(RTTNews) - Shares of Vericel Corp. (VCEL) are down by 6.32% at $55 in premarket trading Wednesday, following the release of its preliminary unaudited financial results for the fourth quarter and full year 2024, as well as its outlook for 2025.
The company markets two cell therapy products - MACI and Epicel.
MACI is an autologous cellularized scaffold product indicated for the repair of single or multiple symptomatic, full-thickness cartilage defects of the adult knee, with or without bone involvement.
Epicel 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.
Vericel also holds an exclusive license for North American rights to MediWound's NexoBrid, an approved product for eschar removal in adults with deep partial-thickness and/or full-thickness burns.
For the fourth quarter of 2024, Vericel expects total net revenue to range between $75.2 million and $75.7 million, below the Wall Street analysts' consensus estimate of $77.9 million.
MACI revenue for the fourth quarter of 2024 is projected to be between $68.2 million and $68.7 million, a 20% to 21% increase year-over-year, and approximately 53% growth over the prior quarter.
Burn Care revenue for the quarter is expected to be about $7 million, reflecting a solid performance from both Epicel and NexoBrid.
The company expects GAAP net income for the fourth quarter of 2024 to be approximately $17.5 to $18.5 million compared to $13.0 million reported in the fourth quarter of 2023.
For the full year 2024, Vericel expects total net revenue of $237 million to $237.5 million, a 20% increase compared to the net revenue of $197.5 million in 2023.
Gross margin for the year 2024 is expected to be around 72.5%, compared to 69% in 2023.
The company expects to report net income profitability for the full year 2024, reversing a net loss of $3.2 million for the full year 2023.
Looking ahead to 2025, Vericel is projecting total revenue growth of 20% to 23%, with gross margins expected to range between 73% and 74%.
For 2029, the company foresees gross margin to increase to the high-70% range.
As of December 31, 2024, Vericel had $167 million in cash, restricted cash, and investments.
The company is on track to initiate commercial manufacturing in its new facility in 2026, further strengthening its growth prospects.
Vericel's CEO, Nick Colangelo, stated, "We executed extremely well in 2024, delivering high revenue growth across both franchises and very strong margin expansion and profitability. We expect another year of high revenue growth and significant profitability improvements in 2025."
VCEL closed Tuesday's (Jan. 14, 2025) trading at $58.67 down 1.59%. In premarket trading, the stock is down 6.32% at $54.96.
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