Lifecore receives early $10 million payment for equipment sale

CHASKA, Minn. - Lifecore Biomedical, Inc. (NASDAQ:LFCR), a $250 million market cap company, has received the remaining $10 million payment from the previously announced $17 million sale of its excess high-speed, multi-purpose 10-head isolator filler, the company announced Thursday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.71x.

The buyer opted to pay the full remaining balance as a lump sum instead of following the originally planned 18-month installment schedule. Lifecore had already received an initial $7 million payment when the transaction closed in early 2025.

"This welcome development further strengthens our balance sheet and underscores the disciplined capital management approach we are applying across the business," said Ryan D. Lake, chief financial officer of Lifecore.

The company sold the uninstalled equipment in January 2025 to a non-competitive buyer, aligning its capital assets with operational needs. This transaction follows Lifecore’s recent installation of a high-speed 5-head filler, which the company states supports up to $300 million in annual revenue generating capacity.

Lifecore Biomedical operates as a contract development and manufacturing organization (CDMO) specializing in the development, fill and finish of sterile injectable pharmaceutical products. The company also manufactures injectable-grade hyaluronic acid.

The information in this article is based on a company press release statement.

In other recent news, Lifecore Biomedical reported a 2% decline in revenue for its fiscal third quarter of 2025, amounting to $35.2 million, alongside a net loss of $14.8 million. Despite this, the company remains optimistic about future growth, aiming for revenue expansion and improved cash flow in upcoming quarters. Lifecore also received an Outperform rating from William Blair, which initiated coverage based on the company’s strong revenue prospects tied to commitments from its top customer, Alcon. These commitments are expected to contribute significantly to Lifecore’s revenue growth over the next few years.

Additionally, Lifecore’s stockholders approved a proposal to issue shares exceeding 19.99% of its common stock, facilitating the conversion of Series A Convertible Preferred Stock into common stock. This move aligns with Nasdaq Listing Rule 5635(d) and reflects strategic financial planning. In a bid to bolster its leadership, Lifecore appointed Mark DaFonseca as its new chief commercial officer, bringing extensive experience in the pharmaceutical industry to drive the company’s growth strategy. DaFonseca’s appointment is part of Lifecore’s initiative to strengthen its market position and expand its business portfolio.

The company has also successfully added six new customers and is advancing ten late-stage pipeline programs, with potential FDA approvals expected by 2028. Lifecore’s focus on expanding its customer base and enhancing operational efficiencies is evident as it continues to navigate a challenging market environment.

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