shown significant growth, particularly in MACI and Epicel. For the three months ended September 30, 2024, MACI sales amounted to $44.7 million, an increase of 18.8% compared to the same period in 2023.
| Product | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| MACI | $44,656,000 | $37,589,000 | 18.8% |
| Epicel | $12,184,000 | $7,394,000 | 64.8% |
| NexoBrid | $1,065,000 | $598,000 | 78.1% |
Research and Development
Vericel continues to invest heavily in research and development, with expenses totaling $19.9 million for the nine months ended September 30, 2024, compared to $16.1 million in 2023.
| R&D Expenses | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total R&D Expenses | $19,874,000 | $16,141,000 | 23.1% |
Liquidity and Capital Resources
As of September 30, 2024, Vericel reported cash, cash equivalents, and restricted cash totaling $70.4 million. The company generated $35.9 million from operating activities during the nine months ended September 30, 2024.
| Liquidity Metrics | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $70,350,000 | $83,561,000 |
| Net Cash Provided by Operating Activities | $35,921,000 | $25,225,000 |
Conclusion on Mission Alignment
Vericel’s financial growth and strategic investments in research and development align with its mission to innovate and enhance patient care through advanced therapies. The company’s commitment to improving patient outcomes is reflected in its expanding product offerings and increasing revenue streams.
How Vericel Corporation (VCEL) Works
Company Overview
Vericel Corporation is a fully-integrated, commercial-stage biopharmaceutical company that specializes in advanced therapies for the sports medicine and severe burn care markets. The company markets three primary products: MACI®, Epicel®, and NexoBrid®.
Financial Performance
For the nine months ended September 30, 2024, Vericel reported total revenue of $161.8 million, an increase of 22.1% compared to $132.5 million in the same period of 2023. The breakdown is as follows:
| Product | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| MACI | $128,973 | $108,114 | $20,859 | 19.3% |
| Epicel | $30,606 | $23,808 | $6,798 | 28.6% |
| NexoBrid | $2,269 | $598 | $1,671 | 279.4% |
Cost Structure and Profitability
Vericel's cost of product sales for the nine months ended September 30, 2024, was $48.2 million, resulting in a gross profit of $113.6 million, up from $87.1 million in the prior year. The gross profit margin increased from 65.7% in 2023 to 70.2% in 2024.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $127.6 million, up from $106.3 million in 2023. The breakdown is as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $19,874 | $16,141 | $3,733 | 23.1% |
| Selling, General and Administrative | $107,694 | $90,123 | $17,571 | 19.5% |
Net Loss
Vericel reported a net loss of $9.4 million for the nine months ended September 30, 2024, compared to a net loss of $16.2 million in 2023, demonstrating a significant improvement in financial performance. The basic and diluted loss per common share was $0.19, compared to $0.34 in the previous year.
Cash Flow Analysis
Cash, cash equivalents, and restricted cash totaled $70.4 million as of September 30, 2024. The company generated cash provided by operating activities of $35.9 million for the nine months ended September 30, 2024, compared to $25.2 million in 2023. The net cash flows from investing and financing activities for the same period were as follows:
| Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $35,921 | $25,225 |
| Net Cash (Used In) Provided by Investing Activities | $(64,383) | $4,958 |
| Net Cash Provided by Financing Activities | $11,946 | $2,311 |
Product Overview
Vericel's products are positioned within the sports medicine and burn care markets:
- MACI: A cellularized scaffold product for cartilage repair.
- Epicel: A product for skin replacement in burn patients.
- NexoBrid: Approved for the removal of eschar in burn patients, with a recent expansion of indications to pediatric patients.
Market Strategy
The company has been focusing on expanding its market presence through strategic partnerships and product development. The recent FDA approvals have opened new avenues for growth, particularly with NexoBrid, which targets a significant market of over 30,000 hospitalizations annually due to burn-related injuries in the U.S.
Investment and Financing
As of September 30, 2024, Vericel had raised $17.3 million from the exercise of stock options and employee stock purchase plans. The company maintains a revolving credit facility of $150 million, which remains undrawn as of the reporting date.
How Vericel Corporation (VCEL) Makes Money
Revenue Streams
Vericel Corporation generates revenue primarily through the sale of its biologic products, which include MACI (Matrix Autologous Cartilage Implant), Epicel, and NexoBrid. For the nine months ended September 30, 2024, total revenue amounted to $161.8 million, an increase of 22.1% compared to the same period in the previous year.
| Product | Revenue (2024, 9M) | Revenue (2023, 9M) | Change ($) | Change (%) |
|---|---|---|---|---|
| MACI | $128.97 million | $108.11 million | $20.86 million | 19.3% |
| Epicel | $30.61 million | $23.81 million | $6.80 million | 28.6% |
| NexoBrid | $2.27 million | $0.60 million | $1.67 million | 279.4% |
MACI Product Sales
MACI sales are the largest contributor to Vericel's revenue. For the nine months ended September 30, 2024, MACI sales totaled $128.97 million, driven by an increase in sales volume and pricing. The revenue breakdown for MACI products includes:
| Category | Revenue (2024, 9M) | Revenue (2023, 9M) |
|---|---|---|
| Implants via specialty pharmacies | $90.25 million | $68.22 million |
| Direct sales | $21.47 million | $19.93 million | Biopsy kits | $1.53 million | $1.52 million |
Epicel Sales
Epicel sales also showed significant growth, increasing to $30.61 million in the nine months ended September 30, 2024, up from $23.81 million in the same period of 2023. Epicel is sold directly to hospitals and burn centers, with revenue recognized upon delivery.
NexoBrid Commercialization
NexoBrid, which received FDA approval in December 2022, has been a significant addition to Vericel’s product portfolio. The product generated $2.27 million in revenue for the nine months ended September 30, 2024. NexoBrid is sold to specialty distributors who then resell it to hospitals and burn centers.
Operating Expenses
For the nine months ended September 30, 2024, Vericel reported total operating expenses of $127.57 million, up from $106.26 million in 2023. The increase is largely attributed to:
- Research and development expenses: $19.87 million (up from $16.14 million)
- Selling, general and administrative expenses: $107.69 million (up from $90.12 million)
Net Loss
Despite revenue growth, Vericel reported a net loss of $9.45 million for the nine months ended September 30, 2024, an improvement from a net loss of $16.18 million in the same period in 2023. This reflects a 41.6% reduction in net loss year-over-year.
Cash Flow Summary
Net cash provided by operating activities was $35.92 million for the nine months ended September 30, 2024, compared to $25.23 million in 2023. The company's cash and cash equivalents totaled $70.4 million as of September 30, 2024.
| Cash Flow Activities | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Net cash provided by operating activities | $35.92 million | $25.23 million |
| Net cash used in investing activities | ($64.38 million) | $4.96 million |
| Net cash provided by financing activities | $11.95 million | $2.31 million |
Market Dynamics
Vericel's business model relies heavily on partnerships and distribution agreements with specialty pharmacies and hospitals. The company’s focus on expanding its product offerings and increasing market penetration, particularly with NexoBrid, positions it for future growth in the burn care market.
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Resources:
- Vericel Corporation (VCEL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vericel Corporation (VCEL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vericel Corporation (VCEL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.