On August 4, 2021 Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, reported financial results and business highlights for the second quarter ended June 30, 2021 (Press release, Vericel, AUG 4, 2021, View Source [SID1234585737]).
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Second Quarter 2021 Financial Highlights
Total net revenue of $39.5 million, an increase of 97% compared to the second quarter of 2020 and 51% compared to the second quarter of 2019
MACI net revenue of $26.5 million, Epicel net revenue of $12.2 million, and NexoBrid revenue of $0.8 million related to the U.S. Biomedical Advanced Research and Development Authority (BARDA) procurement for emergency response preparedness
Gross margin of 68%, compared to 57% in the second quarter of 2020
Net loss of $3.8 million, or $0.08 per share, compared to $8.3 million, or $0.18 per share, in the second quarter of 2020
Non-GAAP adjusted EBITDA of $7.8 million, or 20% of net revenue, compared to adjusted EBITDA loss of $3.5 million in the second quarter of 2020
Operating cash flow of $4.8 million
As of June 30, 2021, the Company had $116 million in cash and investments, compared to $100 million as of December 31, 2020, and no debt
Business Highlights and Updates
MACI net revenue growth of 76% compared to the second quarter of 2020 and 27% compared to the second quarter of 2019
MACI biopsy growth of more than 50% in the first half of 2021 compared to the same period in 2020, with a record quarterly high in the number of biopsies and the number of surgeons taking biopsies in the second quarter
Record quarterly Epicel revenue, with growth of 148% compared to the second quarter of 2020 and 128% compared to the second quarter of 2019
Record quarterly high in the number of Epicel biopsies and grafting burn centers
"The Company continued to execute extremely well in the second quarter as we delivered another quarter of strong financial and commercial results," said Nick Colangelo, President and CEO of Vericel. "Based on the strength of the underlying growth drivers for MACI and Epicel, we believe that the Company is well-positioned to continue driving sustainable penetration into the addressable markets for both products in the years ahead."
Full-Year 2021 Financial Guidance
Total net revenue now expected to be in the range of $168-$171 million, compared to previous guidance of approximately $165-$168 million
Adjusted EBITDA margin now expected to be in the range of 23% to 25%, compared to previous guidance of 21.5% to 23.5%
Maintaining gross margin guidance of 70% to 71% and estimated operating expenses of approximately $115 million
Second Quarter 2021 Results
Total net revenue for the quarter ended June 30, 2021 increased 97% to $39.5 million, compared to $20.0 million in the second quarter of 2020. Total net product revenue for the quarter included $26.5 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue and $12.2 million of Epicel (cultured epidermal autografts) net revenue, compared to $15.1 million of MACI net revenue and $4.9 million of Epicel net revenue, respectively, in the second quarter of 2020. Total net revenue for the quarter also included $0.8 million of revenue related to the procurement of NexoBrid (concentrate of proteolytic enzymes enriched in bromelain) by BARDA for emergency response preparedness.
Gross profit for the quarter ended June 30, 2021 was $26.9 million, or 68% of net revenue, compared to $11.4 million, or 57% of net revenue, for the second quarter of 2020.
Total operating expenses for the quarter ended June 30, 2021 were $30.6 million, compared to $19.7 million for the same period in 2020. The increase in operating expenses was primarily due to an increase in stock-based compensation expense driven by share price appreciation over the past year and lower spend in the prior year due to COVID-19-related factors.
Net loss for the quarter ended June 30, 2021 was $3.8 million, or $0.08 per share, compared to $8.3 million, or $0.18 per share, for the second quarter of 2020.
Non-GAAP adjusted EBITDA for the quarter ended June 30, 2021 was $7.8 million, or 20% of net revenue, compared to an adjusted EBITDA loss of $3.5 million in the second quarter of 2020. A table reconciling non-GAAP measures is included in this press release for reference.
As of June 30, 2021, the Company had $116 million in cash and investments, compared to $100 million as of December 31, 2020, and no debt.
Conference Call Information
Today’s conference call will be available live at 8:30am Eastern Time and can be accessed through the Investor Relations section of the Vericel website at View Source." target="_blank" title="View Source." rel="nofollow">View Source A slide presentation with highlights from today’s conference call will be available on the webcast and in the Investor Relations section of the Vericel website. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software, if necessary. To participate in the live call by telephone, please call (877) 312-5881 and reference Vericel Corporation’s second quarter 2021 investor conference call. If calling from outside the U.S., please use the international phone number (253) 237-1173.
If you are unable to participate in the live call, the webcast will be available at View Source until August 4, 2022. A replay of the call will also be available until 11:30am (EDT) on August 11, 2021 by calling (855) 859-2056, or from outside the U.S. by calling (404) 537-3406. The conference ID is 2969646.