Vericel Announces Preliminary Second Quarter 2020 Financial Results and Provides Business Updates
8:30 am ET July 9, 2020 (Globe Newswire) Print
Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today announced preliminary financial results for the quarter ended June 30, 2020, and provided business updates.
Preliminary Second Quarter Financial Results
-- Preliminary total net product revenues for the second quarter are expected to be approximately $20 million, including approximately $15 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue and approximately $5 million of Epicel (cultured epidermal autografts) net revenue;
-- Total net product revenues for the second quarter decreased approximately 23% compared to the second quarter of 2019, with MACI net revenue decreasing approximately 27% and Epicel net revenue decreasing approximately 8% compared to the second quarter of 2019;
-- Total net product revenues, which declined approximately 78% in April and 32% in May compared to the same periods in 2019, increased approximately 30% in June compared to June 2019;
-- Total net product revenues for the first half of 2020 decreased approximately 2% compared to the first half of 2019, with MACI net revenue decreasing approximately 5% and Epicel net revenue increasing approximately 7% compared to the first half of 2019; and
-- As of June 30, 2020, the company had approximately $81 million in cash and investments and no debt.
Second Quarter Business Updates
-- MACI implants, which declined approximately 84% in April and 37% in May compared to the same periods in 2019, increased approximately 21% in June compared June 2019;
-- MACI biopsies declined approximately 79% in April and 22% in May compared to the same periods in 2019, and increased approximately 23% in June compared June 2019;
-- Approximately 70% of scheduled MACI cases that were cancelled in the first half of 2020 due to the COVID-19 pandemic have been rescheduled, with over 50% of the cancelled cases completed by the end of the second quarter;
-- Epicel graft volume, which declined 70% in April, increased approximately 20% in the May through June period compared to the same period in 2019; and
-- Epicel biopsies increased by approximately 6% in the second quarter compared to the second quarter of 2019.
"We saw a very strong recovery for MACI during the second quarter as restrictions on elective surgeries were lifted across the country," said Nick Colangelo, President and CEO of Vericel. "While considerable uncertainties related to COVID-19 remain, absent a significant resurgence in restrictions related to COVID-19 we expect growth for MACI in the third quarter, albeit at a more moderate rate compared to pre-COVID-19 levels given the decline in MACI biopsies in April and May. We will continue to monitor the evolving landscape and we look forward to updating investors on our second quarter earnings call."
The company will host a webcast and conference call to discuss its second quarter 2020 financial results and business highlights on August 5, 2020 at 8:30am Eastern Time.
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