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BOTHELL, Wash. - BioLife Solutions, Inc. (NASDAQ: NASDAQ:BLFS), a prominent supplier of cell processing tools and services for the cell and gene therapy (CGT) market, has completed the sale of its freezer subsidiary, Custom Biogenic Systems (CBS), for $6.1 million in cash. This transaction marks the conclusion of BioLife's strategic shift away from capital equipment businesses.
The sale of CBS represents the final step in BioLife's divestiture of its freezer and related businesses, which began with the sale of Global Cooling in April. The company has now fully transitioned to focus on its proprietary cell processing products, which offer higher margins and recurring revenue, as opposed to its capital equipment freezer and storage businesses that included Stirling, SciSafe, and CBS.
Roderick de Greef, Chairman and CEO of BioLife Solutions, stated, "The sale of CBS aligns with our strategic refocus on our proprietary, higher-margin, recurring-revenue cell processing products, and away from our capital equipment freezer and storage businesses."
BioLife Solutions specializes in providing solutions that maintain the health and function of biologic materials during the collection, development, storage, and distribution phases, thus facilitating the commercialization of new therapies.
The company cautions that certain statements in the press release are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from those projected. Further details on these risks can be found in filings with the U.S. Securities and Exchange Commission.
This news is based on a press release statement from BioLife Solutions, Inc.
In other recent news, BioLife Solutions has reported robust Q3 growth in 2024, with a notable 30% increase in revenue year-over-year, totaling $30.6 million. The company's cell processing platform revenue also saw a significant boost, growing by 43% to reach $19 million. An improved adjusted gross margin was also reported, increasing to 54% with the adjusted EBITDA margin rising to 20%.
BioLife Solutions recently sold its SciSafe division for $73 million, a strategic move to focus on its core competencies and drive high-margin revenue growth. TD Cowen subsequently raised BioLife's price target from $28.00 to $31.00, maintaining a Buy rating on the stock, reflecting confidence in the company's strategic improvements and stronger balance sheet.
Despite the SciSafe divestiture, BioLife raised its cell processing revenue guidance for 2024 to be between $72 million and $73 million. However, the company revised its total revenue guidance for the same year to between $98 million and $100 million, due to the sale of SciSafe. These are some of the recent developments that have taken place within the company.
InvestingPro Insights
BioLife Solutions' strategic shift towards higher-margin, recurring-revenue cell processing products is reflected in its recent financial performance. According to InvestingPro data, the company's revenue growth has been robust, with a 29.69% increase in quarterly revenue as of Q3 2024. This growth aligns with the company's focus on its proprietary cell processing products.
Despite the positive revenue trajectory, BioLife Solutions faces some challenges. An InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which could be a result of the company's divestiture of its freezer businesses. Additionally, the company is not currently profitable, with an operating income margin of -25.75% in the last twelve months.
However, investors seem optimistic about BioLife's strategic direction. The stock has shown a remarkable 101.42% price total return over the past year, significantly outperforming the broader market. This performance suggests that the market is supportive of the company's refocus on its core cell processing business.
It's worth noting that BioLife Solutions operates with a moderate level of debt and its liquid assets exceed short-term obligations, as highlighted by InvestingPro Tips. These factors provide the company with financial flexibility as it navigates its strategic transition.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for BioLife Solutions, providing deeper insights into the company's financial health and market position.
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