Vericel posted 1Q17 orthobiologic revenue of US $38.8MM, +10.2% vs. 1Q16.
1Q17 | 1Q16 | $ Change | % Change | |
Orthobiologics | $5.0 | $8.8 | -$3.8 | -43.2% |
1Q17 performance highlights:
- Revenues include Carticel® autologous cultured chondrocytes and MACI® autologous cultured chondrocytes on porcine collagen membrane
- Decrease reflects a change in the estimate for revenue reserves of $2.1MM related to 2016 sales and $0.7MM related to 2017 sales: in 2Q17, VCEL was notified of a dispute between one of its contracted pharmacy service providers and a payor; VCEL retains credit and collection risk from the end customer, and it is assumed that cases processed by the pharmacy will be paid at a lower out-of-network rate
- Also, a small percentage of MACI implants shipped but were not recorded in 1Q17 revenue due to reimbursement uncertainty at the time
- Fully launched MACI and treated first patient
- Four of 10 commercial plans updated medical policies to include coverage for MACI in the U.S.
- Expanded sales rep headcount and internal teams to support MACI, training >200 surgeons (of which nearly half were former Carticel users and non-Carticel users); territories grew from 21 to 28
- R&D expenses shifting from Carticel to MACI
- Entered into license agreement for development and distribution of Carticel and MACI in Southeast Asia
- “Since the first MACI implant was completed at the end of January, virtually all orders that we’ve received have been for MACI.”—Dan Orlando, Chief Operations Officer
- In 1Q, overall orders were split about 50/50 for MACI and Carticel as some were changed from MACI due to timing and reimbursement issues (this held true into March)
- “There is an inherent complexity when launching a next-generation product requiring a change in payer medical policy that can take quarters, while physician demand immediately switches to the new product.”—Nick Colangelo, Chief Executive Officer
Sources: Vericel Corporation; ORTHOWORLD Inc.
Vericel posted 1Q17 orthobiologic revenue of US $38.8MM, +10.2% vs. 1Q16.
Q17
1Q16
$ Change
% Change
Orthobiologics
$5.0
$8.8
-$3.8
-43.2%
1Q17 performance highlights:
Revenues...
Vericel posted 1Q17 orthobiologic revenue of US $38.8MM, +10.2% vs. 1Q16.
1Q17 | 1Q16 | $ Change | % Change | |
Orthobiologics | $5.0 | $8.8 | -$3.8 | -43.2% |
1Q17 performance highlights:
- Revenues include Carticel® autologous cultured chondrocytes and MACI® autologous cultured chondrocytes on porcine collagen membrane
- Decrease reflects a change in the estimate for revenue reserves of $2.1MM related to 2016 sales and $0.7MM related to 2017 sales: in 2Q17, VCEL was notified of a dispute between one of its contracted pharmacy service providers and a payor; VCEL retains credit and collection risk from the end customer, and it is assumed that cases processed by the pharmacy will be paid at a lower out-of-network rate
- Also, a small percentage of MACI implants shipped but were not recorded in 1Q17 revenue due to reimbursement uncertainty at the time
- Fully launched MACI and treated first patient
- Four of 10 commercial plans updated medical policies to include coverage for MACI in the U.S.
- Expanded sales rep headcount and internal teams to support MACI, training >200 surgeons (of which nearly half were former Carticel users and non-Carticel users); territories grew from 21 to 28
- R&D expenses shifting from Carticel to MACI
- Entered into license agreement for development and distribution of Carticel and MACI in Southeast Asia
- “Since the first MACI implant was completed at the end of January, virtually all orders that we’ve received have been for MACI.”—Dan Orlando, Chief Operations Officer
- In 1Q, overall orders were split about 50/50 for MACI and Carticel as some were changed from MACI due to timing and reimbursement issues (this held true into March)
- “There is an inherent complexity when launching a next-generation product requiring a change in payer medical policy that can take quarters, while physician demand immediately switches to the new product.”—Nick Colangelo, Chief Executive Officer
Sources: Vericel Corporation; ORTHOWORLD Inc.
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.