Biologics company Vericel's Q2 revenue misses expectations

Overview

• Vericel Q2 revenue grows 20% to $63.2 mln, missing analyst expectations

• Adjusted EBITDA rises 112% to $13.4 mln, reflecting improved profitability

• Company receives FDA IND clearance for Phase 3 MACI Ankle study

Outlook

• Vericel reaffirms MACI full-year revenue growth in low 20% range

• Company updates Burn Care revenue guidance to $10 mln per qtr for H2 2025

• Vericel maintains full-year gross margin guidance of 74%

• Company expects adjusted EBITDA margin of 26% for full year

Result Drivers

• MACI REVENUE GROWTH - MACI revenue increased by 21% to $53.5 mln, driven by higher implant volumes and sales force expansion

• GROSS MARGIN IMPROVEMENT - Gross margin rose more than 400 basis points to 74%, contributing to improved profitability

• BURN CARE REVENUE - NexoBrid revenue grew 52% year-over-year, with the highest number of hospital unit orders in June

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• Wall Street's median 12-month price target for Vericel Corp is $58.50, about 30.5% above its July 30 closing price of $40.66

• The stock recently traded at 81 times the next 12-month earnings vs. a P/E of 103 three months ago

Press Release: ID:nGNX6Vmgvm