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Product / Company Performance

Vericel Reports 4Q18 MACI Revenue of $25.1MM, +56% vs. 4Q17 -


Vericel posted 4Q18 MACI revenue of USD $25.1MM, +56% vs. 4Q17, with 2018 full year revenue of $67.7MM, +54.2% vs. 2017. The quarter marks the seventh consecutive quarter of record revenues for the company as MACI continues to drive revenue and profit growth. With a significant addressable market and no near-term competitive product entries, Vericel expects strong MACI growth to continue in 2019. The company provided 2019 full year guidance of $108MM to $112MM total revenue, and ORTHOWORLD estimates 2019 MACI revenue of $82.5MM.

The new salesforce hires from 3Q18 will move into their territories on April 1, 2019. This will increase the MACI salesforce by 20% to 48 representatives. Leadership stated that in previous salesforce expansions, biopsy rates in the new territories were a key indicator of success. Biopsy rates increase significantly in expansion territories in the first year, and then those territories lead the nation in percentage increase of implants in the following year. Vericel expects that dynamic to continue with the reps entering territories in April.

The company has now brought its total MACI-trained surgeon population to 900 and is launching several patient-focused marketing initiatives to improve biopsy-to-implant ratio and drive MACI demand. Additionally, Vericel is launching initiatives aimed at physical therapists to enhance MACI rehabilitation resources and build a network of advocates and opinion leaders.

In its clinical pipeline, the company is recruiting patients for a pediatric MACI trail while also awaiting the results of several investigator-initiated studies.

MACI sales and growth on an as-reported basis:

  4Q18 4Q17 $ Change % Change
Orthobiologics $25.1 $16.1 $9.0 56.0%
  FY18 FY17 $ Change % Change
Orthobiologics $67.7 $43.9 $23.8 54.2%

Net earnings:

4Q18 Amount ($MM) % of Sales
Sales $31.3  
   Cost of Sales -$8.6 27.5%
   Other -$0.8 2.4%
   R & D -$3.0 9.6%
   Selling and Admin -$13.7 43.7%
Net Earnings $5.2 16.7%


Sources: Vericel; ORTHOWORLD estimates

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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