Vericel Corporation · NASDAQ:VCEL
Vericel — Investor Presentation (April 2021)
28 slides from Vericel's investor presentation, April 2021
Slide 1: Corporate Presentation April 2021
Advanced Therapies for the Sports Medicine and Severe Burn Care Markets CORPORATE PRESENTATION APRIL 2021
Slide 2: Safe Harbor
Safe Harbor Vericel cautions you that all statements other than statements of fluctuations in sales and volumes and our results of operations over of Company personnel to travel and access customers for training, historical fact included in this presentation that address activities, the course of th
Slide 3: Portfolio of Innovative Cell Therapies and Specialty Biologics
Portfolio of Innovative SPORTS MEDICINE SEVERE BURNS Cell Therapies and Specialty Biologics with Significant Barriers to Entry The leading restorative cartilage The leading permanent skin repair product in the sports replacement in the severe medicine market burn care field INVESTMENT North American
Slide 4: Sustainable Top-Tier Revenue Growth in Large Addressable Markets
Sustainable Top-Tier Revenue Growth in Large Addressable Markets FULL YEAR REVENUE $2B+ CURRENT GROWTH FOR MACI ADDRESSABLE AND EPICEL IN 2020 MARKETS Total net revenue of $124.2 Underpenetrated and growing million in 2020 INVESTMENT HIGHLIGHTS ~25% revenue CAGR since the launch of MACI in 2017 Sust
Slide 5: Significant Revenue Growth Since the Launch of MACI in 2017
Significant Revenue Growth Since the Launch of MACI in 2017 Total Net Revenue $140 $124.2 $120 $117.9 $2.2 $26.2 $27.5 $100 $90.9 Record MACI implants and Epicel grafts drove full-year $Millions Other $80 $23.1 $63.9 revenue growth for both $60 $54.4 NexoBrid $18.9 products, despite impact of $15.5
Slide 6: Attractive Business Model with Robust Profitability Profile
Attractive Business Model with Robust Profitability Profile VOLUME GROWTH S U B S TA N T I A L DRIVING GROSS O P E R AT I N G M A R G I N M A R G I N E X PA N S I O N LEVERAGE Marginal COGS ~20% Premium products with for MACI and Epicel concentrated call points INVESTMENT HIGHLIGHTS Continuing volum
Slide 7: Strong Balance Sheet and Institutional Shareholder Base
Strong Balance Sheet and Institutional Shareholder Base BALANCE SHEET* SHAREHOLDER BASE Cash and investments of ~$100 Strong institutional healthcare million and no debt shareholder base INVESTMENT HIGHLIGHTS Substantial cash on hand and no debt ~90% of outstanding shares held by institutional inves
Slide 8: Articular Cartilage Structure and Function
Articular Cartilage Structure and Function ARTICULAR CARTILAGE A R T I C U L A R C A R T I L A G E I S A H I G H LY S P E C I A L I Z E D CONNECTIVE TISSUE OF SYNOVIAL JOINTS Articular cartilage function Provide a smooth, lubricated surface allowing for nearly frictionless movement Facilitate transm
Slide 9: Knee Cartilage Defects and Treatment Options
Knee Cartilage Defects and Treatment Options ARTICULAR CARTILAGE INJURY IS A CAUSE OF S I G N I F I C A N T M U S C U L O S K E L E TA L M O R B I D I T Y Cartilage defects are found in ~60% of knee arthroscopies Damage is caused by acute and repetitive trauma, degenerative and inflammatory conditio
Slide 10: MACI Production and Administration
MACI Production and Administration 10
Slide 11: MACI Label – Indications and Usage
MACI Label – Indications and Usage Indications and Usage MACI® (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of single or multiple symptomatic, full-thickness cartilage defects of the knee with or without bone
Slide 12: Significant MACI Administration Advantages
Significant MACI Administration Advantages Carticel MACI Technically exacting procedure Simpler, less invasive ACI procedure Required arthrotomy, periosteal patch harvest and sutures Eliminates periosteal harvest and sutures Extended surgical time Significant reduction in surgical time Uniform distr
Slide 13: SUMMIT Clinical Study Results – Superiority of MACI Versus Microfracture
SUMMIT Clinical Study Results – Superiority of MACI Implant Versus Microfracture Treatment MACI demonstrated statistically significantly greater The proportion of patients responding to treatment was improvement in the co-primary endpoint of KOOS pain and statistically significantly greater with MAC
Slide 14: SUMMIT Extension Study – KOOS Pain and Function to 5 Years
SUMMIT Extension Study – Improvement in KOOS Pain and Function Scores With MACI Over Microfracture Was Maintained to 5 Years 60 60 Mean Change from Baseline Mean Change from Baseline 50 50 In KOOS Function 40 In KOOS Pain 40 30 30 20 20 10 10 0 0 0 52 104 156 208 260 Weeks 0 52 104 156 208 260 MACI
Slide 15: MACI Rehabilitation Protocol
MACI Rehabilitation Protocol Published MACI rehabilitation protocols achieve full weight- bearing in 6-8 weeks compared to 10-12 weeks for published Carticel rehabilitation protocols 1 Ebert J et al, Osteoarthritis & Cartilage 2008; Edwards PK et al, AJSM 2013. 15
Slide 16: Large Addressable Cartilage Repair Market for MACI
Large Addressable Cartilage Repair Market for MACI Estimated Annual Addressable Patient Population (U.S.) Annual Cartilage Repair Revenue ~750,0001 $100 Cartilage Repair Procedures $90 $94 $80 $92 $70 ~315,0002 $Millions $60 Patients $68 Consistent With Label $50 $40 $2+ Billion $30 ~125,0002 $20 $3
Slide 17: Marketing Investments Focused on Key Stakeholders
Marketing Investments Focused on Key Stakeholders Targeting New Surgeons Ensuring Broad Access Connecting With Patients Developing content and campaigns on 30 largest payers provide access to MACI, platforms utilized by orthopedic surgeons representing >85% of commercial lives >85% Peer-to-peer trai
Slide 18: 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 and partial thickness burn injuries >10% are most often transferred Subcutaneous
Slide 19: Early Eschar Removal is a Critical 1st Step in Burn Treatment
Early Eschar Removal is a Critical 1st Step in Burn Treatment Eschar Removal Current Standard of Care Before… …After Non-Surgical Eschar Removal Surgical Eschar Removal Autolysis Tangential excision Topical medications Dermabrasion Enzymes, chemicals, biologicals Hydro-jet surgery Dermis Eschar Subc
Slide 20: NexoBrid
NexoBrid Effectively and selectively removes nonviable burn tissue (eschar) in patients with deep partial- and full-thickness burns Approved in EU & other OUS markets Bromelain-based biological product containing a sterile mixture of proteolytic enzymes Orphan biologic designation in the U.S. Easy-t
Slide 21: Epicel Overview
EPICEL OVERVIEW Epicel is a permanent skin replacement for full thickness burns ≥ 30% of total body surface area Only FDA-approved Important treatment permanent skin option for severe replacement for adult burn patients where and pediatric patients little skin is available with full-thickness burns
Slide 22: Epicel Production and Administration
Epicel Production and Administration 22
Slide 23: Comparison of Epicel Patient Database to National Burn Repository
Comparison of Epicel Patient Database to National Burn Repository1 Data Demonstrates Lower Mortality Rate Mortality Rate by TBSA Decile 100 Stratified CMH Chi-square p < 0.0001 Chi-square for all subgroups > 40%TBSA p < 0.0001 90 80 Mortality Rate (%) 70 60 50 40 30 20 10 0 0.1 - 9.9 10 - 19.9 20 -
Slide 24: Burn Franchise Addressable Market Opportunity
Burn Franchise Addressable Market Opportunity NexoBrid Estimated U.S. Burn Patients1 $200+ Million 500,000 Addressable Annual Burns (U.S.) Market in the U.S.2 NexoBrid significantly 40,000 Hospitalized Patients expands the total Epicel addressable market 1,500 opportunity for Vericel’s Epicel-Indica
Slide 25: Vericel is Positioned For Long-Term Success
Vericel is Positioned For Long-Term Success • Completed MACI sales force expansion • NexoBrid BLA accepted for review • First NexoBrid BARDA revenue • Innovative portfolio with significant barriers to entry • Full-year 2020 revenue growth despite • Sustainable top-tier revenue growth impact of COVID
Slide 26: Strategic Transactions to Maximize Long-Term Value
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 L O P M E N T A N D 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) activities focused on opportuni
Slide 27: 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 Innovative Portfolio with Sustainable Revenue Growth Significant Barriers to Entry in Large Addressable Markets INVESTMENT HIGHLIGHTS Attractive Business Model with Strong Balance Sheet and Robust Profitab
Slide 28: Balance Sheet and Capital Structure
Balance Sheet and Capital Structure Balance Sheet Highlights December 31, 2020 Capitalization (as of December 31, 2020) Shares Cash, Cash Equivalents and Common Stock 45,803,462 ~$100 million Investments Options Outstanding 5,236,044 Debt $0 Unvested Restricted Stock Units 270,639 Fully Diluted Shar