CHASKA, Minn. - Lifecore Biomedical, Inc. (NASDAQ: LFCR), a contract development and manufacturing organization (CDMO), today announced a change in its financial leadership. John Morberg will step down as the company's chief financial officer effective September 2, 2024, to pursue other professional opportunities. Following Morberg's departure, Ryan Lake will assume the role of CFO starting September 3, 2024.
Paul Josephs, president and CEO of Lifecore, acknowledged Morberg's contributions to the company's success and transition into a dedicated CDMO. He also expressed confidence in Lake's appointment, citing his relevant experience in the CDMO industry, including his role as CFO at Societal CDMO, Inc. and his involvement in significant financial transactions and corporate strategy.
Lake's career includes raising over $700 million in capital and participating in mergers and acquisitions valued at a similar amount. His tenure at Societal CDMO, Inc. involved leading the company through a spin-off and rebranding, as well as strategic growth initiatives that expanded the customer base and service capabilities. These efforts culminated in the successful acquisition of Societal CDMO by CoreRx in April 2024.
Lifecore Biomedical specializes in the development, fill, and finish of sterile injectable pharmaceutical products and has been a partner for biopharmaceutical and biotechnology companies for over 40 years. The company's focus on hyaluronic acid and complex formulations positions it as a key player in the CDMO space.
The leadership transition comes at a pivotal time for Lifecore, as it aims to leverage its strengths and capitalize on growth opportunities within the industry. Josephs emphasized Lake's skills in investor relations and financial strategy as instrumental for guiding the company toward continued growth and value creation.
The information disclosed is based on a press release statement from Lifecore Biomedical, Inc.
In other recent news, Lifecore Biomedical has reported significant growth in its latest earnings call. The company's revenues for fiscal 2024 increased by 24.2% to $128.3 million, although it projects flat revenue growth for fiscal 2025 due to customer inventory reductions and no new product launches. Lifecore has resolved previous accounting issues and is up to date with SEC filings, while a workforce reduction has led to cost savings and an increase in net debt to $175.2 million for fiscal 2024.
In the future, Lifecore Biomedical anticipates improved revenue growth and margins, with adjusted EBITDA for fiscal 2025 forecasted to be between $19 million and $21 million. Despite predicting slightly negative free cash flow in fiscal 2025 due to restructuring and reorganization costs, the company remains focused on growth in viscous and hard-to-handle programs, leveraging new isolator filler capabilities.
These are recent developments that indicate Lifecore Biomedical's strategic plans for the coming fiscal year, including a decline in capital expenditures to approximately $10 million to $14 million in fiscal 2025. The company is also optimistic about participating in the growing injectable market and improving EBITDA margins over time through increased volume and operational efficiencies.
InvestingPro Insights
As Lifecore Biomedical, Inc. (NASDAQ: LFCR) prepares for a change in its financial leadership, it's crucial for investors to consider the company's current financial health and market performance. According to recent data from InvestingPro, Lifecore Biomedical has a market capitalization of $122.67 million, reflecting its valuation in the market. Despite the challenges, the company has managed a revenue growth of 24.2% in the last twelve months as of Q4 2024, showcasing its potential to expand despite market fluctuations.
InvestingPro Tips highlight that the company is trading at a low P/E ratio of 9.95, which indicates that the stock may be undervalued relative to its near-term earnings growth. This could present an opportunity for investors looking for potential growth at a reasonable price. Additionally, Lifecore's liquid assets exceed its short-term obligations, providing a cushion for the company to manage its financial commitments effectively.
However, it's important to note that the stock has experienced significant volatility, with a one-week price total return of -30.47%, and it has fared poorly over the last month and six months. This volatility is a critical factor for investors to consider as they assess the risk associated with investing in Lifecore Biomedical. With the appointment of Ryan Lake as the new CFO, investors will be watching closely to see if his strategic financial management can steer the company towards a more stable and profitable future.
For a deeper analysis, Lifecore Biomedical investors can find over 10 additional InvestingPro Tips at InvestingPro, providing valuable insights that could inform investment decisions during this period of leadership transition.
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