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Vericel (VCEL) gains as former competitor Histogenicss (HSGX) fails to meet endpoints

September 5, 2018 10:29am

HSGX drops -$1.71 or -61.73% (from yesterday’s close of $2.77) as VCEL gains +$1.85 or +15.88%

A “gift” for VCEL, MACI and ... another offering?

Histogenics (HSGX P3 clinical trial of NeoCart did not meet the primary endpoint of a statistically significant improvement in pain and function in a dual threshold responder analysis one year after treatment as compared to microfracture.

In the modified Intent to Treat (mITT) population (which excludes those patients who were randomized but not treated with NeoCart), 74.2% of the NeoCart patients exhibited clinically meaningful improvements in pain and function compared to 62.0% of microfracture patients at one year (p=0.071). However, in this mITT population, patients treated with NeoCart achieved a statistically significant improvement in pain and function (p=0.018) six months after treatment as compared to patients treated with microfracture. Both NeoCart and microfracture were well tolerated and exhibited strong safety profiles.

Vericel (VCEL is up on strong volume (1.23 M share s traded as compared to the 3 month average of 1.18 M shares) in early trade. On August 28, the SEC signed off on its prospectus for a $200M mixed shelf offering.

At the end of June, it had $95M in cash and equivalents while operations consumed $5M in H1. At this rate, VCEL should have plenty of working capital unless it plans on investing in growth (e.g., acquisition, in-licensing).

HSGX had a float of 15.92 M shares with 29.24 M shares outstanding and had $8.8 M in the “till” as of Q2’s end

35 companies, 1 interpreter!

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