BioLife Solutions Announces Preliminary Fourth Quarter and Full Year 2023 Unaudited Revenue

Rhea-AI Summary

BioLife Solutions, Inc. (BLFS) reported a fourth-quarter cell processing revenue increase of 11% sequentially to $14.8 million. However, the company's full-year 2023 preliminary unaudited revenue decreased by 11% to $143.3 million compared to 2022.

Insights

Market Research Analyst

The reported 11% sequential increase in cell processing revenue for BioLife Solutions indicates a positive trajectory for the company's core business, despite a year-over-year decline. This uptick suggests that BioLife's strategic focus on its high-margin cell processing segment is beginning to pay off. The cell and gene therapy (CGT) market is burgeoning and BioLife's involvement in 14 approved therapies, with the potential for 10 more, could signal a strong competitive position. However, the overall revenue decrease of 26% from the previous year warrants attention. This decline reflects the broader market's transition from pandemic-driven demand, which may impact investor sentiment. The divestiture of the freezer business is a significant move that could streamline operations and enhance profitability, but it also represents a departure from a previously integrated product offering.

Financial Analyst

From a financial perspective, the preliminary revenue decline of 11% year-over-year for BioLife Solutions raises concerns about the company's growth sustainability post-pandemic. While the cell processing segment shows resilience, the sharp drop in Freezers and Thaw Systems revenue by 35% is notable. Investors should consider the implications of the ex-COVID revenue figures, which exclude the temporary boost from the pandemic, to gauge the underlying business performance. The divestiture of the freezer business could improve the financial profile by focusing on higher-margin areas, but it may also reduce overall revenue diversity. The company's forward-looking statements regarding easing macro and inventory headwinds suggest management's confidence in recovery, although these statements should be weighed against actual performance metrics in the upcoming earnings call.

Biotech Industry Analyst

In the context of the biotech industry, BioLife's results reflect the volatility and rapid evolution inherent in this sector. The CGT market is experiencing significant growth and BioLife's positioning as a 'pure play' enabler could be advantageous. However, the decrease in overall revenue, particularly in Freezers and Thaw Systems, may indicate a shift in the industry's needs or a saturation of the market post-pandemic. The company's strategic pivot towards its cell processing platform, which is embedded in multiple approved therapies, demonstrates adaptability. The long-term success of this strategy will depend on the continued adoption and success of CGT treatments, as well as BioLife's ability to maintain its competitive edge through innovation and operational execution.

Fourth quarter Cell Processing revenue increased 11% sequentially to $14.8 million

BOTHELL, Wash., Jan. 8, 2024 /PRNewswire/ -- BioLife Solutions, Inc. (NASDAQ: BLFS) ("BioLife" or the "Company"), a leading developer and supplier of bioproduction products and services for the cell and gene therapy (CGT) and the broader biopharma markets, today announced 2023 fourth quarter and full year preliminary unaudited revenue.

Roderick de Greef, Chairman and CEO, commented, "As we enter the new year, our team is fully committed to operational execution that positions BioLife for sustained revenue growth and profitability. We are pleased to announce preliminary results for the fourth quarter, showing an 11% sequential increase in our core cell processing revenue which came in ahead of our expectations. In parallel, the divestiture of our freezer business continues to progress and is expected to conclude this quarter, significantly enhancing our financial profile as our high margin, recurring cell processing business grows as a percentage of total revenue post divestiture."

de Greef continued, "Looking ahead, trends exiting 2023 and early in 2024 leave us cautiously optimistic that macro and inventory headwinds are easing, and customer behavior is normalizing. Our class-defining portfolio of cell processing products are embedded in a total of 14 approved therapies, with the potential for 10 more by year-end, which uniquely positions BioLife as one of the only pure play enablers of the nascent but fast-growing cell and gene therapy market. We look forward to providing additional detail regarding our financial performance and outlook on our fourth quarter and year-end 2023 earnings call in February."

Fourth Quarter and Full Year 2023 Preliminary Unaudited Revenue

• Preliminary and unaudited revenue for the fourth quarter of 2023 was $32.7 million, a decrease of 26% from $44.3 million for the fourth quarter of 2022. Ex-COVID related revenue was down $9.5 million, or 22%, over the same period in 2022.
  • Cell processing platform revenue was $14.8 million, down $5.4 million, or 27%, over the same period in 2022, and up 11% sequentially over the third quarter of 2023.
    
    
  • Biostorage and services platform revenue was $6.6 million, down $0.1 million, or 1%, from the same period in 2022. Ex-COVID related revenue growth was $1.4 million, or 26%, over the same period in 2022.
    
    
  • Freezers and Thaw Systems platform revenue was $11.4 million, down $6.1 million, or 35%, over the same period in 2022. Ex-COVID related revenue was down $5.5 million, or 32%, from the same period in 2022.
    
    
• Preliminary and unaudited revenue for the full year 2023 was $143.3 million, a decrease of 11% from $161.8 million for 2022. Ex-COVID related revenue was down $5.6 million, or 4%, from the full year 2022.
  
  • Cell processing platform revenue was $65.8 million, down $2.7 million, or 4%, from 2022.
    
    
  • Biostorage and services platform revenue was $25.9 million, down $0.6 million, or 2%, from 2022. Ex-COVID related revenue growth was $9.8 million, or 61%, over the full year 2022.
    
    
  • Freezers and Thaw Systems platform revenue was $51.6 million, down $15.1 million, or 23%, from 2022. Ex-COVID related revenue was down $12.6 million, or 20%, from the full year 2022.

About BioLife Solutions

BioLife Solutions is a leading supplier of cell processing tools and services for the cell and gene therapy (CGT) and broader biopharma markets. Our expertise facilitates the commercialization of new therapies by supplying solutions that maintain the health and function of biologic materials during the collection, development, storage and distribution. For more information, please visit www.biolifesolutions.com, and follow BioLife on LinkedIn and X.

Cautions Regarding Forward Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

Media & Investor Relations

At the Company

Troy Wichterman 
Chief Financial Officer
(425) 402-1400
twichterman@biolifesolutions.com

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SOURCE BioLife Solutions, Inc.

FAQ

What was BioLife Solutions, Inc.'s (BLFS) fourth-quarter cell processing revenue increase?

BioLife Solutions, Inc. (BLFS) reported a fourth-quarter cell processing revenue increase of 11% sequentially to $14.8 million.

How did BioLife Solutions, Inc.'s (BLFS) full-year 2023 preliminary unaudited revenue compare to 2022?

The company's full-year 2023 preliminary unaudited revenue decreased by 11% to $143.3 million compared to 2022.

What are the trends and outlook for BioLife Solutions, Inc. (BLFS) in 2024?

The company is cautiously optimistic that macro and inventory headwinds are easing, and customer behavior is normalizing. BioLife Solutions, Inc. (BLFS) also looks forward to providing additional detail regarding its financial performance and outlook on its fourth quarter and year-end 2023 earnings call in February.