Vericel Corporation Inc. (NASDAQ:VCEL) has announced its Q3 2020 financial results posting net revenue of $32.3 million and also provided business updates.
Vericel reports total product revenue of $24.4 million in Q3 2020
In Q3, total revenue comprised of $24.4 million in MACI® (autologous cultures chondrocytes on porcine collagen membrane) sales, Epicel® (cultured epidermal autografts) revenue of $6.7 million and also $1.2 million in NexoBrid® revenue related to the procurement from the US Biomedical Advanced Research and Development Authority. Gross margin in the quarter was 50% of net revenues or $22 million. However, operating expenses increased by $0.9 million from last year due to an increase in employee expenses related to MACI sales representative expansion. Net income in the quarter was $3.6 million or $0.08 per share, and the company the quarter with $85.5 million in cash and cash equivalents.
The company had a record total and MACI® revenues in the third quarter and second-highest Epicel quarterly revenue in its history. Vericel realized double-digit MACI revenue growth, biopsies and implants in Q3 2020, which included record monthly high biopsies in the last month of the quarter. The company made its first NexoBrid delivery during the quarter to BARDA for emergency response preparedness. The FDA accepted the company’s NexoBrid BLA for review for severe thermal; burns treatment with a PDUFA action date of June 29, 2021.
Vericel executed well in Q3 and expected to continue growing revenue
Nick Colangelo, the CEO and President of the company said that in Q3 the company executed exceedingly well with the company generating stronger than anticipated financial results. Vericel managed to drive strong commercial performance for MACI and Epicel and also attained significant milestones towards the goal of marketing approval of NexoBrdi in the US.
Colangelo said that the company’s performance in Q3 demonstrates the strength of the company’s business in several measures. Although there are uncertainties related to the pandemic, the company is confident of the underlying fundamentals of its business, and it is on track to deliver strong revenue growth and profitability in years to come.