Vericelreported orthopedic revenue of USD $15.1 million, -27.5% vs. 2Q19. MACI implants declined -84% in April, -37% in May and then grew +21% in June compared to the prior year. Vericel believes that MACI is well-positioned to continue its growth in the second half of the year and beyond. Over 95% of MACI procedures are performed in outpatient settings that aren’t impacted by COVID-related hospital bed shortages. Also, MACI patients tend to be active younger people who are less likely to defer treatment.
For those reasons, Vericel leadership expects MACI revenues to grow “at least” in the mid-single-digits in both the third and fourth quarters. The company believes that 20% of third-quarter revenue will come from its backlog of deferred procedures, and the backlog will be depleted at that point. If Vericel can execute on its second half MACI goals, the company will finish 2020 with +0.8% revenue growth vs. 2019.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
2Q20
2Q19
$ Chg
% Chg
Orthobiologics
$15.1
$20.8
($5.7)
(27.5%)
1H20
1H19
$ Chg
% Chg
Orthobiologics
$35.4
$37.4
($2.0)
(5.4%)
Earnings
Amt
% of Sales
Sales
$20.0
Cost of Sales
$8.7
43.3%
Selling and Admin
$16.5
82.4%
R & D
$3.2
16.1%
Other
($0.1)
0.4%
Net Earnings
($8.3)
(41.3%)
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Vericelreported orthopedic revenue of USD $15.1 million, -27.5% vs. 2Q19. MACI implants declined -84% in April, -37% in May and then grew +21% in June compared to the prior year. Vericel believes that MACI is well-positioned to continue its growth in the second half of the year and beyond. Over 95% of MACI procedures are performed in...
Vericelreported orthopedic revenue of USD $15.1 million, -27.5% vs. 2Q19. MACI implants declined -84% in April, -37% in May and then grew +21% in June compared to the prior year. Vericel believes that MACI is well-positioned to continue its growth in the second half of the year and beyond. Over 95% of MACI procedures are performed in outpatient settings that aren’t impacted by COVID-related hospital bed shortages. Also, MACI patients tend to be active younger people who are less likely to defer treatment.
For those reasons, Vericel leadership expects MACI revenues to grow “at least” in the mid-single-digits in both the third and fourth quarters. The company believes that 20% of third-quarter revenue will come from its backlog of deferred procedures, and the backlog will be depleted at that point. If Vericel can execute on its second half MACI goals, the company will finish 2020 with +0.8% revenue growth vs. 2019.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
2Q20
2Q19
$ Chg
% Chg
Orthobiologics
$15.1
$20.8
($5.7)
(27.5%)
1H20
1H19
$ Chg
% Chg
Orthobiologics
$35.4
$37.4
($2.0)
(5.4%)
Earnings
Amt
% of Sales
Sales
$20.0
Cost of Sales
$8.7
43.3%
Selling and Admin
$16.5
82.4%
R & D
$3.2
16.1%
Other
($0.1)
0.4%
Net Earnings
($8.3)
(41.3%)
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
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