BioLife Solutions Pre-Releases Disappointing Q323 Due to Bioprocessing Slowdown; Company Also Announces Key Leadership Transitions
BioLife Solutions recently announced significant leadership changes and shared its preliminary third-quarter revenue, as well as an updated outlook for 2023.
Under the leadership transition, Roderick de Greef has been appointed as Chairman of the Board of Directors and Chief Executive Officer, succeeding Michael Rice, who is retiring after 17 years with the company. Rice will continue to consult for BioLife until March 31, 2024, ensuring a smooth transition. Additionally, Garrie Richardson, the former General Manager of BioLife’s biostorage business and founder of SciSafe, has been named Chief Revenue Officer.
The changes come following the company reported preliminary, unaudited revenue of approximately $33.3 million for the third quarter of 2023. This includes cell processing platform preliminary revenue of $13.3 million. The company had cell processing platform revenue of $18.7 million last quarter but guided to a 30% decline sequentially followed by improved trends in the fourth quarter. Preliminary revenue for Storage and Storage Services, and Freezers and Thaw Systems platforms was $6.6 million and $13.4 million, respectively. The street had been anticipating 3Q23 revenue of $32.7 million in the third quarter, however 3Q revenue was down significantly from the first half of the year run rate.
BioLife Solutions now anticipates full-year 2023 revenue to be at the lower end of the previously announced range, which was $144 million to $158 million. This updated guidance considers near-term business trends, customer interactions, and the ongoing impact of market dynamics. The low end of the guidance range implies 4Q23 revenue of around $34 million. The company noted that a planned strategic alternative process for its freezer line could also impact annual revenues.
The company had $48 million in cash at the end of last quarter, and product softness could begin to exacerbate concerns around cash burn despite the relatively modest burn over the last 12 months.
On last quarter’s earnings call the company noted that the bioprocessing industry was facing challenges due to macroeconomic headwinds and global economic uncertainties. They cited the impact from biotech funding and capital equipment purchases, especially in the realm of freezers. Additionally, the company noted there has been a recent trend of destocking and a temporary reduction in demand for cell processing consumables as well as slower growth in China, aligning with observations made by several industry peers.