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After-Market Momentum: Celularity (CELU) Shares Climb On Increased Guidance

By Fahim Awan
Published On November 11, 2024 7:51 AM UTC
After-Market Momentum: Celularity (CELU) Shares Climb On Increased Guidance

Celularity Inc. (NASDAQ: CELU) experienced significant stock momentum last Friday, with its shares climbing 7.04% after hours to $3.80, following a regular-session increase of 14.89%, closing at $3.55. The surge follows CELU’s announcement to raise its net sales guidance for the full year 2024.

Revised Revenue Projections Reflect Biomaterial Sales Growth

Celularity revised its 2024 revenue expectation from the previously stated range of $50 million to $56 million to an updated estimate of $54 million to $60 million in response to higher anticipated sales. This change coincides with higher-than-expected sales of its advanced biomaterial products, which are expected to add between $49 million and $54.5 million to the company’s yearly sales numbers. Biobanking services are also expected to contribute between $5.0 million and $5.5 million.

Record Sales Performance Drives Optimism

October marked a milestone for Celularity with its highest single-month net sales projections, estimated between $8.3 million and $8.9 million. For the ten months ending October 31, 2024, expected net sales reached $44.4 million, comprising $40.2 million from advanced biomaterial products and $4.2 million from biobanking. A substantial part of this sales growth is attributed to Celularity’s newly launched Rebound product, which alone is projected to contribute approximately $9 million to total sales.

Strong Quarterly Results and Product Demand Bolster Outlook

Confidence in CELU’s updated full-year projection has been strengthened by the company’s strong second and third quarter results. Rebound, a new product in Celularity’s line of placental-derived bios material solutions, has demonstrated high demand, setting the business up for further growth in the coming quarters. Additionally, Celularity keeps creating next-generation biomaterials, broadening its range of products in the quickly developing domains of cellular and regenerative medicine.

A Strategic Plan for Further Development in 2025

Looking ahead, Celularity aims to capitalize on its unique business model, extensive technical infrastructure, and proprietary assets. With a solid commercial foundation, the company is well-positioned to leverage its growing market traction as it advances into 2025 and beyond, remaining at the forefront of innovations in biomaterials and regenerative therapies.

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