Vericel Corporation · NASDAQ:VCEL
Vericel — Investor Presentation (November 2023)
27 slides from Vericel's investor presentation, November 2023
Slide 1: Corporate Presentation November 2023
Advanced Therapies for the Sports Medicine & Severe Burn Care Markets CORPORATE PRESENTATION NOVEMBER 2023
Slide 2: Safe Harbor
Safe Harbor Vericel cautions you that all statements other than revenue, growth in revenue, market penetration for institutions, companies in the financial services industry statements of historical fact included in this presentation MACI®, Epicel®, and NexoBrid®, growth in profit, gross or the fina
Slide 3: Vericel is a Leader in Advanced Therapies for Sports Medicine and Severe Burn Care
Vericel is a Leader in SPORTS MEDICINE SEVERE BURNS Advanced Therapies for the Sports Medicine and Severe Burn Care Markets The leading permanent skin replacement in the severe The leading restorative cartilage burn care field repair product in the sports medicine market Portfolio of Innovative Cell
Slide 4: Vericel is Well-Positioned to Deliver Sustained Long-Term Growth
Vericel is Well-Positioned to Deliver Sustained Long-Term Growth ❖ Strong revenue growth ❖ High-growth cartilage repair ❖ Positive adjusted EBITDA & Operating franchise Cash Flow ❖ ~$149M in Cash and Investments1 ❖ Continued growth in MACI ❶ ❷ surgeons and biopsies Strong Maximizing Financial MACI G
Slide 5: Strong Track Record of Financial Results
Strong Track Record of Financial Results Recent MACI Growth Rates Top-Tier Revenue Growth 32% Sports Med Burn Care 30% 27% 24% $164M 21% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2017 2018 2019 2020 2021 2022 MACI year-to-date growth of 26% 1 Includes restricted cash 5
Slide 6: Current Portfolio Plus New Product Launches Expected to Drive Strong Revenue and Profit Growth
Current Portfolio Plus New Product Launches Expected to Drive Strong Revenue and Profit Growth Over the Long Term Expect to Maintain Strong Revenue Growth Trajectory1 Expect Continued Long-Term Margin Expansion1 GROSS MARGIN 70%+ ADJUSTED EBITDA 30%+ 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E +
Slide 7: 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 8: 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 $132 ~750,0001 Cartilage Repair Procedures $112 $92 $95 ~315,0002 $Millions Patients $68 Consistent With Label $3 Billion $44 ~125,0002 Patients MD’s Conside
Slide 9: 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 9
Slide 10: 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 10
Slide 11: Key MACI Growth Drivers for Continued Long-Term Market Penetration
Key MACI Growth Drivers for Continued Long-Term Market Penetration ~2,000 ~20% CAGR 30%+ Surgeons Taking Biopsy Growth Biopsy Conversion Biopsies in 2022 Since MACI Rate Launch Continued Growth in 2022 Continued Growth in 2022 Stabilized in 2022 Expected to remain a strong Expected to remain a growt
Slide 12: Building a Robust and Innovative Pipeline Through Lifecycle Management and Business Development
Building a Robust and Innovative Pipeline Through Lifecycle Management and Business Development Key Highlights MACI Arthroscopic Delivery ❖ Human factors study completed in Q3 2023, with commercial launch expected in H1 2024 MACI Ankle Indication ❖ Program advancing based on feedback from pre-IND in
Slide 13: Arthroscopic MACI is Targeting Smaller Femoral Condyle Defects
Arthroscopic MACI is Targeting Smaller Femoral Condyle Defects, Which Represents the Largest Portion of the Addressable Market Estimated Annual Addressable Patient Population (U.S.) 10%+ overall Similar penetration penetration currently as in patella would ~750,0001 MACI TAM Segmented Continues to ~
Slide 14: Overview of MACI Arthroscopic Delivery Development Program
Overview of MACI Arthroscopic Delivery Development Program Novel instruments designed Human Factors Validation Planned Launch and developed to facilitate Study to be initiated in 2023 H1 2024 arthroscopic delivery The arthroscopic delivery of MACI is under development and neither such use, nor the s
Slide 15: MACI Arthroscopic Delivery Surgical Technique
MACI Arthroscopic Delivery Surgical Technique MACI implant MACI implant cell side up delivered Click here to view an animation of the MACI arthroscopic delivery surgical technique. 15
Slide 16: Arthroscopic MACI Provides Potential Opportunity for Additional Growth
Arthroscopic MACI Provides Potential Opportunity for Additional Growth High Surgeon Potential for Interest in MACI Increased MACI Arthro Volume % of target surgeons % of current MACI users ~90% expressed Interest in arthro MACI option1 ~90% would expect to Increase MACI volume1 Arthroscopic MACI ins
Slide 17: 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 18: 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 19: Burn Injury Size & Depth Determine Treatment Pathway
Burn Injury Size & Depth Determine Epidermis 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 burn injuries >10% total body surface area Subcutaneous fat Ful
Slide 20: Burn Franchise Addressable Market Opportunity
Burn 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 Addressable NexoBri
Slide 21: Clear Unmet Need for an Effective and Selective Eschar Removal Agent
Clear Unmet Need for an Effective and Selective Eschar Removal Agent that Preserves Viable Tissue ❖ Early Eschar Removal and Burn Assessment Are Critical to Patient Healing • • Early eschar removal can reduce inflammation, stop burn progression, and reduce infections and sepsis1,2 • Timely assessmen
Slide 22: 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 23: 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. 23
Slide 24: NexoBrid Launch Progress
NexoBrid Launch Strong Interest in NexoBrid by Treating Physicians and Progress Burn Centers Application Demonstrations ❖ NexoBrid commercially NEXOBRID IS NOW available in the U.S. in Q3 COMMERCIALLY 2023 AVAILABLE IN THE U.S. ❖ Key commercial activities Robust Clinical Efficacy underway Multi-Disc
Slide 25: 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 26: Vericel Remains Focused on Potential Strategic Transactions to Maximize Long-Term Value
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 27: Growth Strategy Leverages Near-Term & Long-Term Opportunities
Growth Strategy Leverages Near-Term & Long-Term Opportunities Strong Financial Maximizing MACI Key Advancing Expanding Burn Profile Growth Drivers Pipeline Care Franchise ❖ Continued strong ❖ 20%+ total revenue ❖ MACI arthroscopic study ❖ NexoBrid commercially revenue growth CAGR since 2017 complete