Vericel Corporation · NASDAQ:VCEL
Vericel — 43rd Annual J.P. Morgan Healthcare Conference (January 2025)
25 slides from Vericel's conference presentation, Jan 14, 2025
Slide 1: Advanced Therapies for the Sports Medicine & Severe Burn Care Markets
Advanced Therapies for the Sports Medicine & Severe Burn Care Markets 43Rd Annual J.P. Morgan Healthcare Conference January 15, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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 future are forward-looking statements. Although
Slide 3: Vericel is a Leader in Advanced Therapies in Sports Medicine and Burn Care
3 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 MED
Slide 4: Vericel is Well-Positioned to Deliver Sustained Long-Term Growth
High revenue growth profile Sustained positive adjusted EBITDA and Operating Cash Flow GAAP Net Income positive in 2024 ~$167M in Cash & Investments 4 Vericel is Well-Positioned to Deliver Sustained Long-Term Growth On track to submit MACI Ankle™ IND in H1 2025; initiate clinical study in H2 2025 Ne
Slide 5: 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 $3 Billion + $1Billion $4 Billion Core TAM Expanded TAM NexoBrid launched in 2023 MACI Arthro launched in 2024; targets largest segment of current MACI addressable market Anticip
Slide 6: Outstanding Results Across the Company in 2024
Total Revenue Growth of 20% to $237 to $237.5M MACI Revenue Growth of 20% to $197.2 to $197.7M Gross Margin Expansion to ~72.5% Adjusted EBITDA Margin of ~22%, Representing ~55% Full-Year Growth Full-Year GAAP Profitability Achieved FDA Approval and Launch of MACI Arthro Construction of new Corporat
Slide 7: Current Portfolio Plus New Product Launches Expected to Drive Durable High Revenue Growth
Current Portfolio Plus New Product Launches Expected to Drive Durable High Revenue Growth Profile 7 ~20% CAGR Since Launch of MACI + + 20% CAGR Since MACI Launch OUS MACI +20% +20% Continued High Revenue Growth Longer-Term Potential to Add OUS MACI in Late 2020’s & MACI Ankle in ~2030+ + + + +20-23%
Slide 8: Driving High Revenue Growth and a Top-Tier Profitability Profile
Driving High Revenue Growth and a Top-Tier Profitability Profile Mid-Term Profitability Targets Increased to High-70% Gross Margin and High-30% Adjusted EBITDA 8 Adjusted EBITDA Margin % Gross Margin % 2024 financial metrics are based on preliminary, unaudited 2024 financial results and are subject
Slide 9: Knee Cartilage Injuries Represent a Significant Unmet Medical Need
> > > > > > > > TIME 9 Knee Cartilage Injuries Represent a Significant Unmet Medical Need Cartilage defects are found in ~60% of knee arthroscopies1 Damage caused by acute or repetitive trauma or degenerative conditions Cartilage has limited capacity for intrinsic healing and repair Untreated cartil
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 1 The American Journal of Sports Medicine. 2018;46(6):1343-1351. Simpler, Less Invasive Procedure
Slide 13: MACI Growth Opportunities
MACI Growth Opportunities 13 Innovation that Supports Premium Pricing Deeper Practice Penetration as Surgeons Gain MACI Experience Broader Surgeon Adoption as MACI Becomes Standard of Care Core MACI Growth Drivers MACI Arthro Can Amplify Drivers MACI has Generated Sustained High Growth Since Launch;
Slide 14: MACI Arthro is the First Restorative Biologic Cartilage Repair Product Approved for Arthroscopic Administration
MACI Arthro is the First Restorative Biologic Cartilage Repair Product Approved for Arthroscopic Administration 14
Slide 15: MACI Arthro Enables Additional Surgeon Growth
Target Surgeons MACI Arthro Enables Additional Surgeon Growth 15 Surgeons Primarily Treating Patella Defects Surgeons Treating Small Condyle Defects Remaining Open MACI Targets New Arthro-Only Targets Current Users Potential New Surgeons MACI Arthro Expected to Drive Incremental Volume Across all Su
Slide 16: MACI Arthro Addresses the Largest Segment of the Overall MACI TAM
MACI Arthro Addresses the Largest Segment of the Overall MACI TAM Where There is Significant Potential to Increase Penetration 16 Patella Smaller Non-Patella Defects <4cm2 Larger Defects Non-Patella 4cm2+ ~$0.5B ~$0.5B MACI Volume Patella TAM MACI Volume 4 cm2+ TAM MACI Volume 2-4cm2 CondyleTAM ~$1B
Slide 17: Significant Ankle Cartilage Repair Opportunity
17 Significant Ankle Cartilage Repair Opportunity MACI Ankle Annual TAM Estimate (U.S.) ~66,0002 Patients MD’s Consider Clinically Appropriate For MACI ~165,0001 Ankle Resurfacing Procedures ~18,0002 Larger Lesions Current Treatment Breakdown2 MACI Ankle represents a $1 billion3 market opportunity,
Slide 18: Burn Injury Size and Depth Determine Treatment Pathway
18 18 Burn Injury Size and Depth Determine Treatment Pathway Full thickness burn injuries of any size & partial thickness burn injuries >10% total body surface area (TBSA) are most often transferred to specialized burn centers Full thickness & deep partial-thickness burns require eschar removal and
Slide 19: Burn Care Franchise Addressable Market Opportunity
Burn Care Franchise Addressable Market Opportunity 19 $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 40,000Hospitalized P
Slide 20: NexoBrid
NexoBridOrphan biologic product indicated for eschar removal in adults and pediatric patients with severe burns 20 Significant Advancement in Burn Treatment Paradigm Concentrated mixture of proteolytic enzymes Non-surgical topical agent that may be applied at the patient’s bedside Selectively degrad
Slide 21: Epicel
Epicel 21 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 22: Burn Care Growth Opportunities
Burn Care Growth Opportunities 22 Activating additional Epicel users through cross-selling efforts with NexoBrid
Slide 23: Vericel Remains Focused on Potential Strategic Transactions to Maximize Long-Term Value
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 23 Sports Medicine Franchise Severe Burn Care Franchise ADVANCED CELL THER
Slide 24: Building on a Legacy of Growth with Near-Term and Long-Term Opportunities
MACI Arthro Approved and Launched NexoBrid Pediatric Label Expansion Approved 1st Profitable Quarter Acquisition of North American commercial rights to NexoBrid Building on a Legacy of Growth with Near-Term and Long-Term Opportunities MACI Approved Epicel Pediatric Label Expansion Approved MACI Laun
Slide 25: Growth Strategy Leverages Near-Term & Long-Term Opportunities
Growth Strategy Leverages Near-Term & Long-Term Opportunities Strong Financial Profile High revenue growth profile with 20% CAGR since 2017 Sustained positive adjusted EBITDA and operating cash flow $167 Million in cash and investments High-Growth Sports Medicine Franchise Market leader in knee cart
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