CHASKA, Minn. - Lifecore Biomedical, Inc. (NASDAQ: LFCR), a contract development and manufacturing organization (CDMO), has entered into a multi-year agreement with Lindy Biosciences to provide CDMO services for the latter's microglassification technology, with potential revenue exceeding $5 million. This partnership positions Lifecore as the preferred CDMO for Lindy Biosciences and underscores its expertise in the development and fill/finish of sterile injectable pharmaceutical products.
Lindy Biosciences' proprietary technology aims to revolutionize the delivery of biologic therapeutics, enabling higher concentration doses for subcutaneous self-administration, moving away from traditional intravenous methods. This advancement could significantly enhance the patient experience by facilitating at-home treatment.
The selection of Lifecore followed a competitive review process, with several CDMOs considered. Deborah Bitterfield, Ph.D., CEO of Lindy Biosciences, cited Lifecore's collaborative approach and creative insights into process optimization as key factors in their decision.
Darren Hieber, Lifecore's senior vice president of corporate development and partnerships, expressed excitement about the collaboration, emphasizing the pharmaceutical industry's significant interest in Lindy Biosciences' technology. He believes that Lifecore's track record with complex manufacturing processes will establish them as a leading partner for CDMO services related to this platform.
The agreement comes on the heels of a recent licensing and collaboration deal between Lindy Biosciences and a global pharmaceutical company, highlighting the industry's interest in their microglassification suspension technology.
Lifecore Biomedical, with over 40 years of experience, specializes in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations. Lindy Biosciences, founded in 2016, focuses on enhancing drug formulation and delivery, particularly for concentrated biologic suspensions suitable for subcutaneous administration.
The information in this article is based on a press release statement.
In other recent news, Lifecore Biomedical has experienced major changes and developments. The company reported a significant rise in its fiscal 2024 revenues, reaching $128.3 million, a 24.2% increase from the previous year. However, Lifecore projects flat revenue growth for fiscal 2025 due to customer inventory reductions and no new product launches.
Significant changes to Lifecore Biomedical's board of directors were also disclosed. Two board members, Jeffrey L. Edwards and Ray Diradoorian, have decided to depart, with their decisions not linked to any disagreements over operations, policies, or practices.
Additionally, the company has regained compliance with Nasdaq's listing requirements, following the successful filing of overdue financial reports and holding its annual meeting. This development has led Nasdaq to halt any proceedings to delist Lifecore's common stock.
In terms of leadership, Ryan Lake has been appointed as the new CFO, replacing John Morberg. Lake brings extensive experience in the CDMO industry to his new role.
Finally, Lifecore Biomedical anticipates improved revenue growth and margins, with adjusted EBITDA for fiscal 2025 forecasted to be between $19 million and $21 million. The company also plans to focus on growth in viscous and hard-to-handle programs, leveraging new isolator filler capabilities. These are the recent developments surrounding Lifecore Biomedical.
InvestingPro Insights
Lifecore Biomedical's recent partnership with Lindy Biosciences aligns with its growth trajectory, as evidenced by InvestingPro data showing a robust revenue growth of 24.2% in the last twelve months. This new agreement, potentially worth over $5 million, could further boost the company's financial performance.
Despite the positive news, investors should consider some key factors. An InvestingPro Tip indicates that Lifecore operates with a significant debt burden, which could impact its financial flexibility as it pursues this new venture. However, another tip reveals that the company's liquid assets exceed short-term obligations, suggesting it may have the capacity to manage its debt while investing in growth opportunities like the Lindy Biosciences partnership.
The company's valuation metrics present an interesting picture. With a P/E ratio of 12.49 and a PEG ratio of 0.15, Lifecore appears to be trading at attractive levels relative to its earnings potential. This could indicate that the market has not fully priced in the potential impact of new partnerships like the one with Lindy Biosciences.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 10 additional InvestingPro Tips available for Lifecore Biomedical, providing a deeper understanding of the company's financial health and market position.
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