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BOSTON - 908 Devices Inc . (NASDAQ:MASS), a provider of chemical analysis devices currently trading at $1.98 with a market capitalization of $69 million, has announced a strategic shift with the sale of its desktop portfolio to Repligen (NASDAQ:RGEN) Corporation for $70 million. This move follows the company’s acquisition of RedWave Technology’s FTIR products in April 2024 and is part of its focus on handheld devices for chemical detection.
The company reported a 31% increase in fourth-quarter revenue to $18.8 million compared to the previous year and a 19% rise in full-year revenue to $59.6 million. The growth is attributed to the success of its handheld and desktop products, as well as recurring service revenue, which saw a 42% increase year over year. According to InvestingPro data, the company maintains a healthy current ratio of 4.24, with more cash than debt on its balance sheet.
The divestiture is expected to streamline operations, reducing headcount by approximately 33% and cutting annual operating losses by $20 million. This restructuring comes as InvestingPro analysis shows the company has been quickly burning through cash, with a negative free cash flow yield of -44%. This is anticipated to accelerate the company’s profitability timeline, with adjusted EBITDA positivity projected for the fourth quarter of 2025 and cash flow positivity in 2026.
For the full year 2025, 908 Devices forecasts revenue growth of 11% to 15% from continuing operations, driven by the modernization of equipment, the launch of the MX908 mass spec device, and a Department of Defense contract. The company also expects gross margins to reach the mid-to-high 50% range in 2025.
The financial results from 2024 showed a net loss of $19.4 million for the fourth quarter and $72.2 million for the year. However, the adjusted EBITDA loss improved slightly, from $7.0 million in the fourth quarter of 2023 to $6.2 million in the same period of 2024, and from a $30.0 million loss in 2023 to a $29.6 million loss for the full year.
CEO Kevin J. Knopp expressed confidence that the company’s actions have positioned it well to address the opioid crisis and defense needs, with a compelling investment thesis going forward. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 14 additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report.
The information provided is based on a press release statement by 908 Devices Inc.
In other recent news, Repligen Corporation has completed the acquisition of desktop bioprocessing technology from 908 Devices for $70 million in cash. This acquisition includes four key devices—MAVERICK, MAVEN, REBEL, and ZipChip—that will enhance Repligen’s process analytical technology offerings. Meanwhile, 908 Devices reported fourth-quarter revenues of $17.2 million, marking a 20% year-over-year increase, surpassing both Stephens’ projection of $15.6 million and the consensus estimate of $16.1 million. The growth was driven by a significant uptick in desktop revenue and strong sales in handheld devices.
Stephens has maintained an Overweight rating on 908 Devices, citing the company’s robust financial performance and setting a price target of $6.00. The RedWave acquisition contributed approximately $11 million to the fiscal year 2024 revenue, meeting post-acquisition targets. 908 Devices also reported a 15% annual revenue growth, aligning with the upper end of its guidance. The company ended the quarter with approximately $69.5 million in cash and equivalents, despite a cash consumption of about $2 million during the last quarter. Kevin J. Knopp, CEO of 908 Devices, expressed satisfaction with the increased demand for their handheld FTIR devices and remains optimistic about future growth prospects.
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