Business
Lifecore Biomedical Further Strengthens Financial Position Through Sale of Excess Capital Equipment for $17 Million
Company Believes it is Well Positioned for Mid-Term and Long-Term Growth asCurrent Capacity Continues to Support up to $300 Million in Annual Revenue CHASKA,
About this update from Lifecore Biomedical, Inc.
[{"type":"text","content":"Company Believes it is Well Positioned for Mid-Term and Long-Term Growth asCurrent Capacity Continues to Support up to $300 Million in Annual Revenue CHASKA, Minn., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore”), 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. Under the terms of the agreement, the buyer will pay Lifecore an aggregate purchase price of $17 million in exchange for the 10-head filler. Lifecore received $7 million at closing and anticipates receiving the remaining payments in three tranches over the next 18 months. “As we continue to execute our growth strategy, we have continued to carefully examine all aspects of the business to identify opportunities for right-sizing and efficiency,” said Ryan Lake, chief financial officer of Lifecore. “With the recent installation of our high-speed 5-head filler, we have built $300 million of revenue-generating capacity to support our mid-term and long-term revenue growth objectives. Accordingly, we felt that the sale of the 10-head filler, which we believe represented excess capital equipment, represented a compelling opportunity to monetize unused equipment and enhance our financial position. Moving forward, we intend to continue to carefully evaluate equipment expenditures to ensure that future capital investments are aligned with projected operational needs.” In September, Lifecore announced that it had successfully installed and qualified a new high-speed, multi-purpose 5-head isolator filler, doubling the available capacity it has to offer existing and future customers. With the 5-head filler GMP-ready, the company is engaging in discussions with customers to take advantage of the speed and aseptic isolation benefits of this state-of-the-art, multi-container filler. About Lifecore Biomedical Lifecore Biomedical, Inc. (Nasdaq: LFCR) is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulation...