Vericel (VCEL) investor relations material

Business performance and market trends

• Achieved record growth in December and Q1, with over 20% revenue growth and highest-ever biopsy metrics, continuing into Q2.

• No slowdown observed in procedural volumes or patient flow, outpacing the broader market by multiples.

• Guidance for the remainder of the year is set at high teens growth, reflecting prudence despite strong recent performance and a 9.5% price increase in May.

• Internal expectations are higher than guidance, with confidence in meeting or exceeding targets if double-digit biopsy and implant growth continues.

Pricing strategy and payer dynamics

• MACI is a unique, FDA-regulated combination device and biologic, with pricing set independently of CMS and based on regular market research.

• Payers view MACI pricing as modest compared to other advanced cell therapies, and its overall system impact is considered low.

• Pricing increases are supported by market research and payer feedback, with expectations for continued strong pricing and volume growth.

• Transparent payer relationships and strict medical policy requirements limit risk of pricing pushback; thoughtful, non-aggressive pricing is emphasized.

Competitive landscape and market positioning

• MACI is the clear market leader in cartilage repair, with a 24% CAGR over 10 years and no direct MACI-like competition expected.

• Alternative products like Agility target different patient populations and are not expected to impact MACI's core business.

• Surgeons' treatment algorithms and patient profiles limit the overlap between MACI and competitors; share shifts are expected from other alternatives, not MACI.

• Regulatory and clinical trial barriers create a strong moat, making it difficult for new MACI-like entrants.