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Jun 30, 2020
Vericel Q2 2020 Earnings Report
Reported product revenues of $20.0 million for the second quarter.
Key Takeaways
Vericel Corporation reported a total net product revenue of $20.0 million for Q2 2020, a decrease compared to $26.2 million in Q2 2019. The company experienced a net loss of $8.3 million, or $0.18 per share, compared to a net loss of $19.8 million, or $0.45 per share, in the same quarter of the previous year. As of June 30, 2020, the company's cash and investments totaled $80.9 million with no debt.
Total net product revenues were $20.0 million, compared to $26.2 million in the second quarter of 2019.
MACI® net revenue was $15.1 million, while Epicel® net revenue reached $4.9 million.
Gross margin was 57%, compared to 66% in the second quarter of 2019.
Net loss was $8.3 million, or $0.18 per share, compared to $19.8 million, or $0.45 per share, in the second quarter of 2019, including a $17.5 million upfront license payment.
Vericel
Vericel
Vericel Revenue by Segment
Revenue by Segment
MACI Net Revenue
CapyFin.comEpicel Net Revenue
CapyFin.com Forward Guidance
Vericel anticipates MACI revenue growth over Q3 2019, sequential Epicel revenue increase over Q2 2020 to recent historical levels, and revenue recognition from the first NexoBrid delivery under the BARDA contract in Q3 2020.
Positive Outlook
- MACI revenue growth expected over the third quarter of 2019.
- Epicel revenue is anticipated to increase sequentially over the second quarter of 2020.
- Epicel revenue expected to return to recent historical levels.
- Revenue recognition is expected in connection with the first delivery of NexoBrid under the BARDA procurement contract.
- The delivery of NexoBrid is scheduled to take place later this quarter.
Challenges Ahead
- Uncertainties remain due to the ongoing pandemic.
- COVID-19 restrictions on elective surgeries may impact results.
- Potential fluctuations in sales and volumes may affect results of operations.
- The pace with which state and local governments lift restrictions on the performance of elective surgical procedures is uncertain.
- Patients who have cancelled or postponed surgeries may not reschedule cases in a timely fashion, or at all.
Revenue & Expenses
Visualization of income flow from segment revenue to net income