Third day of the 41st J.P. Morgan Conference. Here we go. We're thrilled to have you here, and we're thrilled to have the Vericel team as well. We've got Nick Colangelo, President & CEO, here to present. I'll go ahead and pass it over to Nick.
Okay. Well, thanks, James. It's great to be here today. Before I begin, I just wanna remind everyone that this presentation contains forward-looking statements, and you should refer to our documents on file with the SEC for further information. For those of you who are not as familiar with our company, Vericel is a leader in advanced therapies for the sports medicine and the severe burn care markets. We have a portfolio of highly innovative advanced cell therapies and specialty biologics that are really focused on changing the standard of care for patients with cartilage injuries and severe burns. We currently market 2 products in the United States.
They're both advanced cell therapies, MACI and Epicel, that are regulated by the FDA as combination device and biologic products, and obviously, the biologic portion being the use of a patient's own cells to repair tissue and restore function. MACI is our lead product. We launched MACI in 2017 for the repair of knee cartilage defects, and it's become the leading restorative cartilage repair brand in the market. Epicel is our second product. It's indicated, it's a permanent skin replacement for patients with large severe burns. We're really excited that our third product, NexoBrid, was approved by the FDA in December.
It's an orphan biologic product that's highly synergistic with Epicel, in that it's indicated for the removal of eschar or burn tissue, which is the first process in treating severe burn patients, and then you cover the wound with a product like Epicel. Really excited about that product. One of the unique parts about our portfolio is that we have significant barriers to entry. For MACI and Epicel, because the FDA regulates these products as combination device and biologics, there's no established generic pathway, no biosimilar pathway, no 510(k) pathway for these products. If another company wants to enter the market, they have to run full-blown development programs, and that's very difficult for these indications, and that's why there's no near-term like competitors for either MACI or Epicel.
Similarly for NexoBrid, you know, obviously, in addition to its patent protection, it will also have 12 years of data exclusivity as a biologic. We think, you know, that's an exceptionally strong foundation, this portfolio, that will allow us to continue to deliver sustained long-term growth. You know, when we look out, kinda where the company's positioned and how we're gonna sustain that growth, it really begins with the strong financial profile that the company has. We've generated strong revenue, profit, and cash flow growth over the past years.
As we look forward, we're really focused on maximizing the key growth drivers for MACI for its current indication, for the repair of cartilage defects in the knee, advancing our pipeline, which is really focused on MACI life cycle initiatives, and then expanding our burn care franchise with the launch of NexoBrid. Those are the factors that we are focused on to maintain our strong growth profile. We really do have a strong track record of profit and revenue growth since we launched MACI in 2017. From a revenue perspective, we've delivered 20%+ compounded annual growth rate, really driven by strong growth for both MACI and Epicel. We did preannounce 2022 full year revenues last year.
Revenues are expected to be in the $164 million-$165 million range, driven by MACI, which we expect to be approximately $132 million in revenue, which is what's at the high end of our guidance range. The burn care franchise, which includes both Epicel revenue and some BARDA stockpiling revenue for NexoBrid, at about $32.5 million. That was Epicel was a little below expectations, really driven by a bit of a decline in the large burn market, and some, you know, dynamics at one of our large customers that we think impacted volume. We've also delivered you know, have a strong track record of profit growth, so we expect to announce our 10th straight quarter of positive cash flow and adjusted EBITDA.
We ended the year with about $140 million in cash and no debt. Really strong profile for the company. As we look forward, based on our current portfolio plus new product launches, we expect to continue to drive strong revenue and profit growth with 20% compounded annual growth rate as we go forward. For 2023, as we mentioned in our preannouncement yesterday, we expect accelerating growth led by MACI, with Epicel growth over its second half run rate, and then of course, NexoBrid revenue in the second half of the year. As we look into 2024, of course, we expect further acceleration of growth given that it will be the first full year of NexoBrid revenue and hopefully launching arthroscopic MACI in 2024 as well.
This revenue growth will continue to enhance our profitability profile. With growing revenue, we expect that our gross margins will go from sort of the mid-to-high 60s into the 70-plus range, and that our adjusted EBITDA margin will cross up over 30%. Really excited about the outlook for the company from a financial perspective as we move forward. I'll start with MACI and just talk about the cartilage repair market opportunity before talking about the growth drivers that we're focused on. Knee cartilage injuries represent a significant unmet medical need. Cartilage defects are found on about 60% of knee arthroscopies, and those defects which are like a pothole on the surface of the knee, are caused by either acute or repetitive trauma or degenerative conditions.
The issue with cartilage injuries is that cartilage has limited intrinsic healing properties, so there's no blood vessels that bring repair cells, there's no lymphatics that take away cellular debris, and there's no nerves. Once you have an injury, unless it's treated, you're ending up obviously with pain, dysfunction, osteoarthritis, and ultimately partial or full knee replacements. Data was published recently for MACI patients that showed the longer you waited between a biopsy and an implant, actually those lesions got larger, and you actually had new high-grade lesions forming. Clearly, you wanna try to treat these injuries as quickly as possible. What ends up happening and the reason why it's such a big clinical need is that patients just basically are not able to do the activities that they enjoyed prior and end up scaling back their activities.
You know, the incidence of cartilage injuries is very large in the U.S. There's about 750,000 cartilage repair procedures that are done each year. We did a big quantitative market assessment with Health Advances a few years ago, based on the MACI label, which is very broad, as I'll talk about in a moment, about 300,000 of those patients fall within the MACI label. We took a little bit of a different approach to this and because we know orthopedic surgeons or sports medicine surgeons kinda have different patient profiles for different treatment algorithms. We asked, you know, "Of the patients you see that fit within the label, how many would you deem to be clinically appropriate for MACI?" About 125,000 of those patients were deemed to be clinically appropriate.
That's based on the age of the patient, the size and location of the defect, whether they think they can do rehab associated with these procedures and so on. Because insurance companies typically require that the defect be 1.5 to 2 square centimeters or greater, do another cut for that, and we end up with about 60,000 patients a year, which at our current price point results in an addressable market of about $3 billion, and obviously certainly supports the strong growth that we've seen with MACI over the past several years. MACI itself, just quickly, is comprised of a patient's own cells that are taken during an arthroscopic procedure, so a Tic Tac-sized biopsy.
We isolate the chondrocytes, expand them, seed them onto a resorbable collagen membrane at about 0.5 million to 1 million cells per square centimeter. That's what's implanted surgically. When the membrane is implanted, the cells migrate down to the subchondral bone, they begin to replicate, produce extracellular matrix that becomes hyaline-like cartilage that's naturally present in the knee. That's how the MACI product works. You know, we think the strong growth has really been driven by four attributes of MACI. First is, as I mentioned, a very broad label. The FDA label, the indication is for defects anywhere in the knee, no limits on the size, location, whether there's bony involvement or not.
Obviously, it makes a lot of patients eligible for treatment with MACI, and it's the only product that's ever demonstrated superiority versus the comparator, which is microfracture, in a phase III pivotal trial. From a surgeon perspective, MACI is a dramatically, you know, less invasive, faster, and simpler procedure than earlier versions of this technology, which were basically a patient's cells in a cell suspension, so it's very hard to fill a pothole with a liquid suspension. It was a very tedious and technically demanding surgical procedure, and MACI made that much more simpler, and that's why you see this widespread adoption by a broader group of orthopedic surgeons. It's less invasive, rehab protocols are shorter, very much in line now with other options.
With Carticel, which was the prior product, because you had to open up the knee, you know, it was a much more invasive procedure and resulted in a longer rehab timeline. That obviously is an advantage from a patient perspective. Then the reimbursement profile is very strong. Every major plan has a medical policy that covers MACI, so it requires a prior authorization. Patients have to meet certain criteria, and over 90% of the time, those cases are approved, so very strong reimbursement profile for MACI. As we look at sort of the key drivers that drove a pretty strong result for MACI, it was up 24% in the fourth quarter, and about 17% or 18% for the year.
Really, the first important driver is surgeons taking biopsies, and that continued to grow in 2022. We target about 5,000 orthopedic surgeons, and about 2,000 of those surgeons sent in biopsies in 2022, and we expect that to remain a strong growth driver in 2023 and beyond. Secondly, we saw continued growth in biopsies. Over the launch period, we've had about a 20%+ CAGR in terms of biopsy growth that we saw continued growth in 2022, and we expect that in 2023 and beyond, that biopsy growth will outpace sort of the general market growth for cartilage repair procedures. Finally, the conversion rate. When you take a biopsy, does it turn into an implant? You know, that took a bit of a dip during the COVID period.
It was pretty steady for a long time as we added new surgeons who have lower conversion rates, and our experienced surgeons, their conversion rates go up. When we hit COVID, that was a bit disrupted. As we mentioned, you know, in our earnings call and then other times, that's basically stabilized in 2022. As we go forward, we expect that to at least remain stable and over time, get back to the historical levels and beyond, as the product matures. So excited about the MACI growth ahead. Those are the drivers that we are focused on. When we look at our pipeline, you know, obviously, our current portfolio will support this long-term growth, but we're really excited about some of the MACI life cycle initiatives that we talked about, starting with a MACI arthroscopic delivery.
We announced yesterday that, you know, we expect to have an accelerated launch timeline for a MACI arthroscopic option for these patients. It's really another sort of major technological advantage. As I mentioned, going from Carticel to MACI was a big step. Even since we've launched MACI, we've developed custom cutters, so surgeons can score the cartilage defect and then stamp out the membrane. You get an exact fit. That's been proven to be very popular and an arthroscopic delivery option is the next major advancement. After meeting with the FDA in a Type C meeting last month, we will be moving forward in 2023 with a human factors validation study.
Instead of a clinical study, essentially demonstrating that surgeons can follow the instructions on how to deliver MACI arthroscopically, we expect to complete that study in 2023, submit for an approval to expand the label to add arthroscopic MACI delivery to the label, which we would expect to happen in 2024. Pretty excited about that. You know, we think it'll be a very attractive option for patients or for surgeons. You know, you can see from this short video why this would be attractive to surgeons. Essentially what you do is place a cannula in an operating portal, take an arthroscopic sizer, measure the size of the defect, both the length and the width.
We have a set of custom arthroscopic cutters that allow you to score the cartilage defect. Take a curette and prepare that defect. You end up draining the joint. You take a MACI cutter that's the exact same size as the defect. It's placed on the end of what we call a V-Shuttle delivery device with the cell side up. Remove the cannula dam, insert the V-Shuttle, and place the membrane in the defect. After it's sealed, you apply fibrin sealant, place the defect. Or the membrane. As I mentioned earlier, the chondrocytes migrate now into the subchondral bone and end up filling the defect. We think this will be a very attractive option for surgeons moving forward. We're really excited about the opportunity.
We had done some preliminary market research back when we did the market assessment, and there were really, you know, two main upsides that surgeons were interested in. That was arthroscopic MACI, and as I'll get to in a moment, ankle indication for MACI as well. Surgeons, you know, obviously had high interest in an arthroscopic MACI option. About 90% of them said they'd be interested in a MACI arthro option, and about 90% of them, current users, had indicated that they would expect to increase their MACI volume. Now you've got sort of new surgeons who, you know, either principally or prefer arthroscopic procedure, and you've got current users who you'd expect to do more procedures. We think it will have a significant impact, upside potential for the business.
Really, the whole program is focused on a certain segment of the defect. For MACI, it's really a go-to product if you have a cartilage defect on the patella or the kneecap, or the patellofemoral joint behind the kneecap. When you have a defect on the femoral condyles, the end of the thighbone, you know, there are other options like osteochondral allografts and so on, but with a MACI arthroscopic option, it would be the only restorative cartilage repair product that could be done arthroscopically, 'cause you can't do osteochondral allografts arthroscopically. We do think we'll be able to take share in that segment of the cartilage defects as well. As I mentioned, we've also, in addition to procedural advancements, we've been looking at the use of MACI in other joints. Ankle represents the next largest opportunity.
The knee, obviously, is the greatest weight-bearing joint in the body. That's where the majority of cartilage injuries occur. The ankle is essentially the second most common source of cartilage injuries. We did, like we did for the knee indication, a quantitative market research project to size the opportunity. Essentially, there's about 165,000 cartilage resurfacing procedures in the ankle that are done each year. When we talk to orthopedic surgeons and then other surgeons that do ankle resurfacing procedures and ask them, again, based on the size, location, age of the patient, et cetera, how many of the patients they see would be eligible for MACI, it's about 40%. Again, this whole concept of it gets used typically in larger lesions.
About 18,000 patients per year form the addressable market for MACI, which at, you know, our current price point would be a $1 billion-dollar opportunity for us. Together with MACI, a $1 billion opportunity overall. We're really excited about the ankle opportunity. We'll be meeting with the FDA for a pre-IND, IND meeting in the first half of this year, and look forward to sharing with investors sort of the path forward for a MACI indication in the ankle.
Turning to our burn care franchise, just in terms of the treatment pathway, the way severe burn patients are treated is basically, if you have a full-thickness burn, which means the burn goes all the way through the epidermal and dermal layer of the skin, or you have a partial-thickness burn, which means there will be some remaining dermal components that's greater than 10%, you're essentially admitted to burn centers around the U.S. Those are the patients that we focus on. For those patients, there's two steps in the treatment. First, you need to remove the burn tissue or the eschar, then you need to figure out how you're gonna cover or enclose the wound. NexoBrid obviously plays in the area of eschar removal.
Epicel again, is the only full thickness burn permanent skin replacement on the market. When we look at the opportunity, there's about half a million burns in the U.S. each year. About 40,000 of those patients are hospitalized, and about three-quarters of those or more, 37,000 of those patients have some sort of eschar removal. That's what makes up the addressable market for NexoBrid. At our launch pricing, that represents about a $300 million opportunity for NexoBrid. Then as you go farther down the funnel for the more severe burns, that's where Epicel is used. Typically in patients that have 40% or greater body surface area burns and at the pricing and the...
You know, these are very large burns, obviously we price the product on a per graft basis, and a lot of grafts are used. It's also about a $300 million opportunity for Epicel. Bringing on and having NexoBrid approved obviously doubles the market opportunity for our burn care franchise, and we think has a lot of synergistic benefits. You know, Epicel is used typically in about 70 of the 140 burn centers around the country. We expect NexoBrid will be used in every burn center, so we'll be adding about half a dozen reps to our commercial team, certainly we'll have a larger footprint and a larger presence in all the burn centers in the country, which we think will obviously help drive NexoBrid uptake, but also have a pull-through effect for Epicel.
In terms of the clinical benefits of the, these products, so with respect to NexoBrid, you know, as you can imagine, when you have a burn, getting rid of that dead tissue and eschar early is very important and doing an assessment of the burn and how you're going to treat it. Removing the eschar is important because obviously your body reacts to the burn, you have inflammation and, you know, it reduces the inflammation, reduces further burn progression, it reduces infections. Then obviously starting to treat the wound more quickly, results in better healing, less scarring, and reduced overall morbidity and mortality. Currently, the standard of care for removing eschar is surgical.
As you can imagine, when you take a two-dimensional knife and you're slicing into a three-dimensional burn, you have a lot of blood loss, a lot of healthy tissue loss, and so it's very traumatic for the patient. There are some non-surgical options out there, but they have not shown much efficacy at all, and have not shown that they reduce the need for surgical incision. There's clearly an unmet need for a selective and effective non-surgical option, and we think that's what NexoBrid is. NexoBrid is, as I mentioned, an orphan biologic product in the U.S. It's contains proteolytic enzymes that are derived from pineapple stems. Basically, it's indicated for eschar removal for adult patients with large, or deep partial thickness and full thickness burns.
It can be applied in up to 2 applications to up to 20% of total body surface area for these patients. You know, 90% of the hospitalized burn patients in the U.S. have 20% or lower burns. Typically, and 80% have 10% or less TBSA burns, and that's still a large burn. Your palm is about a 1% of your TBSA, so at 10% even is a rather large burn. You know, we think this will have an opportunity to be used in the majority of the hospitalized burn patients. Essentially what it does is that it dissolves the eschar and leaves the healthy tissue. It's really a remarkable product.
Very easy to use, topical application at a bedside as opposed to being, you know, going into an OR for the surgical excision. You apply pain management as you would do for any kind of extensive dressing change. The wound is cleaned, you soak the wound in an antibacterial solution, and then you create a petrolatum border and apply NexoBrid. The product itself is a lyophilized powder with a gel vehicle. You mix it up 15 minutes before you apply it. It's applied. You put a dressing on top, you leave it in place for four hours, and then you simply scrape away the eschar and remove the eschar and leave the healthy tissue.
We think, you know, because of the compelling results that you can see on this slide, that this, that NexoBrid has the opportunity to change the standard of care of how these patients are treated in the U.S. We're really excited about the launch opportunity. As I mentioned, NexoBrid was approved in December. Obviously, our commercial launch activities are underway. Principally relating to, you know, promotional material rollout because NexoBrid will be dispensed in the hospital pharmacy. You have to go through a P&T committee approval to be added to the formulary, so that work is underway as well. Obviously focused on customer training. There are a number of large burn conferences in the spring that we'll be attending and training folks at the burn centers as well. Of course, adding our sales reps, training and deploying them.
There's a lot going on, and we expect commercial availability of the product because it's manufactured by our partner, MediWound, that product will be available in Q2 of this year. Excited about the launch of NexoBrid. Just quickly on Epicel. As I mentioned, Epicel, that has been on the market for about 25 years, and it's the only FDA-approved permanent skin replacement for adults and pediatric patients with greater than 30% body surface area burns. It's a really important product because the only other option for these patients are basically autografts. Skin is highly immunogenic. You can't do transplants. You know, it's either autografts or Epicel when you have a full thickness burn.
The issue is when we're treating patients with 80% burns, 70% burns, there's really not a lot of healthy tissue to do autografts. That's why Epicel is so important and potentially life-saving for patients. That was demonstrated in data that was published a couple years ago in the Journal of Burn Care & Research, that basically shows that at every decile burn, which is how these patients are treated, you see a profound survival benefit for patients that are treated with Epicel. In addition to our current portfolio and our pipeline, which again, we think will drive strong growth in the years ahead, we obviously focus on business development.
That's kind of how we've built the company. We are always looking for additional products that are innovative, meet our financial hurdles, and that can be added to our sports medicine or burn care franchises. We also look, because we have a particular expertise in cell therapies, for additional opportunities there as well that can maximize the value of the company. I'll end there, James, and just say, you know, obviously based on our current portfolio and pipeline, we think we're well positioned to continue our strong growth in the years ahead.
Excellent. Thanks so much, Nick. Okay, awesome. Thanks so much for getting this back on. We're gonna turn to Q&A now. I've got some prepared questions, Nick, I'd like to go through. On the burn care, now that you've received FDA approval for NexoBrid, what are the most important? What are those key activities that you're focused on early in the launch?
Well, as I mentioned, you know, obviously, we're focused on rolling out promotional materials, engaging with surgeons and burn centers, you know, training and deploying our sales force. Really kind of the two critical path items are P&T committee approval process and training the burn centers. You know, obviously, until you have a final label, you can't finalize a dossier that goes to the P&T committee. As much work as we could do ahead of the approval was done. You know, updated those with the new label, so all those activities, the outreach to the champions at the burn centers who will schedule those meetings is all underway now. You know, that takes several months to get through that process. You know, we think it'll sync up well with product availability in Q2.
As I mentioned, obviously, we're focused on training. We have an advantage that, you know, again, there's 140 burn centers in the U.S. BARDA, which is stockpiling this product in case there's a mass casualty event, has funded an expanded access study. Between the time of finishing the pivotal study and getting to approval and product availability, we have about 25 burn centers now that are routinely using NexoBrid. We hope that'll sort of speed the process, because we do have a number of high volume experienced centers already in the U.S.
That's great to hear. Maybe it's from the experience with those burn centers, but what gives you confidence in the ability to change the standard of care for burn eschar removal?
Yeah. You know, that's kind of what we do. With MACI, you know, that was a novel product that we introduced in 2017. It's become the leading cartilage repair product on the market. Same thing with Epicel. Typically, prior to Epicel, the only option was autografts. You know, we think we're kind of good at changing standard of care. In this case, because it's such a synergistic product, obviously, we have relationships with many of the burn centers. There's very high awareness for NexoBrid. This product is approved in, I think, 43 other countries around the world. At all the major meetings, you know, it has a pretty prominent place. Surgeons are aware, they're excited, and we have an experienced burn team that, you know, we think will be able to drive uptake.
Got it. With Epicel and NexoBrid now together, what do you view as the next step for the burn franchise beyond the launch of NexoBrid?
You know, I think, certainly we expect, as I mentioned earlier, Epicel to grow off its current second quarter or second half run rate. I think. There's such a small patient population for Epicel, right? We're treating 100 something patients a year, so it's very volatile. You know, that makes it a little hard to forecast and manage both for us and for investors. I think adding a product like NexoBrid, which will have a much more consistent revenue stream, much broader, you know, adoption, will help both build critical mass in our burn care franchise. It'll allow it to become a second strong growth driver for the company, and then sort of reduce a little bit of that variability that we see quarter-to-quarter, you know, with Epicel alone.
That's very helpful. Turning to MACI, a couple questions there. How were trends in the fourth quarter compared to your expectations?
MACI obviously is top of mind for lots of investors, and I think it matched up with what I talked about earlier for the year as a whole. We continued to see growth. Which is great, right? We're five years into a launch, and we continue to see strong growth in the number of surgeons that are taking biopsies. We had increased our target surgeons from about 3,000 to 5,000 surgeons. Before that we did that, we were at about 50% penetration rate in terms of the number of surgeons taking biopsies. Cumulatively, it was higher than that, and we'd expect to get to the same place, you know, with MACI in terms of our 5,000 current targets. The fourth quarter trends were similar.
We saw continued growth in in biopsying surgeons, continued growth in biopsies, stabilization of that conversion rate, and that's what led to coming in at the top end of the guidance range for MACI. It was 24% growth in the fourth quarter over the prior year and about a 50% step-up from the third quarter. Really strong performance for MACI.
That's awesome. How do you think about continuing that momentum within 2023 and what else you need to do to keep that going?
You know, we mentioned in our pre-announcement that for 2023, and as I mentioned earlier, we expect MACI to lead the growth in 2023. There are a number of growth drivers for MACI. You know, it's adding surgeons taking biopsies, more biopsies per surgeon, the conversion rate, and then pricing. You know, we mentioned after our third quarter earnings call that basically based on price and growth in surgeons and biopsies, you know, you get to kinda mid-teens growth, even if you don't see any change in sort of the conversion rate or sort of market dynamics of patients getting back to their normal cadence. We think MACI will sort of lead the growth in 2023. Again, Epicel will grow off its current base, and then you add NexoBrid revenue.
As I mentioned earlier, 2024, we should see even further acceleration and growth with a full year of NexoBrid revenue and then hopefully a MACI arthroscopic option.
That's where I was going next, is how meaningful is that arthroscopic, sorry, option in 2024?
I'm sorry?
How meaningful is the arthroscopic option in 2024?
Well, for the reasons I mentioned, you know, obviously, we shared the fact that there's high surgeon interest, and they've indicated, you know, obviously, non-users would potentially think of MACI as an option. 'Cause there really are, and especially the younger surgeons typically do arthroscopic procedures, and that's kind of their go-to modality. We think we'll add new surgeons, and then existing users will, you know, add additional patients that they're using MACI for. It doesn't take much to move the needle. You know, if every surgeon did one more procedure a year because there's an arthroscopic option, I mean, that would have a dramatic impact on our revenues.
Awesome. One, one more here for me. You mentioned the end of the year, $140 million of cash.
Yep.
You don't have any debt. You're continuing to generate cash and improve profitability. How do you think about capital allocation and deploying that capital going forward?
Yeah. Well, you know, we did end the year with $140 million in cash. We have a revolving credit facility for another $150 million if we ever wanted to use it. Really, our principal uses, we've been cash flow positive for 10 straight quarters. We're generating a lot of cash. That's only gonna increase. We are building a new facility to support our growth, so that will require capital. We don't have to go raise capital, but it will be a use of our existing capital in the next couple of years. Then, you know, it gives us some gunpowder or dry powder for, you know, business development transactions.
We continue, as I mentioned, to look at ways to continue to maximize the value of the company through business development, and that would be of use as well.
Got it. Thank you, Nick. We've got time maybe for a couple of questions from the audience.
Yeah.
What are your specs for NexoBrid expectations just in the back half of the year, given it's. Oh, thank you. It's just a little bit unique just given every burn surgeon kinda knows about this product. It's been at all the meetings. Also, I feel like these docs have a tendency to dabble in things before they aggressively adopt. What are you guys kind of thinking of that balance of how it gets adopted in the back half?
Yeah. You know, I think what we've tried to do is help investors sort of understand the timing of revenues. You know, obviously, with product availability in Q2, you'll have some stocking dynamic and initial use. We'd expect maybe some revenue in Q2, but really sort of ramping in the back half of the year. You know, we haven't given any projections. The analyst projections are out there. You know, you can look at those. You know, it's a little hard to. There's no sort of analog to look at, new entrants in the market, right? 'Cause they're surgical, and that's about it. It's a little hard to predict exactly how it's going to. What the quarterly rollout looks like. We take kind of a longer-term view that this is gonna change the standard of care.
Over time, there's no reason that the share of eschar removal for these patients shouldn't be, you know, 40%, 50%, 60% or more. We're kinda taking more of a long-term view, and it's just a little hard to predict at this point, sort of the quarterly uptake at launch.
Thanks.
Okay.
That's all for today. Nick, I'll pass it to you for closing statement.
Well, I just wanna thank everybody for your interest in attending today, and look forward to providing more updates as we move through the year.
Fantastic. Thank you so much.
Thanks.