Celularity Says That Its Expected Net Sales For Q1 2024 Are Trending Ahead Of The Expectations It Announced In February For Its Advanced Biomaterial Products And Biobanking Businesses; 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.