Shares of Vericel Corp (NASDAQ: VCEL) surged over 5% on Wednesday, November 8th, following the company's release of strong third-quarter financial results and an optimistic outlook for the remainder of 2024 and beyond. The robust earnings report highlighted Vericel's impressive revenue growth, margin expansion, and strategic product approvals, fueling investor confidence in the company's prospects.
Vericel, a leading biopharmaceutical company specializing in advanced cell therapies, reported a 27% year-over-year increase in total revenue for the third quarter, reaching $57.9 million and surpassing analysts' expectations. The company's flagship product, MACI, a cartilage repair therapy, saw a 19% increase in revenue to $44.7 million, driven by factors such as increased biopsies and enhanced surgeon engagement.
Additionally, Vericel's burn care segment, which includes the products Epicel and NexoBrid, exhibited remarkable growth, with revenue soaring 66% to $13.2 million. The company's strong financial performance was further bolstered by significant margin expansion, with gross profit representing 72% of net revenue, a 480-basis-point increase from the previous year. Vericel also generated over $10 million in operating cash flow during the quarter and ended with a robust cash position of $151 million and no debt, positioning the company for continued growth and strategic investments.
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