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CAMBRIDGE, MA - Vericel (NASDAQ:VCEL) Corp, a biotechnology company specializing in biological products, announced today that recent tariffs imposed by the United States and retaliatory tariffs by other nations are not expected to significantly affect the company’s business operations or financials. According to InvestingPro data, the company maintains strong financial health with a robust gross margin of 72.55% and healthy liquidity, as indicated by a current ratio of 4.23. While currently trading slightly above Fair Value, Vericel demonstrates solid operational metrics that support its resilience to external pressures.
The company, headquartered in Cambridge, Massachusetts, generates all of its revenue from domestic sales and anticipates this will continue over the next several years. Vericel’s manufacturing costs, mainly consisting of labor and overhead for producing its products MACI® and Epicel®, are largely fixed. With most materials sourced from U.S. suppliers, the impact of current and future tariffs on the cost of goods sold and gross margin is anticipated to be minimal. InvestingPro analysis reveals the company has achieved impressive revenue growth of 20.1% over the last twelve months, with analysts forecasting 21% growth for FY2025. For deeper insights into Vericel’s growth prospects and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Vericel also maintains a significant safety stock of materials, including NexoBrid® finished product and the ACI-Maix collagen membrane used in MACI manufacturing. As a result, the company projects that any effect of tariffs on its cost of goods sold and gross margin for 2025 and 2026 will be negligible.
These statements were made as part of a regulatory disclosure in an 8-K filing with the Securities and Exchange Commission (SEC), which contains forward-looking statements regarding the potential impact of tariffs on the company’s financial and operational outlook. InvestingPro data shows the company operates with a moderate level of debt and maintains strong liquidity, with liquid assets exceeding short-term obligations - factors that could help buffer against potential market uncertainties.
The company’s forward-looking statements are based on management’s current expectations and are subject to various risks and uncertainties. Factors that could cause actual results to differ include the final scope and implementation of tariffs, changes in international trade policy, disruptions to supply chains, global economic conditions, and other risks detailed in Vericel’s SEC filings, including its most recent Annual Report on Form 10-K filed on February 27, 2025.
Vericel’s Chief Legal Officer, Sean C. Flynn, signed off on the report, emphasizing that the company is not obligated to update any forward-looking statements unless required by law and advised caution in relying on these statements. The information provided in this article is based on the company’s press release statement.
In other recent news, Vericel Corp reported a strong financial performance for the fourth quarter of 2024, with a 20% year-over-year increase in total revenue, reaching $237.2 million. The company’s net income improved significantly to $10.4 million from a loss of $3.2 million in the previous year. The gross margin for the fourth quarter hit a record high of 78%, contributing to a full-year gross margin of 73%. Looking ahead, Vericel has provided optimistic guidance for 2025, projecting revenue growth of 20-23% and maintaining a gross margin of 73-74%.
In addition to these financial results, Truist Securities adjusted its price target for Vericel, lowering it to $61 from $67, while maintaining a Buy rating. This adjustment reflects the company’s recent financial updates and market expectations. Analysts at Truist view the company’s full-year 2025 guidance as conservative, given the potential for increased sales following the launch of new products like MACI Arthro and Nexobrid.
Vericel’s strategic initiatives, including the expansion into new markets and the launch of MACI Arthro, have positioned it for sustained growth. The company has trained approximately 250 surgeons for MACI Arthro, indicating strong early adoption. Furthermore, Vericel’s burn care franchise also showed progress, with NexoBrid hospital orders increasing by 42% in the fourth quarter, suggesting continued adoption. These developments underscore Vericel’s strategic positioning for future growth and profitability.
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