Vericel Corp (NASDAQ:VCEL) Beats Estimates but Drops

Vericel Corp (NASDAQ:VCEL)

Vericel Corp (NASDAQ:VCEL)

Vericel Corp (NASDAQ:VCEL) stock is down over 16%, on heavy volume, after the biotechnology company reported Q3 2017 earnings. Vericel’s net loss for the quarter ended September 30, 2017 was (-$5.4) million, or (-$0.16) per share, compared to a net loss of (-$6.7) million, or (-$0.38) per share, for the same period in 2016. The Q3 loss was actually better than the analyst’s consensus estimate of a loss of (-$0.17) according to reports made available by the NASDAQ Markets.

Vericel Corp (NASDAQ:VCEL)

Cambridge, MA-based Vericel Corp (NASDAQ:VCEL) is a commercial-stage biopharmaceutical company that develops and commercializes cellular therapies for use in the treatment of patients with severe diseases and conditions. It markets three cell therapy products, including Carticel and MACI, which are used for the treatment of cartilage defects in the knee; and Epicel, a permanent skin replacement that is used for the treatment of patients with deep-dermal or full-thickness burns. Vericel has also developed ixmyelocel-T, which is in Phase IIb clinical trial, a patient-specific multicellular therapy for the treatment of advanced heart failure due to ischemic dilated cardiomyopathy.

Vericel Prior Business Update

One year ago, VCEL shares actually touched the $2 mark, then went on a slow, steady rise to eventually trade over $6 during the first few days of October. Then, on October 5, Vericel Corp (NASDAQ:VCEL) produced a business update that sent shares reeling. That business update included the news that the FDA indicated that Vericel should plan to conduct at least one additional adequate and well-controlled clinical study to support a Biologics License Application for their drug candidate ixmyelocel-T. Since that announcement, shares slid and met fierce resistance at the $4.50 level – putting any rally to rest.

VCEL Stock Performance

Vericel Corp (NASDAQ:VCEL) has, over the past four years, experienced higher sales figures and shrinking EPS losses. In 2012, the company posted an EPS loss of (-$16.25). That loss shrank to (-$1.18) for 2016. Meanwhile, sales were $28.8 million in 2014, and that number rose to $54.4 for 2016.

Despite VCEL shares losing over 12% during the past month, the biotechnology shares still are up over 43% year-to-date, and are up around 100% for the year. Of the four investment firms that follow Vericel Corp (NASDAQ:VCEL), three rate VCEL shares as a “Strong Buy” while one rates the shares as a “Buy”. Their consensus, one-year price target is $6.34.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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