Standard BioTools Inc. (LAB), a $605 million market cap company specializing in laboratory analytical instruments, announced the upcoming departure of its Chief Commercial Officer (CCO), Jeremy Davis. The mutual agreement will see Davis exit his role effective February 1, 2025. According to InvestingPro analysis, the company's stock is currently trading below its Fair Value, with shares at $1.63 showing significant volatility in recent months.
The South San Francisco-based company, which trades on the Nasdaq Global Select Market under the symbol LAB, is set to finalize a severance agreement with Davis. According to the announcement made today, this agreement aligns with the company's 2024 Change of Control and Severance Plan, under which Davis will receive multiple benefits. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 3.76, though it faces challenges with rapid cash burn.
The severance package includes a continuation of Davis's annual base salary totaling $441,000 over a twelve-month period, a fiscal year 2024 bonus of $169,785, and a pro-rated lump-sum payment of his annual target bonus amounting to $21,264.65. Additionally, Standard BioTools will cover the costs of COBRA health insurance premiums for Davis, his spouse, and dependents until February 28, 2026, or until his COBRA eligibility ends, whichever comes first.
Furthermore, Davis will benefit from a 100% acceleration in the vesting of his outstanding and unvested equity awards. For performance-based awards, it is assumed that the targets have been met at the required levels for the applicable periods unless stated otherwise in the equity award agreement.
With the company's next earnings report scheduled for February 12, 2025, investors can access comprehensive analysis and additional insights through the detailed Pro Research Report available on InvestingPro, which covers this and 1,400+ other US stocks.
The terms of the severance will be detailed in a forthcoming exhibit to the company's Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. The press release clarified that the description of the Severance Agreement provided is not exhaustive and is subject to the complete terms and conditions as detailed in the full text of the agreement.
In other recent news, Standard BioTools Inc. has announced mixed financial results for the third quarter of 2024. The biomedical research technologies provider reported a 21% increase in quarterly revenue, totaling $45 million.
However, a 5% year-over-year decline was noted, with year-to-date revenue recorded at $128 million, marking a 9% decrease from 2023. Despite these challenges, the company, following its merger with SomaLogic, achieved significant cost synergies and improved its non-GAAP operating expenses and adjusted EBITDA.
In addition to these financial updates, Standard BioTools has appointed Alex Kim as the new Chief Financial Officer. Kim, a co-founder and former Chief Operating Officer of the company, brings nearly three decades of experience in the healthcare and life sciences industries to the role. This executive change coincides with the promotion of Jonathan Mickelsen to Vice President & Chief Accounting Officer of Standard BioTools.
TD Cowen, an independent analyst firm, has adjusted the price target for Standard BioTools to $2.50, down from the previous $2.75, while maintaining its Buy rating on the company's stock. The adjustment came after the company's reported sales figures exceeded expectations by 9%, largely due to the performance of the company's SomaScan Assay Services.
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