Celularity Reports Over Sevenfold Growth in Net Product Sales through Third Quarter 2024 Compared to Third Quarter 2023

Rhea-AI Summary

Celularity (NASDAQ: CELU) has filed its Q3 2024 Form 10-Q, becoming current with quarterly report filings. The company reported significant growth in financial performance:

- Total net revenues reached $36.1 million for the nine months ended September 30, 2024, up 238.6% from $10.7 million in the same period last year

- Q3 2024 total net revenues were $9.3 million, increasing 145.5% from $3.8 million in Q3 2023

- Product sales showed exceptional growth, reaching $26.2 million for the nine months ended September 30, 2024, a 621.1% increase from $3.6 million in the previous year

The company has addressed its Nasdaq listing compliance issues by filing the Q3 Form 10-Q and is implementing improvements to ensure timely financial disclosures.

Positive

• Total net revenues increased 238.6% to $36.1 million for nine months ended September 30, 2024
• Q3 2024 revenues grew 145.5% to $9.3 million year-over-year
• Product sales surged 621.1% to $26.2 million for nine months ended September 30, 2024
• Regained Nasdaq listing compliance with Q3 2024 filing

Negative

• Previously failed to meet Nasdaq continued listing requirements due to delayed Q3 filing

Insights

Financial Analyst

Celularity's Q3 2024 financial results demonstrate remarkable growth, with total net revenues reaching $36.1 million for the first nine months, marking a substantial 238.6% increase year-over-year. The standout performance comes from product sales, which surged by an impressive 621.1% to $26.2 million. This growth trajectory, coupled with the company's strategic focus on expense management and expansion into Asia Pacific markets through the Genting Berhad partnership, signals improving operational efficiency. However, recent Nasdaq compliance issues due to delayed filings raise governance concerns, though these have been addressed with the latest 10-Q submission. The company's market cap of $49.5 million appears modest relative to its revenue growth, suggesting potential valuation opportunities if operational momentum continues.

Market Research Analyst

The biomaterial products segment's exceptional growth indicates strong market demand and successful commercialization efforts. The 621.1% increase in product sales suggests effective market penetration and distribution strategies. The company's strategic partnership with Genting Berhad opens up significant opportunities in the lucrative Asia Pacific market, potentially driving future growth. The implementation of improved reporting processes addresses previous operational weaknesses and should enhance investor confidence. While the revenue growth is impressive, investors should monitor the company's expense management initiatives and their impact on profitability metrics, which will be important for sustaining this growth trajectory.

• Celularity filed its Quarterly Report on Form 10-Q for the period ended September 30, 2024, and is now current with its quarterly report filings

• Reported Total Net Revenue for the Three Months and the Nine Months ending September 30, 2024, are consistent with last guidance, with significant growth over the same periods in 2023
  

FLORHAM PARK, N.J., Dec. 06, 2024 (GLOBE NEWSWIRE) -- Celularity Inc. (Nasdaq: CELU) (“Celularity” or the “Company”), a regenerative and cellular medicine company, today announced that it filed its Quarterly Report on Form 10-Q for the period ended September 30, 2024. With this filing, the Company is now current on its quarterly report filings.

For the nine months ended September 30, 2024, Celularity reported total net revenues of $36.1 million, an increase of $25.4 million, or 238.6%, compared to $10.7 million for the same period last year. For the three months ended September 30, 2024, total net revenues were $9.3 million, an increase of $5.5 million, or 145.5%, compared to $3.8 million for the same period last year. Product sales, net, which includes direct-to-customer sales of our advanced biomaterial products, saw the largest growth, reaching $26.2 million for the nine months ended September 30, 2024, compared to $3.6 million for the same period last year, or an increase of 621.1%.

“Our reported revenue through September 30, 2024, confirms the confidence we have expressed throughout this year, including the recent announcement that we were raising the full-year net sales guidance we issued in February,” said Robert J. Hariri, M.D., Ph.D., Founder, Chairman, and CEO. “In parallel with growing revenue, we continue to exercise discipline on the expense side and to evaluate opportunities to realign as the business evolves and grows, including in Asia Pacific with our strategic partner Genting Berhad as well as leveraging our cell therapy platform and technical operations capabilities.”

On November 27, 2024, Celularity announced that it received notification from the Listing Qualifications department of the Nasdaq Stock Market LLC (“Nasdaq”) stating that Celularity does not comply with the Nasdaq continued listing requirements due to the Company’s inability to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2024 (the “Q3 Form 10-Q”). Celularity has now filed its Q3 Form 10-Q in compliance with the Nasdaq continued listing requirements.

Dr. Hariri added, “With the completion of our quarterly report on Form 10-Q for the third quarter 2024, we reaffirm our commitment to maintaining compliance with the Nasdaq listing requirements. As announced previously, we continue to strengthen our reporting processes by implementing several key improvements to help mitigate future delays and ensure timely and accurate financial disclosures.”

About Celularity

Celularity Inc. (Nasdaq: CELU) is a regenerative medicine company developing and commercializing advanced biomaterial products and allogeneic, cryopreserved, placental-derived cell therapies, all derived from the postpartum placenta. Its therapeutic programs 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 believes that by harnessing the placenta’s unique biology and ready availability, it can develop therapeutic solutions that address significant unmet global needs for effective, accessible, and affordable therapies. For more information, visit www.celularity.com.

Forward Looking Statements

This 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 expected net sales for the quarter ended September 30, 2024, growth relative to prior periods, its 2024 financial goals and expectations for future financial results, compliance with the Nasdaq listing rules, the sufficiency of the improvements to its reporting processes, and its ability to meet future reporting deadlines. 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 was Celularity's (CELU) revenue growth in Q3 2024?

Celularity's Q3 2024 total net revenues were $9.3 million, representing a 145.5% increase compared to $3.8 million in Q3 2023.

How much did Celularity's (CELU) product sales grow in the first nine months of 2024?

Celularity's product sales grew by 621.1%, reaching $26.2 million for the nine months ended September 30, 2024, compared to $3.6 million in the same period last year.

Has Celularity (CELU) resolved its Nasdaq listing compliance issues?

Yes, Celularity has resolved its Nasdaq listing compliance issues by filing its Q3 2024 Form 10-Q and is now current with its quarterly report filings.