Full Press Release Details
Announces Preliminary Second Quarter 2020 Financial Results and
Provides Business Updates
Quarter Net Product Revenues Expected to be Approximately $20 Million
July 9, 2020 (GLOBE NEWSWIRE) - Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine
and severe burn care markets, today announced preliminary financial results for the quarter ended June 30, 2020, and provided
Second Quarter Financial Results
very strong recovery for MACI during the second quarter as restrictions on elective surgeries were lifted across the country,"
said Nick Colangelo, President and CEO of Vericel. "While considerable uncertainties related to COVID-19 remain, absent
a significant resurgence in restrictions related to COVID-19 we expect growth for MACI in the third quarter, albeit at a more
moderate rate compared to pre-COVID-19 levels given the decline in MACI biopsies in April and May. We will continue to monitor
the evolving landscape and we look forward to updating investors on our second quarter earnings call."
host a webcast and conference call to discuss its second quarter 2020 financial results and business highlights on August 5, 2020
at 8:30am Eastern Time.
in advanced therapies for the sports medicine and severe burn care markets. The company markets two cell therapy products in the
United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized
scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with
or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement
for the treatment of patients with deep dermal or full-thickness burns greater than or equal to 30% of total body surface area.
The company also holds an exclusive license for North American commercial rights to NexoBrid , a registration-stage
biological orphan product for debridement of severe thermal burns. For more information, please visit the company's website
and MACI are registered trademarks of Vericel Corporation. NexoBrid is a registered trademark
and Unaudited Nature of Reported Results
Our revenue expectations
for the second quarter, as well as our estimates concerning cash and investments are preliminary, unaudited and are subject to
adjustment in the course of our ongoing internal control and review procedures.
cautions you that all statements other than statements of historical fact included in this press release that address activities,
events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Although
we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations
about future events affecting us and are subject to risks, assumptions, uncertainties and factors relating to our operations and
business environment, all of which are difficult to predict and many of which are beyond our control. Our actual results may differ
materially from those expressed or implied by the forward-looking statements in this press release. These statements are often,
but are not always, made through the use of words or phrases such as "anticipates," "intends," "estimates,"
"plans," "expects," "continues," "believe," "guidance," "outlook,"
"target," "future," "potential," "goals" and similar words or phrases, or future
or conditional verbs such as "will," "would," "should," "could," "may,"
or similar expressions.
the factors that may result in differences are the inherent uncertainties associated with our expectations concerning expected
revenue results for the second quarter of 2020 and estimates of our cash and investments as of June 30, 2020. Vericel's
revenue expectations for the second quarter, as well as its estimates concerning cash and investments are preliminary, unaudited
and are subject to adjustment in the course of our ongoing internal review. Our internal control procedures over financial
reporting have not yet been completed and, therefore, the change in revenue and cash and investments as described herein have
not been evaluated under our internal control framework. Additional
factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but
are not limited to uncertainties associated with the scope, scale and duration of the impact of the COVID-19 pandemic, growth
in revenues for MACI and Epicel, the expected target surgeon audience, the estimate of the commercial growth potential of our
products and product candidates, potential fluctuations in sales and volumes and our results of operations over the course of
the year, competitive developments, market demand for our products, changes in third party coverage and reimbursement, and our
ability to supply or meet customer demand for our products.
respect to COVID-19, we are currently unable to reasonably estimate the specific extent, or duration, of the impact of the COVID-19
outbreak on our business, financial and operating results. We are also unable to predict how the outbreak will affect the pace
with which state and local governments lift restrictions on the performance of elective surgical procedures or whether additional
such restrictions may be imposed by states in the future, the availability of physicians and/or their treatment prioritizations
or the impact of the outbreak on the overall healthcare infrastructure. In addition, some patients who have cancelled or postponed
surgeries may not reschedule cases in a timely fashion, or at all. Other disruptions or potential disruptions include restrictions
on the ability of Company personnel to travel and access customers for training, promotion and case support, and
additional government-imposed quarantines and requirements to "shelter at home" or other incremental mitigation efforts
that may impact our ability to source supplies for our operations or our ability or capacity to manufacture, sell and support
the use of our products. The total impact of these disruptions could have a material impact on the Company's financial condition,
cash flows and results of operations.
significant factors are discussed in greater detail in Vericel's Annual Report on Form 10-K for the year ended December
31, 2019, filed with the Securities and Exchange Commission ("SEC") on February 25, 2020, Vericel's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on May 11, 2020, and in other filings with the SEC.
These forward-looking statements reflect our views as of the date hereof and Vericel does not assume and specifically disclaims
any obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that
occur after the date of this release except as required by law.