Vericel Corporation

Vericel Corporation is a commercial-stage biopharmaceutical company specializing in advanced cell therapies for the sports medicine and severe burn care markets. The company's key product offerings include MACI (autologous cultured chondrocytes on porcine collagen membrane), an autologous cellularized scaffold product for repairing cartilage defects in the knee, and Epicel (cultured epidermal autografts), a permanent skin replacement for treating severe burns. In December 2022, Vericel received FDA approval for NexoBrid (anacaulase-bcdb), a biological product for eschar removal in adults with deep partial-thickness and/or full-thickness burns.

MACI has been a significant growth driver for Vericel, with revenue increasing 25% to USD 164.8 million in 2023. The company has been expanding its surgeon customer base for MACI, approaching 50% penetration of its 5,000 target surgeons as of 2023. Vericel is also developing an arthroscopic delivery method for MACI, with FDA review underway and a potential launch expected in the third quarter of 2024. Additionally, the company plans to initiate a clinical study in 2025 to evaluate MACI for treating cartilage injuries in the ankle.

For Epicel, Vericel reported revenue of USD 31.6 million in 2023. The company's burn care franchise expanded with the addition of NexoBrid, which generated USD 1.1 million in revenue in 2023 following its US launch. Vericel manufactures MACI and Epicel at its facility in Cambridge, Massachusetts, while NexoBrid is manufactured by MediWound, primarily in Israel.

In 2023, Vericel reported total revenue of USD 197.5 million, a 20% increase from the previous year. The company's gross margin for 2023 was 69%, and it generated USD 35.3 million in operating cash flow. As of December 31, 2023, Vericel had USD 152.6 million in cash, restricted cash and investments, with no debt.

Key customers and partnerships

Vericel's MACI product is primarily used by orthopedic surgeons, with a target audience of approximately 5,000 surgeons in the US as of 2023. The company has been successful in expanding its surgeon customer base, with double-digit growth in surgeons taking biopsies in 2023. Vericel's burn care products, Epicel and NexoBrid, are used in burn centers across the country.

Vericel has an exclusive license agreement with MediWound for the North American rights to NexoBrid. This partnership allows Vericel to commercialize NexoBrid in the US market, complementing its existing burn care portfolio. The company's commercial team is actively engaged in supporting the initial phases of NexoBrid's launch, including burn center access, surgeon training, and supporting initial cases to ensure successful patient outcomes.