Vericel Corporation has recently released its 10-K report for the fiscal year ended December 31, 2024, filed with the SEC on February 29, 2024. Vericel Corporation, a biopharmaceutical company, focuses on cellular therapies for sports medicine and severe burn care markets in North America. The company markets autologous cell therapy products such as MACI, Epicel, and NexoBrid. Vericel Corporation was formerly known as Aastrom Biosciences, Inc. and was incorporated in 1989, with its headquarters in Cambridge, Massachusetts.
In the "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" of the annual report on Form 10-K, Vericel Corporation reported that its cash, cash equivalents, and restricted cash totaled $85.0 million, short-term investments totaled $41.7 million, and long-term investments totaled $39.9 million as of December 31, 2024. The company reported $58.2 million of net cash provided by operations in 2024, primarily driven by net income of $10.4 million and non-cash charges of $36.5 million related to stock compensation expense.
The net cash provided by operations in 2023 was $35.3 million, primarily due to non-cash charges of $32.3 million related to stock compensation expense. Net cash used in investing activities during the year ended December 31, 2024, was the result of $68.2 million in investment purchases and $64.0 million of property and equipment purchases. In comparison, net cash used in investing activities during the year ended December 31, 2023, was the result of $55.2 million in investments purchases and a $7.5 million regulatory milestone payment to MediWound.
Furthermore, net cash provided by financing activities during the year ended December 31, 2024, was the result of net proceeds from the exercise of stock options and the employee stock purchase plan of $24.5 million. In comparison, net cash provided by financing activities during the year ended December 31, 2023, was the result of net proceeds from the exercise of stock options and the employee stock purchase plan of $6.0 million.
Vericel Corporation believes that its current cash on hand, cash equivalents, investments, and available borrowing capacity will be sufficient to support its current operations through at least 12 months from the issuance of the consolidated financial statements included in the Annual Report on Form 10-K.
The company also provided details on its sources of capital, contractual obligations, and critical accounting policies and estimates, including revenue recognition, leases, and stock-based compensation. It renewed its long-term supply agreement with Matricel for the supply of ACI-Maix collagen membranes used in the manufacture of MACI, and its total purchase commitments consist of minimum purchase amounts of raw materials and finished goods used in its cell manufacturing process to manufacture its marketed cell therapy products.
Vericel Corporation has no off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on its financial condition. The company also discussed its critical accounting policies and estimates, including revenue recognition and net product sales, leases, and stock-based compensation. As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $53.33. Check out the company's full 10-K submission here.
