Investment Overview
Vericel Corporation (NASDAQ:VCEL) is a rapidly growing and profitable biotechnology company that has multiple growth levers and expansion opportunities. The company’s solutions are proprietary, patented (certain products) and more effective than competing offerings and alternatives. With significant growth opportunities remaining, favorable competitive positioning, a fair valuation and solid financials, VCEL should be on the radar screens of growth oriented investors.
Company Overview
Vericel Corporation (VCEL) is a biotechnology company that researches, develops, manufactures and distributes advanced treatments and therapies primarily for the sports medicine and severe burn markets. The company’s core products include MACI, a restorative cartilage repair solution designed to treat cartilage defects of the knee, and Epicel, a permanent skin replacement solution for severe burn victims with deep dermal or full thickness burns.
MACI is the first tissue-engineered autologous cellularized scaffold product approved by the FDA. In non-medical terms, MACI creates a repair tissue that allows patients to resume an active lifestyle. The engineered tissue repairs knee defects (cartilage chips, fractures, etc) and helps restore knee and joint function. Competing solutions have traditionally focused more on repair and pain management, while lacking the restorative benefits of MACI.
Epicel is the only FDA-approved autologous epidermal product available for large total surface area burns in both adult and pediatric patients. It’s a critically important treatment option when little skin is available for autografts. From the annual report-
“Patients suffering catastrophic burns over a significant portion of total body surface area (TBSA) have few options for permanent skin coverage. When undamaged skin is available, a procedure known as meshed split-thickness auto-grafting can be considered. However, this option becomes less viable as the percentage of TBSA burn increases. Epicel is a potentially lifesaving therapy and represents the only FDA-approved option for patients with TBSA burns greater than 30%”
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