Vericel Corporation · NASDAQ:VCEL
Vericel — Investor Presentation (January 2022)
23 slides from Vericel's investor presentation, Jan 12, 2022
Slide 1: Advanced Therapies for the Sports Medicine and Severe Burn Care Markets
Advanced Therapies for the Sports Medicine and Severe Burn Care Markets CORPORATE PRESENTATION JANUARY 2022
Slide 2: Safe Harbor
Safe Harbor 2 Vericel has provided in this presentation certain financial information that has not been prepared in accordance with GAAP. Vericel’s management believes that the non-GAAP adjusted EBITDA described in the presentation, which includes adjustments for specific items that are generally no
Slide 3: Portfolio of Innovative Cell Therapies and Specialty Biologics with Significant Barriers to Entry
Portfolio of Innovative Cell Therapies and Specialty Biologics with Significant Barriers to Entry Delivering Sustained High Revenue Growth with a Strong Profitability and Operating Cash Flow Profile 3 The leading restorative cartilage repair product in the sports medicine market The leading permanen
Slide 4: Strong Track Record of Revenue and Profit Growth
4 2017A 2018A 2019A 2020A 2021E Top-Tier Revenue Growth Sports Med Burn Care 2017A 2018A 2019A 2020A 2021E Robust Profitability Profile Adjusted EBITDA Multiple years of top-tier revenue growth Diversified across two franchises More than 12,000 patients treated with Vericel products Converting stron
Slide 5: Well-Positioned to Sustain High Revenue and Profit Growth Over the Long Term
Well-Positioned to Sustain High Revenue and Profit Growth Over the Long Term 5 Expect Continued Long-Term Margin Expansion1 G R O S S MARGIN ADJUSTED EBITDA 70%+ 30%+ Significantly underpenetrated markets (~$2B-3B) Limited competition with strong barriers to entry Strong reimbursement profile Substa
Slide 6: Articular Cartilage Structure and Function
6 Articular Cartilage Structure and Function Articular cartilage function Provide a smooth, lubricated surface allowing for nearly frictionless movement Facilitate transmission of loads to underlying subchondral bone Protect joints from compressive, tensile and shearing forces ARTICULAR CARTILAGE IS
Slide 7: Knee Cartilage Defects and Treatment Options
7 Knee Cartilage Defects and Treatment Options PALLIATIVEREPARATIVERESTORATIVE Techniques intended to relieve or prevent pain with little repair of underlying defect Marrow-stimulation techniques that result in formation of fibrocartilage Techniques designed to recreate hyaline-like cartilage at the
Slide 8: Large Addressable Knee Cartilage Repair Market for MACI
Large Addressable Knee Cartilage Repair Market for MACI 8 Estimated Annual Addressable Patient Population (U.S.) ~315,0002 Patients Consistent With Label ~125,0002 Patients MD’s Consider Clinically Appropriate For MACI ~750,0001 Cartilage Repair Procedures ~60,0002 Patients With Larger Lesions $2+ B
Slide 9: MACI Production and Administration
MACI Production and Administration 9
Slide 10: MACI Product Attributes Driving Strong Growth Since Launch
MACI Product Attributes Driving Strong Growth Since Launch 10 Broad Label with Strong Clinical Data Simpler, Less Invasive Procedure Shorter Rehab Protocols Strong Reimbursement Profile
Slide 11: MACI Product and Procedure Enhancements Driving Broader Surgeon Adoption
MACI Product and Procedure Enhancements Driving Broader Surgeon Adoption 11 1995 2017 2019 Cells in Suspension • Highly invasive, technically exacting procedure • Required periosteal harvest from tibia and suture fixation to confine cells • Extended surgical time • High rate of subsequent procedures
Slide 12: Significant Ankle Cartilage Repair Opportunity
12 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 ~18,0002 Larger Lesions Current Treatment Bre
Slide 13: Burn Injury Size and Depth Determine Treatment Pathway
13 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 en
Slide 14: Burn Franchise Addressable Market Opportunity
14 Burn Franchise Addressable Market Opportunity Upon approval, NexoBrid will significantly expand the total addressable market opportunity for Vericel’sburn franchise $200+ Million Addressable Market in the U.S.3 Estimated U.S. Burn Patients1 500,000 Annual Burns (U.S.) 1,500 Epicel-Indicated (>30%
Slide 15: Early Eschar Removal is a Critical 1st Step in Burn Treatment
Early Eschar Removal is a Critical 1st Step in Burn Treatment Clear unmet need for selective and effective eschar removal agent for severe burns 15 Eschar Removal Current Standard of Care Before… …After Eschar Subcutaneous Fat Dermis Prevents local infection and sepsis Avoids further deterioration a
Slide 16: NexoBrid
NexoBrid Approved in EU & other OUS markets Investigational product with orphan biologic designation in the U.S. Pivotal U.S. Phase 3 clinical study met primary and all secondary endpoints BLA resubmission activities underway Orphan and biologic exclusivities upon approval in the U.S.; patent protec
Slide 17: Epicel is a permanent skin replacement for full thickness burns
Epicel is a permanent skin replacement for full thickness burns ≥ 30% of total body surface area Only FDA-approved permanent skin replacement for adult and pediatric patients with full-thickness burns 17 EPICEL OVERVIEW Important treatment option for severe burn patients where little skin is availab
Slide 18: Epicel Production and Administration
Epicel Production and Administration 18
Slide 19: Comparison of Epicel Patient Database to National Burn Repository Data Demonstrates Lower Mortality Rate
19 Comparison of Epicel Patient Database to National Burn Repository1 Data Demonstrates Lower Mortality Rate Mortality Rate (%) Percent TBSA Burned 0 10 20 30 40 50 60 70 80 90 100 0.1 - 9.9 10 - 19.9 20 - 29.9 30 - 39.9 40 - 49.9 50 - 59.9 60 - 69.9 70 - 79.9 80 - 89.9 >90 Epicel N=937 National Bur
Slide 20: Building a Pipeline Through Current Portfolio and Business Development
Building a Pipeline Through Current Portfolio and Business Development 20 PRODUCT INDICATION/STUDY PRECLINICAL PHASE I PHASE II PHASE III REGISTRATION APPROVAL Treatment of Symptomatic Cartilage Defects of the Knee in Adults Pediatric (PEAK) Study – Knee Arthroscopic Delivery – Knee Treatment of Car
Slide 21: Strategic Transactions to Maximize Long-Term Value
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 21 Sports Medicine Franchise Severe Burn Care Franchise ADVANCED CELL THERAPY DEVELOPMENT AND MANUFACTURINGPLAT
Slide 22: Investment Highlights
Vericel is a leader in advanced therapies for the sports medicine and severe burn care markets Strong Balance Sheet and Shareholder Base Attractive Business Model with Robust Profitability Profile Sustainable Revenue Growth in Large Addressable Markets Innovative Portfolio with Significant Barriers
Slide 23: Reconciliation of Reported GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP Measure)
Reconciliation of Reported GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP Measure) – Unaudited 23 Twelve Months Ended December 31, Annual Adjusted EBITDA 2017 2018 2019 2020 Net Income (loss) (GAAP) $(17,286) ($8,137) ($9,665) $2,864 Non-recurring license agreement purchase -- 17,500 - Stock-ba