Celularity Inc. (NASDAQ:CELU), a biotechnology company specializing in pharmaceutical preparations, has reported in a recent SEC filing that it expects to announce over $24 million in net revenue from its biomaterial products for the first half of the year ending June 30, 2024. The company, which has not finalized its financial results, disclosed these preliminary figures in an October 22, 2024, shareholder letter.
The expected revenue includes sales from biomaterial products and income from licenses, royalties, and other related sources. Celularity also anticipates more than $9 million in net revenue for its Rebound™ product, acquired recently, though the company's financial results for the third and fourth quarters of 2024 are still under review and subject to change.
These projections were shared by Celularity's CEO, Robert J. Hariri, MD, PhD, who cautioned that the figures are unaudited and preliminary. The ongoing review of the company's consolidated financial statements for the quarters ending June 30, September 30, and December 31, 2024, could lead to adjustments in these numbers.
The information provided in the SEC filing is for informational purposes and is not intended to be used for financial decision-making. The data is preliminary and has not been filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it to be considered incorporated by reference in any filing under the Securities Act of 1933.
Celularity, headquartered in Florham Park, New Jersey, operates under the organization name 03 Life Sciences and is incorporated in Delaware. Information about these financial projections is based on a press release statement and the company's recent SEC filing.
In other recent news, Celularity Inc. has been working diligently to regain full compliance with Nasdaq's listing requirements. The biotechnology firm has filed its annual report for fiscal year 2023 and its first quarter report for 2024 on time, with plans to submit the second quarter report soon. The company's commitment to Nasdaq compliance is accompanied by robust sales growth, particularly from the successful integration of Biovance®3L and the acquisition of Rebound from Sequence LifeScience, Inc. These products have significantly contributed to the company's sales, generating over $9 million and helping the company's portfolio surpass $24 million in sales in the first half of 2024 alone.
Celularity is also making strides in product development, with several products such as Celularity Tendon Wrap, FUSE Bone Void Filler, and Celularity Placental Matrix undergoing preliminary FDA assessments. The company plans to submit 510(k) notifications for these products between 2025 and 2026. Celularity's CEO expressed gratitude to shareholders for their support during challenging market conditions and emphasized the company's focus on long-term shareholder value.
Despite facing potential delisting, Celularity's common stock and warrants continue to be traded on the Nasdaq Capital Market. The company has been given until September 6, 2024, to present a plan to regain compliance.
InvestingPro Insights
While Celularity Inc. (NASDAQ:CELU) projects promising revenue figures for the first half of 2024, it's crucial to consider the company's current financial position. According to InvestingPro data, Celularity's market capitalization stands at $40.89 million, reflecting its relatively small size in the biotechnology sector.
InvestingPro Tips highlight that Celularity is currently operating with a significant debt burden and is quickly burning through cash. These factors could potentially impact the company's ability to sustain its projected revenue growth. Additionally, the stock has taken a big hit over the last week, with a 1-week price total return of -13.15%, suggesting recent market skepticism.
On a positive note, Celularity's revenue growth has been impressive, with a 109.81% increase over the last twelve months as of Q1 2024. This aligns with the company's optimistic revenue projections for the first half of 2024. However, it's worth noting that despite this growth, the company is not yet profitable, with a negative operating income margin of -162.19% for the same period.
Investors considering Celularity should be aware that InvestingPro offers 9 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position.
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