Vericel Corporation Reports Q1 2025 Revenue Growth Despite Increased Net Loss

Vericel Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $52.6 million, a 2.6% increase from $51.3 million in the same period last year. The growth was primarily driven by a 15.2% increase in sales of its MACI product, which generated $46.3 million, while revenue from Epicel decreased significantly by 53.5% to $5.0 million. NexoBrid, which was launched in the U.S. in September 2023, saw a substantial increase in revenue, reaching $1.3 million, up from $436,000 in the prior year. Despite the revenue growth, the company reported a net loss of $11.2 million, compared to a loss of $3.9 million in the first quarter of 2024, reflecting a 191.2% increase in losses.

The company's operating expenses rose significantly, totaling $49.1 million, a 20.2% increase from $40.8 million in the previous year. This increase was largely attributed to higher selling, general, and administrative expenses, which climbed 21.5% to $41.8 million, driven by increased headcount, marketing initiatives, and depreciation related to the new Burlington facility. Research and development expenses also increased by 13.1% to $7.3 million, reflecting investments in product development and clinical trials.

Vericel's balance sheet as of March 31, 2025, showed total assets of $424.6 million, a slight decrease from $432.7 million at the end of 2024. The company had cash and cash equivalents of $73.5 million, along with short-term investments of $39.4 million and long-term investments of $43.3 million. The total liabilities decreased to $129.1 million from $140.8 million, primarily due to a reduction in current liabilities. The company’s accumulated deficit increased to $404.1 million, highlighting ongoing challenges in achieving profitability.

Strategically, Vericel has focused on expanding its product offerings and market presence. The FDA approved a supplemental Biologics License Application for MACI in August 2024, allowing for arthroscopic delivery, which is expected to enhance its adoption among orthopedic surgeons. The company is also preparing to initiate a clinical trial for MACI's use in treating ankle cartilage defects, which could further broaden its market potential. Additionally, Vericel continues to monitor geopolitical risks that may affect its supply chain, particularly concerning its partnership with MediWound for NexoBrid.

Looking ahead, Vericel anticipates that its current cash reserves, along with expected product sales, will be sufficient to support operations for at least the next 12 months. However, the company acknowledges that any sustained decline in revenue may necessitate additional capital, which could be challenging to secure on favorable terms. The management remains optimistic about the growth potential of its product portfolio, particularly with the recent advancements in MACI and NexoBrid, and is committed to navigating the complexities of the biopharmaceutical market.