Celularity Announces Net Sales Trending Ahead of Expectations for First Quarter 2024; Implements Planned 2024 SG&A Reductions and Manufacturing Ramp for Advanced Biomaterial Products
Expects the First Quarter of 2024 will be the 4th consecutive quarter of both sequential and quarter-on-quarter net sales growth
Implements plan to reduce 2024 selling, general & administrative expenses (SG&A), executive cash compensation, reinforces management’s alignment of incentives with shareholders on corporate success
FLORHAM PARK, N.J., April 15, 2024 (GLOBE NEWSWIRE) — Celularity Inc. (NASDAQ: CELU) (“Celularity”) a regenerative medicine company developing placental-derived allogeneic cell therapies and advanced biomaterial products, today announced that its expected net sales for the first quarter of 2024 are trending ahead of the expectations it announced in February for its advanced biomaterial products and biobanking businesses.
“Expected net sales in the first quarter of 2024 trended up in both January and February and so far, are ahead of the quarterly net sales expectations we announced in early February,” said Celularity CEO and Founder Dr. Robert Hariri, M.D., Ph.D. “Plainly said, we believe the wound care market is adopting our products faster than we first anticipated, which if true should be reflected in continued sales growth, both within the traditional wound care market and from additional potential applications for our advanced biomaterial products. Celularity’s predecessor company was an early innovator in the field of placental-derived biomaterials, and today we continue to develop innovative, next-generation products in this technology. We continue to believe Celularity is uniquely positioned to leverage its diversified platform of technology across cellular and regenerative medicine indications beyond wound care.”
Celularity also highlighted plans to reduce SG&A expense, including its implementation of reduced senior executive cash compensation for the year 2024, as disclosed more fully in the Form 8-K filed by Celularity with the Securities Exchange Commission on February 21, 2024. Under the plan implemented, senior executives are foregoing a portion of their 2024 cash salary as well as payment in cash of any performance bonus payable in 2024.
“This action by Celularity’s leadership team will bolster our ability to invest in expanding production of our advanced biomaterial products, alongside the recent $6 million private placement investment by our largest shareholder,” said Dr. Robert Hariri, M.D., Ph.D. “Our intention is to drive value creation and ensure we keep ahead of rising demand for our advanced biomaterial products, which as disclosed previously has demonstrated an expected triple digit growth.”
Celularity also provided additional insight into its previously announced advanced biomaterial product commercial and development pipeline.
Celularity’s advanced biomaterial product pipeline consists of four commercial-stage products and three investigational products. The commercial-stage products are off-the-shelf placental-derived allografts and connective tissue matrices that are marketed primarily under its own brands in the U.S. for use in soft tissue repair and reconstructive procedures, including acute and chronic non-healing wounds and burns:
- Biovance®, a human amniotic membrane allograft designed to cover or offer protection from the surrounding environment in soft tissue repair and reconstructive procedures.
- Biovance® 3L, a tri-layer human amniotic membrane allograft designed for use as a covering, barrier, or wrap to surgical sites and to support the treatment of ocular surface disease and ocular surgical applications.
- Interfyl®, a decellularized human placental connective tissue matrix designed for use to replace or supplement damaged or inadequate integumental tissue.
- CentaFlex®, a decellularized human placental matrix allograft derived from human umbilical cord designed for use as a surgical covering, wrap or barrier to protect and support the repair of damaged tissues.
Celularity’s investigational products are:
- Celularity Tendon Wrap, which is being developed for the management and protection of tendon injuries.
- Celularity Bone Void Filler, which is being developed for use as a passive osteoconductive bone filler in the pelvis, extremities, and posterior-lateral spinal fusion settings, as well as other skeletal defects.
- Celularity Placental Matrix, which is a fully resorbable device composed of extracellular matrix derived from decellularized human placental tissue harvested according to Good Manufacturing Practices that the Company is developing for use as a passive temporary wound covering.
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.
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: Celularity’s expectations regarding First Quarter 2024 sales and quarter-on-quarter net sales growth; the pace of market adoption of Celularity’s products and its impact on sales growth; the impact of the reduction of cash compensation for senior executives on Celularity’s production of its advanced biomaterial products; and Celularity’s ability stay ahead of rising demand for its advanced biomaterial products; among others. 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 March 31, 2023, 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:
Patrick Maddox
KCSA Strategic Communications
Celularity@kcsa.com