Vericel (VCEL) 44th Annual J.P. Morgan Healthcare Conference summary

Key business highlights

• Achieved strong revenue and profit growth, with MACI as the leading cartilage repair product and only FDA-approved in its class, and MACI Arthro launched in 2024.

• Expanded MACI's FDA approval to include arthroscopic administration, enhancing its market position.

• NexoBrid and Epicel address both eschar removal and permanent skin replacement for severe burns, with no direct competitors and strengthened U.S. launch.

• All products have significant regulatory and market exclusivity, creating high barriers to entry.

• Maintains a strong balance sheet with $200 million in cash and no debt as of 2025, supporting ongoing investment.

Financial performance and outlook

• Sustained positive Adjusted EBITDA and operating cash flow for over five years, including through COVID.

• Revenue doubled from 2020 to 2025, with expectations to double again by 2029, targeting $500 million.

• Gross margins expected to reach high 70% range and Adjusted EBITDA margin to reach high 30% range by 2029.

• Operating cash flow projected to exceed $100 million annually by 2029, trending toward $200 million.

• 2025 revenue expected at $276 million, at the high end of guidance, with MACI contributing close to $240 million.

Growth strategies and market expansion

• MACI sales force expanded by 30% to 100 territories, with further 30% expansion planned for 2026.

• MACI achieved a 24% CAGR since launch, with 20%+ growth in each of the last three years.

• Initiated clinical studies for MACI in ankle cartilage defects (MASCOT) and MACI Arthro, targeting $1 billion+ new markets.

• Plans to resume OUS expansion for MACI with new manufacturing facility.

• Burn care business expected to grow with increased NexoBrid uptake, Epicel utilization, and cross-selling efforts.