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Vericel continued its strong performance with another quarter of record revenue, reporting MACI sales of US $16.4MM, +65.7% vs. 3Q17. MACI, available only in the U.S., uses a patient’s own cartilage cells to provide pain relief and improved function in the knee. Over 800 surgeons are now trained on the procedure since the 1Q17 launch of the product, and Vericel anticipates that approximately 900 surgeons will be trained by the end of the year, up from 500 at the close of 2017.
Vericel commissioned a third-party market assessment that was recently completed. The research estimated the market for MACI to be around 16,000 patients annually, a significant increase over the 11,000-patient addressable market shown in previous company assessments. Moving forward, the company plans to research the number of surgeons that do not self-identify as sports medicine surgeons but do repair procedures, which could further expand their current targeted base of around 3,000 surgeons.
To meet increased MACI demand the company will once again enlarge its MACI salesforce by adding eight reps and a sixth sales region. This expansion will primarily address “geographic whitespaces” and should not cause disruption within the existing salesforce. New hires are expected to be fully trained and in their new territories by the end of 1Q19.
ORTHOWORLD estimates 2018 MACI revenues of $65.6MM, +49.4% vs. 2017.
Vericel MACI 3Q18 and YTD sales and growth on an as-reported basis is as follows.
| 3Q18 | 3Q17 | $ Change | % Change | |
| Orthobiologics | $16.4 | $9.9 | $6.5 | 65.7% |
| YTD18 | YTD17 | $ Change | % Change | |
| Orthobiologics | $42.6 | $27.8 | $14.8 | 53.2% |
Vericel’s 3Q18 net earnings for all revenue is as follows.
| 3Q18 | Amount ($MM) | % of Sales |
| Sales | $22.5 | |
| Cost of Sales | -$8.1 | 36.2% |
| Administrative | -$12.6 | 55.9% |
| R&D | -$3.1 | 13.8% |
| Other | $0.3 | 1.2% |
| Net Earnings | -$1.1 | -4.8% |
Sources: Vericel; ORTHOWORLD estimates. All revenue figures presented in USD $MM.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Vericel continued its strong performance with another quarter of record revenue, reporting MACI sales of US $16.4MM, +65.7% vs. 3Q17. MACI, available only in the U.S., uses a patient’s own cartilage cells to provide pain relief and improved function in the knee. Over 800 surgeons are now trained on the procedure since the 1Q17 launch of the...
Vericel continued its strong performance with another quarter of record revenue, reporting MACI sales of US $16.4MM, +65.7% vs. 3Q17. MACI, available only in the U.S., uses a patient’s own cartilage cells to provide pain relief and improved function in the knee. Over 800 surgeons are now trained on the procedure since the 1Q17 launch of the product, and Vericel anticipates that approximately 900 surgeons will be trained by the end of the year, up from 500 at the close of 2017.
Vericel commissioned a third-party market assessment that was recently completed. The research estimated the market for MACI to be around 16,000 patients annually, a significant increase over the 11,000-patient addressable market shown in previous company assessments. Moving forward, the company plans to research the number of surgeons that do not self-identify as sports medicine surgeons but do repair procedures, which could further expand their current targeted base of around 3,000 surgeons.
To meet increased MACI demand the company will once again enlarge its MACI salesforce by adding eight reps and a sixth sales region. This expansion will primarily address “geographic whitespaces” and should not cause disruption within the existing salesforce. New hires are expected to be fully trained and in their new territories by the end of 1Q19.
ORTHOWORLD estimates 2018 MACI revenues of $65.6MM, +49.4% vs. 2017.
Vericel MACI 3Q18 and YTD sales and growth on an as-reported basis is as follows.
| 3Q18 | 3Q17 | $ Change | % Change | |
| Orthobiologics | $16.4 | $9.9 | $6.5 | 65.7% |
| YTD18 | YTD17 | $ Change | % Change | |
| Orthobiologics | $42.6 | $27.8 | $14.8 | 53.2% |
Vericel’s 3Q18 net earnings for all revenue is as follows.
| 3Q18 | Amount ($MM) | % of Sales |
| Sales | $22.5 | |
| Cost of Sales | -$8.1 | 36.2% |
| Administrative | -$12.6 | 55.9% |
| R&D | -$3.1 | 13.8% |
| Other | $0.3 | 1.2% |
| Net Earnings | -$1.1 | -4.8% |
Sources: Vericel; ORTHOWORLD estimates. All revenue figures presented in USD $MM.
Mike Evers is ORTHOWORLD’s Market Analyst. 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.
