Vericel (VCEL) Leerink Global Healthcare Conference 2026 summary

Business performance and financial highlights

• Achieved 23% overall growth and 25% burn care growth in Q4, with MACI posting its third consecutive year of 20%+ growth.

• Fourth quarter profitability included 79% gross margin and over 40% adjusted EBITDA, with strong cash generation and a year-end cash balance of $200 million.

• Full-year MACI gross margin was in the mid-70s, and EBITDA in the mid-20s, outperforming initial margin guidance despite increased investment in sales force expansion.

• 2026 guidance assumes balanced growth, with similar incremental revenue year-over-year and seasonality, targeting $42–$43 million incremental revenue for MACI.

• Gross margin guidance for 2026 is 75%, with continued leverage from revenue growth and new manufacturing facility coming online.

Strategic initiatives and growth drivers

• Expanded sales force by 30% to maximize reach and frequency, with all new hires in place at the start of the year.

• Focused on leveraging the Arthro launch, increasing trained surgeons from 150 to 1,000, aiming to drive growth in smaller defect segments.

• Emphasizing commercial and operational excellence, including better tools and analytics to enhance sales execution.

• Ramping up the MACI ankle trial and preparing for potential ex-U.S. launch, with regulatory submissions and pre-commercial activities underway for a 2027 launch.

• No major change in business development appetite; focus remains on organic growth and disciplined financial management.

MACI and Arthro commercial momentum

• MACI’s growth is driven by both increased surgeon breadth and rising biopsies per surgeon, with strong Q4 and December metrics.

• Arthro training has diversified the surgeon base, with a third of new users coming from outside the historical MACI user pool.

• Surgeons trained on Arthro show increased biopsy and implant growth, with conversion rates rising in the second half of the year.

• Arthro is expected to unlock growth in small condyle defects, the largest segment of the TAM, with a multi-year impact anticipated.

• Pricing remains a growth driver, with high single-digit increases expected over multiple years, supported by strong access and prior authorization rates.