CHASKA, Minn. - Lifecore Biomedical, Inc. (NASDAQ: LFCR), a contract development and manufacturing organization, announced Monday that its independent accounting firm, Ernst & Young LLP, will not return for the upcoming fiscal year.
The company's board of directors is now actively seeking a replacement after Ernst & Young declined to stand for reappointment following the filing of Lifecore's Annual Report on Form 10-K for the fiscal year ended May 28, 2023.
The decision by Ernst & Young comes ahead of Lifecore's fiscal year ending May 26, 2024. The company, known for its expertise in developing and manufacturing sterile injectable pharmaceutical products, is preparing to provide a business update on April 1, 2024. This update is expected to include select financial data for fiscal year 2024 and details on commercial business matters.
Lifecore Biomedical specializes in the development, fill, and finish of complex sterile injectables in syringes and vials, with over 40 years of experience in the field. The company is recognized for producing premium, injectable grade Hyaluronic Acid and partners with global and emerging biopharmaceutical and biotechnology companies across various therapeutic categories.
The press release also contained forward-looking statements regarding the company's future, cautioning that these statements involve risks and uncertainties that could cause actual results to differ materially.
Factors that could affect outcomes include the evaluation of the company's strategic alternatives, its ability to become current with SEC reports, compliance with Nasdaq listing standards, and expansion of relationships with existing customers.
Lifecore Biomedical has not provided further details on why Ernst & Young will not be reappointed. As the search for a new accounting firm continues, stakeholders are advised to look forward to the upcoming business update for a clearer picture of the company's financial health and commercial strategy. The information for this article is based on a press release statement from Lifecore Biomedical.
InvestingPro Insights
As Lifecore Biomedical, Inc. (NASDAQ: LFCR) faces a transition period with the departure of its accounting firm, Ernst & Young LLP, investors and stakeholders may be closely monitoring the company's financial metrics and future outlook.
According to InvestingPro data, Lifecore Biomedical currently holds a market capitalization of 157.62 million USD, with a negative price-to-earnings (P/E) ratio of -3.01 for the last twelve months as of Q4 2023. This negative P/E ratio reflects the company's challenges in generating profits over the past year.
Despite these challenges, there are signs of potential growth. An InvestingPro Tip suggests that net income is expected to grow this year, indicating that analysts are forecasting an improved financial performance for Lifecore Biomedical in the near term. Moreover, the stock's recent performance shows a significant return of 73.08% over the last year, which may interest investors looking for companies with a strong rebound potential.
Another InvestingPro Tip indicates that the Relative Strength Index (RSI) suggests the stock is in oversold territory. This technical indicator may appeal to traders who consider RSI levels when evaluating entry and exit points for their investments.
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