Vericel Corporation · NASDAQ:VCEL
Vericel — Investor Presentation (March 2022)
23 slides from Vericel's investor presentation, March 2022
Slide 1: Corporate Presentation March 2022
Advanced Therapies for the Sports Medicine and Severe Burn Care Markets CORPORATE PRESENTATION MARCH 2022
Slide 2: Safe Harbor
Safe Harbor Vericel cautions you that all statements other than statements of product development activities, timing of the resubmission to the efforts or initiatives that may impact our ability to source supplies for historical fact included in this presentation that address activities, Food & Drug
Slide 3: Portfolio of Innovative Cell Therapies and Specialty Biologics
Portfolio of Innovative SPORTS MEDICINE SEVERE BURNS Cell Therapies and Specialty Biologics with Significant Barriers to Entry The leading permanent skin replacement in the severe The leading restorative cartilage burn care field repair product in the sports medicine market Delivering Sustained High
Slide 4: Strong Track Record of Revenue and Profit Growth
Strong Track Record of Revenue and Profit Growth Top-Tier Revenue Growth Robust Profitability Profile Sports Med Burn Care +26% Adjusted EBITDA $156M $118M $124M $29M $91M $21M $19M $64M $5M ($9M) 2017A 2018A 2019A 2020A 2021A 2017A 2018A 2019A 2020A 2021A Multiple years of top-tier revenue growth C
Slide 5: Well-Positioned to Sustain High Revenue and Profit Growth Over the Long Term
Well-Positioned to Sustain High Revenue and Profit Growth Over the Long Term Expect to Maintain Strong Growth Trajectory in Expect Continued Long-Term Margin Expansion1 2022 and Beyond1 GROSS MARGIN 70%+ ADJUSTED EBITDA 30%+ 2017A 2018A 2019A 2020A 2021A 2022E 2023E 2024E Significantly underpenetrat
Slide 6: Articular Cartilage Structure and Function
Articular Cartilage Structure and Function ARTICULAR CARTILAGE A R T I C U L A R C A R T I L A G E I S A H I G H LY S P E C I A L I Z E D CONNECTIVE TISSUE OF SYNOVIAL JOINTS Articular cartilage function Provide a smooth, lubricated surface allowing for nearly frictionless movement Facilitate transm
Slide 7: Knee Cartilage Defects and Treatment Options
Knee Cartilage Defects and Treatment Options Knee cartilage injuries are a significant cause of musculoskeletal morbidity Cartilage defects are found in ~60% of knee arthroscopies Damage is caused by acute and repetitive trauma and degenerative conditions Limited capacity for intrinsic healing and r
Slide 8: Large Addressable Knee Cartilage Repair Market for MACI
Large Addressable Knee Cartilage Repair Market for MACI Estimated Annual Addressable Patient Population (U.S.) Annual Cartilage Repair Revenue ~750,0001 $112 Cartilage Repair Procedures $95 $92 ~315,0002 Patients $68 $Millions Consistent With Label $2+ Billion $44 ~125,0002 Patients MD’s Consider Ad
Slide 9: MACI Production and Administration
MACI Production and Administration 9
Slide 10: MACI Product Attributes Driving Strong Growth Since Launch
MACI Product Attributes Driving Strong Growth Since Launch Broad Label with Strong Clinical Data Simpler, Less Invasive Procedure Shorter Rehab Protocols Strong Reimbursement Profile 10
Slide 11: MACI Product and Procedure Enhancements Driving Broader Surgeon Adoption
MACI Product and Procedure Enhancements Driving Broader Surgeon Adoption 1995 2017 2019 2025+ Cells in Suspension Cells on Collagen Membrane Advanced Instrumentation Additional Delivery Option • Highly invasive, technically exacting • Simpler, less invasive ACI procedure • Simplifies templating • Le
Slide 12: Significant Ankle Cartilage Repair Opportunity
Significant Ankle Cartilage Repair Opportunity MACI Ankle Annual TAM Estimate (U.S.) ~165,0001 Ankle Resurfacing Current Treatment Procedures Breakdown2 Minced Other autograft ~66,0002 Patients MD’s Consider Clinically Appropriate OCA OATs For MACI MFX alone MFX+ ~18,00022 ~18,000 Minced LargerLesio
Slide 13: Burn Injury Size and Depth Determine Treatment Pathway
Burn Injury Size and Depth Epidermis Determine Treatment Pathway Superficial (1st Degree) Superficial Partial-Thickness (2nd Degree) Dermis Deep Partial-Thickness (2nd Degree) ▷ Full thickness burn injuries of any size and partial thickness burn injuries >10% TBSA are most often Subcutaneous fat Ful
Slide 14: Burn Franchise Addressable Market Opportunity
Burn Franchise Addressable Market Opportunity NexoBrid Estimated U.S. Burn Patients1 $200+ Million 500,000 Addressable Annual Burns (U.S.) Market in the U.S.2 Upon approval, NexoBrid 40,000 Hospitalized Patients will significantly expand Epicel the total addressable 1,500 market opportunity for Epic
Slide 15: Early Eschar Removal is a Critical 1st Step in Burn Treatment
Early Eschar Removal is a Critical 1st Step in Burn Treatment Eschar Removal Current Standard of Care Before… …After Surgical Excision Non-Surgical Approaches Tangential excision Autolysis Dermabrasion Topical medications Hydro-jet surgery Enzymes, chemicals, biologicals Dermis Eschar Subcutaneous F
Slide 16: NexoBrid Selectively Removes Nonviable Burn Tissue (Eschar)
NexoBrid Selectively Removes Nonviable Burn Tissue (Eschar) in Patients with Deep Partial- and Full-Thickness Burns Approved in EU & other OUS markets Bromelain-based biological product containing a sterile mixture of proteolytic enzymes Investigational product with orphan biologic designation in th
Slide 17: Epicel Overview
EPICEL OVERVIEW Epicel is a permanent skin replacement for full thickness burns ≥ 30% of total body surface area Only FDA-approved Important treatment permanent skin option for severe replacement for adult burn patients where and pediatric patients little skin is available with full-thickness burns
Slide 18: Epicel Production and Administration
Epicel Production and Administration 18
Slide 19: Comparison of Epicel Patient Database to National Burn Repository
Comparison of Epicel Patient Database to National Burn Repository1 Data Demonstrates Lower Mortality Rate Mortality Rate by TBSA Decile 100 Stratified CMH Chi-square p < 0.0001 Chi-square for all subgroups > 40%TBSA p < 0.0001 90 80 Mortality Rate (%) 70 60 50 40 30 20 10 0 0.1 - 9.9 10 - 19.9 20 -
Slide 20: Building a Pipeline Through Current Portfolio and Business Development
Building a Pipeline Through Current Portfolio and Business Development PRODUCT INDICATION/STUDY PRECLINICAL PHASE I PHASE II PHASE III REGISTRATION APPROVAL Treatment of Symptomatic Cartilage Defects of the Knee in Adults Commercialized Pediatric (PEAK) Study – Knee Currently Enrolling Arthroscopic
Slide 21: Strategic Transactions to Maximize Long-Term Value
Strategic Transactions to Maximize Long-Term Value A D VA N C E D C E L L T H E R A P Y D E V E L O P M E N T A N D M A N U F A C T U R I N G P L AT F O R M Sports Medicine Severe Burn Care New Advanced Cell Business development Franchise Franchise Therapy Vertical(s) activities focused on opportuni
Slide 22: Vericel is a leader in advanced therapies for sports medicine and severe burn care
Vericel is a leader in advanced therapies for the sports medicine and severe burn care markets Innovative Portfolio with Sustainable Revenue Growth Significant Barriers to Entry in Large Addressable Markets INVESTMENT HIGHLIGHTS Attractive Business Model with Strong Balance Sheet and Robust Profitab
Slide 23: Reconciliation of Reported GAAP Net Income (Loss) to Adjusted EBITDA
Reconciliation of Reported GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP Measure) – Unaudited Twelve Months Ended December 31, Annual Adjusted EBITDA 2017 2018 2019 2020 2021 Net Income (loss) (GAAP) $(17,286) ($8,137) ($9,665) $2,864 ($7,471) Non-recurring license agreement purchase - - 17,50