Lifecore Biomedical Q3 revenue misses estimates as CDMO, HA sales decline

Overview

• U.S. injectables CDMO's Q3 revenue fell 19% yr/yr, missing analyst expectations

• Company posted a wider net loss yr/yr

• Multiple new business wins expected to support long-term revenue growth

Outlook

• Lifecore expects new business wins to contribute to revenue growth starting in 2027

• Company secured three new development-phase programs early in the fourth quarter

Result Drivers

• NEW BUSINESS WINS - Co secured two technology transfer projects in Q3 and three new development-phase programs early in Q4, expected to support long-term revenue growth

• DECLINING CDMO AND HA REVENUE - CDMO and HA manufacturing revenue dropped 18% and 19% yr/yr, respectively, contributing to overall revenue decline

• LOWER OPERATING EXPENSES - Operating expenses fell 29% yr/yr, driven by reductions in research and development and selling, general and administrative costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• Wall Street's median 12-month price target for Lifecore Biomedical, Inc. is $5.64, about 12.1% below its November 3 closing price of $6.42

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)