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Vericel reported 1Q21 orthopedic revenue of USD $23.8 million, +17.3% vs. 1Q20. The company notched its best-ever first quarter, leading it to increase 2021 MACI growth guidance to the mid-30% range. Vericel has high expectations for MACI in the second half of the year given current biopsy rates from surgeons.
MACI biopsy volumes, the company’s key measure for future growth, grew over 20% in the quarter. The biopsy growth came from more surgeons taking biopsies as Vericel continues to focus on broadening its MACI user base. Within the quarter, the company also saw significantly higher approval rates from UnitedHealthcare for patella cases following the payor’s new policy effective in February.
“The primary growth drivers are adding new biopsying surgeons and then getting more biopsies per surgeon. And the first driver being the breadth of penetration into our target customer base, and then the second being the depth of penetration into their practices. We expect the conversion rate to remain stable as that dynamic is unfolding. Once we saturate our target surgeon base of 5,000 surgeons, then the number of biopsies per surgeon and the conversion rate will take the predominant role in terms of driving growth.” – Vericel CEO Nick Colangelo
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $23.8 | $20.3 | $3.5 | 17.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $34.6 | |
| Cost of Sales | $11.6 | 33.5% |
| General and Admin | $22.7 | 65.6% |
| R & D | $3.6 | 10.5% |
| Net Earnings | ($3.3) | (9.5%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Vericel reported 1Q21 orthopedic revenue of USD $23.8 million, +17.3% vs. 1Q20. The company notched its best-ever first quarter, leading it to increase 2021 MACI growth guidance to the mid-30% range. Vericel has high expectations for MACI in the second half of the year given current biopsy rates from surgeons.
MACI biopsy volumes, the...
Vericel reported 1Q21 orthopedic revenue of USD $23.8 million, +17.3% vs. 1Q20. The company notched its best-ever first quarter, leading it to increase 2021 MACI growth guidance to the mid-30% range. Vericel has high expectations for MACI in the second half of the year given current biopsy rates from surgeons.
MACI biopsy volumes, the company’s key measure for future growth, grew over 20% in the quarter. The biopsy growth came from more surgeons taking biopsies as Vericel continues to focus on broadening its MACI user base. Within the quarter, the company also saw significantly higher approval rates from UnitedHealthcare for patella cases following the payor’s new policy effective in February.
“The primary growth drivers are adding new biopsying surgeons and then getting more biopsies per surgeon. And the first driver being the breadth of penetration into our target customer base, and then the second being the depth of penetration into their practices. We expect the conversion rate to remain stable as that dynamic is unfolding. Once we saturate our target surgeon base of 5,000 surgeons, then the number of biopsies per surgeon and the conversion rate will take the predominant role in terms of driving growth.” – Vericel CEO Nick Colangelo
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $23.8 | $20.3 | $3.5 | 17.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $34.6 | |
| Cost of Sales | $11.6 | 33.5% |
| General and Admin | $22.7 | 65.6% |
| R & D | $3.6 | 10.5% |
| Net Earnings | ($3.3) | (9.5%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
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.
