Nucor earnings beat by $0.08, revenue fell short of estimates
CHASKA, Minn. - Lifecore Biomedical, Inc. (NASDAQ: LFCR), a $247 million market cap company with annual revenues of $130 million, has secured a new 10-year commercial manufacturing and supply agreement with an existing customer for an ophthalmic therapeutic product, the company announced Tuesday.
The agreement builds on the companies’ ongoing collaboration to advance a novel ophthalmic therapeutic through clinical development to market. Alongside this long-term deal, Lifecore has signed a multi-million-dollar statement of work covering fill and finish services to support the program’s regulatory approval process. According to InvestingPro data, the company maintains a healthy financial position with liquid assets exceeding short-term obligations by 2.7x.
Under the new work statement, Lifecore will manufacture various batches of the drug candidate, including Process Performance Qualification batches.
"The signing of this long-term commercial supply agreement with one of those customers is a critical step on our path to recognizing impactful commercial manufacturing revenue from this longstanding relationship," said Paul Josephs, chief executive officer of Lifecore.
Lifecore Biomedical operates as a contract development and manufacturing organization specializing in sterile injectable pharmaceutical products. The company has over 40 years of experience in manufacturing injectable-grade hyaluronic acid.
The financial details of the agreement were not disclosed in the company’s press release statement.
In other recent news, Lifecore Biomedical reported a slight decrease in revenue for its fiscal third quarter of 2025, showing a 2% decline year-over-year to $35.2 million. The company also experienced a net loss of $14.8 million, translating to a loss of $0.47 per diluted share. Despite the dip in earnings, Lifecore remains optimistic about future revenue growth, with a projected compound annual growth rate of 11.6% from fiscal 2025 to 2028, according to an analysis by William Blair. The firm has rated Lifecore’s stock as "Outperform," highlighting the company’s solid foundation with minimum volume commitments from its top customer, Alcon.
Additionally, Lifecore received a $10 million payment for the sale of its excess equipment, which was originally scheduled to be paid over 18 months. This payment strengthens the company’s balance sheet and supports its operational needs. Lifecore has also appointed Mark DaFonseca as its new chief commercial officer, aiming to enhance its position in the CDMO market. In another development, the company’s stockholders approved a proposal to issue shares exceeding 19.99% of its common stock, allowing for the conversion of preferred shares into common stock.
These strategic moves and financial adjustments are part of Lifecore’s broader efforts to align its capital assets with operational needs and expand its market reach. The company continues to focus on growth, adding six new customers and advancing ten late-stage pipeline programs. Lifecore’s leadership remains committed to achieving cash flow-positive operations and improving EBITDA margins in the upcoming quarters.
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