Vericel Corporation · NASDAQ:VCEL
Vericel — 41st Annual J.P. Morgan Healthcare Conference 2023
27 slides from Vericel's conference presentation, Jan 10, 2023
Slide 1: Advanced Therapies for the Sports Medicine & Severe Burn Care Markets
Advanced Therapies for the Sports Medicine & Severe Burn Care Markets 41 ST ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE JANUARY 11, 2023
Slide 2: Safe Harbor
Safe Harbor 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 we believe
Slide 3: Vericel is a Leader in Advanced Therapies for Sports Medicine and Severe Burn Care
Vericel is a Leader in Advanced Therapies for the Sports Medicine and Severe Burn Care Markets Portfolio of Innovative Cell Therapies and Specialty Biologics with Significant Barriers to Entry 3 The leading restorative cartilage repair product in the sports medicine market The leading permanent skin
Slide 4: Vericel is Well-Positioned to Deliver Sustained Long-Term Growth
❶ Strong Financial Profile ❷ Maximizing MACI Growth Drivers ❸ Advancing Pipeline ❹ Expanding Burn Care Franchise ❖ High - growth cartilage repair franchise ❖ Continued growth in MACI surgeons and biopsies ❖ Strong revenue growth ❖ Positive adjusted EBITDA & Operating Cash Flow ❖ $140 M in Cash and I
Slide 5: Strong Track Record of Financial Results
10 consecutive quarters with positive adjusted EBITDA & Operating Cash Flow 1 $140M in cash & investments and no debt as of 12/31/2022 1 1 Full - year 2022 revenue, adjusted EBITDA and operating cash flow, and cash and investments balances are based on preliminary una udited 2022 financial results a
Slide 6: Expected to Drive Strong Revenue and Profit Growth Over the Long Term
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 6 GROSS MARGIN ADJUSTED EBITDA 70%+ 30%+ 1 Based on internal and estimated long - term financial projections. Current Portfolio Plus New Product Launches Expected to Drive Strong Revenue and Profit Growth Over the Long Term + + Expect to Maintain Stro
Slide 7: Knee Cartilage Injuries Represent a Significant Unmet Medical Need
> > > > > > > > TIME 7 Knee Cartilage Injuries Represent a Significant Unmet Medical Need Cartilage defects are found in ~60% of knee arthroscopies 1 ❖ Damage is caused by acute or repetitive trauma or degenerative conditions Cartilage has limited capacity for intrinsic healing and repai r ❖ Untreat
Slide 8: 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 Art
Slide 9: MACI is the Leading Restorative Cartilage Repair Product on the Market
MACI is the Leading Restorative Cartilage Repair Product on the Market 9 BIOPSY TAKEN CHONDROCYTES EXTRACTED, EXPANDED, & LOADED MACI DELIVERED DEFECT DEBRIDED TEMPLATE CREATED MACI IMPLANTED
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 Shorter Rehab Protocols Strong Reimbursement Profile Simpler, Less Invasive Procedure
Slide 11: Key MACI Growth Drivers for Continued Long-Term Market Penetration
11 ~2,000 Surgeons Taking Biopsies in 2022 ~20% CAGR Biopsy Growth Since MACI Launch 30%+ Biopsy Conversion Rate Expected to remain a strong growth driver in 2023 Expected to remain a growth driver, with above - market growth in 2023 and over time Expected to maintain current levels in 2023 and incr
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 12 Key Highlights MACI Arthroscopic Delivery ❖ Human factors study planned in 2023, with commercial launch expected in 2024 MACI Ankle Indication ❖ Pre - IND meeting with FDA planned for H1 2023 NexoBrid
Slide 13: Overview of MACI Arthroscopic Delivery Development Program
13 The arthroscopic delivery of MACI is under development and neither such use, nor the sale of the MACI instruments, has been a pp roved in the United States. Novel instruments designed and developed to facilitate arthroscopic delivery Human Factors Validation Study to be initiated in 2023 Planned
Slide 14: MACI Arthroscopic Delivery Surgical Technique
MACI Arthroscopic Delivery Surgical Technique 14 Click here to view an animation of the MACI arthroscopic delivery surgical technique ..
Slide 15: High Surgeon Interest in MACI Arthro
15 High Surgeon Interest in MACI Arthro Potential for Increased MACI Volume ~90% % of target surgeons expressed Interest in arthro MACI option 1 ~90% % of current MACI users would expect to Increase MACI volume 1 Arthroscopic MACI Provides Potential Opportunity for Additional Growth Arthroscopic MAC
Slide 16: Significant Ankle Cartilage Repair Opportunity
16 Significant Ankle Cartilage Repair Opportunity OATs MFX+ Minced allograft MFX alone OCA Minced autograft Other MACI Ankle Annual TAM Estimate (U.S.) ~66,000 2 Patients MD’s Consider Clinically Appropriate For MACI ~165,000 1 Ankle Resurfacing Procedures ~18,000 2 Larger Lesions Current Treatment
Slide 17: Potential MACI Ankle Indication Would Increase MACI TAM to $4 Billion
Potential MACI Ankle Indication Would Increase MACI Total Addressable Market to $4 Billion 17 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,
Slide 18: Burn Injury Size & Depth Determine Treatment Pathway
18 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 19: Burn Franchise Addressable Market Opportunity
Burn Franchise Addressable Market Opportunity 19 $ 3 00 Million Addressable Market in the U.S. 4 Estimated U.S. Burn Patients 1 500,000 Annual Burns (U.S.) 1,500 Epicel - Indicated (>30% TBSA) Patients 600 Surviving >40% TBSA Patients $ 3 00 Million Addressable Market in the U.S. 2,3 40,000 Hospital
Slide 20: 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 20 ❖ Early Eschar Removal and Burn Assessment Are Critical to Patient Healing • • Early eschar removal can reduce inflammation, stop burn progression, and reduce infections and sepsis 1,2 • Timely asses
Slide 21: NexoBrid is Now Approved for Use in the United States
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 21 NexoBrid is Now Approved for Use in the United
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 Treatment Results
NexoBrid Treatment Results 23 After Before Long - Term Images are for illustration and demonstration purposes only; patients will experience individualized results from the use of NexoBrid to treat severe thermal burns.
Slide 24: NexoBrid Commercialization
Marketing Manufacturing Supply Chain Market Access Medical Affairs Sales 24 NexoBrid Commercialization ❖ NexoBrid is expected to be commercially available in the U.S. in Q2 2023 ❖ Key commercial activities underway • Promotional Materials Rollout • P&T Committee Engagement • Customer Training • Burn
Slide 25: Epicel Comparison of Patient Database to National Burn Repository
Epicel 25 Comparison of Epicel Patient Database to National Burn Repository 1 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
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 Business development activities focused on opportunities having a strategic fit with current franchises or advanced cell therapy platform 26 Sports Medicine Franchise Severe Burn Care Franchise ADVANCED CELL TH
Slide 27: Growth Strategy Leverages Near-Term & Long-Term Opportunities
Growth Strategy Leverages Near - Term & Long - Term Opportunities Strong Financial Profile ❖ Continued strong revenue growth ❖ Positive adjusted EBITDA & Operating Cash Flow ❖ $140M in cash and investments Maximizing MACI Key Growth Drivers ❖ 20%+ total revenue CAGR since 2017 ❖ Focused on maximizin
Vericel — 41st Annual J.P. Morgan Healthcare Conference 2023 on 6ix