Celularity Expands Advanced Biomaterial Product Commercial Portfolio with Acquisition of Rebound™ Product from Sequence LifeScience, Inc.

Rhea-AI Summary

Celularity Inc. (Nasdaq: CELU) has expanded its commercial portfolio of placental-derived advanced biomaterial products by acquiring Rebound™, a full thickness placental-derived allograft matrix product, from Sequence LifeScience, Inc. This acquisition is expected to contribute significantly to Celularity's fourth quarter 2024 sales and help fulfill the company's projected full-year 2024 biomaterial sales.

Celularity's Chairman, CEO, and founder, Robert J. Hariri, M.D., Ph.D., highlighted that the company's biomaterial product sales in the first half of 2024 exceeded $24 million, surpassing their full-year sales in 2023. The addition of Rebound complements Celularity's existing portfolio and enhances its ability to address a broader patient population in wound care and soft tissue repair.

This strategic acquisition aligns with Celularity's vision of expanding its offerings and reinforces its leadership in the field of placental-derived biomaterials. The company continues to differentiate itself in the regenerative medicine market by leveraging the unique properties of placental tissues to provide advanced, natural solutions designed to improve healing outcomes.

Positive

• Acquisition of Rebound™ product expands Celularity's commercial portfolio
• Biomaterial product sales exceeded $24 million in the first half of 2024
• Rebound sales expected to contribute significantly in Q4 2024
• Expansion into broader patient population for wound care and soft tissue repair
• Reinforces leadership in placental-derived biomaterials field

Negative

• None.

Insights

Financial Analyst

The acquisition of Rebound from Sequence LifeScience marks a significant expansion of Celularity's commercial portfolio in the advanced biomaterial products sector. This move is strategically important for several reasons:

• It complements Celularity's existing product line, potentially broadening its market reach in wound care and soft tissue repair.
• The company reported biomaterial product sales exceeding $24 million in the first half of 2024, already surpassing full-year 2023 sales.
• Management expects Rebound to contribute meaningfully to Q4 2024 revenue, supporting the company's full-year 2024 biomaterial sales projections.

With a market cap of about $59 million, this acquisition could have a substantial impact on Celularity's financial performance. The company's focus on placental-derived products positions it uniquely in the regenerative medicine market, which could drive long-term growth. However, investors should closely monitor the integration process and the actual revenue contribution from Rebound to assess the acquisition's success.

Medical Research Analyst

Celularity's acquisition of Rebound represents a significant advancement in their placental-derived biomaterial portfolio. This move is noteworthy for several reasons:

• Rebound, being a full thickness placental-derived allograft matrix product, likely offers unique regenerative properties that complement Celularity's existing offerings.
• The expansion into wound care and soft tissue repair markets with Rebound could open new avenues for clinical applications and research.
• Celularity's focus on placental-derived products leverages the unique biological properties of these tissues, which have shown promise in regenerative medicine.

From a research perspective, this acquisition could accelerate innovation in placental-derived therapies. It may also provide opportunities for comparative studies between different placental products, potentially leading to optimized treatments for various conditions. The growing commercial success of these products ($24 million in H1 2024) suggests increasing clinical adoption, which could drive further research and development in this field.

FLORHAM PARK, N.J., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Celularity Inc. (Nasdaq: CELU) (“Celularity”), a regenerative and cellular medicine company, today announced that it had added to its commercial portfolio of placental-derived advanced biomaterial products with the acquisition of Rebound, a full thickness placental-derived allograft matrix product, from Sequence LifeScience, Inc. (“Sequence”).

“Rebound adds to our portfolio of placental-derived advanced biomaterial products, sales of which through the first half of 2024 were in excess of $24 million, which is greater than our full year sales in 2023,” said Robert J. Hariri, M.D., Ph.D., Chairman, CEO and founder of Celularity. “We expect Rebound sales to contribute meaningfully in the fourth quarter 2024 and to fulfill expected full year 2024 biomaterial sales which we announced in February, augmenting our other revenues from biobanking and research agreements,” added Dr. Hariri. “I am very pleased with Celularity’s commercial traction and optimistic about our future performance.”

Rebound complements Celularity’s existing portfolio of advanced biomaterials, which includes innovative placental-derived products that have shown strong market demand. The addition of Rebound enhances Celularity’s ability to address a broader patient population in wound care and soft tissue repair. By leveraging the unique properties of placental tissues, Celularity continues to differentiate itself in the regenerative medicine market, providing physicians and patients with advanced, natural solutions designed to improve healing outcomes. This acquisition aligns with Celularity’s strategic vision of expanding its offerings and reinforces its leadership in the field of placental-derived biomaterials.

About Celularity 

Celularity Inc. (Nasdaq: CELU) is an innovative regenerative and cellular medicine company. It is developing and commercializing advanced biomaterial products and allogeneic, cryopreserved, placental-derived cell therapies, all derived from the postpartum placenta. What sets Celularity apart is its therapeutic programs that target aging-related diseases, including degenerative diseases, cancer, and immune disorders, using mesenchymal-like adherent stromal cells (MLASCs), T-cells engineered with CAR (CAR T-cells), and genetically modified and unmodified natural killer (NK) cells. Celularity’s unique approach, harnessing the placenta’s biology and ready availability, is paving the way for therapeutic solutions that address significant unmet global needs for effective, accessible, and affordable therapies.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as well as within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are “forward-looking statements,” including those relating to future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intends,” “may,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “target,” “will,” “would” and the negative of terms like these or other comparable terminology, and other words or terms of similar meaning. The forward-looking statements in this press release include express or implied statements regarding the impact of the Rebound asset on Celularity’s biomaterial sales for the fourth quarter 2024 and full year 2024, and expectations related to commercial performance. Many factors could cause actual results to differ materially from those described in these forward-looking statements, including but not limited to: Celularity’s liquidity situation; the volatility in Celularity’s stock price; inherent risks in biotechnological development, including with respect to the development of novel advanced biomaterials; and the regulatory approval process; along with those risk factors set forth under the caption “Risk Factors” in Celularity’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on July 30, 2024, and other filings with the SEC. If any of these risks materialize or underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Celularity does not presently know, or that Celularity currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, these forward-looking statements reflect Celularity’s current expectations, plans, or forecasts of future events and views as of the date of this communication. Subsequent events and developments could cause assessments to change. Accordingly, forward-looking statements should not be relied upon as representing Celularity’s views as of any subsequent date, and Celularity undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Investor Contact:
Carlos Ramirez
Senior Vice President, Celularity Inc.
Carlos.ramirez@celularity.com

Media Contact:
Raquel Cona / Michaela Fawcett
KCSA Strategic Communications
rcona@kcsa.com / mfawcett@kcsa.com

FAQ

What product did Celularity (CELU) acquire from Sequence LifeScience?

Celularity acquired Rebound™, a full thickness placental-derived allograft matrix product, from Sequence LifeScience, Inc.

How much were Celularity's (CELU) biomaterial product sales in the first half of 2024?

Celularity's biomaterial product sales exceeded $24 million in the first half of 2024, which is greater than their full-year sales in 2023.

When is Rebound expected to contribute to Celularity's (CELU) sales?

Rebound sales are expected to contribute meaningfully to Celularity's sales in the fourth quarter of 2024.

What areas will the Rebound acquisition help Celularity (CELU) address?

The acquisition of Rebound will help Celularity address a broader patient population in wound care and soft tissue repair.

How does the Rebound acquisition align with Celularity's (CELU) strategy?

The acquisition aligns with Celularity's strategic vision of expanding its offerings and reinforces its leadership in the field of placental-derived biomaterials.