Felipe

Felipe asked for details on the MACI sales force expansion, including the strategy for 2026 and the expected ramp-up of new territories, and also requested guidance and expectations for free cash flow ramp for 2026.

Answer

Nick Colangelo, Vericel's President and Chief Executive Officer, expressed excitement about the sales force expansion, noting it was accelerated to Q4 2025 to capitalize on momentum. He highlighted the flawless execution by the team and the experience of new representatives, expecting rep productivity to return to 2025 levels as early as next year. Joe Mara, Vericel's Chief Financial Officer, stated they are not guiding specifically to free cash flow but noted an 'inflecting cash flow position,' suggesting Adjusted EBITDA as a good proxy for operating cash flow, with CapEx now much lower after the building project.

Felipe, on behalf of Richard Newitter, asked for an update on the Mint platform's progress, specifically where Beta Bionics stands on its checklist before submission, given the planned step-up in CapEx spend. Felipe, on behalf of Richard Newitter, also inquired about the impact of competitors entering the pharmacy channel on Beta Bionics' PBM contract conversations and how more low-cost durable pump options might affect Beta Bionics competitively.

Answer

CEO Sean Saint stated that Beta Bionics would not provide further details beyond the prepared remarks regarding the exact status of Mint's development. CEO Sean Saint viewed increased competition in the pharmacy channel as a positive, creating a 'tidal wave of momentum' that validates and helps the entire industry move towards pharmacy coverage, which he sees as an improved business model and user experience. CFO Stephen Feider concurred.

Felipe, on behalf of Richard Neueter, asked about the customer acquisition cost for Type 2 patients compared to Type 1, and how Insulet's scale provides an advantage in converting this patient population, given the early adoption stages.

Answer

Ashley McEvoy, President and CEO, noted that Insulet closely monitors customer acquisition costs. Eric Benjamin, COO, explained that leveraging the common call point with Type 1 prescribers creates strong commercial synergy and efficiency for Type 2. While activating new prescribers initially incurs higher costs, Insulet is selective and efficient, focusing on high-opportunity areas and closely managing overall customer acquisition costs.