Vericel Corporation · NASDAQ:VCEL
Vericel — 42nd Annual J.P. Morgan Healthcare Conference 2024
26 slides from Vericel's conference presentation, Jan 9, 2024
Slide 1: Advanced Therapies for the Sports Medicine & Severe Burn Care Markets
Advanced Therapies for the Sports Medicine & Severe Burn Care Markets 42ND ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE JANUARY 10, 2024
Slide 2: Forward-Looking Statements and Legal Disclosure
Forward-Looking Statements and Legal Disclosure 2 Forward-Looking Statements Vericel cautions you that all statements other than statements of historical fact included in this presentation that address activities, events or developments that we expect, believe or anticipate will or may occur in the
Slide 3: Vericel is a Leader in Advanced Therapies in Sports Medicine and Burn Care
Vericel is a Leader in Advanced Therapies in Sports Medicine and Burn Care, Combining Innovations in Biology with Medical Technologies Our Vision Every patient benefits from therapies as unique as they are Our Mission We provide precision therapies that repair injuries and restore lives SPORTS MEDIC
Slide 4: Vericel is Well-Positioned to Deliver Sustained Long-Term Growth
❶ Strong Financial Profile ❷ High-Growth Sports Medicine Franchise ❸ Advancing Pipeline ❹ Second High- Growth Franchise in Burn Care Market leader in knee cartilage repair ~25% growth in 2023 Continued strong growth in MACI surgeons and biopsies High revenue growth profile Sustained positive adjuste
Slide 5: Outstanding Results Across the Company in 2023
MACI Revenue Growth of ~25% to ~$164.8M Gross Margin Expansion to High-60% Range Adjusted EBITDA Margin in Mid-Teens % Range, representing ~30% Full-Year Growth NexoBrid Launched in Fourth Quarter of 2023 MACI Arthro Human Factors Study Completed and Submission Accepted for Review by FDA
Slide 6: Large Underpenetrated Markets with TAM Expanding to Over $4.5 Billion
Large Underpenetrated Markets with Total Addressable Market Opportunity Expanding to Over $4.5 Billion in the Years Ahead 6 $3 Billion + $300 Million + $1Billion $4 Billion $600 Million Core TAM Expanded TAM NexoBrid launched in Q4 2023 MACI Arthro targeting largest segment of current TAM and expect
Slide 7: Core Portfolio Plus Multiple New Product Launches Expected to Drive Revenue Growth
Core Portfolio Plus Multiple New Product Launches Expected to Drive Further Strong Revenue Growth in 2024 and Beyond 7 Durable Growth Platform Significantly underpenetrated markets Limited competition with strong barriers to entry Strong reimbursement profiles + With Additional Growth Drivers in 202
Slide 8: Progressing Toward Top-Tier Profitability Profile
High Revenue Growth Increasing Gross Margins Increased Profitability Expanding EBITDA Margins Driving High Revenue Growth While Progressing Toward Top-Tier Profitability Profile 8 Adjusted EBITDA Margin % Gross Margin % 52% High 60s % ~70% 70%+ 2017 2023 2024 2025+ Mid- Teens % ~20% ~30% 2017 -19% 2
Slide 9: Knee Cartilage Injuries Represent a Significant Unmet Medical Need
9 Knee Cartilage Injuries Represent a Significant Unmet Medical Need Cartilage defects are found in ~60% of knee arthroscopies1 Damage is caused by acute or repetitive trauma or degenerative conditions Cartilage has limited capacity for intrinsic healing and repair Untreated cartilage defects may le
Slide 10: Large Addressable Knee Cartilage Repair Market for MACI
Large Addressable Knee Cartilage Repair Market for MACI 1 Health Advances LLC MACI market assessment report (2018), Vericel data, LexisNexis, Medtech Insight, NY SASD, SmartTRAK, LSI, PSPS, McCormick, Frank et al. Arthroscopy, (2014) 30(2): 222-6, Montgomery, et al. Knee Surg Sports Traumatol Arthro
Slide 11: MACI is the Leading Restorative Cartilage Repair Product on the Market
MACI is the Leading Restorative Cartilage Repair Product on the Market 11 BIOPSY TAKEN CHONDROCYTES EXTRACTED, EXPANDED, & LOADED MACI DELIVERED DEFECT DEBRIDED TEMPLATE CREATED MACI IMPLANTED
Slide 12: MACI Product Attributes Driving Strong Growth Since Launch
MACI Product Attributes Driving Strong Growth Since Launch 12 Broad Label with Strong Clinical Data Shorter Rehab Protocols Strong Reimbursement Profile Simpler, Less Invasive Procedure
Slide 13: Surgeon Adoption Continues to be a Key MACI Growth Driver
Surgeon Adoption Continues to be a Key MACI Growth Driver and Target Surgeons Will Increase With MACI Arthro Launch in 2024 13 2017-2019 Initial Launch 2020-2024 Expanded Open-Only Targets 2024+ Open and Arthro # Surgeons Taking Biopsies 3,000 Targets 5,000 Targets 7,000 Targets ~50% penetration ~50
Slide 14: Building a Robust and Innovative Pipeline
Building a Robust and Innovative Pipeline Through Lifecycle Management and Business Development 14 Key Highlights MACI Arthroscopic Delivery MACI Arthro submission accepted for review; projected launch in Q3 2024 MACI Ankle Indication Trial anticipated to initiate in 2025 NexoBrid Launched in Q4 202
Slide 15: MACI Arthro Provides a Significant Growth Opportunity
MACI Arthro 15 Arthroscopic MACI Delivery Provides a Significant Growth Opportunity 1Based on Health Advances, LLC MACI market assessment report (2018). High Surgeon Interest in MACI Arthro Potential for Increased MACI Volume ~90% % of target surgeons expressed Interest in arthro MACI option1 ~90% %
Slide 16: Arthroscopic MACI Targeting 2-4cm2 Femoral Condyle Defects
Arthroscopic MACI is Targeting 2-4cm2 Femoral Condyle Defects, Which Represents the Largest Portion of the MACI Addressable Market 16 MACI TAM Segmented by Defect Type 1 Health Advances LLC MACI market assessment report (2018), Vericel data, LexisNexis, Medtech Insight, NY SASD, SmartTRAK, LSI, PSPS
Slide 17: Significant Ankle Cartilage Repair Opportunity
17 Significant Ankle Cartilage Repair Opportunity OATs MFX+ Minced allograft MFX alone OCA Minced autograft Other MACI Ankle Annual TAM Estimate (U.S.) ~66,0002 Patients MD’s Consider Clinically Appropriate For MACI ~165,0001 Ankle Resurfacing Procedures Current Treatment Breakdown2 MACI for the tre
Slide 18: Potential MACI Ankle Indication Would Increase TAM to $4 Billion
Potential MACI Ankle Indication Would Increase MACI Total Addressable Market to $4 Billion 18 1 Health Advances LLC MACI market assessment report (2018), Vericel data, LexisNexis, Medtech Insight, NY SASD, SmartTRAK, LSI, PSPS, McCormick, Frank et al. Arthroscopy, (2014) 30(2): 222-6, Montgomery, et
Slide 19: Burn Injury Size and Depth Determine Treatment Pathway
Patient admittance to hospital Patient stabilization & wound assessment Superficial/Superficial Partial Thickness Spontaneous healing Deep Partial Thickness Surgical or enzymatic debridement Post debridement evaluation Spontaneous healing Skin grafting (if necessary) Full Thickness Surgical or enzym
Slide 20: Burn Care Franchise Addressable Market Opportunity
Burn Care Franchise Addressable Market Opportunity 20 $300 Million Addressable Market in the U.S.4 Estimated U.S. Burn Patients1 500,000 Annual Burns (U.S.) 1,500 Epicel-Indicated (>30% TBSA) Patients 600 Surviving >40% TBSA Patients $300 Million Addressable Market in the U.S.2,3 40,000 Hospitalized
Slide 21: NexoBrid Indications and Usage
NexoBrid Indications and Usage: Contains proteolytic enzymes and is indicated for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns NexoBrid can be applied to up to 20% body surface area in two applications Significant Advancement in Burn Treatment Paradigm Con
Slide 22: NexoBrid Treatment Application
NexoBrid Treatment Application 22 Clean Wound Antibacterial Pre-Soak NexoBrid Application Film Dressing (4 Hours) Remove Eschar Images are for illustration and demonstration purposes only; patients will experience individualized results from the use of NexoBrid to treat severe thermal burns.
Slide 23: NexoBrid Launch Progress
NexoBrid Launch Progress 23 NexoBrid launched in the U.S. in Q4 2023 Key Performance Indicators 50+ Burn Centers have submitted packages to their P&T Committees 25+ Burn Centers have P&T Committee approval ~20 Burn Centers have placed initial orders Robust Clinical Efficacy Strong Interest in NexoBr
Slide 24: Epicel Comparison of Patient Database to National Burn Repository
Epicel 24 Comparison of Epicel Patient Database to National Burn Repository1 Data Demonstrates Lower Mortality Rate Twenty-five Years’ Experience and Beyond with Cultured Epidermal Autografts (CEA) for Coverage of Large Burn Wounds in Adult and Pediatric Patients, 1989-2015; Hickerson, Journal of Bu
Slide 25: Vericel Remains Focused on Potential Strategic Transactions
Vericel Remains Focused on Potential Strategic Transactions to Maximize Long-Term Value Business development activities focused on opportunities having a strategic fit with current franchises or advanced cell therapy platform 25 Sports Medicine Franchise Severe Burn Care Franchise A D VA N C E D C E
Slide 26: Growth Strategy Leverages Near-Term & Long-Term Opportunities
Growth Strategy Leverages Near-Term & Long-Term Opportunities Strong Financial Profile High revenue growth profile Sustained positive adjusted EBITDA and Operating Cash Flow ~$152 Million in cash and investments High-Growth Sports Medicine Franchise Market leader in knee cartilage repair 20%+ total
Vericel — 42nd Annual J.P. Morgan Healthcare Conference 2024 on 6ix