Vericel Corporation · NASDAQ:VCEL
Vericel — Investor Presentation (September 2024)
24 slides from Vericel's investor presentation, September 2024
Slide 1: Corporate Presentation September 2024
Advanced Therapies for the Sports Medicine & Severe Burn Care Markets CORPORATE PRESENTATION SEPTEMBER 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Vericel cautions you that all statements other than revenue, growth in revenue, market penetration for financial institutions, companies in the financial services statements of historical fact included in this presentation MACI®, MACI Arthro , Epicel®, and NexoBrid®, growt
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 SPORTS MEDICINE SEVERE BURNS Every patient benefits from therapies as unique as they are Our Mission We provide precision therapies that repair injuries a
Slide 4: Vericel is Well-Positioned to Deliver Sustained Long-Term Growth
Vericel is Well-Positioned to Deliver Sustained Long-Term Growth ❖ High revenue growth profile ❖ Market leader in knee cartilage ❖ Sustained positive adjusted repair EBITDA & Operating Cash Flow ❖ 25% growth in 2023 ❖ $154 Million in Cash and ❶ ❷ ❖ Continued strong growth in Investments Strong High-
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 $4.5+ Billion + $1Billion TAM $600 Million $3+ Billion + $300 Million TAM $4 Billion $300 Million $3 Billion ❖ NexoBrid launched in Q4 2023 ❖ MACI Arthro launched in Q3 2024; tar
Slide 6: Core Portfolio Plus New Product Launches Expected to Drive Strong Revenue Growth
Core Portfolio Plus New Product Launches Expected to Drive Further Strong Revenue Growth in 2024 and Beyond + + + Top-Tier Revenue Growth Sports Med Burn Care 20%+ $197.5M $238-$242M +20% 20%-23% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Durable Growth Platform With Additional Growth Drivers in 2
Slide 7: Driving High Revenue Growth with a Top-Tier Profitability Profile
Driving High Revenue Growth with a Top-Tier Profitability Profile 20% Top Line Growth in 2023 Expect Continued 20%+ Growth in 2024+ Adjusted EBITDA Margin % High Revenue Gross Margin % Growth 70%+ Expanding Increasing 69% ~71% ~30% ~21% EBITDA Margins Gross Margins 52% 17% 2017 2023 2024 2025+ 2017
Slide 8: Knee Cartilage Injuries Represent a Significant Unmet Medical Need
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
Slide 9: Large Addressable Knee Cartilage Repair Market for MACI
Large Addressable Knee Cartilage Repair Market for MACI Estimated Annual Addressable Patient Population (U.S.) Annual Cartilage Repair Revenue ~750,0001 $164.8 Cartilage Repair Procedures $132 $112 ~315,0002 $Millions Patients $92 $95 Consistent With Label $68 $3 Billion ~125,0002 $44 Patients MD’s
Slide 10: MACI is the Leading Restorative Cartilage Repair Product on the Market
MACI is the Leading Restorative Cartilage Repair Product on the Market BIOPSY TAKEN DEFECT DEBRIDED CHONDROCYTES TEMPLATE CREATED EXTRACTED, EXPANDED, & LOADED MACI DELIVERED MACI IMPLANTED 10
Slide 11: MACI Product Attributes Driving Strong Growth Since Launch
MACI Product Attributes Driving Strong Growth Since Launch Broad Label with Strong Clinical Data Simpler, Less Invasive Procedure Shorter Rehab Protocols Strong Reimbursement Profile 11
Slide 12: MACI Arthro Provides A Significant Growth Opportunity
MACI Arthro Provides Targets the Largest Portion of the MACI Addressable A Significant Growth Market Opportunity Estimated Annual Addressable Patient Population (U.S.) 10%+ overall ~750,0001 penetration Similar Cartilage Repair MACI TAM currently penetration Segmented by as in patella Procedures Con
Slide 13: High Surgeon Interest in MACI Arthro
High Surgeon Interest Continued Surgeon Adoption Expected to be a Key MACI in MACI Arthro Growth Driver in 2024 and Beyond % of target ~90% surgeons expressed Interest in arthro MACI option1 % of current MACI ~90% users would expect to Increase MACI volume1 First Restorative Biologic Cartilage Repai
Slide 14: MACI Arthroscopic Implantation Process
MACI Arthroscopic Implantation Process ❶ Defect Sizing & ❷ Defect Preparation ❸ MACI Implant ❹ MACI Implant Portal Placement Preparation Delivery • Position spinal needle in • Score cartilage defect using • Shape MACI implant using • Apply a thin layer of fibrin center of cartilage defect MACI arthr
Slide 15: Significant Ankle Cartilage Repair Opportunity
Significant Ankle Cartilage Repair Opportunity MACI Ankle Annual TAM Estimate (U.S.) ~165,0001 Ankle Resurfacing Current Treatment Procedures Breakdown2 Minced Other autograft ~66,0002 Patients MD’s Consider Clinically Appropriate OCA OATs For MACI MFX alone MFX+ ~18,00022 ~18,000 Minced LargerLesio
Slide 16: Potential MACI Ankle Indication Would Increase MACI TAM to $4 Billion
Potential MACI Ankle Indication Would Increase MACI Total Addressable Market to $4 Billion Current MACI Knee Annual U.S. TAM (est.) MACI Ankle Annual U.S. TAM (est.) ~165,0001 ~750,0001 Ankle Resurfacing Cartilage Repair Procedures Procedures ~315,0002 $4 Billion ~66,0002 Patients MD’s Consider Pati
Slide 17: Burn Injury Size and Depth Determine Treatment Pathway
Burn Injury Size and Depth Epidermis Determine Treatment Pathway Superficial (1st Degree) Superficial Partial-Thickness (2nd Degree) Dermis Deep Partial-Thickness (2nd Degree) ❖ Full thickness burn injuries of any size & partial thickness Full Thickness (3rd Degree) burn injuries >10% total body sur
Slide 18: Burn Care Franchise Addressable Market Opportunity
Burn Care Franchise Addressable Market Opportunity Estimated U.S. Burn Patients1 $600 Million $300 Million Addressable Market 500,000 Annual Burns (U.S.) Addressable in the U.S. Market in the U.S.2,3 40,000 Hospitalized Patients 1,500 Epicel-Indicated (>30% TBSA) $300 Million Patients NexoBrid comme
Slide 19: NexoBrid Significant Advancement in Burn Treatment Paradigm
NexoBrid Significant Advancement in Burn Treatment Paradigm ❖ Concentrated mixture of proteolytic enzymes derived from the stem of Indications and Usage: the pineapple plant (Ananas comosus) Contains proteolytic enzymes and is ❖ Non-surgical topical agent that may be applied at the patient’s bedside
Slide 20: NexoBrid Treatment Application
NexoBrid Treatment Application 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. 20
Slide 21: NexoBrid Launch Progress
NexoBrid Launch Strong Interest in NexoBrid by Treating Physicians and Progress Burn Centers Application Demonstrations ❖ NexoBrid launched in the NEXOBRID IS NOW U.S. in Q4 2023 APPROVED FOR ❖ NexoBrid pediatric ADULTS AND PEDIATRIC PATIENTS indication approved in Q3 2024 Robust Clinical Efficacy ❖
Slide 22: Epicel
Epicel Comparison of Epicel Patient Database to National Burn ❖ Only FDA-approved permanent Repository1 Data Demonstrates Lower Mortality Rate skin replacement for adult and pediatric patients with full- thickness burns ≥ 30% of total body surface area ❖ Important treatment option for severe burn pa
Slide 23: Vericel Remains Focused on Potential Strategic Transactions
Vericel Remains Focused on Potential Strategic Transactions to Maximize Long-Term Value A D VA N C E D C E L L T H E R A P Y D E V E LO P M E N T & M A N U F A C T U R I N G P L AT F O R M Sports Medicine Severe Burn Care New Advanced Cell Business development Franchise Franchise Therapy Vertical(s)
Slide 24: Growth Strategy Leverages Near-Term & Long-Term Opportunities
Growth Strategy Leverages Near-Term & Long-Term Opportunities Strong Financial High-Growth Sports Expanding Core Second High-Growth Profile Medicine Franchise Portfolio Franchise in Burn Care ❖ High revenue growth ❖ Market leader in knee ❖ MACI Arthro approved in ❖ NexoBrid launched in profile carti