BAINBRIDGE, Ga. - Danimer Scientific, Inc. (NYSE: DNMR), a biotechnology firm specializing in biodegradable materials, has named Richard Altice as its interim Chief Executive Officer, effective immediately. Altice, a current board member and former CEO of NatureWorks, takes over from Stephen Croskrey, who announced his retirement after over eight years at the helm. Croskrey will continue as a Special Advisor until year-end.
The company's Board has an ongoing search for a permanent CEO, considering both internal and external candidates, and has engaged an executive search firm for assistance. Altice's prior experience in the biomaterials industry is expected to guide Danimer during this transition.
Danimer also reported preliminary third quarter 2024 financial results, showing a revenue increase to $6.7 million, up by $0.8 million from the previous quarter. This growth is attributed to the legacy business and a 20-million-pound cutlery contract in the quick service restaurant sector. The company anticipates tripling its annualized PHA revenues by the end of the second quarter of 2025, based on current customer demand.
The full third quarter financial results will be disclosed on November 14, 2024, followed by a webcast and conference call.
Altice joined Danimer's board in April 2024 and has a background in leading companies to growth and profitability, including his tenure at NatureWorks and roles at PolyOne and Hexion. He holds a Bachelor of Science in Chemical Engineering from the Missouri University of Science and Technology.
Danimer is recognized for its renewable biopolymers, which contribute to reducing plastic pollution by offering biodegradable alternatives for various applications. The company holds numerous patents for its manufacturing processes and biopolymer formulations.
The information in this article is based on a press release statement from Danimer Scientific.
In other recent news, Danimer Scientific, a leading biotechnology firm, has been awarded a $1.36 million contract by the U.S. Department of Defense (DoD). This funding aims to facilitate the development of biobased polyols for high-performance coatings, which could potentially lead to a follow-on award for constructing a U.S. manufacturing facility. Concurrently, Danimer Scientific has experienced significant changes in its financial landscape. TD Cowen and Jefferies, two prominent analyst firms, have downgraded the company's stock from Buy to Hold, with TD Cowen reducing the price target to $1 and Jefferies to $0.80. These adjustments follow slower than expected growth at the company's Kentucky facility and the announcement of a CEO transition. Despite these developments, Danimer Scientific reported a noteworthy increase in PHA revenues in Q1 2024 and confirmed a CEO transition with Stephen E. Croskrey planning to retire by the end of 2024. Amid these recent developments, the company's stockholders approved an amendment to increase the authorized shares of Class A common stock from 200 million to 600 million, potentially providing increased flexibility for future corporate needs.
InvestingPro Insights
As Danimer Scientific navigates this leadership transition and aims for revenue growth, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at $49.27 million, reflecting its current valuation in the market.
Despite the reported revenue increase in Q3 2024, InvestingPro data shows that Danimer's revenue for the last twelve months as of Q2 2024 was $39.74 million, with a concerning revenue growth of -21.4% over the same period. This decline underscores the importance of the company's efforts to triple its annualized PHA revenues by Q2 2025.
InvestingPro Tips highlight some challenges facing the company. Danimer is currently operating with a significant debt burden and is quickly burning through cash. These factors may put pressure on the new leadership to improve financial stability alongside pursuing growth strategies.
On a positive note, InvestingPro Tips indicate that Danimer's liquid assets exceed its short-term obligations, which could provide some financial flexibility during this transition period. Additionally, the company is trading at a low Price / Book multiple of 0.21, which might interest value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Danimer Scientific, providing a deeper understanding of the company's financial health and market position.
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