CHASKA, Minn., Jan. 07, 2025 (GLOBE NEWSWIRE) — Lifecore Biomedical, Inc. (NASDAQ:LFCR), a fully integrated contract development and manufacturing organization (CDMO), today announced that it has entered into a sales agreement with a non-competitive buyer for the company’s previously purchased but not yet installed high-speed, multi-purpose 10-head isolator filler.
Background on Recent Developments
In September of last year, Lifecore Biomedical announced the successful installation and qualification of a new high-speed, multi-purpose 5-head isolator filler. This state-of-the-art equipment has doubled the available capacity that the company can offer to its existing and future customers. With this increased capacity, Lifecore is engaging in discussions with customers to take advantage of the speed and aseptic isolation benefits provided by this innovative technology.
Why Sell Excess Equipment?
According to Ryan Lake, Chief Financial Officer of Lifecore Biomedical, "We continue to execute our growth strategy while carefully examining all aspects of the business to identify opportunities for right-sizing and efficiency." The company has recently installed its high-speed 5-head filler, which has built $300 million of revenue-generating capacity to support mid-term and long-term revenue growth objectives. As a result, Lifecore felt that selling the excess 10-head isolator filler represented a compelling opportunity to monetize unused equipment and enhance their financial position.
Benefits of the Sale
The sale of the 10-head isolator filler will provide Lifecore with an aggregate purchase price of $17 million. The buyer will pay Lifecore $7 million at closing, with the remaining payments made in three tranches over the next 18 months. This transaction represents a strategic move by the company to carefully evaluate equipment expenditures and ensure that future capital investments align with projected operational needs.
About Lifecore Biomedical
Lifecore Biomedical, Inc. (Nasdaq:LFCR) is a fully integrated contract development and manufacturing organization (CDMO) offering highly differentiated capabilities in the development, fill, and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings over 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories.
Additional Information
For more information about the company, visit Lifecore’s website at www.lifecore.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as "anticipate", "estimate", "expect", "project", "plan", "intend", "believe", "may", "might", "will", "should", "can have", "likely" and similar expressions are used to identify forward-looking statements.
Risks and Uncertainties
All forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially, including:
- The company’s ability to successfully enact its business strategies
- Its ability to attract demand for its services
- Changes in business conditions and general economic conditions both domestically and globally
- Inflation on Lifecore’s business and financial condition
- The receipt of payments required by the sales agreement
Disclaimer
Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
Contact Information
For media inquiries:
Tim Brons
952-368-6244
For investor inquiries:
Stephanie Diaz
415-675-7401