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Vericel reported 3Q21 orthopedic sales for MACI of $23.9 million, -2% vs. 3Q20. The declines stemmed from a mixture of normal seasonality, patient-driven delays and surging COVID cases during the quarter. While the third quarter is generally slower for Vericel, July brought uncharacteristically high deferrals as economies reopened and patients traveled more. Just as that headwind normalized, COVID’s Delta variant surged and restricted elective procedures in many of Vericel’s biggest sales territories.
The company exited the third quarter with an estimated backlog of 150 cases or approximately $7 million in revenue. Similar backlogs from the initial April 2020 lockdown and the early 2021 surge saw 80% of the cases recaptured within two quarters. Vericel anticipates a record-setting fourth quarter for MACI, and full-year growth of +20% vs. 2020.
The product will benefit from additional tailwinds to spur longer-term growth. Vericel achieved reimbursement enhancements for MACI, including the expansion of United Healthcare’s policy to include patients with patella defects. Additionally, CMS determined MACI will remain on the ASC procedure list for 2022. Finally, the company is developing an arthroscopic delivery tool for MACI that will make the procedure less invasive and spur mid-term growth by expanding its target surgeon pool.
“MACI, when we acquired this business years ago, was approved in the EU. That’s a very challenging market for these advanced cell and gene therapies and would have required some manufacturing changes to our plant here in the U.S. We weren’t going to impact U.S. production for those opportunities. As we think more broadly, down the road, as we continue to expand capacity, we certainly can design facilities and clean rooms to meet sort of European requirements. And that may allow us to go back to Europe. So again, I think the U.S. market by far dominates the opportunity for MACI.” – Vericel CEO Nick Colangeo
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $23.9 | $24.4 | ($0.5) | (2%) |
| 9mo21 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $74.2 | $59.7 | $14.5 | 24.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $34.5 | |
| Cost of Sales | $12.4 | 36% |
| General and Admin | $22.8 | 66% |
| R & D | $0.0 | 0% |
| Other | ($0.0) | (0.1%) |
| Net Earnings | ($4.9) | (14.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Vericel reported 3Q21 orthopedic sales for MACI of $23.9 million, -2% vs. 3Q20. The declines stemmed from a mixture of normal seasonality, patient-driven delays and surging COVID cases during the quarter. While the third quarter is generally slower for Vericel, July brought uncharacteristically high deferrals as economies reopened and...
Vericel reported 3Q21 orthopedic sales for MACI of $23.9 million, -2% vs. 3Q20. The declines stemmed from a mixture of normal seasonality, patient-driven delays and surging COVID cases during the quarter. While the third quarter is generally slower for Vericel, July brought uncharacteristically high deferrals as economies reopened and patients traveled more. Just as that headwind normalized, COVID’s Delta variant surged and restricted elective procedures in many of Vericel’s biggest sales territories.
The company exited the third quarter with an estimated backlog of 150 cases or approximately $7 million in revenue. Similar backlogs from the initial April 2020 lockdown and the early 2021 surge saw 80% of the cases recaptured within two quarters. Vericel anticipates a record-setting fourth quarter for MACI, and full-year growth of +20% vs. 2020.
The product will benefit from additional tailwinds to spur longer-term growth. Vericel achieved reimbursement enhancements for MACI, including the expansion of United Healthcare’s policy to include patients with patella defects. Additionally, CMS determined MACI will remain on the ASC procedure list for 2022. Finally, the company is developing an arthroscopic delivery tool for MACI that will make the procedure less invasive and spur mid-term growth by expanding its target surgeon pool.
“MACI, when we acquired this business years ago, was approved in the EU. That’s a very challenging market for these advanced cell and gene therapies and would have required some manufacturing changes to our plant here in the U.S. We weren’t going to impact U.S. production for those opportunities. As we think more broadly, down the road, as we continue to expand capacity, we certainly can design facilities and clean rooms to meet sort of European requirements. And that may allow us to go back to Europe. So again, I think the U.S. market by far dominates the opportunity for MACI.” – Vericel CEO Nick Colangeo
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $23.9 | $24.4 | ($0.5) | (2%) |
| 9mo21 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $74.2 | $59.7 | $14.5 | 24.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $34.5 | |
| Cost of Sales | $12.4 | 36% |
| General and Admin | $22.8 | 66% |
| R & D | $0.0 | 0% |
| Other | ($0.0) | (0.1%) |
| Net Earnings | ($4.9) | (14.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
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.
