Vericel Corporation

Ladies and gentlemen, thank you for standing by. Welcome to Veracel's third quarter 2024 conference call. At this time, all participants are in a listen-only mode. I would also like to remind you that this call is being recorded for replay. I will now turn the conference call over to Eric Burns, Veracel's Vice President of Finance and Investor Relations.

Thank you, Operator, and good morning, everyone. Joining me on today's call are Verasol's President and Chief Executive Officer, Nick Colangelo, and our Chief Science Officer, Joe Marra. Before we begin, let me remind you that on today's call, we will be making four looking statements covering the Private Security Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from expectations and are described more fully in our findings of the SEC. In addition, all four looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Please note that a copyright third quarter financial results press release and a short presentation with highlights from today's call are available in the investor relations section of our website. I will now turn the call over to Nick.

Thanks, Eric, and good morning, everyone. The company had another outstanding quarter as we generated total revenue growth of 27% and record third quarter revenue of approximately $58 million, which exceeded our guidance for the quarter. This strong performance was highlighted by record third quarter RACI revenue and the highest EPSA revenue in any quarter to date. We also delivered another quarter of significant margin expansion and operating cash flow, as the company's profit growth continues to outpace our high revenue growth. Finally, the company achieved two very important regulatory milestones with the FDA approval of Macy Arthro and the Nexabrid pediatric indication, which positioned the company for sustained high revenue and profit growth in the years ahead. Macy had another solid quarter and was well positioned for a strong close to the year as the momentum in underlying growth drivers continued through the third quarter. We achieved record third quarter highs for Macy biopsies in the number of surgeons taking biopsies, driven by robust growth in both biopsy surgeons as well as biopsies per surgeon, which has become a meaningful growth driver for Macy this year. The strength of these key growth drivers, together with another quarter of significant increases in peer-to-peer programs, which more than doubled in the third quarter compared to last year, and attendance at those programs, which is at the highest level at any time since launch, demonstrates that surgeon interest in the core Macy procedure remains extremely high. In addition, with the recent approval of Macy-Arthro, Macy's now the only restorative biologic cartilage repair product approved for arthroscopic administration. The first Macy-Arthro case was successfully performed a few days after we announced the approval, And there's been considerable engagement and interest in Macy-Arthro from both current Macy users and non-users at training programs, as well as our launch meeting at the Orthopedic Summit in September. An important early indicator of the potential for Macy-Arthro to meaningfully expand utilization and sustain Macy's high revenue growth over the long term. Turning to burn care, EpiCell's third quarter revenue was its highest quarterly revenue to date, and we continue to generate significant EpiCell revenue from Nexabird selling activity at previously dormant burn centers. Nexabird adoption continued to progress with more than 70 burn centers completing P&T committee submissions and approximately 50 burn centers obtaining P&T committee approval and placing initial orders since launch. With the Nexabird pediatric indication now in place, More than a third of the pediatric burn centers have completed P&T submissions, with several pediatric centers placing initial orders. Finally, Nexabert recently received a Category 3 CPT code, which is scheduled to be posted on the AMA website on January 1st and go into effect on July 1st next year. Overall, the company had an excellent third quarter, and importantly, We remain on track to meet all of the key objectives for 2024 that we established at the beginning of the year, including sustaining high revenue growth for Macy and the company, establishing a second high growth franchise in burn care, securing FDA approval and launching Macy-Arthur in the third quarter, and continuing to drive substantial margin expansion and profit growth. I'll now turn the call over to Joe to provide a more detailed review of our third quarter financial results and guidance for the remainder of 2024.